Effect of Budget Preparation Participation and Clarity of Budget Targets on SKPD Managerial Performance in the North Sumatra Provincial Government with Organizational Commitment as Moderation Variables
Introduction
Effective budget preparation and clarity of budget targets are crucial aspects that can significantly impact the managerial performance of the Regional Work Unit (SKPD) in the North Sumatra Provincial Government. In this study, we aim to analyze the influence of these two factors on SKPD managerial performance, with organizational commitment as a moderation variable. By understanding the relationship between these variables, we can provide valuable insights for local governments to formulate a more inclusive and effective budgeting strategy.
Research Background
This study is based on contingency theory, which emphasizes the importance of harmony between the participation of the budget preparation, clarity of budget goals, and organizational commitment. Contingency theory suggests that the effectiveness of an organization depends on the degree to which its internal processes and structures are aligned with the external environment. In this context, the participation of budget preparation and clarity of budget targets are critical factors that can influence the managerial performance of the SKPD.
The population in this study consisted of all SKPD managers involved in the budgeting process in the North Sumatra Provincial Government. The entire population was used as a research sample, and data was collected through a questionnaire that was directly distributed to respondents. To ensure data validity and reliability, classical assumptions analysis was carried out, and hypotheses were tested using multiple regression analysis.
Research Methodology
The research methodology used in this study consisted of several stages. Firstly, a questionnaire was designed to collect data from SKPD managers involved in the budgeting process. The questionnaire consisted of several sections, including demographic information, participation in budget preparation, clarity of budget targets, organizational commitment, and managerial performance. The questionnaire was distributed to all SKPD managers in the North Sumatra Provincial Government, and a total of 100 respondents participated in the study.
Data analysis was carried out using multiple regression analysis, which is a statistical technique used to analyze the relationship between multiple independent variables and a dependent variable. The analysis was carried out to test the hypotheses and to determine the significance of the relationships between the variables.
Research Result
The results of this study showed that participation in the preparation of the budget and the clarity of budget targets simultaneously had a positive and significant effect on the managerial performance of the SKPD. However, partially only the participation of budget preparation had a significant impact on the managerial performance of the SKPD, while the clarity of the budget target did not show the same effect.
Interestingly, the organizational commitment that was expected to strengthen the relationship between the participation of budget preparation and the clarity of budget targets did not have a significant effect in this context. This indicates that organizational commitment is more as an independent variable that can affect the managerial performance of the SKPD simultaneously with other variables.
Analysis and Discussion
The results of this study imply that increasing participation in budget preparation can be a strategic step for SKPD to improve its performance. This shows that involving more parties in the budgeting process, such as managers and employees, can produce better decisions and are more in accordance with organizational needs.
On the other hand, it is essential to understand that the clarity of budget targets is not always translated in the form of better performance, as shown by the results of this study. Clarity of budget targets that are not understood or not internalized by all members of the organization can cause discrepancy in the implementation of existing tasks. Therefore, efforts are needed to increase understanding and communication regarding the target of the budget among all SKPD members.
Furthermore, although organizational commitment does not function as a reinforcement in the relationship of participation in the preparation of the budget and the clarity of budget goals, this does not mean that organizational commitment is not important. In the context of management, organizational commitment still has a strategic role in creating a positive work culture and motivating employees to contribute optimally.
Conclusion
From this study, it can be concluded that participation in the preparation of the budget has a significant influence on the managerial performance of the SKPD, while the clarity of budget targets does not show the same effect. Organizational commitment functions as an independent variable that still affects the context of managerial performance of the SKPD. This research is essential for local governments in formulating a more inclusive and effective budgeting strategy in order to improve managerial performance which results in better public services.
Recommendations
Based on the findings of this study, several recommendations can be made for local governments in the North Sumatra Provincial Government. Firstly, increasing participation in budget preparation can be a strategic step to improve the managerial performance of the SKPD. This can be achieved by involving more parties in the budgeting process, such as managers and employees.
Secondly, efforts are needed to increase understanding and communication regarding the target of the budget among all SKPD members. This can be achieved by providing training and development programs for SKPD employees to improve their understanding of the budget targets.
