Participative Budgeting and its Effects on Employee Motivation
Essay from the year 2002 in the subject Business economics - Business Management, Corporate Governance, grade: 64% (England = B+), University of the West of England, Bristol (Bristol Business School - Bachelors Degree Business Administration), 31 entries in the bibliography, language: English, abstract: Accounting is an important aspect of management control. Budgets are unarguably the most obvious form of utilising accounting data to monitor and punish or reward strategic business units and consequently employees, regardless of whether they are managers or workers on the shop floor, according to their performance in relation to budgeted targets. “The budget is a financial plan for implementing the various decisions that management has made” (Drury 1997, p. 8). Participation in the formation process of budgets by those ultimately affected is practised in companies with the aim to generate a better-performing workforce. Empirical evidence on the effects of participative budgeting is ambiguous and the literature is fragmented. In this paper, I shall mainly review research on participative budgeting as well as other issues in budgeting and some critical perspectives on budgeting as a means of management control.
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Abernethy 1997 accounting and management accounting control systems Accounting Review affecting managerial performance Ancient Egypt antecedent and consequence antecedent moderators Argyris attitude and motivation Brownell & Abernethy Brownell 1982a Brownell’s Budget Adequacy budget emphasis budget setting process budget-based incentives budgetary participation budgetary slack budgeted targets consequence moderators contingent variables continuum Critical Perspectives Dunk Effect of Budget effects of participation Emphasis and Information employee attitude Functionalist German National Library GRIN Hopwood hypothesis increasing number information asymmetry intervening variables job performance job satisfaction Journal of Accounting Locus of Control Magner management accounting control Management Accounting Research management-by-exception Milani non-participation Nouri number of studies organisational commitment Organisations and Society participation and job participation and performance participation and slack participative management Perspectives on Accounting positive association prior research published qualitative data relationship between budgetary relationship between participation reliance on accounting Shields & Young Shields et al significant interaction strategic change Study Antecedents Consequences study’s subordinates Subramaniam