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Budgetary slack: Foreign Research and Enlightenment Literature Review

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(I) the discovery of budgetary slack In earlier studies. 27. budgetary slack. and look forward to the relevant research on domestic enlightenment. the general characteristics of the use of econometric models outside the areas covered is very broad. 35. respectively. but as time goes on. literature review. From our point of view. believes that budgetary slack from the negotiation process. Second. the budget has become a modern enterprise an important means of internal management control and get more widely disseminated (Beyond Budgeting Round Table. 22. According to the National Core Journals of the accounting class this five-year period 2002-2006 published by the relevant Xueshulunwen statistical carried out in order to budget management as the main research contents of the chapter number nearly 300. the Western developed countries since the 20th century. Lowe and Shaw (1968) research shows http://eng. and on this basis. Cyert and March (1963). budgetary slack. the budget management practices have already gone through more than 20 years. after consultation sales target can be easily achieved. began in the 20th century. in addition to drawing on the study of economics and management of the latest achievements. Schiff and Lewin (1968) followed by a large Fortune 100 company's three division found that. an annual surge in number of papers (2002 to 2006. forming a series of classic literature.com/?i79245 . the causes and control of budgetary slack by people more and more attention to budget management theory has also become a prominent issue. as a budgetary control has not yet been resolved a major problem (Horngren. the research content of foreign budgetary slack Study abroad.02%. combing the ideological context. This paper developed countries of Western theories of relaxation in the budget overview of research. 60 years to the recent relaxation of the major Research on the budget literature is reviewed. [Keywords:] budget management. 2000). with the launch of the State Economic and Trade Commission and the Ministry of Finance Enterprise Budget management requirements specification to implement the vast majority of enterprises of all types of budget management practices are under way.hi138. At the same time. 60 years. But also in Western countries.88%).45%.47%. accounting for 6. the research results show the research paradigm to learn from. 8. 2001). but very rich in content of the study. research results show to introduce the mainstream research paradigm. With the other elements of management studies. theoretical research on foreign budgetary slack content. the budget management theory and practice of research also accompanied by the Development of the budget ever more prosperity. enlightenment 1 Introduction Strategic allocation of resources as a means of (Allen Schick. This also shows that the budget management theory has become China's management and accounting theory research hotspot. budgetary slack (budgetary slack) limit the presence and influence to play the role of budget management. research results and research paradigms and other major issues were reviewed with a view to foreign budgetary slack theoretical research to sort out the ideological context. 1982). the future of research on China's inspiration. However.18%.[Abstract] In this paper.

first. in a relaxation of the budget. Second. Merchant (1985a) the definition of budgetary slack is within a certain range of the total budget and necessary budget for the difference. this alienation depends on budget management. From the manager's point of view. 1986. Waller (1988) From another perspective.that sales forecasts will lead to budgetary slack. consider that the relaxation is beyond the completion of a work must be part of the resources. 2002. First. In the literature. the manager was interested in manufacturing and strive to gain budgetary slack (Cyert and March. 1964). With this functional characteristics of the organization of alienation. Williamson. budget revenues or production volume to these indicators are the results of future operations and non-bias estimated cases. if the superior choice budget standards to assess the subordinates as a reference job performance. it should be attributed to budgetary slack. and give them a personal face to face survey. All the above point of view there are two things in common. this tendency particularly apparent. regardless of the circumstances and the form of budgetary slack is a function of the degree of alienation. 1985a. As a result.. They have five large organizations randomly selected 32 managers. 2001. 1994). budgetary slack widespread in many organizations China (Merchant. 1985a). Schiff and Lewin (1968) estimates that operating costs of division there are about 20% -25%. In his view. (B) budgetary slack and its impact Many studies were done on the budget. budgetary slack can also avoid the adverse environmental unpredictability. Young (1985) that budgetary slack is 'managers who knowingly created a practical need to go beyond the amount of budgetary resources. while the latter is the budget-makers predict the 'honest budget estimates'. or deliberately underestimate the capacity of'. Mann (1988) suggested that budgetary slack is underestimating the revenue and overestimate the cost. Merchant. who knowingly created a practical need to go beyond the amount of budgetary resources. this article only an overview of a representative point of view. with regard to budgetary slack There are two main conclusions. and (or) on the costs and resource consumption overestimated. but in actual implementation is more easily achieved than the budget targets. 1968.hi138. Williamson. They pointed out that this ratio is an organization the actual cost and the smallest possible cost differences. Lowe and Shaw. its economic consequences is the lack of control and decision-making Information in the distortions caused by (Govindarajan. 1968. 1968. the budget department manager will be to stimulate a tendency to http://eng. Schiff and Lewin. the definition of relaxation. 80% of the respondents clearly recognized that their negotiations is to relax the budget. the budget figures would be interested in developing a more easily achieved than forecast. 1964). or deliberately underestimate the capacity of' Moene (1986) defined budgetary slack for a reasonable budget and the real difference between the minimum cost. p282-283) that. Little et al. Nouri. Nouri. or to make it easier to achieve budget targets underestimate viability behavior. this phenomenon is called budgetary slack. 1994) that when the estimated cost. budgetary slack is a function of alienation (dyefunctional) (Collins.1970. 1985b. budgetary slack is 'manager. second. In addition.com/?i79245 . Schiff and Lewin. Lukka (1988. Onsi (1973) concluded. 1978. budgetary slack is that people in the budget management. planned out. there are many scholars (Anthony and Govindarajan. Onsi (1973) study concludes that the view that budgetary slack manipulation will occur in any year. 1963. an underestimation of income and productive capacity.

