SlideShare a Scribd company logo
1 of 1
Download to read offline
From psychological and cognitive perspectives, there are two basic benefits of subordinates’
participation in budget setting. First, owing to identification and ego-involvement with budget
goals, participation is related to performance and so, leads to enhanced motivation and
commitment to the budget. Second, because of improving flow of information between superiors
and subordinates, it leads to higher quality decisions. From this perspective, participation leads to
higher motivation, higher commitment, higher quality decisions and hence higher performance.
As known, the generally stated thesis is that budget preparation effects subordinates’ managerial
performance positively. However, there is a possibility whether the way of linkage is negative or
positive. Accordingly, while some studies have supported the argument that budget preparation
positively and significantly associated with performance other studies have found either only a
weak positive association between budget preparation and performance.
Solution
From psychological and cognitive perspectives, there are two basic benefits of subordinates’
participation in budget setting. First, owing to identification and ego-involvement with budget
goals, participation is related to performance and so, leads to enhanced motivation and
commitment to the budget. Second, because of improving flow of information between superiors
and subordinates, it leads to higher quality decisions. From this perspective, participation leads to
higher motivation, higher commitment, higher quality decisions and hence higher performance.
As known, the generally stated thesis is that budget preparation effects subordinates’ managerial
performance positively. However, there is a possibility whether the way of linkage is negative or
positive. Accordingly, while some studies have supported the argument that budget preparation
positively and significantly associated with performance other studies have found either only a
weak positive association between budget preparation and performance.

More Related Content

Similar to From psychological and cognitive perspectives, there are two basic b.pdf

HR News_Jan14_Victor Adefuye
HR News_Jan14_Victor AdefuyeHR News_Jan14_Victor Adefuye
HR News_Jan14_Victor Adefuye
Victor Adefuye
 
CHAPTER SIXTEENUnderstanding Context Evaluation and Measureme
CHAPTER SIXTEENUnderstanding Context Evaluation and MeasuremeCHAPTER SIXTEENUnderstanding Context Evaluation and Measureme
CHAPTER SIXTEENUnderstanding Context Evaluation and Measureme
JinElias52
 
QI PLAN PART 32QI PLAN PART 310QI Plan Part 3.docx
QI PLAN PART 32QI PLAN PART 310QI Plan Part 3.docxQI PLAN PART 32QI PLAN PART 310QI Plan Part 3.docx
QI PLAN PART 32QI PLAN PART 310QI Plan Part 3.docx
amrit47
 
Current trends in hr 4 28-08
Current trends in hr 4 28-08Current trends in hr 4 28-08
Current trends in hr 4 28-08
Rabindra Kumar
 
HCFOFindingsBriefMarch2014FINAL
HCFOFindingsBriefMarch2014FINALHCFOFindingsBriefMarch2014FINAL
HCFOFindingsBriefMarch2014FINAL
Emily Blecker
 
Research Methods_IRP_Presentation_2015
Research Methods_IRP_Presentation_2015Research Methods_IRP_Presentation_2015
Research Methods_IRP_Presentation_2015
Carmen Menjivar
 
Chapter 8 Performance ManagementHRM330 Strategic Human Resou
Chapter 8 Performance ManagementHRM330 Strategic Human ResouChapter 8 Performance ManagementHRM330 Strategic Human Resou
Chapter 8 Performance ManagementHRM330 Strategic Human Resou
JinElias52
 
Rogers Succeeding in Workplace Wellness Feb2011
Rogers Succeeding in Workplace Wellness Feb2011Rogers Succeeding in Workplace Wellness Feb2011
Rogers Succeeding in Workplace Wellness Feb2011
allansmofsky
 
Introduction to Program Evaluation for Public Health.docx
Introduction to Program Evaluation for Public Health.docxIntroduction to Program Evaluation for Public Health.docx
Introduction to Program Evaluation for Public Health.docx
mariuse18nolet
 
Introduction to Program Evaluation for Public Health.docx
Introduction to Program Evaluation for Public Health.docxIntroduction to Program Evaluation for Public Health.docx
Introduction to Program Evaluation for Public Health.docx
bagotjesusa
 
Community ProblemThe community issue addressed is the high preva.docx
Community ProblemThe community issue addressed is the high preva.docxCommunity ProblemThe community issue addressed is the high preva.docx
Community ProblemThe community issue addressed is the high preva.docx
templestewart19
 
