Journal Screenshot

International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Assessing the Relationship between Budget Participation and Employees’ Performance of Public Universities in Ghana: A Case of University of Education

Eric Edwin Owusu, Gabriel Dwomoh, Mintah Collins, Gyamfuah Yaa, Ofori Daniel

http://dx.doi.org/10.6007/IJARAFMS/v4-i1/543

Open access

The study examined the relationship between budget participation and employees’ performance of public universities in Ghana using University of Education as the study area. It therefore seeks to explore the behavioral elements of budgeting process in the study area and determine budget participation relationship with employees’ performance and commitment to budget goal. The study employed the quantitative research methodology and used convenience and simple random sampling techniques to select 110 employees of the university as respondents. Data was analyzed using SPSS 16. The findings of the study showed that the relationship between budget participation and employees’ performance (attainment of budget goal) was positive though not significant connoting that budget participation alone cannot significantly influence attainment of budget goal. Despite that it cannot alone help an organization to achieve its budget goal; it was evident from the study that it serves as the foundation for the other behavioral elements to be realized in the budgeting process. The research therefore argued out strongly for policy makers to hammer on budget participation since it is the foundation of which the other behavioral elements to achieving budget goal revolves.

Altbach, P. G., and Johnstone, D. B. (1993). The Funding of Higher Education: International Perspectives, Garland Publishing, New York, NY.
Bognaes, B. (2009). Implementing Beyond Budgeting - Unlocking the Performance Potential. Wiley
Bonner, E. S. (2008). Judgment and Decision Making in Accounting, Pearson Education Inc., Upper Saddle River, New Jersey.
Brownell, P. (1982). The role of accounting data in performance evaluation, budgetary participation, and organizational effectiveness. Journal of Accounting Research, Spring; 2-27.
Charpentier, C. (1998). Budgetary Participation in a Public Service Organisation, Working Paper Series in Business Administration. 2009.
Chenhall, R., and Brownell, P. (1988), The effect, of Participative Budgeting on Job Satisfaction and Performance: Role Ambiguity as an Intervening Variable, Accounting Organisations and Society; 13: 225-233.
Cohen, R. L. (1987), “Distributive Justice: Theory and Research”, Social Justice Research; 1:19-40.
David, R. G., and Bart de Gouw (1997). Budgetary response attitudes in a university environment, International Journal of Educational Management; 11/4 179–186.
Dunk, A. S. (1993). The Effect of Budget Emphasis and Information Asymmetry on the Relation between Budgetary Participation and Slack. The Accounting Review; 68(2):400-411.
Gilliland, S. W. (1993), “The Perceived Fairness of Selection Systems: An Organizational Justice Perspective,” Academy of Management Review Vol. 18 (4), pp. 694-734. New York: Plenum Press. JAMAR Vol. 5 Number. 1, 2007 pp.57,
Hopwood, A. G. (1974). Leadership Climate and the Use of Accounting Data In Performance Evaluation. The Accounting Review 49(3): 485-493.
Jones, D. C. (2001) .The productivity effects of worker directors and financial participation by employees in the firm: the case of British retail co-operatives
Kenis, I. (1979). “Effects of Budgetary Goal Characteristics on Managerial Attitudes and Performance”. The Accounting Review, October; 54(4): 707-721.
Kren, L. (1992), “Budgetary Participation and Managerial Performance: the Impact of Information and Environmental Volatility”, The Accounting Review, July, 67(3): 511-26. [186]
Levanthal, G. S. (1980), What should be Done with Equity Theory? In K. J. Gergen, M. S. Greenberg and R. H. Willis (Eds), Social exchange: Advances in theory and research; 27-55.
Lin & Chang. (2005). Goal orientation and Organisational commitment as explanatory factors of employee mobility. Personnel Review 34(2): 282 -291.
Lind, E. A., and Tyler, T. R. (1988). The Social Psychology of Procedural Justice. New York: Plenum Press.
Locke, E. A., Shaw, K. N., Saari, L. M., and Latham, G. P. (1981), “Goal Setting and Task Performance”. Psychological Bulletin; 125-152.
Mai, L. (1988),” Managerial Attitude, Motivation, and the Effectiveness of Budget Participation, Accounting Organisations and Society”. 13: 65-475.
Milani, K. (1975). “The Relationship of Participation in Budget-Setting to Industrial Supervisor Performance and Attitudes” - A Field Study. The Accounting Review; 50(2): 274-288.
Neely, A., Sutcliff, M. R., and Heyns, H. R. (2001). Driving Value through Strategic Planning and Budgeting. New York, NY: Accenture.
Nouri, H., and Parker, R. (1998). The Relationship between Budget Participation and Job Performance: The Roles of Budget Adequacy and Organisational Commitment. Accounting, Organisations and Society; 23(5-6):467-483.
Petry, J. R., and Kenney, G. E. (1991), “The impact on higher education: funding shortfalls and their impact on policy making in the 1990s”, unpublished conference paper presented at Annual Meeting of the American Educational Studies Association, Kansas, MO, 24 October, 1-18.
Reid, S. (2002). A critical evaluation of the effect of participation in budget target setting of motivation. Managerial Auditing Journal; 17(3): 98-101.
Shah, A. (2007), Public Sector Governance and Accountability Series: Participatory Budgeting, The International Bank for Reconstruction and Development/The World Bank, Washington.
Shields, J. F., and Shields, M. D. (1998). Antecedents of Participative Budgeting. Accounting, Organisations and Society; 23(1):49-76.
Topper. (2007). Supervisor’s attitude and employee’s performance. New Library Word. 108 (9-10): 54- 66.
Wallander, J. (1999). Budgeting – an unnecessary evil. Scandinavian Journal of Management, vol.15,
Wentzel, K. (2002), “The Influence of Fairness Perceptions and Goal Commitment on Managers’ Performance in a Budget Setting”, Behavioural Research in Accounting.14: 247-271.

In-Text Citation: (Owusu et al., 2022)
To Cite this Article: Owusu, E. E., Dwomoh, G., Collins, M., Yaa, G., & Daniel, O. (2022). Assessing the Relationship between Budget Participation and Employees’ Performance of Public Universities in Ghana: A Case of University of Education. International Journal of Academic Research in Accounting Finance and Management Sciences. 4(1), 121- 135.