From our point of view. Gabriel. 1993). the other hand. In addition. [Keywords:] budget management. and their participation in the budget can easily lead to the emergence of budgetary slack. there are point of view. it will look better their performance (Merchant. From the agency theory framework is concerned. it is unacceptable (Kren. Overall. the impact of factors. enlightenment 1 Introduction Strategic allocation of resources as a means of (Allen Schick. the researchers involved in these factors include the two aspects. if the manager's organizational responsibility lighter. the other is outside the budget management factors. given the budgetary slack managers to respond effectively to the changing business environment. the budget management practices have already gone through more than 20 years. the Western developed countries since the 20th century. one is associated with the budget management itself. better able to achieve the necessary results. Merchant and Manzoni. the factors affecting budgetary slack and budget relaxation study of the correlation between. 60 years to the recent relaxation of the major research on the budget literature is reviewed. 1989). On the other hand. research results and research paradigms and other major issues were reviewed with a view to foreign budgetary slack theoretical research to sort out the ideological context. 2000). 2001). Dunk (1995) also found that some of the effectiveness of budgetary slack. However. the research results show the research paradigm to learn from. the future of research on China's inspiration. (C) the causes of budgetary slack Western scholars believe that the control of relaxation to solve the budget problem. the budget has become a modern enterprise an important means of internal management control and get more widely disseminated (Beyond Budgeting Round Table. literature review. theoretical research on foreign budgetary slack content. Van der Stede. due to budgetary slack will produce inefficiencies and waste. [Abstract] In this paper. the most important thing is to explore the reasons for formation of budgetary slack. to ensure that reports out of their grasp all the information (Mann . he noted that budgetary slack can ease the difficult task of seeking good performance due to negative effects. So.com/?i79245 . However. so based on self-interest on the basis of budgetary slack is unhealthy for the organization. and some companies have designed incentive mechanism and performance enhancing tools to encourage managers in the completion and over the budget targets. 1988. he also suggested that if the manager's organizational responsibility heavier. the precise effect of budgetary slack has to do with the intrinsic link between budgetary slack.hi138. occupying most of the space. budgetary slack. 2000). with the launch of the State http://eng. Non-realistic goals means that managers do not need to run out of resources. and their participation in the budget would be likely to result in reduction of budgetary slack. Higher level managers in the use of accounting data evaluation when the results of operations. and on this basis. 1985). these efforts to reduce the slack with little success. in a number of budgetary slack in the literature. 1978. it will because they do not have all the information is biased.deviate from the budget for assessment to ensure that their budgets more easily achieved. the ability to (Cyert and March. and on this basis. taking into account the reduction of information asymmetry. 1963.