Community ProblemThe community issue addressed is the high preva.docx
Community ProblemThe community issue addressed is the high preva.docxCommunity ProblemThe community issue addressed is the high preva.docx
Community ProblemThe community issue addressed is the high preva.docx
janthony65
 

Similar to From psychological and cognitive perspectives, there are two basic b.pdf (20)

HR News_Jan14_Victor Adefuye
HR News_Jan14_Victor AdefuyeHR News_Jan14_Victor Adefuye
HR News_Jan14_Victor Adefuye
 
CHAPTER SIXTEENUnderstanding Context Evaluation and Measureme
CHAPTER SIXTEENUnderstanding Context Evaluation and MeasuremeCHAPTER SIXTEENUnderstanding Context Evaluation and Measureme
CHAPTER SIXTEENUnderstanding Context Evaluation and Measureme
 
QI PLAN PART 32QI PLAN PART 310QI Plan Part 3.docx
QI PLAN PART 32QI PLAN PART 310QI Plan Part 3.docxQI PLAN PART 32QI PLAN PART 310QI Plan Part 3.docx
QI PLAN PART 32QI PLAN PART 310QI Plan Part 3.docx
 
An Examination of the Strong Start Initiative Group Prenatal Care (GPC) Model...
An Examination of the Strong Start Initiative Group Prenatal Care (GPC) Model...An Examination of the Strong Start Initiative Group Prenatal Care (GPC) Model...
An Examination of the Strong Start Initiative Group Prenatal Care (GPC) Model...
 
Health and Wealth Coaching
Health and Wealth CoachingHealth and Wealth Coaching
Health and Wealth Coaching
 
Health Care Reform Survey 2012-2013
Health Care Reform Survey 2012-2013Health Care Reform Survey 2012-2013
Health Care Reform Survey 2012-2013
 
Current trends in hr 4 28-08
Current trends in hr 4 28-08Current trends in hr 4 28-08
Current trends in hr 4 28-08
 
HCFOFindingsBriefMarch2014FINAL
HCFOFindingsBriefMarch2014FINALHCFOFindingsBriefMarch2014FINAL
HCFOFindingsBriefMarch2014FINAL
 
Research Methods_IRP_Presentation_2015
Research Methods_IRP_Presentation_2015Research Methods_IRP_Presentation_2015
Research Methods_IRP_Presentation_2015
 
PPT-SIR-GABION-Finance.pptx
PPT-SIR-GABION-Finance.pptxPPT-SIR-GABION-Finance.pptx
PPT-SIR-GABION-Finance.pptx
 
Alignment slides
Alignment slidesAlignment slides
Alignment slides
 
Chapter 8 Performance ManagementHRM330 Strategic Human Resou
Chapter 8 Performance ManagementHRM330 Strategic Human ResouChapter 8 Performance ManagementHRM330 Strategic Human Resou
Chapter 8 Performance ManagementHRM330 Strategic Human Resou
 
Rogers Succeeding in Workplace Wellness Feb2011
Rogers Succeeding in Workplace Wellness Feb2011Rogers Succeeding in Workplace Wellness Feb2011
Rogers Succeeding in Workplace Wellness Feb2011
 
Empirical Study of the Effect of Participation of Budget in Managerial Perfor...
Empirical Study of the Effect of Participation of Budget in Managerial Perfor...Empirical Study of the Effect of Participation of Budget in Managerial Perfor...
Empirical Study of the Effect of Participation of Budget in Managerial Perfor...
 
Introduction to Program Evaluation for Public Health.docx
Introduction to Program Evaluation for Public Health.docxIntroduction to Program Evaluation for Public Health.docx
Introduction to Program Evaluation for Public Health.docx
 
Introduction to Program Evaluation for Public Health.docx
Introduction to Program Evaluation for Public Health.docxIntroduction to Program Evaluation for Public Health.docx
Introduction to Program Evaluation for Public Health.docx
 
Community ProblemThe community issue addressed is the high preva.docx
Community ProblemThe community issue addressed is the high preva.docxCommunity ProblemThe community issue addressed is the high preva.docx
Community ProblemThe community issue addressed is the high preva.docx
 
Community ProblemThe community issue addressed is the high preva.docx
Community ProblemThe community issue addressed is the high preva.docxCommunity ProblemThe community issue addressed is the high preva.docx
Community ProblemThe community issue addressed is the high preva.docx
 
How To Measure and Evaluate Success
How To Measure and Evaluate SuccessHow To Measure and Evaluate Success
How To Measure and Evaluate Success
 
