Enhancing Managerial Performance Through Budgeting and Fairness: the Moderating Effect of Cost Consciousness

Sintya Mandara Anggita; Dewi Diah Fakhriyyah; Dwiyani Sudaryanti

doi:10.59890/ijma.v4i2.357

Authors

Sintya Mandara Anggita University of Islam Malang
Dewi Diah Fakhriyyah University of Islam Malang
Dwiyani Sudaryanti University of Islam Malang

DOI:

https://doi.org/10.59890/ijma.v4i2.357

Keywords:

Budgetary Participation, Distributive Justice; Procedural Justice, Managerial Performance, Cost Consiousness

Abstract

This study aims to examine the effect of budgetary participation, distributive justice, and procedural justice on managerial performance, with cost consciousness as a moderating variable. The research was conducted at Hospital Tk II dr J.A Latumeten Ambon, involving 80 respondents consisting of structural and functional officials who play an active role in budget preparation and implementation. The study used a quantitative method with an explanatory approach and data were analyzed using the Partial Least Squares method. The results show that budgetary participation and distributive justice have no significant effect on managerial performance, while procedural justice has a significant positive effect. In addition, cost consciousness significantly moderates the relationship between distributive justice with procedural justice and managerial performance, but does not moderate the relationship between budgetary participation with managerial performance. These findings suggest that organizations need to focus not only on employee participation in budgeting, but also on ensuring fairness in procedures and building cost awareness to improve managerial performance.

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