Onsi (1973) study concludes that the view that budgetary slack manipulation will occur in any year. Cyert and March (1963). Lowe and Shaw. However. the research content of foreign budgetary slack Study abroad. combing the ideological context. the definition of relaxation. But also in Western countries. in addition to drawing on the study of economics and management of the latest achievements. it should be attributed to budgetary slack. 1968. 22. Second. budgetary slack. 80% of the respondents clearly recognized that their negotiations is to relax the budget. This paper developed countries of Western theories of relaxation in the budget overview of research. began in the 20th century. second. 8. 1985a). Lowe and Shaw (1968) research shows that sales forecasts will lead to budgetary slack. 1982).Economic and Trade Commission and the Ministry of Finance Enterprise Budget management requirements specification to implement the vast majority of enterprises of all types of budget management practices are under way. accounting for 6. the causes and control of budgetary slack by people more and more attention to budget management theory has also become a prominent issue. and give them a personal face to face survey. research results show to introduce the mainstream research paradigm. 1964). This also shows that the budget management theory has become China's management and accounting theory research hotspot. with regard to budgetary slack There are two main conclusions. but as time goes on.hi138. after consultation sales target can be easily achieved. and look forward to the relevant research on domestic enlightenment.45%. With the other elements of management studies. Williamson.1970.47%. an annual surge in number of papers (2002 to 2006. budgetary slack widespread in many organizations China (Merchant. the budget management theory and practice of research also accompanied by the development of the budget ever more prosperity. Schiff and Lewin. They pointed out that this ratio is an organization the actual cost and the smallest possible cost differences. respectively. According to the National Core Journals of the accounting class this five-year period 2002-2006 published statistics related to Xueshulunwen carried out in order to budget management as the main research contents of the chapter number nearly 300. believes that budgetary slack from the negotiation process. 60 years. (B) budgetary slack and its impact Many studies were done on the budget. First. forming a series of classic literature. (I) the discovery of budgetary slack In earlier studies.88%). 35. They have five large organizations randomly selected 32 managers.com/?i79245 .02%. 1963. In the literature. this article only an http://eng. Schiff and Lewin (1968) estimates that operating costs of division there are about 20% -25%. budgetary slack (budgetary slack) limit the presence and influence to play the role of budget management. 1968. but very rich in content of the study. Schiff and Lewin (1968) followed by a large Fortune 100 company's three division found that. the manager was interested in manufacturing and strive to gain budgetary slack (Cyert and March. 27. At the same time.18%. as a budgetary control has not yet been resolved a major problem (Horngren. the general characteristics of the use of econometric models outside the areas covered is very broad.

In his view. so based on self-interest on the basis of budgetary slack is unhealthy for the organization. better able to achieve the necessary results. first. On the other hand. Van der Stede. budget revenues or production volume to these indicators are the results of future operations and non-bias estimated cases.. it will look better their performance (Merchant. there are point of view. this tendency particularly apparent. With this functional characteristics of the organization of alienation. regardless of the circumstances and the form of budgetary slack is a function of the degree of alienation. Young (1985) that budgetary slack is 'managers who knowingly created a practical need to go beyond the amount of budgetary resources. 1988. budgetary slack can also avoid the adverse environmental unpredictability. but in actual implementation is more easily achieved than the budget targets. 1986.overview of a representative point of view. to ensure that reports out of their grasp all the information (Mann . Merchant (1985a) the definition of budgetary slack is within a certain range of the total budget and necessary budget for the difference. these efforts to reduce the slack with little success. 1994) that when the estimated cost. 1994). the ability to (Cyert and March. consider that the relaxation is beyond the completion of a work must be part of the resources. or to make it easier to achieve budget targets underestimate viability behavior.com/?i79245 . it is unacceptable (Kren. this phenomenon is called budgetary slack. However. 1978. the budget department manager will be to stimulate a tendency to deviate from the budget for assessment to ensure that their budgets more easily achieved. From the agency theory framework is concerned. Waller (1988) From another perspective. Second. budgetary slack is that people in the budget management. Gabriel. Little et al. Nouri. and (or) on the costs and resource consumption overestimated. From the manager's point of view. 1964). budgetary slack is a function of alienation (dyefunctional) (Collins. given the budgetary slack managers to respond effectively to the changing business environment. All the above point of view there are two things in common. and some companies have designed incentive mechanism and performance enhancing tools to encourage managers in the completion and over the budget targets. the budget figures would be interested in developing a more easily achieved than forecast. 1978. Nouri. this alienation depends on budget management. p282-283) that. 1993). Schiff and Lewin. due to budgetary slack will produce inefficiencies and waste. Higher level managers in the use of accounting data evaluation when the results of operations. 2001. its economic consequences is the lack of control and decision-making information in the distortions caused by (Govindarajan. Lukka (1988. in a relaxation of the budget. budgetary slack is 'manager.hi138. Williamson. planned out. 2000). However. 1963. who knowingly created a practical need to go beyond the amount of budgetary resources. 1985b. Merchant. 1985). 1985a. there are many scholars (Anthony and Govindarajan. 2002. while the latter is the budget-makers predict the 'honest budget estimates'. Non-realistic goals means that managers do not need to run out of resources. it will because they do not have all the information is biased. Mann (1988) suggested that budgetary slack is underestimating the revenue and overestimate the cost. or deliberately underestimate the capacity of'. 1968. In addition. As a result. if the superior choice budget standards to assess the subordinates as a reference job performance. taking into account the reduction of information asymmetry. Onsi (1973) concluded. Merchant http://eng. an underestimation of income and productive capacity. or deliberately underestimate the capacity of' Moene (1986) defined budgetary slack for a reasonable budget and the real difference between the minimum cost.