Student’s name instructor’s name coursedatecharacterstics i
Student’s name instructor’s name coursedatecharacterstics iStudent’s name instructor’s name coursedatecharacterstics i
Student’s name instructor’s name coursedatecharacterstics i
 

More from info30292

The vagus nerve is the longest cranial nerve. It contains motor and .pdf
The vagus nerve is the longest cranial nerve. It contains motor and .pdfThe vagus nerve is the longest cranial nerve. It contains motor and .pdf
The vagus nerve is the longest cranial nerve. It contains motor and .pdf
info30292
 
So, you know that atoms have electrons. But how are they organized a.pdf
So, you know that atoms have electrons. But how are they organized a.pdfSo, you know that atoms have electrons. But how are they organized a.pdf
So, you know that atoms have electrons. But how are they organized a.pdf
info30292
 
Rutherford model of atom1) The electron cloud of the atom does n.pdf
Rutherford model of atom1) The electron cloud of the atom does n.pdfRutherford model of atom1) The electron cloud of the atom does n.pdf
Rutherford model of atom1) The electron cloud of the atom does n.pdf
info30292
 
Process improvementThe chance for development to either operating.pdf
Process improvementThe chance for development to either operating.pdfProcess improvementThe chance for development to either operating.pdf
Process improvementThe chance for development to either operating.pdf
info30292
 
In above scenarion Animator class,Actor pikachu=new Actor (picka.pdf
In above scenarion Animator class,Actor pikachu=new Actor (picka.pdfIn above scenarion Animator class,Actor pikachu=new Actor (picka.pdf
In above scenarion Animator class,Actor pikachu=new Actor (picka.pdf
info30292
 
Check listpolicy to be implemented for having controls for purchasi.pdf
Check listpolicy to be implemented for having controls for purchasi.pdfCheck listpolicy to be implemented for having controls for purchasi.pdf
Check listpolicy to be implemented for having controls for purchasi.pdf
info30292
 

More from info30292 (20)

Use the Henderson eqn pOH = pKb + log(baseacid).pdf
                     Use the Henderson eqn pOH = pKb + log(baseacid).pdf                     Use the Henderson eqn pOH = pKb + log(baseacid).pdf
Use the Henderson eqn pOH = pKb + log(baseacid).pdf
 
The purpose is to protonate the ether present the.pdf
                     The purpose is to protonate the ether present the.pdf                     The purpose is to protonate the ether present the.pdf
The purpose is to protonate the ether present the.pdf
 
no reaction since in metal activity series Zn is .pdf
                     no reaction since in metal activity series Zn is .pdf                     no reaction since in metal activity series Zn is .pdf
no reaction since in metal activity series Zn is .pdf
 
nuclei can contain different numbers of neutrons..pdf
                     nuclei can contain different numbers of neutrons..pdf                     nuclei can contain different numbers of neutrons..pdf
nuclei can contain different numbers of neutrons..pdf
 
KOH is a base as will yield OH-. FeSO4 is a salt.pdf
                     KOH is a base as will yield OH-.  FeSO4 is a salt.pdf                     KOH is a base as will yield OH-.  FeSO4 is a salt.pdf
KOH is a base as will yield OH-. FeSO4 is a salt.pdf
 
The vagus nerve is the longest cranial nerve. It contains motor and .pdf
The vagus nerve is the longest cranial nerve. It contains motor and .pdfThe vagus nerve is the longest cranial nerve. It contains motor and .pdf
The vagus nerve is the longest cranial nerve. It contains motor and .pdf
 
Solution 3-2Following are the basic users of financial statements.pdf
Solution 3-2Following are the basic users of financial statements.pdfSolution 3-2Following are the basic users of financial statements.pdf
Solution 3-2Following are the basic users of financial statements.pdf
 
So, you know that atoms have electrons. But how are they organized a.pdf
So, you know that atoms have electrons. But how are they organized a.pdfSo, you know that atoms have electrons. But how are they organized a.pdf
So, you know that atoms have electrons. But how are they organized a.pdf
 
Rutherford model of atom1) The electron cloud of the atom does n.pdf
Rutherford model of atom1) The electron cloud of the atom does n.pdfRutherford model of atom1) The electron cloud of the atom does n.pdf
Rutherford model of atom1) The electron cloud of the atom does n.pdf
 
Raising the pH will increase the basicity of the solution.Since su.pdf
Raising the pH will increase the basicity of the solution.Since su.pdfRaising the pH will increase the basicity of the solution.Since su.pdf
Raising the pH will increase the basicity of the solution.Since su.pdf
 
