Foreign capital plantation company

Oct 13, 2025 by vinooalluri.com 111 views

The Effect of Procedural Justice on Job Satisfaction and Managerial Performance Through Budget Participation in SOE Plantation Companies in North Sumatra

Introduction

In the context of state-owned plantation companies in North Sumatra, budget participation is a crucial process that involves the active role of the Accountability Central Manager (MPP). The effectiveness and efficiency of MPP's duties and responsibilities play a significant role in realizing procedural justice in the preparation of the budget. This study aims to analyze the relationship between procedural justice and job satisfaction and managerial performance through budget participation in SOE plantation companies in North Sumatra.

Background

Budget participation is a process that involves the preparation of a budget with the active role of MPP. The role of MPP in this process is closely related to procedural justice. Procedural justice refers to the fair and transparent decision-making process, including the similarity of opportunities to express opinions, disclosure of information, and decision-making processes that are not discriminatory. In the context of budget participation, procedural justice is essential to ensure that MPP's opinions and ideas are valued and considered in the preparation of the budget.

Methodology

This study uses a descriptive approach to reveal empirical evidence of the role of the participation of various MPP strata in the preparation of the budget. The research data was collected through a questionnaire consisting of 5 items and distributed to 135 respondents. Data analysis is carried out using the multivariate method. The results of the study showed a positive and significant correlation between procedural justice and job satisfaction and managerial performance through budget participation.

Procedural Justice

Procedural justice in budget participation can be interpreted as MPP perception of the fair and transparent budget decision-making process. This includes the similarity of opportunities to express opinions, disclosure of information, and decision-making processes that are not discriminatory. Procedural justice is essential to ensure that MPP's opinions and ideas are valued and considered in the preparation of the budget.

Job Satisfaction

High job satisfaction results from satisfaction with the work carried out, including the budget preparation process. When MPP feels involved and their opinions are valued in the preparation of the budget, they will feel more satisfied and motivated to work. Job satisfaction is a critical factor in determining the overall performance of MPP, as it affects their motivation and commitment to achieve organizational targets and objectives.

Managerial Performance

Good managerial performance is reflected in achieving organizational targets and objectives. Fair and transparent budget participation encourages MPP to be more responsible for the targets set, thereby improving overall performance. Managerial performance is a critical factor in determining the success of SOE plantation companies in North Sumatra, as it affects their ability to achieve their organizational targets and objectives.

Recommendation

This study recommends the expansion of research samples by involving plantation companies with various owners, such as:

Foreign capital plantation company: To understand the perspective and practice of budget participation in companies with different cultures and organizational structures.
Domestic capital company: To compare the practice of budget participation in private companies with SOEs.
Private company: To obtain a more comprehensive picture of the effect of procedural justice in various types of plantation companies.
Industrial and Service Companies: To expand an understanding of the effect of budget participation in the non-plantation sector.

Thus, further research can produce a more comprehensive understanding and provide more effective recommendations in implementing budget participation to increase job satisfaction and managerial performance.

Conclusion

This study highlights the importance of procedural justice in budget participation in SOE plantation companies in North Sumatra. The results of the study showed a positive and significant correlation between procedural justice and job satisfaction and managerial performance through budget participation. The study recommends the expansion of research samples to involve plantation companies with various owners to produce a more comprehensive understanding of the effect of procedural justice in various types of plantation companies.

Limitation

This study has several limitations, including:

Sample size: The sample size of this study is limited to 135 respondents, which may not be representative of the entire population of MPP in SOE plantation companies in North Sumatra.
Data collection method: The data collection method used in this study is a questionnaire, which may not capture the nuances of MPP's opinions and experiences.
Context: The study is limited to SOE plantation companies in North Sumatra, which may not be generalizable to other types of companies or industries.

Future Research

Future research can build on the findings of this study by:

Expanding the sample size: To involve more respondents and produce a more comprehensive understanding of the effect of procedural justice in various types of plantation companies.
Using different data collection methods: To capture the nuances of MPP's opinions and experiences, such as interviews or focus groups.
Examining the effect of procedural justice in other contexts: To produce a more comprehensive understanding of the effect of procedural justice in various types of companies and industries.

References

[List of references cited in the study]

Appendix

[Appendix containing additional information, such as tables, figures, and questionnaires]
Frequently Asked Questions (FAQs) on The Effect of Procedural Justice on Job Satisfaction and Managerial Performance Through Budget Participation in SOE Plantation Companies in North Sumatra

Q: What is procedural justice?

A: Procedural justice refers to the fair and transparent decision-making process, including the similarity of opportunities to express opinions, disclosure of information, and decision-making processes that are not discriminatory.

Q: How does procedural justice affect job satisfaction?

A: Procedural justice can lead to higher job satisfaction among MPP, as it ensures that their opinions and ideas are valued and considered in the preparation of the budget. When MPP feel involved and their opinions are valued, they will feel more satisfied and motivated to work.

Q: What is the relationship between procedural justice and managerial performance?

A: Procedural justice can lead to better managerial performance, as it encourages MPP to be more responsible for the targets set, thereby improving overall performance. Fair and transparent budget participation can lead to improved organizational targets and objectives.

Q: How can SOE plantation companies in North Sumatra implement procedural justice in budget participation?

A: SOE plantation companies in North Sumatra can implement procedural justice in budget participation by:

Ensuring that MPP have equal opportunities to express their opinions and ideas
Disclosing information clearly and transparently
Making decisions in a fair and non-discriminatory manner
Encouraging MPP to take ownership of the budget preparation process

Q: What are the benefits of implementing procedural justice in budget participation?

A: The benefits of implementing procedural justice in budget participation include:

Improved job satisfaction among MPP
Better managerial performance
Improved organizational targets and objectives
Increased motivation and commitment among MPP

Q: What are the challenges of implementing procedural justice in budget participation?

A: The challenges of implementing procedural justice in budget participation include:

Resistance to change from MPP who are accustomed to traditional decision-making processes
Difficulty in ensuring equal opportunities for MPP to express their opinions and ideas
Limited resources and capacity to implement procedural justice

Q: How can SOE plantation companies in North Sumatra overcome the challenges of implementing procedural justice in budget participation?

A: SOE plantation companies in North Sumatra can overcome the challenges of implementing procedural justice in budget participation by:

Providing training and capacity-building programs for MPP
Establishing clear policies and procedures for budget participation
Encouraging open communication and feedback among MPP
Monitoring and evaluating the effectiveness of procedural justice in budget participation

Q: What are the implications of this study for SOE plantation companies in North Sumatra?

A: The implications of this study for SOE plantation companies in North Sumatra are:

The importance of implementing procedural justice in budget participation to improve job satisfaction and managerial performance
The need to establish clear policies and procedures for budget participation
The importance of providing training and capacity-building programs for MPP
The need to monitor and evaluate the effectiveness of procedural justice in budget participation

Q: What are the limitations of this study?

A: The limitations of this study are:

The sample size is limited to 135 respondents
The data collection method is a questionnaire
The study is limited to SOE plantation companies in North Sumatra

Q: What are the future research directions?

A: Future research directions include:

Expanding the sample size to involve more respondents
Using different data collection methods, such as interviews or focus groups
Examining the effect of procedural justice in other contexts, such as private companies or industrial and service companies.