Variable Participation and JRI Together have a Positive Effect on Managerial Performance

Oct 13, 2025 by wbrum.org 3 views

The Effect of Participation in the Preparation of the Budget on Managerial Performance with Job Relevant Information (JRI) and Communication as a Moderating Variable in the PDAM in North Sumatra Province

Introduction

The preparation of the budget is a crucial process in any organization, as it determines the allocation of resources and sets the direction for future growth and development. In the context of Public Water Utility Companies (PDAMs) in North Sumatra Province, the preparation of the budget is a complex process that involves various stakeholders, including managers, employees, and customers. The participation of managers in the preparation of the budget is essential to ensure that the budget is aligned with the organization's goals and objectives. However, the effect of manager participation in the preparation of the budget on managerial performance has been widely debated, with some studies suggesting a positive effect, while others have found no significant relationship.

The Role of Job Relevant Information (JRI) and Organizational Communication

Recent studies have suggested that the relationship between manager participation in the preparation of the budget and managerial performance may be influenced by moderating variables, such as job relevant information (JRI) and organizational communication. JRI refers to the information that is relevant and accurate to the organization's performance, while organizational communication refers to the process of exchanging information within the organization. The purpose of this study is to investigate the effect of JRI and organizational communication on the relationship between manager participation in the preparation of the budget and managerial performance in the PDAMs in North Sumatra Province.

Methodology

This study used a quantitative approach, with primary data collected through questionnaires distributed to managers involved in the preparation of the budget in the PDAMs in North Sumatra Province. The population of this study included 123 managers, and researchers took 60 samples through the purposive sampling method. The data collected was then analyzed using multivariate data analysis and hypothesis test with multiple regression methods and interaction tests with a significance level of 5%.

Findings

This study produced four important findings:

Manager's Participation in Budget Preparation has a Positive Effect on Managerial Performance

The results of this study showed that manager participation in the preparation of the budget has a positive effect on managerial performance. This finding is consistent with previous studies that have suggested that manager participation in the budgeting process can lead to better understanding of organizational goals and strategies, resulting in improved performance.

Variable Participation and JRI Together have a Positive Effect on Managerial Performance

The results of this study also showed that variable participation and JRI together have a positive effect on managerial performance. This finding suggests that JRI moderates the relationship between manager participation in the preparation of the budget and managerial performance. When managers have relevant and accurate information about organizational performance, they can be more effective in utilizing that information to improve their performance.

Organizational Participation and Communication Together has a Positive Effect on Managerial Performance

The results of this study also showed that organizational participation and communication together have a positive effect on managerial performance. Effective organizational communication can strengthen the effect of manager participation in the preparation of the budget on performance. With open and transparent communication, managers can more easily provide input, receive feedback, and collaborate with other team members.

Participation, JRI, and Organizational Communication Together have a Positive Effect on Managerial Performance

The results of this study also showed that participation, JRI, and organizational communication together have a positive effect on managerial performance. These findings suggest that the three variables complement each other and strengthen the influence of each other in improving managerial performance. Managers involved in the preparation of the budget, have access to relevant information, and in the organizational environment with effective communication, tend to have better performance.

Conclusion

This study made a significant contribution in understanding the relationship between manager participation in the preparation of the budget, JRI, and organizational communication to managerial performance. The findings of this study suggest that manager participation in the budgeting process, access to relevant information, and effective organizational communication are essential for improving managerial performance in the PDAMs in North Sumatra Province. The results of this study can be used by PDAM management in North Sumatra to improve managerial performance through increasing manager participation in budgeting, providing relevant and accurate information, and increasing effective organizational communication.

Recommendations

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

PDAM management in North Sumatra should increase manager participation in the budgeting process to improve managerial performance.
PDAM management in North Sumatra should provide relevant and accurate information to managers to enable them to make informed decisions.
PDAM management in North Sumatra should increase effective organizational communication to strengthen the effect of manager participation in the budgeting process on performance.

