Antecedents of Budgetary Participation: Enhancing Employees Job Performance

Dr Desmond Yuen
University of acau! "aipa! acau
e#mail: desmondy$umac%mo

Abstract
This study investigates two antecedents to participation in budgetary activitiesa need for a sense of achievement and a positive work attitudeand then assesses the impact of these three variables on job performance in the context of public-sector organizations in Macau. total of !"# managers participated in the study. This paper demonstrates that the two antecedent factorsa positive work attitude and a need for achievementhave a significant positive relationship with budgetary participation. $t is concluded that indirect relationships exist between the two antecedent variables %work attitude and a need for achievement& and the dependent variable %job performance&' with participation in budgeting as an intervening variable. The results of the study have implications for the design of effective budgeting planning control process in public-sector organizations in Macau. $n providing a formal conceptual framework' the paper argues that the interactive process of budgeting systems means that individual-level factors are crucial to the achievement of budget plans. &ey'ords: pubic sector organization' work attitude' need for achievement' job performance

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(ntroduction
(ublic-sector organizations have traditionally had a significant degree of formal administrative control over budgeting systems. )owever' in Macau' as in other parts of the world' the organizational structure of power and influence over budgeting systems is changing as attempts are made to improve operational efficiency %*swick and +rant' ",,#&. There are three major features to these changes. -irst' public-sector organizations have been placing more emphasis on flexibility' structural flatness' and reduced formality. .econdly' the /de-bureaucratization0 of systems and structures has allowed more employees to participate in budgetary activities. Thirdly' the attitudes of employees have been positively influenced by such incentives as opportunities for promotion' the availability of honoraria' the provision of bonus payments' and the introduction of various other forms of extrinsic reward. dcroft and 1illis %!223& have argued that such changing attitudes produce increased turnover of staff members during their participation in budgeting in public-sector organizations' and that this dramatically increases costs and reduces the 4uality of services provided to society. )owever' previous studies of organizational dynamics have identified positive attitudes among employees and a need for achievement as being important elements in lowering turnover and improving performance %5andall' ",,26 Mathieu and 7ajac' ",,2&. ccording to this perspective' budgetary participation can be more effective when staff members possess a positive attitude and a need for achievementwhich will eventually enhance the performance of employees.

8mpirical evidence on the relationship between budgetary participation and performance has been offered by several researchers %9au et al.' ",,3' Milani' ",:36 +ul et al.' ",,3&. .ome studies have found a positive relationship between budgetary participation and job performance. *ther studies have suggested that there is a weak positive relationship %Milani' ",:3&' or even a negative relationship %;enis' ",:,&' between the two factors. These mixed results indicate that no simple relationship exists between budgetary participation and job performance' and suggest that there could be other variables involved. .uch inconsistent findings have prompted several researchers to examine the antecedent variables that affect job performance indirectly during budgetary participation. )owever' study of public-sector organizations remains scanty. $t is therefore necessary to extend the study of the complex relationship between budgetary participation and performance to include an examination of the relevant variables in a public-sector setting. .uch evidence is clearly important in developing appropriate accounting-based planning and control systems that facilitate effective budgetary development.

.hields and .hields %",,<& have suggested that it is important not only to understand the conse4uences of participative budgeting' but also to investigate its antecedents. The current study has selected two factors as potential antecedent variables%i& need for achievement6 and %ii& work attitudes. The study adopts the path-analysis techni4ue to explain the relationship between budgetary participation and job performance' including a consideration of the two selected antecedent variables. 8mpirical evidence related to the factors depicted in the path-analysis model %see -igure "& is limited %.ubramaniam et al.' !22!6 Mia' ",<< and .teer' ",::&. =rownell and Mc$nnes %",<#& did find that managers need to be motivated to perform better in budgetary activities' and that managers who have a greater need for achievement and certainty are self-motivated to participate more actively than those who have less need for achievement. =rownell %",<!& has also mentioned that the two individual-level variables identified in the present study play significant roles in influencing employee participation in budgeting activitiesbecause it is an important source of information. -rom an organizational perspective' satisfying unit managers0 need for achievement has been shown to reduce employees0 lateness to work' absenteeism' and staff turnover rates %5andall' ",,2&' and (otter and .chmidgall %",,,& have stated that there is a need for research that connects the design of accounting systems and overall organizational design to improve the organization0s efficiency. The rest of the paper is arranged as follows. theoretical framework is presented in the next

section. This framework links the antecedent variables %working attitudes and the need for achievement& to budgetary participation and its indirect effect on job performance. .ubse4uent sections present the methodology of the study' the results of the survey research' and a discussion of the results. The paper concludes with notes on the limitations of the study and its final conclusion.

