DOES ORGANIZATION-MANDATED BUDGETARY INVOLVEMENT ENHANCE MANAGERS’ BUDGETARY COMMUNICATION WITH THEIR SUPERVISOR?

Abstract

Large organizations typically mandate that managers attend budget meetings and exchange budget reports with their immediate supervisor and budget staff. We explored whether such organization-mandated budgetary involvement is related to managers’ budgetary communication with their supervisor in terms of budgetary participation, budgetary explanation, and budgetary feedback. Questionnaire data from 148 managers employed by 94 different companies were analyzed with regression. Mandatory budget meetings with supervisor had a positive relationship with all three forms of budgetary communication with supervisor, and mandatory budget reports from supervisor had a positive relationship with budgetary explanation from supervisor. Mandatory budget meetings with budget staff had a positive relationship with both budgetary participation with supervisor and budgetary feedback from supervisor. Mandatory budget reports from budget staff had a negative relationship with all three forms of budgetary communication with supervisor. The results failed to support proposed relationships between mandatory budget reports to supervisor and budgetary participation with supervisor, and between mandatory budget reports from supervisor and budgetary explanation from supervisor. Implications of the results for future research and budgetary system design are discussed.

Citation

Francis-Gladney, L., Little, H.T., Magner, N.R. and Welker, R.B. (2004), "DOES ORGANIZATION-MANDATED BUDGETARY INVOLVEMENT ENHANCE MANAGERS’ BUDGETARY COMMUNICATION WITH THEIR SUPERVISOR?", Advances in Management Accounting (Advances in Management Accounting, Vol. 13), Emerald Group Publishing Limited, Leeds, pp. 167-182. https://doi.org/10.1016/S1474-7871(04)13007-4