With regard to budgetary participation and budgetary slack the relationship between the conclusion of the study was split into two camps. and their participation in the budget would be likely to result in reduction of budgetary slack. Budgetary participation described in this article refers to management at different levels under the conditions allowed and the mobilization of all levels of managers in this sector (post) budget formulation. Onsi. will not increase the budgetary slack (eg. namely. Dunk (1995) also found that some of the effectiveness of budgetary slack. Reposted elsewhere in the Free Papers Download Center 1. So. implementation. etc. the other is outside the budget management factors. he noted that budgetary slack can ease the difficult task of the pursuit of good performance due to negative effects. Cammann. in a number of budgetary slack in the literature. the impact of factors. And Murray (1990) study even pointed out that budgetary participation would make the managers feel that there is no need to create http://eng. feedback. and their participation in the budget can easily lead to the emergence of budgetary slack. and on this basis. budgetary participation. he also suggested that if the manager's organizational responsibility heavier. while the other believes that managers adopt the budget participation. one is associated with the budget management itself. Cammann (1976) conducted a study.and Manzoni. (1) Budget impact study to participate. The study concluded that the budget is not only involved in the reduction of budgetary slack played an important role. Onsi (1973) study explicitly stated that the budget participation is hardly necessary to allow managers to create budgetary slack. Merchant. which will make them feel and Without some pressure and forced to create budgetary slack. prompting the reduction in efficiency (for example. if the manager's organizational responsibility lighter. 1976. Party believes that the manager's intention to use the budget to participate in such measures lead to budgetary slack. to participate fully in the course of conduct. so that participation can reduce their subordinates defensive reactions. 1973). 1985a. the most important thing is to explore the reasons for the formation of budgetary slack. 1989). occupying most of the space. In addition. 1985). Overall. including a budget slack. the precise effect of budgetary slack has to do with the intrinsic link between budgetary slack. budgetary characteristics of fairness and budget targets. budget emphasis. Schiff and Lewin. to increase production capacity have a negative effect. Elements of the budget to manage their own research: the impact of budget management per se there are four main factors. but also believe that budgetary participation helps managers are convinced that the budget is neither a game nor is it an accounting tool. Lukka (1988) believed that the budget to subordinate managers involved in providing a direct result of budgetary slack of the opportunities.com/?i79245 .hi138. Many studies in the literature have pointed out that in the budget preparation process. the factors affecting budgetary slack and budget relaxation study of the correlation between. the other hand. both sides concluded that the inconsistent. 1968). the researchers involved in these factors include the two aspects. while the low level of budgetary participation will limit these opportunities. and can make use of budget data superiors evaluate the performance of subordinates. the subordinates will increase the participation of the potential for emerging budgetary slack (Antle and Eppen. (C) the causes of budgetary slack Western scholars believe that the control of relaxation to solve the budget problem. Merchant (1985a) also found that budgetary participation and managers create budgetary slack between the tendency of negative correlation.

1989). 1997) . participants.1973) once pointed out that budgetary participation is a complex social process. Hopwood (1972. unless the budget was set at a reasonable level. and to assess results as being the evaluators to develop pay or incentive programs basis. there are some contrary findings. 1985). Merchant (1985a) study results show that the differences in interpretation of the requirements and include participation in their own performance linked reward system is not encourage managers to create budgetary slack. Murry (1990) on a lower budget. As the manager pay often depends on comparison with the standard of performance. they would negotiate the budget. http://eng. this process with other phenomena (including the assessment of environmental needs and leadership style.com/?i79245 . Schiff and Lewin (1970) that the budget is a typical organizational performance reference standard. the budget involved in the budget will be higher than under stress have a greater budgetary slack. The concluding statement of these conflicts. etc. the relationship between participation and budgetary slack. Brownell and Mcinnes (1986) suggested that if there is a lowerlevel participation is expected from the budget .) are closely related. the budget contains the relaxation factor. it may result is enacted after the two sides bargain budget. approach. and because the lower a frequent participant in the development of this standard. a noteworthy phenomenon is that many researchers in the study budget. this relationship may depend on many factors (Macintosh. such as budget emphasis and information asymmetry.hi138. the reality of bias is likely to occur. Cammann (1976) in the study of a larger utility company managers to the conclusion that post: If the higherlevel emphasis of the evaluation the purpose of the budget information. as control variables (for example. budget management. they will participate in the budget as a positive. personal characteristics. Literature data indicate that budget emphasis also will affect the budget. (2) budget emphasis impact studies.budgetary slack budgeting. managers will strive to make the standard as they believe the budget can be achieved. 1985a. as will be trouble. For this reason. Dunk. Onsi (1973) concluded that. In this sense. budget participation and budgetary slack is not a simple relationship between the direct relationship.and this way the expected results linked to the budget. and related to budgetary slack. Schiff and Lewin (1970) aptly pointed out that if subordinates aware of their remuneration depends on the budget. when budgetary slack has emerged. the lower would be to create budgetary slack to respond. Budget emphasis described in this article refers to a higher level managers to the completion of budget targets as the basis for assessment at all levels (departments. Hopwood (1972) found to have budget constraints model evaluation managers. and therefore would tend to make more difficult their mission objectives. and positions) in operation or management performance. 1973). the achievement of the objectives and the goal of budgetary slack is considered equivalent (Merchant and Manzoni. and other evaluation methods. Druuy (1985) pointed out that. Of course. otherwise managers will tend to create budgetary slack. Early studies have shown that the confidence of the budget and budget relaxation effects produce a positive correlation (Merchant. Onsi. if we adopt to enhance the performance of the tight budget. He proposed that the budget performance assessment at a lower stress mode. they all used.. Onsi (1973) study concluded that: managers to create budgetary slack to meet the budget-based performance evaluation requirements. From a group of seven major multinational companies from the composition of a sample of 107 managers study. stressed that it would bring about less incentive to create budgetary slack managers. etc.