)onceptual frame'or*
Two variables were selected for examination in the present study as possible antecedent variables of participative budgeting%i& /manager0s attitudes06 and %ii& /managers0 need for achievement0. These variables were chosen for examination because employees who have a need for achievement and those who have a positive work attitude are likely to demonstrate enhanced budgetary participation. .uch employees are likely to develop greater identification with' and involvement in' the organization. $n turn' their job performance is likely to be enhanced. These propositions' as depicted in -igure "' have implications for the design of

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effective management-accounting systems and for human-resource management in publicsector organizations. The present study considers only the indirect relationships between the two antecedent variables %/work attitude0 and /need for a sense of achievement0& and the dependent variable %/job performance0&6 /participation in budgeting0 is taken as the intervening variable in these indirect relationships. ?o hypothesis is developed for the direct relationship between /work attitude0 and /job performance06 nor is one postulated for the direct relationship between /a need for a sense of achievement0 and /job performance0. review of the literature suggests that such direct relationships are weak' and that employees re4uire a practical opportunity to take control over the working environment if their job performance is to be improved and measured in situations in which budgetary participation provides them such opportunities %;lich @ -eldman' ",,!6 )ammer @ *rgan' ",,A6 -erres et al.' !22A&. "a*e in +igure , about here

-eed for achievement and participation in budgeting

need for achievement has long been thought to influence job performance. 9ocke %",<!' ",,"& suggested that a sense of achievement promotes motivation and good job performance. )ogan and )ogan %",,#& found that an employee performs better if the perceived value can be achieved at a satisfactory level. The importance of a sense of achievement lies in the belief that one should work hard to accomplish difficult but challenging goals at work. 5avlin and Meglino %",<:& found that the need for achievement played a significant role in motivating employees during budgetary participation because the results of job performance can be increased. need for achievement can be defined as Bthe personal striving of individuals to attain goals within their social environmentC %Dassidy and 9ynn' ",<, pp. >2"E""&. (ersons with a high need for achievement are potentially useful members of an organization because they accept competitive situations' tend to be independent' and have an interest in excellence %1ard' ",,>&. They are also willing to take personal responsibility for success and generally perceive themselves to have a higher ability than the others %;ukla' ",:!&. ;lich and -eldman %",,!& found that such managers care about their work' and put more effort into it. Moreover' managers with high need for achievement set higher goals for themselves' and have higher expectations of performance than those with lower need for achievement %9ocke @ 9atham' ",,26 Matsui et al.' ",<!&. This desire for success increases their feeling of self-worth in an organization. These employees re4uire more accurate feedback and information from their

superior to achieve a preset target. $ndividuals with a high need of achievement like to undertake achievement-oriented activities when an opportunity arises %=ateman and +rant' ",,>6 1einer' ",<!&. 9ocke %",,"& suggested that the influence of /achievement0 is farther removed %in terms of causal se4uence& from actual behaviour than are other factorssuch as intentions and goals. (redictions of behaviour are therefore difficult to make with any confidencebecause of the number of intervening factors in the process. Fohn %",,"& stated that it is important to examine the relationship between the need for achievement and job performance under various situational constraints. $n addition' employees who have a need for achievement by participating in budget setting can gain job-relevant information that might help them to set appropriate goals. They should generally have occupational goals that are congruent with their abilities %1einer' ",<!&. They are likely to be flexible in seeking detailed information and feedback from a variety of sources to help them to achieve the preset goals %;lich and -eldman' ",,!&. $n terms of the budgeting process' these findings suggest that managers with a greater need for achievement are likely to set more challenging' but attainable' budget targets. They are also likely to seek greater control over their working environment to maximize the probabilities of achieving or attaining their goals' and the budgetary participation facilitates achievement such control. They are more likely to express a willingness to accept more challenges and to take extra responsibilities voluntarily %.pangler' ",,!&. s a result of the above discussion' )ypothesis " can be stated as followsG .,: "here is a direct and positive association bet'een an employees need for achievement and that employees budgetary participation%

