This thesis study is about the effects of tight budgetary control on managerial behaviour in the Swedish public sector. Managerial behaviour represents the four variables; motivation, organizational commitment, stress, and satisfaction. As previous research mostly investigated the effects of tight budgetary control on organizational performance in the private sector, this study can be seen as one of the first that focus on managerial behaviour and is based on the public sector. For the data collection process, an online questionnaire was created that has been distributed via email to the different participants. Moreover, the study is based on a sample of 62 managers from different municipalities and universities throughout Sweden. The result of the thesis research study revealed that the majority of the local managers in the Swedish public sector actually experience tight budgetary control. Furthermore, the statistical test of the created hypotheses showed that the behavioural factors, both, organizational commitment and stress were respectively negatively and positively related with tight budgetary control. However, for the behavioural variables of motivation and satisfaction no significant results have been found.

This thesis aims to explore the effects of tight budgetary control on employee behavior focusing on employee loyalty, employee satisfaction, job related tension and tendency towards data manipulation in public sectors. The study explores the subject on the population of three countries which includes Sweden, Jordan and Pakistan. In Pakistan and Jordan, no previous study has ever been performed which tried to explore effects of tight budgetary control in employee behavior. Method: Keeping the above fact in view, method derived for this study was the combination of qualitative and quantitative approach. Questionnaires were formulated and sent to employees of the sampled companies receiving 740 responses. For qualitative method, 5 employees were interviewed from entire three countries. Finding: the study revealed that all three countries are experiencing tight budgetary control whereas Jordan and Pakistan are experiencing it on higher level and Sweden is experiencing it in lower level as compared to Pakistan and Jordan. As far employee behavior is concerned, both the method proved that loyalty was negatively related to tight budgetary control for Pakistan and Sweden whereas positively related in case of Jordan. Satisfaction is also negatively related to tight budgetary control for Sweden and Pakistan while positively related for Jordan. Job related tension and tendency towards data manipulation are positively related to tight budgetary control for all three countries. Research type: Master’s thesis.