Managing inefficiency of participatory budgeting by investigating the dark side personality of managers

• Autorzy: Suryadi Budi , Mulyaningsih Hendrati Dwi , Rajiani Ismi

Identyfikatory

DOI

10.17512/pjms.2019.19.2.33

Warianty tytułu

PL

Zarządzanie niedostatkami budżetu partycypacyjnego przez badanie ciemnej strony osobowości menedżerów

• Języki publikacji: EN

Abstrakty

EN

Participatory budgeting is widely promoted as a new reform in finance management. However, regardless of its acknowledged effectiveness, the model also produces managers’ moral hazard known as budgetary slack that is a propensity to underestimate the revenue but overestimate the cost. The objective of this article is to examine the relationships of human factors in budgeting process in terms of personality, budget participation, and the propensity of managers to create budgetary slack. Using the HEXACO model (Honesty-Humility, Emotionality, eXtraversion, Agreeableness, Conscientiousness, and Openness to Experience), Structural Equation Model is employed to prove the existence of the traits which is commonly associated with dark traits leading to unethical behavior in the workplace. A survey data from 150 respondents were used to conduct a structural equation modelling analysis. The results indicate that budget participation incrementally affects the propensity to create budgetary slack making the reform strategy to encourage manager participation to eliminate budgetary slack might not be relevant.

PL

Budżetowanie partycypacyjne jest szeroko promowane jako nowa reforma zarządzania finansami. Jednak niezależnie od potwierdzonej skuteczności, model wytwarza także pokusę nadużycia menedżerów zwaną zastojem budżetowym, czyli skłonność do niedoszacowania przychodów i przeszacowaniem kosztów. Celem tego artykułu jest zbadanie relacji czynników ludzkich w procesie budżetowania pod względem osobowości, udziału w budżecie i skłonności menedżerów do tworzenia luki budżetowej. Używając modelu HEXACO (Uczciwość, pokora, emocjonalność, ekstrawersja, ugodowość, sumienność i otwartość na doświadczenie), model równania strukturalnego jest wykorzystywany do udowodnienia istnienia cech, które są powszechnie związane z ciemnymi cechami prowadzącymi do nieetycznego zachowania w miejscu pracy. Dane ankietowe od 150 respondentów wykorzystano do przeprowadzenia analizy modelowania równania strukturalnego. Wyniki wskazują, że udział budżetu stopniowo wpływa na skłonność do tworzenia luki budżetowej, co sprawia, że strategia reform zachęcająca menedżerów do wyeliminowania zastoju budżetowego może nie mieć znaczenia.

Słowa kluczowe

EN

personality; participation; Indonesia; budgetary slack; HEXACO model

PL

osobowość; uczestnictwo; Indonezja; luz budżetowy; model HEXACO

• Wydawca: Czestochowa University of Technology
• Czasopismo: Polish Journal of Management Studies
• Rocznik: 2019
• Tom: Vol. 19, No. 2
• Strony: 385--394
• Opis fizyczny: Bibliogr. 34 poz., rys., tab.