/or* attitude and participation in budgeting

$n evaluating the effectiveness of budgetary participation' researchers have commonly treated the construct of /attitude0 as an outcome variable. This is because it is commonly assumed that participation should positively affect attitude as an outcome phenomenon. )owever' improved budgetary participation can also be a result of positive work attitudes among employees %Hyne and (ierce' !22>&. Donversely' employees with negative work attitudes might not care about achieving their budgeting goals during budgetary participation %)ammer @ *rgan' ",:<6 -erres et al.' !22A&. .ome researchers concluded that budgetary participation might not generate positive attitudes and improve job performance. -or example' Dotter %",#A& investigated participating foremen and rejected the contention that they have better job attitudes than foremen who do not
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participate. $nvancevich %",:,& observed that there is no relationship between budgetary participation and attitude. problem facing researchers in this area is therefore a need to reconcile these conflicting views. Milani %",:3& defined attitude in terms of employees0 feelings and predispositions towards their jobs and employers in a budgetary context. ccording to -estinger0s %",3:& theory of cognitive dissonance' employees with positive work attitudes develop a cognitive dissonance %or psychological uneasiness& during their participation in budget setting. To reduce this dissonance' they try to improve their performance %)ammer @ *rgan' ",:<6 -erres et al.' !22A&. )anson %",##& felt that involvement in budget creation enables members of an organization to work more closely towards the budgetary goals. 9ewin %",#<& suggested that the activities involved in a participative situation should contribute to the internalization of organizational goals. $n contrast' employees who have a poor attitude might not develop the cognitive dissonance described above. s a result' these employees are less likely to attempt to improve their performance voluntarilybecause they avoid extra responsibilities and challenges. Milani %",:3& divided working attitudes into /job attitudes0 and /organization attitudes0. -irst' he found that positive attitudes towards a job enhance an employee0s identification with the organization0s goals' thus leading to an effective overall performance for the organization. $n most instances' attitudes towards the job have been offered as an intervening factor that affects job performance when participating in budget activities. .econdly' Milani %",:3& confirmed )anson0s %",##& results that participation enhances identification with organizational goals. n important reason for examining this variable in the present study is the belief that a good attitude towards company will lead to a more effective overall performance through participative budgeting. The relationship between budget participation and attitudes %job and organizational& should therefore be tested. )ypothesis ! can thus be formulated as followsG

.0: "here is a direct and positive association bet'een an employees 'or* attitude and that employees budgetary participation%

Participation in budgeting and 1ob performance

.everal studies have proposed that budgetary participation is positively linked to employee performance % rgyis' ",3!6 )ofstede' ",#<6 Merchant' ",<"6 =rownell' ",<!6 ?ouri and

(arker' ",,<&. $n contrast' other studies have reported a negative association %=ryan @ 9ocke' ",#:& or no association %=rownell and Mc$nnes' ",<#&. There is thus no simple relationship between budgetary participation and job performance. =udgetary participation might not always be beneficial. (revious studies have found that a variety of factorsincluding environmental uncertainty %+ul' ",,"&' job difficulty %Mia' ",<,&' organizational structure %+ul et al' ",,3&' and budget emphasis in performance evaluation %=rownell' ",<!&can moderate the relationship between budgetary participation and managerial job-related performance. -or example' Mia %",<,& reported that managers participating in budgeting were found to have a positive job performance under complex and difficult task environments' but a negative job performance under /easy0 conditions. +ul et al %",,3& found budgetary participation to be negatively related to job performance in lessdecentralized organizations. +ul %",,"& reported that increased participation improved performance in environmentally uncertain situations' but hampered performance in situations of low uncertainty. s a result' the present study recognized that the relationship between budgetary participation and job performance might be different under various working conditions. =udgetary participation should relate to the involvement of managers in the budgetary process and their influence over the setting of budget targets %.hields and Ioung ",,>&. The argument that managers0 participation in a budget setting affects job performance is based on two arguments. -irst' psychological theory suggests that participation is related to performance through self-identification and ego-involvement with budget goals %Murray' ",,2&. .econdly' participation is seen to improve the flow of information between subordinates and superiors' thus leading to improved cognition and enhanced decision-making %9ocke @ .chweiger' ",:,6 .hields @ Ioung' ",,>&. s a result' participation can promote better performance through facilitation of learning and knowledge ac4uisition %(arker @ 1all' ",,<&. The present study thus proposes that managers with a high need for achievement and positive work attitudes are likely to seek greater control over their working environment' and that budgetary participation could therefore provide them with such control. )ypothesis > is therefore postulated as followsG