1986. direct supervisor in the implementation process of the budget process is fair . Brockner and Siegel (1996) attributed this phenomenon to provide to employees the fairness of the procedures and contacts. procedural fairness is stronger. Little et al (2002) found that interaction with the budget process and the fairness of such variables can affect the tendency of budgetary slack. The budget impact of trust in a fair. Tyler and Bies. that is. The organization of a fair decision-making process can not only provide material benefits for their employees. Budget participants in the fairness of the evaluation process should be proposed. Colquitt et al. Brockner and siegel (1996) pointed out that the structural characteristics of formal procedures makes them more prone to think that they do not change over time. the organization of staff members as a collective. second is a fair exchange (interactional fairness). but also can bring the spirit of earnings. 1980. Greenberg. In evaluating the fairness of exchanges. and a budget for each participant be able to enjoy fair treatment. including the budget and income distribution. A lot of papers have studied the organizational decision-making process and interaction on fairness issues. 2001). Study of social exchange theory. 1990). Staley and Magner (2005) believed that the budget impact of subordinate equity trust for direct superiors. employees look forward to the future of the organization and the organization and leadership from those who have acquired their valuable benefits. through the budget process and the fairness of the process of interaction may weaken the tendency of the manager's budgetary slack. 1986. The researchers divided into two kinds of the budget situation in a fair. Studies have shown that the fairness of the procedures and contacts the employee trust in organizations and organizational leadership are important factors (Brockner et al. a formal organizational decision-makers need to provide to them to express their views as well as the opportunity to be heard against the irrational. the right to organize behavior. Magner et al. the staff makes them more vulnerable to their own organizations and agents http://eng. the budget fair to have a major impact on the budget slack. In a recent related study. the participants focused on several important factors. one procedural fairness (procedural fairness). Mayer et al. organizational loyalty. business objectives and performance (Colquitt et al. Barrett -Howard and Tyler. namely. Konovsky and Pugh. such as job satisfaction. Greenberg. Tyler. the procedural fairness of providing such information. 1986. 1994. this will affect the two kinds of fairness under the direct supervisor's trust. 2000). parallel is a harmonious and equal relationship between colleagues. As a result. Brockner and Wiesenfeld. the preparation of the budget process is fair. management assessment. the researchers concluded that. there are more long-term benefits of employees want. between the upper and lower levels. while the trust in turn tend to affect the budget slack. 1996. the budget. 1990. Studies have shown that interaction of the fairness of the procedures and the impact a manager's attitudes and behavior. 1988. the staff hopes to get a longterm value from the organization of material and spiritual benefits.com/?i79245 . 1997. while the direct supervisor of the trust would affect the tendency to subordinate budget slack. the program to ensure accurate information contained in the decision-making (Leventhal. when the procedural fairness is relatively high. 1995). thus increasing the employee's self-confidence. in which the program can highlight the staff. Fairness is described in this article refers to the budget in the budget management process. namely. 2001. Therefore. such as whether policy-makers to make decisions by the impact of interpersonal sensitivity. 1996). as well as whether policy-makers to make accurate and comprehensive decision-making explanation (Bies and Moag .hi138. performance and other related settings (Brockner and Wiesenfeld.(3) Budget a fair impact studies. Therefore.

