Cognitive, motivational and value attainment effects of budgetary participation in job performance

Abstract

This study aimed to evaluate the cognitive, motivational and value attainment effects of budget participation on job performance. This paper presents the results of a study that re-examines the theoretical model of analysis developed by Chong, Eggleton and Leong (2006). The research sample comprised 121 managers with budgetary responsibility of industrial organizations in the State of Santa Catarina (SC). The results support the different roles of budgetary participation, since this variable had positive effects on managers’ satisfaction with work and on job performance. The organizational commitment also showed a positive relationship with the satisfaction and performance of the individual at work. These findings reveal that budget participation provides increased job satisfaction and enhances the performance of managers. Once they are satisfied with the work, they are more committed to the organization, which consequently has a positive impact on the performance of managers in budget activities. From the results, it can not be confirmed that the budgetary participation reduces the levels of ambiguity of roles. It is concluded that the budget participation produces effects of the value attainment (satisfaction at work), which positively influence the job performance. The results support industrial organizations to focus their efforts on organizational practices aimed at improving the definitions of responsibilities and objectives of the controller position, with a view to increasing their commitment to the organization, their satisfaction at work and their performance in activities budgets.