.2: "here is a direct and positive association bet'een an employees budgetary participation and that employees 1ob performance%

ethod
3ample and 4uestionnaire

There has been no specific study within the Macau public sector of the relationship between job performance and the variables identified for investigation in the present paper %that is' the need for achievement and work attitudes variables&. 5ecognizing this gap in the literature' the present study presents an empirical examination in Macau of the identified variables and of managers0 participation in budgetary matters. The paper is clearly important for appropriate accounting-based planning and control systems that facilitate effective management within the public sector in Macau. Hata for the study were collected by a survey 4uestionnaire administered to a sample of !"# managers in three departments of the Macau public servicethe administration and civil service bureau' the legal affairs bureau' and the civic and municipal affairs bureau %all within the *ffice of dministration and Fustice&. The 4uestionnaire was prepared in both Dhinese and 8nglish. To minimize response bias' respondents were asked to complete the 4uestionnaire independently and to return it directly to the researcher via electronic mail or postage-paid return envelopes. $ncluded with each 4uestionnaire was a covering letter that explained the importance of the research and contained written instructions for the completion of the 4uestionnaire. Donfidentiality for respondents was stressed in the instructions that accompanied the instrument. $n all' >22 4uestionnaires were sent out' and !"# were returneda response rate of :!J. The average age of the respondents was ># years. The average length of service was eight years' and all respondents had been in their current position for at least three years.

easurements
The measuring instruments used in the study were adapted from those used by previous researchers for studies in the private sectorboth manufacturing and service. The 4uestionnaire and measurements were modified for the use in the public sector. Job performance Fob performance was measured with a self-evaluation 4uestionnaire developed by Mahoney et al. %",#>&. 5espondents were asked to respond on a seven-point 9ikert-type scale. They were re4uired to rate their performance on eight dimensionsplanning' investigating' coordinating' evaluating' supervising' staffing' negotiating' and representing. They were also asked to rate their overall performance. lthough such self-evaluation might be criticized as being a subjective measure' similar techni4ues have been widely adopted in many studies %+ul et al.' ",,3' =rownell and )irst'

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",<#&.

check of internal reliability for the measure in this study yielded a result of 2.#<'

which is acceptable %?unnally' ",#:&. -eed for achievement modified eight-item version of .teers and =raunstein0s %",:#& Manifest ?eeds Kuestionnaire was used to measure need for achievement. This instrument has previously been used by .ubramaniam et al. %!22!&' and various modified versions have been widely adopted by other studies %.pangler' ",,!&. 5espondents were re4uired to respond on a seven-point 9ikert-type scale. The present study adopted the Manifest ?eeds 4uestionnaire to confirm that the measurement was appropriate for assessing the need for achievement. Dronbach0s alpha coefficient for the instrument was 2.#Aan acceptable level of internal reliability %?unnally' ",#:&. The items were aggregated and the average score was calculated to provide a measure of need for achievement. /or* attitude s previously noted' two work kinds of work attitude can be identifiedattitude towards specific jobs and attitudes towards the company. *rganizational attitude reflects general employment policies and practice' especially compared with other potential employers. $n contrast' job attitudes reflect the type of work' tasks' and immediate supervision experienced by employees on the job. Thus' an employee can feel 4uite positive about the job because of the immediate experience of the job' but feel negative towards the organization as a result of policies on pay scales or promotion. ttitudes towards specific jobs were measured by a "#-item instrument adapted from Milani %",:3&. ttitudes towards the company were measured by "2-item instrument' also developed by Milani %",:3&. The overall attitude %towards the job and towards the organization& was assessed by the sum of the scores %.haw @ 1right' ",#:&. check of internal reliability for the measure in this study yielded a result of :>Jwhich is again acceptable %?unnally' ",#:&.

