Participative Budgeting and Responsibility Accounting Practices: The Contribution to Managerial Performance
Abstract
The scope of budgeting and accounting is highly relevant for further study due to its significant impact on the performance of state-owned companies in fulfilling their duties and obligations to the public. As a service-oriented company, PT. POS Indonesia in Bandung city aims to enhance its operational activities by ensuring accuracy in budget preparation. A key factor influencing this process is effective responsibility accounting across all management levels. This study seeks to empirically examine the relationship between participative budgeting and responsibility accounting on managerial performance. The variables analyzed include participative budgeting, responsibility accounting, as independent variables. Managerial performance as dependent variable. Using a random sampling technique, 56 respondents were selected as samples, with primary data gathered via questionnaires. The data analysis employed the Spearman rank correlation technique. The study results reveal that participative budgeting implementation does not significantly affect managerial performance, whereas responsibility accounting implementation shows a positive correlation. These findings imply the importance of prioritizing responsibility accounting practices to improve managerial performance, particularly in service-based state-owned companies. Furthermore, the results suggest that companies need to revisit and adapt participative budgeting approaches to better align with managerial goals and operational effectiveness. This highlights practical implications for corporate governance and strategic planning in similar organization.
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