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Previous research has indicated that municipalities regularly collect performance data. A survey of medium-to-large southeastern cities supports that conclusion, but cautions that limited emphasis is placed on performance during budget construction. Prior-year expenditures drive the budget at the preparation phase. Performance information is added at the presentation phase for explication and to conform norms promulgated by professional budgeting organizations.

This paper describes the implementation of performance-based program budgeting in the state of Florida. Obstacles to implementing this budget reform, such as multiple agency program structures, lack of program cost accounting information, and problems in performance measurement and goal setting are described. Recent attempts to overcome these issues and overall conclusions on the future of the budget reform are provided.

This study uses a path analytic model to investigate the influence of fairness (i.e., procedural fairness, distributive fairness, and interactional fairness) on managers’ budget satisfaction and the influence of managers’ budget satisfaction on budget performance. To this end, data from 92 U.S. individual managers are used for the study. The results show that fairness perceptions have a significant positive impact on budget satisfaction which, in turn, positively affects budget performance. Further analyses indicate that budget satisfaction mediates the relationship between fairness measures and budget performance. The implications, limitations, and directions for future research are discussed.

Performance management involves budgeting, performance evaluation, and incentive compensation. This study describes a model that encompasses these three elements of performance management. To illustrate the model, survey data were examined using path analysis. The empirical evidence supports the model, and suggests several intervening variables that mediate the direct and indirect effects of budgeting, performance evaluation, and incentives on gaming behaviors and individual performance.

The aim of this chapter is to investigate the relationship between the uses of budgets with financial performance in start-ups’ business environment. For this reason, an empirical survey was carried out, using a questionnaire in 134 start-up companies, which are based in 10 different European countries. Results show that there is a positive association between the use of budgets for planning, resource allocation and performance evaluation with financial performance. The CEO’s business educational background, as well as CEO’s beliefs about planning, has a strong influence in the use of budgets in start-up firms. We also concluded that there is a positive association between perceived environmental uncertainty (PEU) and the use of budgets for planning and resource allocation and a negative association between PEU and the use of budgets for performance evaluation.

Recent years witnessed an exponential growth of the Portuguese real estate market. This growth has generated the need to implement effective management control tools to allow companies to improve their planning and monitoring of activities. Drawing on the agency and goal-setting theories, this paper explores the impact of companies' participative budgeting processes on employee performance in the real estate industry.

For this purpose, a questionnaire was developed and a sample of 116 employees that participate in the budgeting process of real estate organizations collected, with data analyzed using structural equation modelling.

The results show that participation in the budgeting process has an impact on employees' performance through budget goal commitment, trust and job satisfaction. However, no statistical support was found for the role of budgetary slack in this process.

This study was conducted in a single industry and is based on self-reported measures of employees that participate in the budgeting process of their organizations.

The findings highlight the need for real estate organizations to involve their staff in the elaboration of budgets, contributing to a higher level of commitment to established goals, job satisfaction, trust and performance. Real estate organizations should provide adequate working conditions, foster their employees' autonomy and recognize their work.

The findings encourage real estate companies to extend the participation in the budget process to employees and, ultimately, to mitigate the probability of budget failure.

This study aims to examine the role of trust-in-supervisor and organizational commitment on the relationship between a budget-based incentive compensation scheme and job performance.

A survey was conducted involving 120 managers from Australian manufacturing firms listed in the Who’s Who in Business in Australia electronic database. A partial least squares approach was used to assess the psychometric properties of the theoretical model and proposed hypotheses. Data analysis was conducted using WarpPLS Version 5.0.

The results suggest that the reliance on a high budget-based incentive compensation scheme was found to lead to higher trust-in supervisor, which in turn resulted in higher organizational commitment and improved subordinate job performance.

This study is subject to the limitations of survey-based research.

This study may assist top management to better understand the importance of designing an effective budget-based incentive compensation scheme to promote high interpersonal trust and organizational commitment among subordinates. Cultivating a climate of trust may help to enhance interpersonal trust between subordinates and their superior, which in turn may lead to higher levels of organizational commitment and improvement in subordinate job performance.

This paper elucidates and contributes to the existing literature by suggesting that a budget-based incentive compensation scheme can directly affect subordinates’ level of trust in their supervisor, and that trust-in-supervisor can serve as an antecedent to the development and cultivation of subordinates’ commitment to the organization, which in turn improves their job performance.

How do entrepreneurs in the public sector effect major policy changes? Are the same entrepreneurs likely to be involved from the idea initiation stage through design, adoption, implementation and institutionalnation, or are there different prominent entrepreneurs in each of the policy stages? What does the pattern of entrepreneurial participation mean for the success of the policy? Utilizing a case study of Performance-Based Program Budgeting (PB2 ) in the State of Florida, this paper employs the observations of key Florida policymakers and advocates to describe the strategic and purposive actions of public entrepreneurs in the four stages of the PB2 budget reform policy process. The work supports current research that major policy changes, such as the adoption of PB2 in Florida, require purposive and strategic actions from public entrepreneurs for their fruition. The paper also contributes to the growing implementation and budgeting literature that describes and assesses performance-based budgeting in the states, and provides observations on necessary conditions for institutionalizing PB2 in Florida.

As a key component of a World Bank‐financed Administrative Reform Programme, the Government of Jamaica began a phased implementation of performance Budgeting in 1985–86. Under the leadership of the Finance Ministry's Budget Division. Just under 70 per cent of the Government's 50 appropriation units will have applied performance budgeting during the 1988/89 financial year. The remaining units are scheduled for conversion in 1989–90. Expressing the Government's determination to establish productivity‐oriented managerial environments throughout its administrative service, 1,000 front line supervisors have been assigned the basic responsibility for the formulation and execution of performance budgets. These “cost centre managers”, most of whom had no responsibility for budgeting in the traditional system, are going through a management skills development programme, embracing classroom instruction, practice and on‐the‐job technical assistance. Significant institutional changes are also involved including: (1) the reorientation of the Budget Division, (2) the development of Ministry budget functions, (3) the reorganisation of accounting practices to provide required support for performance budgeting, (4) the development of management services support for cost centre managers and, (5) the establishment of productivity‐oriented training programmes.

Drawing on network and fiscal federalism theories, we investigated central government patronage and donor aid as antecedents of budget performance in local government (LG). A mixed methods design with data collected from 18 LGs, two ministries, and four donor agencies in Uganda was employed. Results revealed that both central government patronage and donor aid predict budget performance. Moreover, autonomy does not mediate the interactions as initially hypothesized. Implications for theory and practice are discussed and future research direction is provided.