The Impact of Budgetary Fairness on Budget Performance: A Contemporary View of Defence Budget Setting

Authors

  • Mohd Nor Yahaya, Hafizah Mat Nawi, Amirudin Sulaiman, Norlaila Mazura Mohaiyadin, Azizul Hakim Mashkuri, Nur Surraya Mohd Saudi

Abstract

Budget is important in controlling organizational activities and helpful as decision making tools. It assists organization toward achieving their objectives and desired goals.. This study aims to examine whether the budget fairness has linked to budget performances and indirectly affect overall managers performance in meeting the operational planning and organisational goal. A study on 128 defence budget managers support the importance of fairness in a budget setting that leads to improve the budget performance. Results of the structural Equation Modelling show positive and significant associations between procedural fairness, distributive fairness as well as interactional fairness and budget performance. The findings support fainess as an important variable in the budget process as the fairness in the budgetary setting will have a positive impact on managerial performance and organizational golas.

Published

2020-11-01

Issue

Section

Articles