ENVIRONMENTAL UNCERTAINTY IN MODERATING BUDGETARY PARTICIPATION AND ORGANIZATIONAL COMMITMENT TO BUDGETARY SLACK

The relationship between two consequences of budgetary controls: budgetary slack creation and managerial short-term orientation$

Previous studies have provided contradictory evidence with respect to the e€ect of rigid budgetary controls on slack and other dysfunctional behaviors. One motivation for the current study was to test whether spillover e€ects exist between two alleged dysfunctional consequences of a rigid budgetary control style: budget slack creation and managerial short-term orientation. The data support this...

Working Paper Alfred P. Sloan School of Management Leadership Behavior, Budgetary Participation and Performance Leadership Behavior, Budgetary Participation and Performance

Budgetary slack: The Effects of Truth-Inducing Schemes on Slack and Performance

In large organizations, division managers are not necessary solely motivated by profit maximization goals but rather by some self – interest motives. These self-interest motives may explicit itself in the organization budgeting process. A control problem arises usually when division managers use their private information to make decision consistent with selfinterest rather than the interest of ...

Budgeting and Budgetary Institutions

The effect of the budget slack creation and budget internal control by managers on maximization of utility function in budgetary participation

When evaluating of the senior manager’s performance is based on the achieving to budget and they have responsibility to report the capacity of resources which are in their part too; it is possible to create budget slack and effect on their performance evaluation by providing pessimistic and conservatively estimates or manipulated information of income and expenses. So, Senior Manager and Budget...