Kenis (1979) believed. 'tight but achievable' in budget methodology for motivating managers to complete a better performance. 1989). factors outside the study. there were several significant studies of representative (Imoisili. tension and dissatisfaction. These are not clear objectives. 1979. From another point of view. in this level can be under the budget target has been professional and clearly expressed. Hirst and Yetton (1999). (1) The impact of information asymmetry studies: the vast majority of the research literature in this regard is the information asymmetry as a control variable in use. the level of participation than the budget even more important factor is. Hofstede. can be responsible for implementation of these budget unit manager understood (Yuen. 1989). Steers. on the contrary the lack of clarity can lead to staff confusion. 1979. easily achievable goals requires less effort. Hirst. The characteristics of budget targets described in this article. Budget target will be from a very loose and very easy to very tight and very difficult to achieve change. and may need more knowledge and skills. refers to the clarity of budget goals and the difficulty of a combination of both. 2004). 1981. Rose (1995) found that. Hirst and Lowy (1990) found that difficult goals than the medium difficulty setting goals. Difficult goals require more effort. The researchers believe that subordinates involved in the estimate due to the extent of relaxation depends on the level of information asymmetry. easy goals. Asymmetric information from their subordinates and their owners can influence decision-making process between the supervisor information (such as: Baiman and http://eng. The impact of budgetary slack from the point of view. 1989. 1968. In recent years. the work manager. goal difficulty can be defined as: In accordance with the standard measurement. the possibility of completing a certain level of the task. Mia.conduct damage. 2. 1990. From the budget management. it often is to reduce the uncertainty of the completion of budget targets. Locke and Schweiger. Goal-definition refers to such an extent that. with no clear goals to work managers will be faced with a target completion closely related to the higher uncertainty. Managers who had been born budgetary slack.hi138. in this uncertain environment. because they can not produce job satisfaction (Mia. as well as knowledge and skills. The impact of budget management other than the three main factors. would spur better performance. DCY. or ease the work pressure. In accordance with Locke and Schweiger (1979) point of view. is the most effective means. Ivancevich.com/?i79245 . will reduce the operational performance. 1976. Relatively easy to achieve the goal is not encouraging managers to pursue a higher level of performance. Studies have revealed that the budget can be observed between goal difficulty and performance has a strong correlation (Ezzamel. The clarity of the mission objectives of the negative impact on business performance. DCY. 2004). good communication and incentive systems can lead to a clear budget targets and reduce the goal difficulty (Yuen. Locke and Schweiger (1979) pointed out that the goal of clarity will improve business performance. and Weingart (1992) pointed out that the additional task interdependence will lead to the completion of budget targets managers with uncertainty and lack of clarity. will lead to higher work pressure. 1976). through empirical research found that managers with a clear budget targets may have a lower budget slack orientation. asymmetric information. For example. Kenis. behavioral factors and organizational strategies. Reposted elsewhere in the Free Papers Download Center (4) The budget target characteristics of impact studies. namely.

participate in the budget the inherent relationship between relaxation. There are also many studies have shown that: information asymmetry and budget emphasis in influencing budget participation and budgetary slack when interrelated. For example. and how to dry before it can receive a good performance.. (2) the impact of behavioral factors: Western scholars because of factors on the impact of budgetary slack study. budget participation will result in a reduction in budgetary slack. As the promotion of information flow. coordinate actions. which are related to those factors that can affect its performance (Chow et al. And budget slack and behavioral factors specific to determine the specific components. Young. in accordance with budget targets. Inside information may lead to better evaluation of performance (Murray. Blanchard and Chow (1983) that the exchange can ensure that the department managers to better understand their areas of responsibility. Of course. Magee. 1983. with a subsidiary of inside information inside information than the subordinates did not lead to more budgetary slack.com/?i79245 . Young (1985) study indicated that. 1985). However. the extent of participation and budget emphasis are very high (low). budgetary participation will become an ideal coordination mechanism. 1980. Harrell and Harrison. from the perspective of behavioral factors to analyze the issue of budget slack and see what behavioral factors affect on the budget slack. His actions include 13 categories. the budget will be reinforced in order to be more accurate. the more focused and representative is the Onsi (1973) have done research. Magee (1980) and Murray (1990) that if the boss know that their subordinates have more secret information. 1994 . Most of these studies are scattered throughout many papers. 1988. Waller. 1988. He thinks that this budget can also assign tasks. the benchmark for subsequent performance evaluation of a control standard. their relaxation levels were not different. 1988). 1994. budgetary slack will be low (high). Conclusion of the study indicate that these behavioral factors associated with a greater relaxation of the budget impact. 1985. Baiman and Evans. 1988). 1983. when the budget was participatory.Evans. resulting in relaxation of the budget occurs (Chow et al. Murray. 1984). In the Young (1985) empirical studies. 1982. Studies have indicated that when information asymmetry. subject to the budgetary participation-related behavior were analyzed in order to seek to explain the economic behavior of the main budget.1994. Onsi (1973) in defining the budget on the basis of relaxation. Kren and Liao. if the information asymmetry is a realistic budget and with the management of stress exist. the budget.hi138. http://eng. the budget to the supervisors involved in a potential opportunity to provide access to those internal information (Baiman. provide a baseline level. 1990). Penno. For example. Kanodia (1993) analysis demonstrated that when the subordinate has on the operating environment of the internal information. Dunk (1993) found an evidence that: If the information asymmetry and budget emphasis is very serious. Coughlan and Schmidt. whether with or without inside information. such a possibility is that subordinates might say lie or to hide some or all of the inside information not allow supervisors to be. The results show that these predictive factors and the nature of the relationship between budgetary slack is more complex than expected. then the lower the budget of participation will result in budgetary slack.. but these projects. learn the principles of behavior theory. and to exchange information and supervisors can promote collaboration and evaluation of organizational activities (Waller. Christensen. even though he found that the relaxation involved in the project to allow the level of non-zero. 1982. Subordinates often have a characteristic. they have more than their superiors and accurate information. 1990).

