The dysfunctional consequences of budgetary controls have received a great deal of attention. One motivation for the current study was to test whether effects exist between two alleged dysfunctional consequences of a rigid budgetary control form: budget slack creation and managerial short-term orientation. According to the research: A rigid budgetary control will reduce budget slack creation and increase managerial short-term orientation. Reducing one form of dysfunctional behavior (slack creation) through rigid controls seems to raise another form (stronger management focus on business matters that affect short-term results). However, the budgetary control forms that organizations implement may be affected by two important antecedents: past business unit performance and environmental uncertainty. The results indicate that business units that have been more profitable are subject to more rigid budgetary controls, which reduce the propensity to build slack and, as a result, lead indirectly to managers¡¦ emphasis on short-term effects. The high environmental uncertainty of the business units is subject to less rigid budgetary controls from upper management allowing them to build slack, which seems in line with the flexibility required to respond effectively to changes in their environment as well as the tendency for managers to think about long-term effects. We collected 138 samples from 1,017 respondents, who are business unit managers of public owned companies in Taiwan, and used path analysis to test our hypotheses.

Most previous studies emphasized on the single consequence with respect to the effect of budgetary emphasis on budgetary slack or other dysfunctional behaviors, however, the relationships among these dysfunctional behaviors are seldom investigated. In order to understand the relationships among those dysfunctional behaviors, this study attempted to explore a structure model of past performance, perceived environment uncertainty, consideration leadership style, budgetary emphasis and three dysfunctional behaviors including budgetary slack, job-related tension and managerial short-term orientation. The empirical data was randomly drawn from 175 manufacturing managers in Taiwan Security Exchange. The empirical evidence of this research revealed as follows: 1. Managers have no incentive to create budgetary slack in a business which does not evaluate manager¡¦s performance with budgetary goal achievement. There is a significant positive relationship between past performance and budgetary slack, but the direct effect does not exist. The effect of past performance on budgetary slack is indirectly through budgetary emphasis. Similarly, perceived environment uncertainty and consideration leadership style affecting budgetary slack isn¡¦t directly but indirectly by budgetary emphasis. 2. Between budgetary slack and managerial short-term orientation, budgetary slack and job-related tension may exist a spillover effect. While reducing the propensity to build budgetary slack might induce managerial short-term orientation and job-related tension. 3. Weather no matter budget achievement evaluates performance, past performance directly influences the job-related tension. The manager whose performance is poor could have the higher job-related tension. 4. In different industry, the factor that influencing the organization to practice the budget control system is also different. In traditional industry, past performance is the important factor that affecting organization to implement the budget control system and induce the dysfunction behaviors, but perceived environment uncertainty is the important factor in the electronic information industry.

We consider two broad categories of incentives by which a manufacturer can motivate its retailers to provide high customer satisfaction: 1) manufacturer assistance that reduces the retailer's cost of providing customer satisfaction (CS assistance); and 2) customer satisfaction index (CSI) bonus. We show that if a retailer has a long-term orientation, CS assistance is a more effective coordination mechanism that induces the retailer to expend more effort at customer satisfaction. However if the retailer has a short-term orientation, CSI bonus is a more effective coordination mechanism. We then show that a long-term retailed is more valuable to a manufacturer than a short-term oriented one. Finally, we show that the use of CSI incentives results in greater profits for both the manufacturer and the retailer.

Submitted by Friederike Trautmann (friederike.trautmann@gmail.com) on 2017-04-05T21:38:08Z No. of bitstreams: 1 FGV_Dissertation_Trautmann.pdf: 3522003 bytes, checksum: 64f407b980b1713451aa1d8ec318da07 (MD5) / Approved for entry into archive by Janete de Oliveira Feitosa (janete.feitosa@fgv.br) on 2017-04-17T14:35:22Z (GMT) No. of bitstreams: 1 FGV_Dissertation_Trautmann.pdf: 3522003 bytes, checksum: 64f407b980b1713451aa1d8ec318da07 (MD5) / Made available in DSpace on 2017-04-19T14:00:50Z (GMT). No. of bitstreams: 1 FGV_Dissertation_Trautmann.pdf: 3522003 bytes, checksum: 64f407b980b1713451aa1d8ec318da07 (MD5) Previous issue date: 2017-03-13 / This thesis investigates whether time orientation (long-term orientation versus short-term orientation) moderates the relationship between conscientiousness and planning orientation (process orientation versus outcome orientation) among Brazilians and Germans. According to Hofstede (2001), Brazilians are short-term oriented, whereas Germans are highly long-term oriented. An online survey was conducted with 103 Brazilian and 106 German participants. The survey included the HEXACO-60 model’s conscientiousness items, self-developed items based on Hofstede’s time orientation summary (Hofstede, 2001), and Woolley’s measures for planning orientation (Woolley, 2009a, 2009b). Regression analyses, frequencies, and independent samples t-tests were conducted with SPSS, with conscientiousness, time orientation and nationality as predictors and planning orientation as dependent variable. Demographic control variables were analyzed with ANOVA and multiple regression. Neither was there a significant relationship between conscientiousness and planning orientation, nor was this relationship moderated by time orientation or nationality. There was no significant positive relationship between conscientiousness and process orientation in either of the two country samples. Time orientation did also not have a direct impact on planning orientation. Brazilians were not more likely to display outcome orientation, and neither were Germans more likely to display process orientation. The demographic control variables failed to consistently and significantly predict planning orientation. A surprising finding was that other than proposed by Hofstede (2001), Germans scored as high on short-term orientation as Brazilians. Research limitations, implications for practice, and recommendations for future research were explored by the author. / Esta tese investiga se o foco temporal (foco no longo prazo versus foco no curto prazo) influencia a relação entre conscienciosidade e o foco do planejamento (foco no processo versus foco no resultado) entre brasileiros e alemães. De acordo com Hofstede (2001), brasileiros focam no curto prazo, enquanto alemães são altamente focados no longo prazo. Uma pesquisa online foi feita com 103 participantes brasileiros e 106 participantes alemães. A pesquisa incluiu os itens de consciência do modelo HEXACO-60, itens autodesenvolvidos baseados no sumário de foco temporal de Hofstede (Hofstede, 2001) e nas medidas para foco do planejamento de Woolley (Woolley, 2009a, 2009b). Análises de regressão, frequência e testes-t de amostras independentes foram conduzidos por meio do SPSS, com conscienciosidade, foco temporal e nacionalidade como preditores e foco do planejamento como variável dependente. Variáveis de controle demográfico foram analisadas por meio do ANOVA e múltiplas regressões. Não foi encontrada relação significativa entre conscienciosidade e foco no planejamento, tampouco foi esta relação influenciada pelo foco temporal ou pela nacionalidade. Não houve relação direta significativa entre conscienciosidade e foco no processo em ambos os países analisados. O foco temporal também não demonstrou um impacto direto no foco do planejamento. Brasileiros não demonstraram ser mais propensos ao foco no resultado e nem alemães demonstraram ser mais propensos ao foco no processo. As variáveis demográficas de controle falharam em predizer o foco do planejamento de forma significativa e consistente. Uma descoberta surpreendente foi que, diferentemente do proposto por Hofstede (2001), alemães pontuaram tão alto quanto brasileiros em foco a curto prazo. Limitações de pesquisa, implicações práticas e recomendações para o futuro foram exploradas pela autora.