Process improvementThe chance for development to either operating.pdf
Process improvementThe chance for development to either operating.pdfProcess improvementThe chance for development to either operating.pdf
Process improvementThe chance for development to either operating.pdf
 
Net operating assets = operating assets-operating liabilitiesNet o.pdf
Net operating assets = operating assets-operating liabilitiesNet o.pdfNet operating assets = operating assets-operating liabilitiesNet o.pdf
Net operating assets = operating assets-operating liabilitiesNet o.pdf
 
In above scenarion Animator class,Actor pikachu=new Actor (picka.pdf
In above scenarion Animator class,Actor pikachu=new Actor (picka.pdfIn above scenarion Animator class,Actor pikachu=new Actor (picka.pdf
In above scenarion Animator class,Actor pikachu=new Actor (picka.pdf
 
import java.util.; public class NaturalNumberTriangle { publi.pdf
import java.util.; public class NaturalNumberTriangle { publi.pdfimport java.util.; public class NaturalNumberTriangle { publi.pdf
import java.util.; public class NaturalNumberTriangle { publi.pdf
 
HNO3 is a strong acid pH = -log[H+] = -log[0.05] = 1.3p.pdf
HNO3 is a strong acid  pH = -log[H+] = -log[0.05] = 1.3p.pdfHNO3 is a strong acid  pH = -log[H+] = -log[0.05] = 1.3p.pdf
HNO3 is a strong acid pH = -log[H+] = -log[0.05] = 1.3p.pdf
 
Formatting and code conversion occurs in the Presentation layer of t.pdf
Formatting and code conversion occurs in the Presentation layer of t.pdfFormatting and code conversion occurs in the Presentation layer of t.pdf
Formatting and code conversion occurs in the Presentation layer of t.pdf
 
Correct answer is option A. As epistasis occurs when the effect of o.pdf
Correct answer is option A. As epistasis occurs when the effect of o.pdfCorrect answer is option A. As epistasis occurs when the effect of o.pdf
Correct answer is option A. As epistasis occurs when the effect of o.pdf
 
Cloud computingIt is a kind of net based computing that gives sha.pdf
Cloud computingIt is a kind of net based computing that gives sha.pdfCloud computingIt is a kind of net based computing that gives sha.pdf
Cloud computingIt is a kind of net based computing that gives sha.pdf
 
Check listpolicy to be implemented for having controls for purchasi.pdf
Check listpolicy to be implemented for having controls for purchasi.pdfCheck listpolicy to be implemented for having controls for purchasi.pdf
Check listpolicy to be implemented for having controls for purchasi.pdf
 
ans C it is a process of forming diazo compund .pdf
                     ans C it is  a process of forming diazo compund  .pdf                     ans C it is  a process of forming diazo compund  .pdf
ans C it is a process of forming diazo compund .pdf
 

Recently uploaded

Orientation Canvas Course Presentation.pdf
Orientation Canvas Course Presentation.pdfOrientation Canvas Course Presentation.pdf
Orientation Canvas Course Presentation.pdf
Elizabeth Walsh
 
Personalisation of Education by AI and Big Data - Lourdes Guàrdia
Personalisation of Education by AI and Big Data - Lourdes GuàrdiaPersonalisation of Education by AI and Big Data - Lourdes Guàrdia
Personalisation of Education by AI and Big Data - Lourdes Guàrdia
EADTU
 

Recently uploaded (20)

VAMOS CUIDAR DO NOSSO PLANETA! .
VAMOS CUIDAR DO NOSSO PLANETA!                    .VAMOS CUIDAR DO NOSSO PLANETA!                    .
VAMOS CUIDAR DO NOSSO PLANETA! .
 
When Quality Assurance Meets Innovation in Higher Education - Report launch w...
When Quality Assurance Meets Innovation in Higher Education - Report launch w...When Quality Assurance Meets Innovation in Higher Education - Report launch w...
When Quality Assurance Meets Innovation in Higher Education - Report launch w...
 