5esults
Table " presents descriptive statistics and Table ! presents the correlation matrix for the three variables in the current study. The table shows a significant positive association between a need for achievementLwork attitude and job performance at the significant level %P M2.2" and 2.23 respectively&. The regression results for the job-performance measure were also found to have positive and significant relationships with the need for achievement % p M 2.23& and

budgetary participation %p M 2.2"& %see -igure A&. $n contrast' there was no direct significant relationship found between job performance and work attitude %p N n.a.&. "a*e in "ables ,! 0! and 2 about here "a*e in +igure 0 about here The results in -igure ! and Table > suggest that a need for achievement and work attitude affect job performance indirectly via budgetary participation. The path model %-igure "& is employed for the data analysis. The findings relating to the two antecedent variables and job performance were decomposed and assessed in terms of the total relationships. This allowed an estimation of the direct' indirect' spurious' and unanalyzed relationships % lwin and )auser' ",:3 and Huncan' ",##&. (ath coefficients %representing the relationships between variables& were estimated by standardizing the O regression coefficients. The relationships between the variables in the path model can be stated as two e4uationsG 84"G I"N (>"P" Q (>! P! Q (>a5i' where I" is the participative budgeting' P" the decentralized structure' P ! the need for achievement' (ji the standardized partial regression coefficients %path coefficients&' and 5 i the standardized residual6 and 84!G I!N (A"P" Q (A! P! Q(A>P>Q (Ab5i' where I! is the managerial performance' P " the decentralized structure' P! the need for achievement' P> the participation in budgeting' ( ji the standardized partial regression coefficients %path coefficients&' and 5i the standardized residual.

"ests of hypotheses
)ypotheses " and ! were tested by regressing participation in budgeting against work attitude and the need for achievement using e4uation %"&. The results are shown in Table >. The overall model was significant %-=#.AA36 p<2.23&' and the two variables were significant in explaining budgetary participation. =oth of the paths shown in -igure ! demonstrated significant positive coefficientsG work attitudeEbudgetary participationG (>"=2."<!6 p<2.236 and need for achievementEbudgetary participationG (>!=2.!A<6 p<2.2" )ypotheses " and ! are therefore verifiedmanagers with a positive attitude and a need for achievement are more likely to be willing to participate in budgetary activities.

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)ypothesis > was tested by regressing job performance against budgetary participation' work attitude' and a need for achievement using e4uation %!&. The results of the regression analysis are presented in Table A. "a*e in "able 6 about here The overall model was found to be significant %-N<."!' pM2.22"&. The path of budgetary participationjob performance showed a significant positive relationship %( A>N2."<"' pM2.23&. )ypothesis > is therefore verified.

(ndirect effects of the antecedent variables and 1ob performance

The indirect effects consisted of the following pathsG (ath %"&G work attitudeEbudgetary participationEjob performanceG 2.",! x 2.!"" N 2.2A236 and (ath %!&G need for achievementEbudgetary participationEjob performanceG 2.!A< x 2.!"" N 2.23!>. =oth of these relationships are meaningful because the magnitude satisfies the criterion of 2.2# %=artol ",<>&. "a*e in "able 7 about here Table 3 indicates the breakdown components of the direct and indirect effects of the two paths. The results suggest that budgetary participation mediates the relationship between %i& job performance and %ii& work attitudeLthe need for achievement. =aron and ;enny %",<#& have argued that if a significant bivariate relationship exists between independent variables and a dependent variable' the third variable functions as a mediator %in this case' budgetary participation& under the following three conditionsG if the independent variables %in this case' work attitude and need for achievement& are significantly related to the mediating variable %in this case' budgetary participation&6 if the mediating variable %in this case' budgetary participation& is significantly related to the outcome variable %in this case' job performance& and if the relationship between the independent variables %in this case' work attitude and need for achievement& and the outcome variables and the path coefficient decreases after controlling for the mediating variables %in this case' the relationship betweenG %i& work attitude and %ii& the need for achievement and job performance directly&.