Twórcy

autor

Suryadi Budi

• Lambung Mangkurat University, Indonesia

autor

Mulyaningsih Hendrati Dwi

• Post Graduate Program, Universitas Islam Bandung, Indonesia

autor

Rajiani Ismi

• Universitas Muhammadiyah Gresik, Indonesia

Bibliografia

• 1. Ab Rahman Z.N., Ismail N., Rajiani I., 2018, Challenges for managing non-technological innovation: a case from Malaysian public sector, “ Polish Journal of Management Studies”, 17(1).
• 2. Abbas E.W., Hadi S., Rajiani I., 2018, The prospective innovator in public university by scrutinizing particular personality traits, “Polish Journal of Management Studies”, 18(2).
• 3. Ajibolade S.O., Akinniyi O.K., 2013, The influence of organisational culture and budgetary participation on propensity to create budgetary slack in public sector organisations, “British Journal of Arts and Social Sciences”, 13(1).
• 4. Ashton M.C., Lee K., De Vries R.E., 2014, The HEXACO Honesty-Humility, Agreeableness, and Emotionality factors: A review of research and theory, Personality and Social Psychology Review, 18(2).
• 5. Boster Ch., Busko N., Schuldt M., Personality Effects in Participative Budgeting: An Experimental Investigation, Salisbury, MD 21080.
• 6. Chin W.W., 2010, Bootstrap cross-validation indices for PLS path model assessment, Springer.
• 7. Church B.K., Kuang X.J., Liu Y.S., 2019, The effects of measurement basis and slack benefits on honesty in budget reporting, Accounting, Organizations and Society, 72.
• 8. Damayanti R.A., 2018, Restoration of budget control: how it should be? a case study of the local government of Indonesia, Accounting Finance Review, 3(3).
• 9. Daumoser C., Hirsch B., Sohn M., 2018, Honesty in budgeting: a review of morality and control aspects in the budgetary slack literature, “Journal of Management Control”, 29(2).
• 10. De Vries R.E., Pathak R.D., Van Gelder J.L., Sing G., 2017, Explaining unethical business decisions: the role of personality, environment and states, Personality and Individual Differences, 117.
• 11. Dunk A.S., 1990, Budgetary participation, agreement on evaluation criteria and managerial performance: a research note, Accounting, Organizations and Society, 15(3).
• 12. Franco S.H.R., Assis W.F.T., 2019, Participatory Budgeting and Transformative Development in Brazil, Geoforum.
• 13. Graham P., Sathye S., 2018, National differences in capital budgeting systems: A comparison between Indonesian and Australian firms, “Asian Journal of Business and Accounting”, 11(1).
• 14. Hair J.F., Sarstedt M., Ringle C.M., Mena J.A., 2012, An assessment of the use of partial least squares structural equation modeling in marketing research, “Journal of the Academy of Marketing Science”, 40(3).
• 15. Harun H., Mir M., Carter D., An Y., 2019, Examining the unintended outcomes of NPM reforms in Indonesia, Public Money & Management, 39(2).
• 16. Harun H., Van-Peursem K., Eggleton I.R., 2015, Indonesian public sector accounting reforms: dialogic aspirations a step too far?, “Accounting, Auditing & Accountability Journal”, 28(5).
• 17. Horngren Ch.T., Datar S.M., Rajan M., 2015, “Cost Accounting. A Managerial Emphasis”, Pearson Education.
• 18. Kleinlogel E.P., Dietz J., Antonakis J., 2018, Lucky, competent or just a cheat? Interactive effects of Honesty-Humility and moral cues on cheating behavior, Personality and Social Psychology Bulletin, 44(2).
• 19. Kruis A.M., Widener S.K., 2014, Managerial influence in performance measurement system design: A recipe for failure?, Behavioral Research in Accounting, 26(2).
• 20. Lee K., Ashton M.C., 2014, The dark triad, the Big Five, and the HEXACO model, “ Personality and Individual Difference”, 67(2).
• 21. Mahlendorf M.D., Schäffer U., Skiba O., 2015, Antecedents of participative budgeting - a review of empirical evidence, Advances in Management Accounting, Emerald.
• 22. McCrae R.R., 2015, A more nuanced view of reliability: specificity in the trait hierarchy, Personality and Social Psychology Review, 19(2).
• 23. Moulick A.G., Taylor L.L., 2017, Fiscal slack, budget shocks, and performance in public organizations: evidence from public schools, Public Management Review, 19(7).
• 24. Oliver P., Jupp V., 2006, Purposive Sampling, The SAGE dictionary of social research methods.
• 25. Putra P.Y.P., Albab F.N.U., Swara C.C.A., 2019, Reflections on individual personal values in the budgetary slack phenomenon, “The Indonesian Journal of Accounting Research”, 22(1).
• 26. Rajiani I., Kot S., 2018, The prospective consumers of the Indonesian green aviation initiative for sustainable development in air transportation, Sustainability, 10(6).
• 27. Rajiani I., Pypłacz P., 2018, National culture as modality in managing the carbon economy in Southeast Asia, “Polish Journal of Management Studies”, 18(2).
• 28. Rakhman F., 2019, Budget implementation in a risky environment: evidence from the Indonesian public sector, Asian Review of Accounting, 27(2).
• 29. Schneider S.H., Busse S., 2019, Participatory budgeting in Germany - a review of empirical findings, “International Journal of Public Administration”, 42(3).
• 30. Shahab N., 2016, Indonesia: one map policy, Open Government Partnership.
• 31. Surbakti R., 2018, Parpol dan Korupsi di Daerah (Political Party and Corruption in the Region), Harian Kompas.
• 32. Triggs A., Kacaribu F., Wang J., 2019, Risks, resilience, and reforms: Indonesia’s financial system in 2019, Bulletin of Indonesian Economic Studies, 55(1).
• 33. Van Gelder J.L., De Vries R.E., 2016, Traits and states at work: lure, risk and personality as predictors of occupational crime, Psychology, Crime & Law, 22(7).
• 34. Widanaputra A.A., Mimba N.P.S.H., 2014, The influence of participative budgeting on budgetary slack in composing local governments’ budget in Bali province, Procedia-Social and Behavioral Sciences, 164.

Uwagi

Opracowanie rekordu w ramach umowy 509/P-DUN/2018 ze środków MNiSW przeznaczonych na działalność upowszechniającą naukę (2019).