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BRAND: The Influence of Organizational Commitment and Motivation in the Relationship between Budget Participation and Managerial Performance (Empirical Study on Provincial Government Agencies (SKPA) of Aceh Province, Indonesia)

The paper The Influence of Organizational Commitment and Motivation in the Relationship between Budget Participation and Managerial Performance (Empirical Study on Provincial Government Agencies (SKPA) of Aceh Province, Indonesia) was written by Muslim A. Djalil, Mirna Indriani and Muttaqin.

Path Diagram of Hypothesis
Path Diagram of Hypothesis

Government employees, which have the function of planning and implementing activity programs to provide public service, are the most important element in improving the performance of local government. Mainly, the local government needs to improve its performance in providing public service. Two things are very important when talking about this: the budget management in the public sector (if it goes well, the organizational goal of government to improve the public welfare can be achieved) and managerial performance (the managerial performance comes hand in hand with the ability of the employees). Consequently, we can observe that the objective of this article is to test whether organizational commitment and motivation mediate the relationship between budget participation and managerial performance.

First of all, the authors present a literature review which includes explanations of managerial performance, budget participation, organizational commitment and motivation. As we continue reading, we find out what kind of research this is, mainly – an explanation research which explains relationship and influence through hypothesis testing.

There were tests, like the Validity and Reliability Test, which show that managerial performance, budget participation, organizational commitment and motivation are reliable and so is with the validity or the Classic Assumption Test which demonstrated that the data was normally distributed and that there was no auto-correlation between observation data.

Finally, the first hypothesis (Ha1) was accepted, which means that budget participation, organizational commitment and motivation had an effect on managerial performance. The second hypothesis (Ha2) was accepted, too, which means that budget participation partially influences the managerial performance. The third hypothesis (Ha3) – accepted. This means that organizational commitment partially affects the managerial performance. The fourth hypothesis (Ha4) was accepted – the motivation partially affected the managerial performance. The fifth hypothesis (Ha5) – accepted as well – shows that the partial budget participation affected organizational commitment. The sixth hypothesis (Ha6) was accepted and it demonstrates that budgetary participation partially affected the motivation. And, finally, the seventh hypothesis (Ha7) and the eighth hypothesis (Ha8) were the last and the only hypotheses that were rejected. The 7th means that budget participation had no effect on managerial performance mediated by organizational commitment. The 8th means that the budget participation has no effect on managerial performance mediated by motivation.

Concluding, after reading carefully these 8 hypothesis, the authors proposed recommendations for further researches like adding more other independent variables such as work satisfaction, leadership style, etc or replicating the object of the research in the level of regency in the province of Aceh or other automous province in other countries.

Read more here:

https://www.edusoft.ro/brain/index.php/brand/article/viewFile/683/760

Mihaela Guțu