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The present study found that these three conditions were fulfilled only in the path /need for achievementEbudgetary participation0. )ence' budgetary participation acted as a partial mediating variablebecause the magnitude of the association between need for achievement and job performance %zero order correlation of 2.>A>& decreased after controlling for the mediating variables' but remained significant for need for achievement and job performance. ?o significance was found for the direct path relationship between work attitude and job participation. =udgetary participation acts as the full mediating variablebecause the magnitude of the association between 1 and F( had a zero order correlation of 2.!>:. The path coefficients decreased after controlling for the mediating variables' but were nonsignificant. $n this case' budgetary participation acted as a full mediator between work attitude and job performance %=aron and ;enny' ",<#&6 in other words' the relationship between work attitude and job performance cannot exist without the employee0s participation. The remaining components of the correlation represented spurious effects %2.2"A3 for work attitude and 2.2A> for need for achievement&. These reflect the influence of work attitude and need for achievementwhich are common antecedents of budgetary participation and job performance.

Discussion
s postulated' the findings of the study suggest that the job performance of employees in public-sector organizations can be enhanced by encouraging participation in budgetary activities. need for achievement and a positive work attitude are significant antecedents to budgetary participationwhich' in turn' positively influences job performance. The present study provides a better understanding of the relationship between budgetary participation and job performance' $t does this by extending previous studies that have considered only the direct effects of these variables %9au et al.' ",,36 Milani ",:36 +ul et al.' ",,36 Milani' ",:36 ;enis' ",:,&. The results of the present study support those of ;lich @ -eldman %",,!&' )ammer @ *rgan %",,A&' and -erres et al. %!22A&in that employees0 work attitudes and their need for a sense of achievement are confirmed as significant influencing factors to job performance during participation in budgetary activities %.ee Table > shows the significant levels of p M 2.2" and p M 2.23 respectively&. Management can motivate subordinates to have better performance by giving them more opportunities to participate in the budget activities. .uch budgetary participation can facilitate them to learn and to ac4uire more knowledge or information %.hield @ Ioung' ",,> and (arker @ 1all' ",,<&. s a result' participants gain more sense of achievement and to change their working attitudes. )owever'

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without the budgetary participation' the direct path relationship between work attitude and job performance was found to have insignificant level %p N n.a.& after the controlling of mediating variable %budgetary participation&. The result further confirms that budgetary participation plays significant role to improve the work attitude for subordinates. The finding contributes to the public-sector management-accounting literature by extending previous studies from the private sector to public-sector organizations %)arrison' ",,!6 ?ouri' ",,A6 +ul et al.' ",,3&. lthough previous studies have noted that public organizations tend to have a greater degree of formal administrative control in budgeting systems than is the case in the private sector %=urns @ .talker' ",#"6 (ugh et al.' ",#,6 1illiam et al.' ",,2&' the /debureaucratization0 and organizational restructuring of public-sector organizations has meant that employees have more opportunities to participate in budget activities %*swick and +rant' ",,#&. =udgetary participation offers employees the opportunity to obtain more relevant information and feedback to set budgetary goals. The study further offers an explanation of the relationship between budgetary participation and job performance. $t finds that high budgetary participation should improve job performance only when participants have a good work attitude and a significant need for achievement. *n the other hand' the relationship between budgetary participation and job performance is negative when participants have a poor work attitude and less need of achievement. Moreover' the findings also contribute to public-sector accounting-based planning and control systems with respect to employee job-related outcomes. The results of the study suggest that the impact of such control systems act through individual-level variables. The results support previous studies by Dassidy and 9ynn %",<,&' Mia %",<,&' =rownell %",<!&' and .ubramaniam et al. %!22!&in that a need for achievement and work attitude are shown to lead to better organizational outcomes. -urthermore' the current study also indicates that the purpose of a budgeting system is not restricted to financial control alone6 rather' a budgetary system also influences behavioural aspects of employees with respect to the budgetary process. This suggests two significant managerial implications for budget-related matters. -irst' the findings suggest that a positive work attitude can be fostered by providing employees with greater responsibility and decision-making autonomy in their budgetary participation. 8mployees are more likely to be motivated to participate in setting budgetary targetswhich' in turn' enhances their work attitudes %to both their jobs and the organization&. .uch a positive work attitude can be enhanced by both extrinsic and intrinsic rewards %=rownell and Mc$nnes' ",<#&. -or example' senior management should always demonstrate their respect for their employees' provide more opportunities to work independently' create more promotion