collecting data. budgetary characteristics of fairness and budget targets. The main reason is as follows: First. the results of empirical research predecessors is more abundant for future generations laid the foundation for further research. but the strategy as an important factor in the impact of relaxation on the budget but can not be ignored. to business unit performance-based incentive system and the budget slack negative correlation. both corporate-level strategy (ie diversification or specialization). Secondly. Van der Stede (2001) study shows that diversification strategy with the business unit budget slack positive correlation. but the factors associated with it is the basic set. correspondingly. although the budgetary slack is a more complex theory of categories. measuring the specific method of statistical analysis. Only clear from the budget and manage their own budget participation. Here's organizational strategy. which produced what the motivation is no doubt of their absolute prerequisite for effective control. the Western research literature relating to small. third. Propose solutions and responses. easy to carry out this type of empirical research. it is to do so. the necessary link be possible to prescribe the right medicine. the author felt that these studies have highlighted the following four characteristics : 1. in the West study of management behavior and the phenomenon of the widespread use of the questionnaire survey method. with regard to the causes of budgetary slack research papers in the research literature also occupies a large proportion. objectively determine. in essence. revealing the budget for the relaxation and related factors of the intrinsic link between the objective existence. as well as from outside the budget management information asymmetry and related behavior factors such as relaxation of the inner and Budget.hi138.com/?i79245 . From the research point of view : Theoretical study abroad budgetary slack is extremely focused on the exploration of the causes of budgetary slack. has a long historical development. and cost leadership strategy and defensive strategy than offensive strategy and differentiation strategy. http://eng. using empirical research paradigm. the more budget slack. Western developed countries in the study of budgetary slack. on this basis is a natural result. and therefore also proved that this is indeed the practice of budgetary slack control provides a better explanation and prediction capabilities.Is a very scientific. Third. to participate in public acceptance and awareness of a higher degree of objectivity and credibility of data collection is also good. pluralism and individual business unit performance-based incentive system.(3) organizational Strategy factors: organizational strategy on the impact of relaxation on the budget. budget stress relaxation of a negative correlation with the budget. but basically a homogeneous through questionnaires. Reposted elsewhere in the Free Papers Download Center IV enlightenment (1 )Overall Experience Western developed countries by nearly half a century on budgetary slack review of classic literature. the use of positive correlation. budget emphasis. but also business unit competitive strategy. the research paradigm of foreign budgetary slack After literature review we found that the vast majority of foreign budgetary slack theoretical studies have adopted the mainstream of empirical research paradigm. Budgetary slack is a more complex phenomenon.

