Enhance budget planning and supervision

Oct 13, 2025 by wbrum.org 66 views

The Effect of Budget Planning and Supervision on Managerial Performance in North Aceh Regency SKPD

Introduction

In the government environment, improving managerial performance is a crucial aspect of achieving organizational goals. Budget planning and supervision play a vital role in this process, as they enable effective financial resource management and ensure that budget objectives are met. This study aims to investigate the effect of budget planning and supervision on managerial performance in North Aceh Regency, with budget participation as a moderating variable. By examining the relationship between these factors, this research provides valuable insights into the key drivers of managerial performance in the government sector.

Research Methodology

This study employed a quantitative approach, using a survey method to collect data from 54 respondents consisting of the Head of Agency, Head of Service, and Head of Section in the Regional Work Unit (SKPD) of North Aceh Regency. The population in this study were SKPD employees involved in the preparation of financial statements. A total of 48 questionnaires were successfully returned, with 44 of them meeting the requirements for further analysis. The analysis method used was multiple regression, after testing classic assumptions and data quality testing.

Main Findings

The results of the analysis show that both budget planning and budget supervision have a significant impact on managerial performance in the North Aceh Regency Government. This finding indicates that the existence of careful planning and effective supervision can encourage improvement in budget management and achieve organizational goals. The analysis also revealed that budget participation, which was expected to moderate the effect of budget planning and supervision, did not provide a significant moderation effect. This raises questions about the effectiveness of budget participation in the context of SKPD management.

Additional Analysis and Explanation

From the results of the study, it can be concluded that effective budget planning creates a clear framework for financial resource management. This includes identifying expenditure priorities, allocating funds, and monitoring budget realization. On the other hand, budget supervision functions to ensure that the specified budget is executed correctly and in accordance with the specified objectives. A good managerial performance is reflected in the ability of leaders in managing the budget wisely. Therefore, managers need to be equipped with adequate competencies in budget planning and supervision.

In addition, participation in the budget process can be improved through training and human resource development, so that employees feel more involved and responsible for budget performance. Although budget participation does not show the effect of moderation, it is essential to continue to explore the factors that can support employee involvement. This can include aspects of communication, transparency, and clarity in delivering budget goals. Thus, although it does not directly affect performance, increasing employee participation in the budgeting process can have a long-term impact on managerial effectiveness in the SKPD.

Conclusion

Overall, this study shows that budget planning and supervision played a significant role in improving managerial performance in North Aceh Regency. Although the budget participation does not function as the expected moderating variable, this opens opportunities for further research on other factors that affect participation and performance. Efforts to increase the effectiveness of budgeting must be the main focus for SKPD leaders to be able to achieve optimal regional development goals.

Recommendations

Based on the findings of this study, the following recommendations are made:

Enhance budget planning and supervision: SKPD leaders should prioritize the development of effective budget planning and supervision systems to ensure that financial resources are managed efficiently and effectively.
Improve budget participation: Efforts should be made to increase employee participation in the budgeting process through training and human resource development, to enhance their sense of involvement and responsibility for budget performance.
Explore factors affecting budget participation: Further research should be conducted to identify the factors that affect employee participation in the budgeting process, and to develop strategies to improve participation and engagement.
Develop effective communication and transparency: SKPD leaders should prioritize the development of effective communication and transparency systems to ensure that budget goals and objectives are clearly understood and communicated to employees.

By implementing these recommendations, SKPD leaders can improve managerial performance, enhance budget effectiveness, and achieve optimal regional development goals.

Limitations of the Study

This study has several limitations that should be acknowledged. Firstly, the study was conducted in a specific context, namely the SKPD of North Aceh Regency, which may limit the generalizability of the findings to other contexts. Secondly, the study relied on a survey method, which may be subject to biases and limitations. Finally, the study did not explore the factors that affect budget participation, which may be an important area for further research.

Future Research Directions

This study provides several avenues for future research. Firstly, further research should be conducted to explore the factors that affect budget participation, and to develop strategies to improve participation and engagement. Secondly, the study should be replicated in other contexts to enhance the generalizability of the findings. Finally, the study should be extended to explore the impact of budget planning and supervision on other aspects of managerial performance, such as organizational effectiveness and employee satisfaction.