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prospects' pay more attention to their personal and career development' offer more compliments' and provide employees with feelings of security. .econdly' employees with a significant need for achievement tend to set and strive for challenging goals. $f the employees have a significant sense of achievement' they are likely to seek greater participation in budgeting because it helps them to gain appropriate job-relevant information %which' in turn' helps in setting high' but achievable' budgetary targets& %Matsui' ",<!&. The present study also supports the argument that managers0 with a desire for success are likely to take extra job responsibility' improve their work performance' gain more control on the job' and try to perform better than other workers' and that such behaviour will lead to improved job performance. $n short' through better understanding of individual-level behaviour' senior management can effectively foster better job performance through the encouragement of budgetary participation' particularly among those who have a significant need for achievement and a positive attitude.

)onclusions and limitations

This study is subject to several limitations. -irst' the results should be interpreted within the usual limitations of survey research %=rownell' ",<3&. Hata for the study were collected from three public-service departments in Macau. The participants volunteered to participate in the present study' and the sample was thus not strictly random. =ecause less than "22J of the 4uestionnaires were returned' non-responsive bias might exist. The demographic composition of the present study and individual differences in the value of achievement' attitude' and job performance might affect the results6 these factors have not been investigated in the study. The measurement of performance should' ideally' be undertaken at various points in time' rather than only in a single period of time as occurred in the present study. .econdly' the study was conducted solely within the public sectorwhich limits the generalizability of the findings. Thirdly' senior management was likely to have significant influence on how the departments were managed. There might have been factors at work that were specific to the participating departments6 caution is therefore re4uired in generalizing the results. -ourthly' an employee0s performance might be affected by other variablessuch as other individual-level variables %for example' locus of control and tolerance for ambiguity&6 organizational-level variables %for example' business strategy and corporate culture&6 and external variables %for example' business environment and changing in the economic

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conditions&. These and other contingent variables %apart from budgetary participation& might play an indirect role in the relationship betweenG %i& job performance6 and %ii& a need for achievementLwork attitude. -inally' the measurement of attitude can be criticized on the ground that two individuals might have the same score but not have identical attitudes %Milani' ",:3&. The measurement of job performance has also been criticizedfor being too subjective %=rownell and )irst' ",<#&. =ecause there is no perfect measuring instrument to measure the selected variables' reliance must be placed on the internal reliability coefficients6 as previously noted' these reached a satisfactory level %?unnally' ",#:&' although they were not very high. ?otwithstanding such limitations' the results provide an improved understanding of the effect of individual-level behaviour on job performance in a budgetary context. Dertainly' on the basis of the current study0s findings' it would appear that an organization is likely to be better off by improving employees0 attitudes and providing them with opportunities to achieve their goals6 moreover' budgetary participation can provide them the opportunity to take more responsibilities and setting their own goals for the organization. will be improved. s a result' job performance

