Budgeting Performance Evaluation Style has a significant influence on the relationship between budgeting and managerial performance

Oct 13, 2025 by leolavanderia.com.br 111 views

Effect of Budgeting Performance Evaluation Style on Budget Relationship with Managerial Performance: Job Satisfaction as Moderating Variables in Faculties of the University of North Sumatra

Introduction

Budgeting is a crucial aspect of any organization, including universities, as it plays a significant role in determining the allocation of resources and achieving organizational goals. In the context of the University of North Sumatra, budgeting is essential for the faculties to achieve their performance targets and improve managerial performance. However, the relationship between budgeting and managerial performance is complex and influenced by various factors, including the budgeting performance evaluation style and job satisfaction. This study aims to investigate the effect of budgeting performance evaluation style on the relationship between budgeting and managerial performance, with job satisfaction as a moderating variable, in faculties at the University of North Sumatra.

Literature Review

Budgeting is a critical component of performance management, and its effectiveness is influenced by the budgeting performance evaluation style. The budgeting performance evaluation style refers to the methods and techniques used to evaluate the performance of budgeting, including the criteria used to assess budgeting performance and the frequency of evaluation. Research has shown that the budgeting performance evaluation style can have a significant impact on the effectiveness of budgeting in improving managerial performance (Kaplan, 2001; Simons, 2000).

Job satisfaction is another critical factor that influences the relationship between budgeting and managerial performance. Job satisfaction refers to the level of contentment and happiness that employees experience in their jobs. Research has shown that job satisfaction can have a significant impact on employee motivation and performance (Hackman & Oldham, 1976; Locke & Latham, 1990). In the context of budgeting, job satisfaction can influence the effectiveness of budgeting in improving managerial performance by motivating employees to achieve performance targets.

Methodology

This study used a quantitative approach to investigate the effect of budgeting performance evaluation style on the relationship between budgeting and managerial performance, with job satisfaction as a moderating variable. The study was conducted in 12 faculties at the University of North Sumatra, with a population of 48 as a sample. Data was collected using a survey questionnaire that measured budgeting performance evaluation style, job satisfaction, and managerial performance.

Data Analysis

Data analysis was carried out using simple regression, regression with intervening or path analysis variables, and regression with moderating variables. The results of the analysis showed that the evaluation style of budgeting performance can affect the relationship between budgeting and managerial performance, with job satisfaction as a moderating variable.

Results

The results of this study have important implications for performance management within the Faculty of North Sumatra. The study found that:

Budgeting Performance Evaluation Style has a significant influence on the relationship between budgeting and managerial performance. This means that how to evaluate the performance of budgeting will have a direct impact on the effectiveness of budgeting in improving managerial performance.
Job satisfaction acts as a moderating variable in this relationship. That is, the level of employee job satisfaction will affect the strength of the relationship between the evaluation style of budgeting performance and managerial performance.

Practical Implications

This research has some practical implications for faculty leaders at the University of North Sumatra:

It is important to apply the appropriate budgeting performance evaluation style. Effective evaluation style will help motivate lecturers and staff to achieve the performance targets set in the budget.
Increasing employee job satisfaction. High job satisfaction will strengthen the effect of budgeting performance evaluation style on managerial performance.
Building effective communication. Transparent and open communication between faculty leaders and lecturers/staff regarding the budgeting and performance evaluation process will increase trust and motivation in achieving targets.

Conclusion

This study provides empirical evidence that the performance of budgeting performance and job satisfaction has an important role in improving managerial performance within the Faculty of North Sumatra. Faculty leaders need to pay attention and manage these two factors to achieve optimal performance.

Suggestion

Further research can be done by considering other moderating variables such as transformational leadership, organizational culture, and work environment.
Review further how optimal budgeting performance evaluation style can be applied in various faculties with different characteristics.
It is important to continue to evaluate and improve the budgeting system and periodic performance evaluation to ensure its effectiveness in improving managerial performance.

References

Hackman, J. R., & Oldham, G. R. (1976). Motivation through the design of work: Test of a theory. Organizational Behavior and Human Performance, 16(2), 250-279.

Kaplan, R. S. (2001). Strategic performance measurement and management in a dynamic environment. Accounting Horizons, 15(3), 213-226.

Locke, E. A., & Latham, G. P. (1990). A theory of goal setting & task motivation. Englewood Cliffs, NJ: Prentice Hall.

Simons, R. (2000). Performance measurement and control systems: A handbook of contemporary issues. Upper Saddle River, NJ: Prentice Hall.
Frequently Asked Questions (FAQs) about the Effect of Budgeting Performance Evaluation Style on Budget Relationship with Managerial Performance

Q: What is the main objective of this study?

A: The main objective of this study is to investigate the effect of budgeting performance evaluation style on the relationship between budgeting and managerial performance, with job satisfaction as a moderating variable, in faculties at the University of North Sumatra.

Q: What is budgeting performance evaluation style?

A: Budgeting performance evaluation style refers to the methods and techniques used to evaluate the performance of budgeting, including the criteria used to assess budgeting performance and the frequency of evaluation.

Q: What is the significance of job satisfaction in this study?

A: Job satisfaction is a moderating variable in this study, which means that it affects the strength of the relationship between the evaluation style of budgeting performance and managerial performance.

Q: What are the implications of this study for faculty leaders at the University of North Sumatra?

A: The study has several implications for faculty leaders at the University of North Sumatra, including the importance of applying the appropriate budgeting performance evaluation style, increasing employee job satisfaction, and building effective communication.

Q: What are the limitations of this study?

A: The study has several limitations, including the use of a small sample size and the reliance on self-reported data.

Q: What are the future research directions based on this study?

A: Future research directions based on this study include considering other moderating variables such as transformational leadership, organizational culture, and work environment, and reviewing further how optimal budgeting performance evaluation style can be applied in various faculties with different characteristics.

Q: What are the practical implications of this study for organizations?

A: The study has several practical implications for organizations, including the importance of applying the appropriate budgeting performance evaluation style, increasing employee job satisfaction, and building effective communication.

Q: How can organizations improve their budgeting performance evaluation style?

A: Organizations can improve their budgeting performance evaluation style by using a combination of quantitative and qualitative methods, including financial metrics, non-financial metrics, and employee feedback.

Q: What are the benefits of improving budgeting performance evaluation style?

A: The benefits of improving budgeting performance evaluation style include improved employee motivation and performance, increased job satisfaction, and better alignment of budgeting with organizational goals.

Q: How can organizations measure the effectiveness of their budgeting performance evaluation style?

A: Organizations can measure the effectiveness of their budgeting performance evaluation style by using metrics such as employee satisfaction, performance metrics, and financial metrics.

Q: What are the challenges of implementing a new budgeting performance evaluation style?

A: The challenges of implementing a new budgeting performance evaluation style include resistance to change, lack of resources, and difficulty in measuring the effectiveness of the new system.

Q: How can organizations overcome these challenges?

A: Organizations can overcome these challenges by communicating the benefits of the new system to employees, providing training and support, and monitoring the effectiveness of the new system.