Conclusion

In conclusion, this study provides valuable insights into the effect of budget planning and supervision on managerial performance in North Aceh Regency. The findings of this study highlight the importance of effective budget planning and supervision in improving managerial performance, and suggest that budget participation may not be a significant moderating variable in this context. The study also provides recommendations for SKPD leaders to enhance budget planning and supervision, improve budget participation, and develop effective communication and transparency systems.
Frequently Asked Questions (FAQs) about the Effect of Budget Planning and Supervision on Managerial Performance in North Aceh Regency SKPD

Q: What is the main objective of this study?

A: The main objective of this study is to investigate the effect of budget planning and supervision on managerial performance in North Aceh Regency SKPD, with budget participation as a moderating variable.

Q: What is the significance of budget planning and supervision in improving managerial performance?

A: Budget planning and supervision are crucial in improving managerial performance as they enable effective financial resource management and ensure that budget objectives are met. Effective budget planning creates a clear framework for financial resource management, while budget supervision functions to ensure that the specified budget is executed correctly and in accordance with the specified objectives.

Q: What is the role of budget participation in improving managerial performance?

A: Budget participation is expected to moderate the effect of budget planning and supervision on managerial performance. However, the study found that budget participation did not provide a significant moderation effect. This raises questions about the effectiveness of budget participation in the context of SKPD management.

Q: What are the implications of this study for SKPD leaders?

A: The study has several implications for SKPD leaders. Firstly, they should prioritize the development of effective budget planning and supervision systems to ensure that financial resources are managed efficiently and effectively. Secondly, they should make efforts to increase employee participation in the budgeting process through training and human resource development, to enhance their sense of involvement and responsibility for budget performance.

Q: What are the limitations of this study?

A: This study has several limitations that should be acknowledged. Firstly, the study was conducted in a specific context, namely the SKPD of North Aceh Regency, which may limit the generalizability of the findings to other contexts. Secondly, the study relied on a survey method, which may be subject to biases and limitations. Finally, the study did not explore the factors that affect budget participation, which may be an important area for further research.

Q: What are the future research directions based on this study?

A: This study provides several avenues for future research. Firstly, further research should be conducted to explore the factors that affect budget participation, and to develop strategies to improve participation and engagement. Secondly, the study should be replicated in other contexts to enhance the generalizability of the findings. Finally, the study should be extended to explore the impact of budget planning and supervision on other aspects of managerial performance, such as organizational effectiveness and employee satisfaction.

Q: What are the practical implications of this study for SKPD leaders?

A: The practical implications of this study for SKPD leaders are as follows:

Enhance budget planning and supervision: SKPD leaders should prioritize the development of effective budget planning and supervision systems to ensure that financial resources are managed efficiently and effectively.
Improve budget participation: Efforts should be made to increase employee participation in the budgeting process through training and human resource development, to enhance their sense of involvement and responsibility for budget performance.
Develop effective communication and transparency: SKPD leaders should prioritize the development of effective communication and transparency systems to ensure that budget goals and objectives are clearly understood and communicated to employees.

Q: What are the potential benefits of implementing the recommendations of this study?

A: The potential benefits of implementing the recommendations of this study include:

Improved managerial performance: Effective budget planning and supervision can lead to improved managerial performance, as financial resources are managed efficiently and effectively.
Increased employee participation: Improved budget participation can lead to increased employee involvement and responsibility for budget performance, which can enhance organizational effectiveness.
Enhanced communication and transparency: Effective communication and transparency systems can ensure that budget goals and objectives are clearly understood and communicated to employees, which can enhance organizational effectiveness.

Q: What are the potential challenges of implementing the recommendations of this study?

A: The potential challenges of implementing the recommendations of this study include:

Resistance to change: Employees may resist changes to the budgeting process, which can make it difficult to implement the recommendations of this study.
Limited resources: SKPD leaders may have limited resources to devote to implementing the recommendations of this study, which can make it difficult to achieve the desired outcomes.
Complexity of budgeting process: The budgeting process can be complex, which can make it difficult to implement the recommendations of this study.