Test the effect of budget participation on managerial performance and job satisfaction

Oct 13, 2025 by magicalceylontours.com 140 views

The Effect of Delegation of Authority and Locus of Control as a Moderating Variable and the Relationship Between Budget Participation, Managerial Performance, and Job Satisfaction

Introduction

In today's fast-paced business environment, effective management is crucial for the success of any organization. One of the key factors that contribute to a manager's performance and job satisfaction is their level of participation in the budgeting process. However, the relationship between budget participation, managerial performance, and job satisfaction is complex and influenced by various factors, including delegation of authority and locus of control. This study aims to explore how these factors affect the relationship between budget participation, managerial performance, and job satisfaction.

Research Purposes

The main objectives of this study are to:

Test the effect of budget participation on managerial performance and job satisfaction. This study aims to investigate whether there is a positive relationship between budget participation and managerial performance and job satisfaction.
Identify the effect of delegation of authority on the relationship between budget participation and managerial performance and job satisfaction. This study aims to examine whether delegation of authority has a moderating effect on the relationship between budget participation and managerial performance and job satisfaction.
Analyze the effect of locus of control on the relationship between budget participation and managerial performance and job satisfaction. This study aims to investigate whether locus of control has a moderating effect on the relationship between budget participation and managerial performance and job satisfaction.

Methodology

In this study, hypothesis testing was carried out using simple regression analysis and Moderation Regression Analysis (MRA). Both of these methods allow researchers to understand the extent to which moderating variables such as delegation of authority and locus of control affect the relationship between budget participation and the results to be achieved, namely managerial performance and job satisfaction.

Research Sample

The research sample consisted of 88 respondents from various positions in several operating areas and regional divisions of PT. KAI (Persero). The respondents were from the Head of Operations, Section Heads, and Head of Subsection in the Jakarta, Bandung, Yogyakarta, and Surabaya areas, as well as the Head of Division in Medan.

Research Result

The results of this study showed several significant findings:

Budget participation has a positive effect on managerial performance and job satisfaction. This shows that when managers are involved in the budgeting process, they tend to have higher motivation and feel more satisfied with their work.
Delegation of authority affects the relationship between budget participation and managerial performance. This means that giving more authority to managers can strengthen the positive impact of budget participation on their performance. However, the delegation of authority does not affect the relationship between budget participation and job satisfaction.
Locus of control has an influence on the relationship between budget participation and job satisfaction. This shows that individuals with internal control tend to feel more satisfied when they are involved in budgeting.

Additional Analysis and Explanation

Based on the findings above, it can be concluded that the delegation of authority and locus of control have a different role in the context of managerial performance and job satisfaction. The delegation of authority is an important factor that can increase the effectiveness of budget participation in improving performance, but does not have the same impact on job satisfaction. This shows the need for a more holistic approach in managing human resources, where the organization not only gives authority, but also promotes the work environment that supports the development of individual locus of control.

Likewise, the locus of control that affects job satisfaction shows that managers who feel they have control over their situation are more likely to feel satisfied. Therefore, to increase job satisfaction, the organization needs to create conditions that allow employees to feel that they have an influence on their work, for example through active participation in planning and budgeting.

Conclusion

Overall, this research provides important insights for management in designing strategies that can improve employee performance and job satisfaction through the management of budget participation, delegation of authority, and the development of locus of control. By understanding the complex relationships between these factors, organizations can develop more effective management practices that promote employee motivation, job satisfaction, and overall performance.

Recommendations

Based on the findings of this study, the following recommendations are made:

Organizations should provide opportunities for budget participation. This can be achieved through active involvement of managers in the budgeting process, providing them with the necessary information and resources to make informed decisions.
Delegation of authority should be used strategically. Organizations should delegate authority to managers in a way that is consistent with their level of experience and expertise, and that aligns with the organization's goals and objectives.
Locus of control should be developed through training and development programs. Organizations should provide training and development programs that help employees develop a sense of control over their work, such as through active participation in planning and budgeting.

Limitations

This study has several limitations that should be noted. Firstly, the sample size was relatively small, which may limit the generalizability of the findings. Secondly, the study was conducted in a single organization, which may limit the applicability of the findings to other organizations. Finally, the study only examined the relationship between budget participation, delegation of authority, locus of control, and managerial performance and job satisfaction, and did not examine other potential factors that may influence these relationships.

Future Research Directions

Future research should aim to build on the findings of this study by examining the relationship between budget participation, delegation of authority, locus of control, and managerial performance and job satisfaction in other organizations and contexts. Additionally, future research should aim to examine other potential factors that may influence these relationships, such as organizational culture, leadership style, and employee engagement.
Frequently Asked Questions (FAQs) About the Effect of Delegation of Authority and Locus of Control on Budget Participation, Managerial Performance, and Job Satisfaction

Q: What is the main objective of this study?

A: The main objective of this study is to explore how the delegation of authority and locus of control affect the relationship between budget participation, managerial performance, and job satisfaction.

Q: What is budget participation, and how does it relate to managerial performance and job satisfaction?

A: Budget participation refers to the extent to which managers are involved in the budgeting process. Research has shown that budget participation has a positive effect on managerial performance and job satisfaction, as it increases motivation and job satisfaction.

Q: What is delegation of authority, and how does it affect the relationship between budget participation and managerial performance?

A: Delegation of authority refers to the extent to which managers are given authority to make decisions. Research has shown that delegation of authority has a moderating effect on the relationship between budget participation and managerial performance, meaning that giving more authority to managers can strengthen the positive impact of budget participation on their performance.

Q: What is locus of control, and how does it affect the relationship between budget participation and job satisfaction?

A: Locus of control refers to the extent to which individuals believe they have control over their situation. Research has shown that locus of control has a moderating effect on the relationship between budget participation and job satisfaction, meaning that individuals with internal control tend to feel more satisfied when they are involved in budgeting.

Q: What are the implications of this study for management?

A: The findings of this study have several implications for management. Firstly, organizations should provide opportunities for budget participation to increase motivation and job satisfaction. Secondly, delegation of authority should be used strategically to align with the organization's goals and objectives. Finally, locus of control should be developed through training and development programs to increase job satisfaction.

Q: What are the limitations of this study?

A: This study has several limitations. Firstly, the sample size was relatively small, which may limit the generalizability of the findings. Secondly, the study was conducted in a single organization, which may limit the applicability of the findings to other organizations. Finally, the study only examined the relationship between budget participation, delegation of authority, locus of control, and managerial performance and job satisfaction, and did not examine other potential factors that may influence these relationships.

Q: What are the future research directions for this study?

A: Future research should aim to build on the findings of this study by examining the relationship between budget participation, delegation of authority, locus of control, and managerial performance and job satisfaction in other organizations and contexts. Additionally, future research should aim to examine other potential factors that may influence these relationships, such as organizational culture, leadership style, and employee engagement.

Q: How can organizations implement the findings of this study in practice?

A: Organizations can implement the findings of this study in practice by providing opportunities for budget participation, using delegation of authority strategically, and developing locus of control through training and development programs. Additionally, organizations can use the findings of this study to develop more effective management practices that promote employee motivation, job satisfaction, and overall performance.

Q: What are the benefits of implementing the findings of this study in practice?

A: The benefits of implementing the findings of this study in practice include increased motivation and job satisfaction, improved managerial performance, and overall organizational performance. Additionally, implementing the findings of this study can lead to increased employee engagement, reduced turnover, and improved organizational culture.