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.

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.