Thirdly, organizational commitment is still an essential factor that can affect the managerial performance of the SKPD. Therefore, local governments should focus on creating a positive work culture and motivating employees to contribute optimally.
Limitations of the Study
This study has several limitations that should be acknowledged. Firstly, the study was conducted in the North Sumatra Provincial Government, and the findings may not be generalizable to other local governments. Secondly, the study used a questionnaire as the primary data collection instrument, which may be subject to biases and limitations.
Finally, the study did not control for other factors that may influence the managerial performance of the SKPD, such as the availability of resources and the level of autonomy. Therefore, future studies should consider these factors to provide a more comprehensive understanding of the relationship between budget preparation participation, clarity of budget targets, and organizational commitment.
Future Research Directions
This study provides several avenues for future research. Firstly, future studies should investigate the relationship between budget preparation participation, clarity of budget targets, and organizational commitment in other local governments. This can provide a more comprehensive understanding of the generalizability of the findings of this study.
Secondly, future studies should consider the role of other factors that may influence the managerial performance of the SKPD, such as the availability of resources and the level of autonomy. This can provide a more nuanced understanding of the relationship between budget preparation participation, clarity of budget targets, and organizational commitment.
Finally, future studies should investigate the impact of budget preparation participation, clarity of budget targets, and organizational commitment on the performance of the SKPD in terms of public services. This can provide a more comprehensive understanding of the relationship between these variables and the performance of the SKPD.Q&A: Effect of Budget Preparation Participation and Clarity of Budget Targets on SKPD Managerial Performance
Q: What is the main objective of this study?
A: The main objective of this study is to analyze the effect of budget preparation participation and clarity of budget targets on SKPD managerial performance in the North Sumatra Provincial Government, with organizational commitment as a moderation variable.
Q: What is the significance of this study?
A: This study is significant because it provides insights into the relationship between budget preparation participation, clarity of budget targets, and organizational commitment, which can help local governments improve their managerial performance and provide better public services.
Q: What is the population of this study?
A: The population of this study consists of all SKPD managers involved in the budgeting process in the North Sumatra Provincial Government.
Q: What is the research methodology used in this study?
A: The research methodology used in this study consists of several stages, including the design of a questionnaire, data collection, and data analysis using multiple regression analysis.
Q: What are the findings of this study?
A: The findings of this study show that participation in the preparation of the budget and the clarity of budget targets simultaneously have a positive and significant effect on the managerial performance of the SKPD. However, partially only the participation of budget preparation has a significant impact on the managerial performance of the SKPD, while the clarity of the budget target does not show the same effect.
Q: What is the role of organizational commitment in this study?
A: Organizational commitment is found to function as an independent variable that can affect the managerial performance of the SKPD simultaneously with other variables. However, it does not have a significant effect in strengthening the relationship between participation in the preparation of the budget and the clarity of budget targets.
Q: What are the implications of this study?
A: The implications of this study are that increasing participation in budget preparation can be a strategic step for SKPD to improve its performance. Additionally, efforts are needed to increase understanding and communication regarding the target of the budget among all SKPD members.
Q: What are the limitations of this study?
A: The limitations of this study include the fact that it was conducted in the North Sumatra Provincial Government, and the findings may not be generalizable to other local governments. Additionally, the study used a questionnaire as the primary data collection instrument, which may be subject to biases and limitations.
Q: What are the future research directions?
A: Future research directions include investigating the relationship between budget preparation participation, clarity of budget targets, and organizational commitment in other local governments, considering the role of other factors that may influence the managerial performance of the SKPD, and investigating the impact of budget preparation participation, clarity of budget targets, and organizational commitment on the performance of the SKPD in terms of public services.
Q: What are the recommendations for local governments?
A: The recommendations for local governments include increasing participation in budget preparation, increasing understanding and communication regarding the target of the budget among all SKPD members, and focusing on creating a positive work culture and motivating employees to contribute optimally.
Q: What are the key takeaways from this study?
A: The key takeaways from this study are that participation in the preparation of the budget has a significant influence on the managerial performance of the SKPD, while the clarity of budget targets does not show the same effect. Additionally, organizational commitment functions as an independent variable that can affect the managerial performance of the SKPD simultaneously with other variables.