Budgetary Participation and Managerial Performance in Public Sector Organisations: A Study from Nigeria

Babajide OYEWO, Gbadegesin ADEYEYE


This study investigated the impact of budgetary participation on managerial performance in public-sector organisations in Nigeria. Questionnaire was used to obtain the opinion of 174 managers (unit and departmental heads) in five public-sector organisations located in Abuja, Nigeria Federal Capital. Results from statistical analysis (descriptive, factor analysis, Kruskal-Wallis tests, correlation and regression) show that there is high level of budgetary participation by managers in public-sector organisations in Nigeria.  Although budgetary participation was observed to positively and significantly impact on managerial functions such as planning, investigating, co-ordinating, supervising, evaluating, and staffing, it exerts the most on planning. The impact of budgetary participation on managerial performance appears to be moderate. Whilst it is desirable for public-sector organisations to adopt sophisticated budgeting techniques, the study advocates for employees’ motivation and deeper involvement in budget matters as a way out of the traditional budgeting quagmire that public-sector organisations are characteristically bedevilled with.


budgeting, budgetary participation, public-sector organisations, managerial performance, traditional budgeting

Full Text:



Adams, R. A. (2002). Public Sector Accounting and Finance. Lagos: Corporate Publisher Venture.

Adeyeye, G.B. (2013). The impact of taxpayers’ perception of good governance on voluntary tax compliance in Lagos State, Nigeria. Unpublished Thesis, Department of Accounting, University of Lagos, Nigeria.

Adeyeye, G. B., Otusanya, O. J. & Uadiale, O. M. (2013). Participatory budgeting and subordinates’ performance: The Nigerian experience. Accounting Frontier, 4(2), 246-263.

Agbejule, A., & Saarikoski, L. (2006). The effect of cost management knowledge on the relationship between budgetary participation and managerial Performance. The British Accounting Review, 38, 427-440.

Ajibolade, S.O., & Akinniyi, O.K. (2013). The influence of organisational culture and budgetary participation on propensity to create budgetary slack in public sector organisations. British Journal of Arts and Social Sciences, 13 (1), 69-83.

Ajzen, I. (1991). The theory of planned behaviour. Organisational behaviour and human decision processes, 50 (2), 179-211.

Ajzen, I., & Fishbein, M. (1980). Understanding attitudes and predicting social behaviour. Englewood Cliffs, NJ: Prentice Hall.

Akinniyi, O. K., & Ajibolade, S. O. (2013). Budgetary participation and organisational performance in Nigerian federal Universities: The mediating effect of intrinsic motivation. Nigerian Journal of Management studies, 11 (1/2), 122-135.

Avwokeni, A.J. (2014). Anatomy of research reports and presentation. Lagos: Unicampus Books.

Bameke, S. A. (2008). Public sector accounting and finance for decision-making. Lagos: Magic Plus Nigeria Limited.

Bordens, K. S., & Abbott, B.B. (2002). Research design and methods: A process approach. Boston: McGraw- Hill.

Brownell, P. (1982). Participation in budgeting process: When it works and when it doesn’t. Journal of Accounting Literature, 1, 124-153.

Brownell, P., & McInnes, M. (1986). Budgetary participation, motivation and managerial performance. The Accounting Review, 4, 587-600.

Canary, D. J., & Seibold, D. R. (1984). Attitudes and behaviour: An annotated bibliography. New York: Praeger.

Chong, V.K., & Chong, K.M. (2002). The role of feedback on the relationship between budgetary participation and performance. Pacific Accounting Review, 24 (2), 33-55.

CIMA. (2005). Chartered Institute of Management Accountants Official Terminology (2005 ed.). London: CIMA Publishing/Elsevier.

CIMA. (2008). Managerial Paper 2: Management accounting – Decision making. London: BPP Learning Media Ltd.

Creswell, J.W. (2009). Research design: Qualitative, quantitative and mixed methods approaches. USA: Sage Publications Inc.

Cyert, R.M., & March, J.G. (1963). A behavioral theory of the firm. Englewood Cliffs, NJ: Prentice Hall.

