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.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0616103-121656 |
| Date | 16 June 2003 |
| Creators | Wey, Jang-jyh |
| Contributors | Feng-yu Ni, Szu-Lang Liao, Chin-Shun Wu |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0616103-121656 |
| Rights | unrestricted, Copyright information available at source archive |
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