Limitations

This study has several limitations that should be noted. Firstly, the study was conducted in the PDAMs in North Sumatra Province, and the findings may not be generalizable to other organizations. Secondly, the study used a quantitative approach, and the results may not capture the nuances of the relationship between manager participation in the preparation of the budget, JRI, and organizational communication to managerial performance. Finally, the study did not investigate the impact of other moderating variables, such as leadership style and organizational culture, on the relationship between manager participation in the preparation of the budget and managerial performance.

Future Research Directions

Future research should investigate the impact of other moderating variables, such as leadership style and organizational culture, on the relationship between manager participation in the preparation of the budget and managerial performance. Additionally, future research should explore the relationship between manager participation in the preparation of the budget, JRI, and organizational communication to managerial performance in other organizations, such as private sector companies and non-profit organizations.
Q&A: The Effect of Participation in the Preparation of the Budget on Managerial Performance with Job Relevant Information (JRI) and Communication as a Moderating Variable in the PDAM in North Sumatra Province

Q: What is the main objective of this study?

A: The main objective of this study is to investigate the effect of job relevant information (JRI) and organizational communication on the relationship between manager participation in the preparation of the budget and managerial performance in the PDAMs in North Sumatra Province.

Q: What is the significance of this study?

A: This study is significant because it provides insights into the relationship between manager participation in the preparation of the budget, JRI, and organizational communication to managerial performance. The findings of this study can be used by PDAM management in North Sumatra to improve managerial performance through increasing manager participation in budgeting, providing relevant and accurate information, and increasing effective organizational communication.

Q: What are the key findings of this study?

A: The key findings of this study are:

Manager participation in the preparation of the budget has a positive effect on managerial performance.
Variable participation and JRI together have a positive effect on managerial performance.
Organizational participation and communication together have a positive effect on managerial performance.
Participation, JRI, and organizational communication together have a positive effect on managerial performance.

Q: What are the implications of this study?

A: The implications of this study are that PDAM management in North Sumatra should increase manager participation in the budgeting process, provide relevant and accurate information to managers, and increase effective organizational communication to improve managerial performance.

Q: What are the limitations of this study?

A: The limitations of this study are:

The study was conducted in the PDAMs in North Sumatra Province, and the findings may not be generalizable to other organizations.
The study used a quantitative approach, and the results may not capture the nuances of the relationship between manager participation in the preparation of the budget, JRI, and organizational communication to managerial performance.
The study did not investigate the impact of other moderating variables, such as leadership style and organizational culture, on the relationship between manager participation in the preparation of the budget and managerial performance.

Q: What are the future research directions?

A: Future research should investigate the impact of other moderating variables, such as leadership style and organizational culture, on the relationship between manager participation in the preparation of the budget and managerial performance. Additionally, future research should explore the relationship between manager participation in the preparation of the budget, JRI, and organizational communication to managerial performance in other organizations, such as private sector companies and non-profit organizations.

Q: What are the practical implications of this study?

A: The practical implications of this study are that PDAM management in North Sumatra should:

Increase manager participation in the budgeting process to improve managerial performance.
Provide relevant and accurate information to managers to enable them to make informed decisions.
Increase effective organizational communication to strengthen the effect of manager participation in the budgeting process on performance.

Q: What are the theoretical implications of this study?

A: The theoretical implications of this study are that the study provides insights into the relationship between manager participation in the preparation of the budget, JRI, and organizational communication to managerial performance. The study contributes to the existing literature on budgeting and performance management by highlighting the importance of manager participation, JRI, and organizational communication in improving managerial performance.

Q: What are the future research directions in terms of methodology?

A: Future research should use a mixed-methods approach to investigate the relationship between manager participation in the preparation of the budget, JRI, and organizational communication to managerial performance. This will provide a more comprehensive understanding of the relationship between these variables. Additionally, future research should use a longitudinal design to investigate the impact of manager participation in the preparation of the budget, JRI, and organizational communication on managerial performance over time.