The Effectiveness of Budget Participation on Decentralized Firm: a Study Case at PT. Bukaka Teknik Utama

Abstract

Dewi Indah Ratna Fury (2006), "The Effectiveness ofBudget Participation on Decentralized firm: a Study Case at PT. Bukaka Teknik Utama." Faculty of Ecomonics, Internationa] Program, Islamic University of Indonesia, Yogyakarta. In this research, the writer want to investigated the impact of budget participation on the company that has high decentralization system and try to analyze the relationship between budget participation and performance, decentralization and performance, and decentralization to budget participation. Using a fit approach, it was hypothesized that a fit between higher level of decentralization would be more likely be associated with higher level of performance. Analyses is based on the responses of 100 middle and lower level manager at PT. Bukaka Teknik Utama. The result show that, first, a high degree of decentralization level will more likely be associated with high performance; a low degree of it will more likely be associated with low performance, second, a high degree of participation in budgetary process will more likely be associated with high performance; a low degree of it will be more likely be associated with low performance and the third, a high degree of fit level of decentralization will be give significant influence on budget participation, and a low degree of it will be more likely associated with not significant influence. The relationship between decentralization and budget participation is weak because of several factors that might be happened in the company such as uncomfortable working environment or lack of positive attitude by workers, etc.