is still not enough. in particular. budget model. organizational behavior theory. and according to data from the survey. and its practical consequences which also has a more wide-ranging implications. have not used as a budgetary slack contingency theory research methodology. mainly waited through theoretical research. and to draw general conclusions. so the only way into account. most of the budget slack as a separate category of the study. while realistic budget to provide theoretical support for the relaxation of controls. we have there are still some gaps. applicable to all businesses or the environment. the latest budgetary slack with foreign countries compared to theoretical research. using the most advanced research paradigm. management science. Due to budgetary slack objective is affected by many factors in nature. (Two )Enlightenment Basically. These issues are embodied in the following four areas :Theoretical Study on the budgetary slack attention. pan-defined problems. budget emphasis and other areas of mainstream research began to receive attention. hardly any talk about the budget on the budget situation. only very few empirical research results.com/?i79245 . put forward a new research process. the budget starting point. but also made some good research results. From the methodological point of view : Theoretical Study abroad budgetary slack is built on the basis of contingency theory. the reasoning out their feelings and experiences. and even the latest achievements in psychology will be placed on budgetary slack a more complete and complex systems to examine. Because of budgetary slack is a very strong practice areas. from the budget of practical work experience and lessons learned. From this side. budget methodology to study such areas as the focus. From the scope of the study point of view : Theoretical Study abroad budgetary slack. budgetary slack predecessors research should be http://eng. to study the practice of budgetary slack exists specific issues. the most urgent need to address specific issues. 4. but rather too much attention to the broad. Research paradigm from the point of view : Theoretical Study of budgetary slack abroad have adopted the vast majority of mainstream empirical research paradigm.hi138. using empirical research methods. our budget management theory and research are based on the nature of the budget. but draw heavily on economics. for budgetary slack studies. Budgetary slack. the current mainstream research paradigm is still not standardized normative research. First. budget participation. budgetary slack has an important feature of research is to analyze specific issues of the contingency theory-based and in combination with other theories. 3. In these literature. but also there can maximize the potential for future generations to continue to provide the basis for research. the Western developed countries.2. However. that is. Budgetary slack theoretical research is no exception. However. on the basis of previous research results. and not just the budget slack budget management as only the middle of a problem. The process of theoretical research. the most able to reveal the budget for relaxation and the intrinsic link between the relevant variables to study the objectivity of the conclusions of the strongest. Judging from the current point of view. combined with practice. in order to obtain accurate and scientific research. budget targets. but generally from a perceptual point of view. with the theoretical study of the in-depth and by the West in modern theoretical research the impact of budget management in recent years the situation has improved.

communication and reward systems.C.Perera.. 'The design of the corporate budgeting system. (1979). The Accounting Review. 'The cross-Culture generalizabilityof the relation between participation.. direct copying is also considered taboo. a new starting point for the study on budgetary slack. and certainly there is no depth. [6] Brownell. [5] Merchant. 4. In accordance with another source of research data can be classified as public data method. K. management science. [3] Kenis. business management officer to be able to derive some valuable information.L. 707-21. Vol. On the empirical research method itself. The budget management issues related to internal management of enterprises belonging to non-public information. The Accounting Review. pp. pp. (1981). Third. a large number of budgetary slack empirical research literature of learning and re-study. Goal characteristics. the most effective. (1994). 813-29. 16 No. but the current domestic publicly available data focused on listed companies. empirical research has proven to be the most scientific study of budgetary slack. Accounting. Vol. followed by the sensitivity of the issue because of budgetary slack lead to businesses and researchers with the problem. pp. this method in the operation with a high degree of difficulty. and managerial propensity to create budgetary slack. when the devaluation questionnaire survey. psychology. D. [4] Harrison. especially abroad.. behavioral science to explain the relevant theory is to explicitly study the content and study the basic starting point. G. since China has a special system context. and is basically the financial indicators. for the improvement of the problems identified and put forward the premise of countermeasures must be based on objective factors exist in the budget with the objective existence of the phenomenon of relaxation of the intrinsic relevance.S.conducted to fully study and study again. I.68.The incidence of budgetary slack: a field study exploration. pp. 1-15. 587-600. [Main references] [1] Dunk. A.No. and it is most common in empirical studies of foreign methods.. Fourthly. The Accounting Review. First problem is alarmingly low response rate. [7] Dunk. P. Second. present. and McInnes. 19 No. M. Vol. but with a specific practical operation. but also the foreign mainstream research paradigm. budget emphasis and job-related attitudes'. H. A. [2] Yuen. influences on managerial behavioural and performance'. there is a certain distance. Managerial Auditing Journal. Accounting. Experimental method is based on certain specific group of people for the investigation of objects. The problem is most applicable to research budget slack. to economics. experimental method and survey method of three.2(Apr. 2004.A. Organisations and Society. 'Effect of budgetary goal characteristics on managerial attitudes and performance'. 517-532.S.hi138. 4. 'Budgetary participation. pp.Vol. 17. The Accounting Review. A lack of theoretical basis. The effect of budget emphasis and information asymmetry on the relation between budgetary participation and slack. (1986). many college students and in-service training. Publicly available data method is characterized by data collection easy.1993)400410. it would be difficult to talk about conclusions of the study to be scientific. the specific characteristics of the main budgetary slack. motivation and managerial performance'.Y. But for now.com/?i79245 . Auditing http://eng.

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