The Effect Of Locus Of Control And Motivation Towards The Relationship Between Participative Budgeting And Budgetary Slack On The Effect Towards Managerial Performance

Abstract

Participative budgeting is still developing its implementation. The participative budgeting system tends to have significant changes in roles and implementation in order to reduce its flaw. The current Jakarta government is started to implement tighter budget policies inside participative budgeting program. The results of a new system was still unknown especially to the internal managers of the governance. Budgetary slack that tends to occur in the process also becomes an undeniable possibilities that conducted by the managers when participative budgeting is implemented. Although, there are several variables that may reduce that behavior such as motivation and locus of control. The data used in this research was primarily obtained from questionnaire that were distributed to the managers of north Jakarta governance, DKI Jakarta. The finding showed that motivation had no influence towards the relationship between participative budgeting and managerial performance. At the same time, locus of control has negative significant influence over the relationship between participative budgeting and budgetary slack. Locus of control also had positive influence towards the managerial performance itself. Keywords: Participative Budgeting, Managerial Performance, Budgetary Slack, Motivation, Locus of Control