5eferences
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Milani' ;. %",:3&' /The 5elationship of (articipation in =udget-.etting to $ndustrial .upervisor (erformance and ttitudesG -ield .tudy0' Accounting Review' pril' pp. !:A!<A. ?ouri' ). and (arker' 5. F. %",,<&' BThe relationship between budget participation and job performanceG the roles of budget ade4uacy and organizational commitmentC' Accounting! $rgani%ations and Societ" !> %3L#&' pp. A#:-A<>. ?ouri' ).' BRsing organizational commitment and job involvement to predict budgetary slackG research noteC' Accounting! $rgani%ations and Societ". *xfordG pr ",,A. Sol. ",' $ss. >6 pp. !<,. ?unnally' F. D. %",#:&' Ps"chometric Theor"! ?ew IorkG Mc+raw-)ill. *swick D. and +rant H. %",,#&' B(ersonnel Management in (ublic .ector' (ower' 5oles and 5elationshipsC Personnel Review' Sol.!3 ?o.!' pp.A-"<. (otter' +. and .chidgall' 5. .. %",,,&' B)ospitality management accountingG current problems and future opportunitiesC' International Journal of +ospitalit" Management! Sol. "<' pp. ><:-A22. (ugh ' H...' )ickson' H.F.' @ Turner' D.' %",#,&' B The Dontext of *rganizational .tructure'C Administrative Science 4uarterl"' pp. ,"-""A. 5andall' H. M. %",,2&' BThe conse4uences of organizational commitmentG methodological investigationC' Journal of $rgani%ational ehavior! Sol. ""' pp. >#"->:<. 5avlin' 8. D.' and Meglino' =. M.' B8ffect *f Salues *n (erception nd Hecision MakingG .tudyC' Journal of Applied Ps"cholog". 1ashingtonG ?ov ",<:. Sol.:!' $ss. A6 pp. ###. .haw' M.8. @ 1right' F.M.' %",#:&' Scales for the Measurement of Attitudes ' ?ew IorkG Mc+raw-)ill. .pangler' 1. H. %",,!&' BSalidity of 4uestionnaire and T T measures of need for achievementG two meta analysesC' Ps"chological ulletin ""! %"&' pp."A2-"3A. .teer' 5. M. %",::&' B ntecedents and outcomes of organizational commitmentC' Administrative Science 4uarterl"! vol. !!' pp. A#-3#. .teers' 5. M. and =raunstein' H. ?. %",:#&' B behaviorally based measure of manifest needs in work settingsC' Journal of *ocational ehavior! Sol. ,' pp.!3"-!##. .ubramaniam' ?.' McManus' 9. and Mia' 9' %!22!& B8nhancing )otel Managers0 *rganizational DommitmentG n $nvestigation of the $mpact of .tructure' ?eed for chievement and (articipative budgetingC' +ospitalit" Management! Sol. !"' pp >2>->!2. 1ard' 8. . %",,>&' B+eneralizability of psychological research from undergraduates to employed adult0' Journal of Social Ps"cholog"! Sol. ">> %A&' pp.3">-3",. 1illiam' F.F.' Macintosh' ?.=. @ Moore' F.D. %",,2&' B=udget-related =ehaviour in (ublic .ector *rganizationsG .ome 8mpirical 8videnceC' Accounting! $rgani%ations and Societ"' Sol "3' pp.!!"-!A#.

":

Appendi8
Table " Hescriptive .tatistics Sariables Mean Fob performance 567 1ork attitude 5 807 ?eed for achievement 5817 >.<# A."! A.3" ..H. 2.,# ".!A ".A# ctual range !.22-#.!" ".22-3.#> ".22-#.!2 Theoretical range ".22-:.22 ".22-:.22 ".22-:.22 Dronbach0s lpha 2.#< 2.:> 2.#A

Table ! (earson Dorrelation Matrix Sariables 1 1ork attitude 59A7 ".22 ?eed for achievement 2.>A>TT 5.A7 (articipation in 2.><"TT budgeting 5 P7 Fob performance 5JP7 2.!>:T TpM2.23' TTpM2.2"' TTTpM2.22"

? ".22 2.!"<T 2.A>!TT

=(

F(

".22 2.A"!TTT ".22

Table > 5esults of regression analyses using e4uation "G 60= P:080 ; P:1 81 ; P:aRi' Hependent $ndependent )ypotheses (ath t-value p-value variables variables coefficient =( ? )" 2.!A< >.!> M2.2" 1 )! 2."<! !.!: M2.23 T bbreviations as Table !' <1!10=' N #.AA>' nN !"#' pM 2.23

R1 2."<:

Table A 5esults of regression analyses using e4uation !G 61= P=080 ; P=1 81 ;P=:8:; P=bRi' Hependent $ndependent )ypotheses (ath t-value p-value R1 variables variables coefficient F( 1 ?on2.">A ".<: n.s. 2.!!: hypothesis ? ?on2."<" !."> M2.23 hypothesis =( )> 2.!"" >.!" M2.2" T bbreviations as Table !' <:!10:' N :.3#:' nN !"#' pM 2.23

Table 3. Hecomposition of observed correlations on job performance Dorrelation Hirect effect $ndirect .purious effect 1 2.!>: N 2."<! Q 2.2A23 Q 2.2"A3 ? 2.>A> N 2.!A< -igure "G Model of the study 8rrorG 5eference source not found Q 2.23!> Q 2.2A>

"<

-igure ! (ath Doefficients. Salue for path coefficients are taken from Table >. 8rrorG 5eference source not found

",