There is an ongoing discussion about trusts significance and role in the reliance on accounting performance measures (RAPM) field and organizational behavior. This knowledge gap has led to opposite findings but still many researchers give recognition to the concept that trust may be crucial and significant in management control. Considering previous research a continuation is necessary and since it seems that the researchers have come to an impasse, it is time to include different variables that can help to explain the variation in the relationship. The main purpose of this study is to challenge the research gap and change the dependent variable; instead of behavioral outcome this study investigates performance. Is it possible that mutual trust, high budget participation and empowerment together have an impact on organizational performance? If so, is it possible that these variables together can lower the information asymmetry and increase performance? A qualitative research method is used to investigate these questions in form of a critical incident survey and semi structured interviews. To test if there is any connection or correlation between the variables a supportive correlation analysis is conducted in the program SPSS. The results have shown that there is a connection and correlation between the variables trust, budget participation and empowerment. When these variables function together it is possible to see a greater organizational performance. When there is mutual trust and high budget participation there is more willingness to disclose information directly. This study has contributed to the current knowledge gap and provided new theoretical and empirical insight. Keywords: Trust, budget participation, empowerment, information asymmetry, organizational performance.

In our government, the resource allocation is based on the up-down resource total quota allocation system, which has provided all authorities basic budget and expenditure for regular law and added the autonomy for authorities to decide budget by themselves. But in the annual budget planning process, cases asking for additional budget via planning and budget audit committee are very abundant. Therefore, adopting budget strategy is an important issue when government authorities planning budget. This study verifies the effects of budget participation, budget perception and interpersonal relationship over budget strategy. Adopting questionnaire survey and statistic analyses, the empirical result of this study shows that the higher participation in the process of budget making, the higher the probability of execution budget strategy is. Moreover, this study finds that the budget perception generated by participating in the process of budget making is high for Kaohsiung city government¡¦s first-level agency directors, and it can also improve the strategy for execution budget competing, while for the central government, it is not affected. Therefore, reducing the budget audit committee frequency should be helpful for reducing the authorities asking for extra needs. This study also finds that bureau directors distinguish employees as insider or outsider by the value of relationship and authoritarianism, and treat them differently in budget allocation. Meanwhile, administration units take responsibility for administration staff, business units take responsibility for plan execution, the budget amount perceptions for directors of general affair, accounting, and administration unit directors are affected by interpersonal relationship, while directors of the business units are not affected.

Denna uppsats behandlar ämnet budgetslack samt olika faktorers påverkan inom tre skildaverksamheter. Budgetslack är vanligt förekommande inom de flesta verksamheter och sessom ett problem som minskar verksamheters konkurrenskraft. Det råder dock delademeningar om vilka faktorer som ökar respektive minskar existensen av slack samtförekommande studier som motsäger varandra. Vi ansåg därför att det vore intressant attstudera ämnet närmare och valde att fördjupa oss i hur faktorerna budgetstyrning,företagsmiljö, agerande i eget intresse, informationsasymmetri, deltagandegrad ibudgetförhandlingen samt budgetmålens inverkan samverkar. Utifrån vår empiriska dataupprättade vi en egen modell som visar hur dessa faktorer påverkade förekomsten av slackinom de tre olika verksamheterna.Syftet med denna uppsats är att förstå hur olika faktorers påverkan på budgetslack skiljer sigåt mellan olika verksamheter. Vidare syftar studien till att presentera existerande attitydersamt förekomsten av budgetslack.Resultatet av vår studie visade att olika faktorers påverkan på budgetslack skiljer sig åtberoende på vilken typ av verksamhet det gäller. Vi identifierade slack av något slag inomåtminstone två verksamheter men inte några förebyggande åtgärder. Detta kan i det ena falletbero på att slack inte ansågs existera och i det andra på att det inte var något somprioriterades. Utöver de påverkande faktorer som nämndes i teorin har vi även identifierat enhög kostnadskontroll som en åtgärdande faktor av slack. Vidare har vi i denna studie sett attslack inte nödvändigtvis måste vara något dåligt då det bland annat bidrar till en högarbetstillfredsställelse och ansvarskänsla hos personalen vilket i sin tur minskar förekomstenav det så kallade ”dåliga” slacket. / Program: Civilekonomprogrammet