OSCM Unit 2_Operations Processes & Systems
OSCM Unit 2_Operations Processes & SystemsOSCM Unit 2_Operations Processes & Systems
OSCM Unit 2_Operations Processes & Systems
 
Details on CBSE Compartment Exam.pptx1111
Details on CBSE Compartment Exam.pptx1111Details on CBSE Compartment Exam.pptx1111
Details on CBSE Compartment Exam.pptx1111
 
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdf
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdfUnit 3 Emotional Intelligence and Spiritual Intelligence.pdf
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdf
 
AIM of Education-Teachers Training-2024.ppt
AIM of Education-Teachers Training-2024.pptAIM of Education-Teachers Training-2024.ppt
AIM of Education-Teachers Training-2024.ppt
 
Jamworks pilot and AI at Jisc (20/03/2024)
Jamworks pilot and AI at Jisc (20/03/2024)Jamworks pilot and AI at Jisc (20/03/2024)
Jamworks pilot and AI at Jisc (20/03/2024)
 
21st_Century_Skills_Framework_Final_Presentation_2.pptx
21st_Century_Skills_Framework_Final_Presentation_2.pptx21st_Century_Skills_Framework_Final_Presentation_2.pptx
21st_Century_Skills_Framework_Final_Presentation_2.pptx
 
FSB Advising Checklist - Orientation 2024
FSB Advising Checklist - Orientation 2024FSB Advising Checklist - Orientation 2024
FSB Advising Checklist - Orientation 2024
 
Orientation Canvas Course Presentation.pdf
Orientation Canvas Course Presentation.pdfOrientation Canvas Course Presentation.pdf
Orientation Canvas Course Presentation.pdf
 
PANDITA RAMABAI- Indian political thought GENDER.pptx
PANDITA RAMABAI- Indian political thought GENDER.pptxPANDITA RAMABAI- Indian political thought GENDER.pptx
PANDITA RAMABAI- Indian political thought GENDER.pptx
 
NO1 Top Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
NO1 Top Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...NO1 Top Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
NO1 Top Black Magic Specialist In Lahore Black magic In Pakistan Kala Ilam Ex...
 
What is 3 Way Matching Process in Odoo 17.pptx
What is 3 Way Matching Process in Odoo 17.pptxWhat is 3 Way Matching Process in Odoo 17.pptx
What is 3 Way Matching Process in Odoo 17.pptx
 
How to Manage Call for Tendor in Odoo 17
How to Manage Call for Tendor in Odoo 17How to Manage Call for Tendor in Odoo 17
How to Manage Call for Tendor in Odoo 17
 
Personalisation of Education by AI and Big Data - Lourdes Guàrdia
Personalisation of Education by AI and Big Data - Lourdes GuàrdiaPersonalisation of Education by AI and Big Data - Lourdes Guàrdia
Personalisation of Education by AI and Big Data - Lourdes Guàrdia
 
Play hard learn harder: The Serious Business of Play
Play hard learn harder:  The Serious Business of PlayPlay hard learn harder:  The Serious Business of Play
Play hard learn harder: The Serious Business of Play
 
dusjagr & nano talk on open tools for agriculture research and learning
dusjagr & nano talk on open tools for agriculture research and learningdusjagr & nano talk on open tools for agriculture research and learning
dusjagr & nano talk on open tools for agriculture research and learning
 
HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptx
HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptxHMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptx
HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptx
 
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
 
Understanding Accommodations and Modifications
Understanding  Accommodations and ModificationsUnderstanding  Accommodations and Modifications
Understanding Accommodations and Modifications
 

From psychological and cognitive perspectives, there are two basic b.pdf

  • 1. From psychological and cognitive perspectives, there are two basic benefits of subordinates’ participation in budget setting. First, owing to identification and ego-involvement with budget goals, participation is related to performance and so, leads to enhanced motivation and commitment to the budget. Second, because of improving flow of information between superiors and subordinates, it leads to higher quality decisions. From this perspective, participation leads to higher motivation, higher commitment, higher quality decisions and hence higher performance. As known, the generally stated thesis is that budget preparation effects subordinates’ managerial performance positively. However, there is a possibility whether the way of linkage is negative or positive. Accordingly, while some studies have supported the argument that budget preparation positively and significantly associated with performance other studies have found either only a weak positive association between budget preparation and performance. Solution From psychological and cognitive perspectives, there are two basic benefits of subordinates’ participation in budget setting. First, owing to identification and ego-involvement with budget goals, participation is related to performance and so, leads to enhanced motivation and commitment to the budget. Second, because of improving flow of information between superiors and subordinates, it leads to higher quality decisions. From this perspective, participation leads to higher motivation, higher commitment, higher quality decisions and hence higher performance. As known, the generally stated thesis is that budget preparation effects subordinates’ managerial performance positively. However, there is a possibility whether the way of linkage is negative or positive. Accordingly, while some studies have supported the argument that budget preparation positively and significantly associated with performance other studies have found either only a weak positive association between budget preparation and performance.