Frank, H.M. (2008). Performance management practices in public sector organisations; impact on performance. Accounting, Auditing & Accountability Journal, 21 (3), 427- 454.

Frucot, V., & White, S. (2006). Managerial levels and the effects of budgetary participation on managers. Managerial Auditing Journal, 21(2), 191-206.

Greenberg, P.S., & Greenberg, R.H. (2006). Who needs budgets?: You do. Strategic Finance, 88 (2), 41-45.

Haenisch, J.P. (2012). Factors affecting the productivity of government workers. Retrieved from http://classic.sgo.sagepub.com

Henri, J.F. (2006). Organisational culture and performance measurement systems. Accounting, Organisation and Society, 30, 77-103.

Holynskyy, Y. (2017). The importance of financial management principles in the State budget execution. Annals of Spiru Haret University – Economics Series, 17 (4), 19-28

Hopwood, A.G. (1973). An accounting system and managerial behaviour. Hampshire, UK: Saxon House

Jensen, M. (2003). Paying people to lie: The truth about the budgeting process. European Financial Management, 9(3), 379-406.

Kaiser, H. (1974). An index of factorial simplicity. Psychometrika, 39 (1), 31-36.

Kenis, I. (1979). Effects of budgetary goal characteristics on managerial attitudes and performance. The Accounting Review, 707-721.

Khin, E. (2010). Comparative study of the budgeting process reforms within two international accounting organisations: Malaysia and Australia perspectives. Journal of Basic and Applied Sciences, 4 (9), 4142-4150.

Kochi, S. (2011). Budgetary participation in Malaysian local authorities. Unpublished Ph.D. thesis submitted to Aston University. Retrieved from http://eprints.aston.ac.uk/16497/1/Budget%2Bparticipation%2Bin%2BMalaysian%2Blocal%2Bauthorites(2012)

Langfield, S.K., Thorne, H., & Hilton, T.W. (2006). Management Accounting (4th ed.). Australia: McGraw-Hill Ltd.

Leach-Lopez, M. A., Stammer, J.W., & McNair, F. M. (2007). Differences in the role of job relevant information in the budgetary participation-performance relationship among US and Mexican managers: A question of culture or communication? Journal of Management. Accounting Research, 1(19), 105-136.

Little, H.T., Magner, N., & Welker, R.B. (2002). The fairness of formal budgetary procedures and their enactment. Group Organisation Management, 27 (2), 209-225.

Luarn, P., &Huang, K. (2009). Factors influencing government employee performance via information systems use: An empirical study. Electronic Journal of e-Government, 7(3), 227-240.

Maiga, S. (2005). Antecedents and consequences of budgetary participation, in Marc J. Epstein, John Y. Lee (ed.) Advances in Management Accounting (Advances in Management Accounting, Volume 14) Emerald Group Publishing Limited, 211-231.

Maitland, I. (2000). Budgeting for non-financial managers: How to master and maintain effective budgets. Englewood Cliffs, NJ: Prentice Hall.

Malgwi, A., & Unegbu, A. (2012). Budget in Nigerian public sector: Need for balanced scorecard perspective. International Journal of Finance and Accounting, 1(2), 1-6.

Mănescu, R. (2010). Budget and development at the beginning of the 21st century: Let us understand the past in order to design the future. Annals of Spiru Haret University – Economics Series, 10 (4), 103-108

Marginson, D., Ogden, S., & Frow, N. (2006). Budgeting and innovation: Complements or contradictions? CIMA Research Report. Retrieved from: http://www.cimaglobal.com/executivereports

Marginson, D., & Ogden, S. (2005). Budgeting and innovation. Retrieved from: http://www.cimaglobal.com/financialmanagement

Mia, L. (1989). The impact of participation in budgeting and job difficulty on managerial performance and work motivation: A research note. Accounting, Organization and Society, 14, 347-357.

Mihai, I. (2010). Budget for Romania in 2010: Constraints and challenges. Annals of Spiru Haret University – Economics Series, 10 (2), 107-114.

Milani, K. (1975). The relationship of participation in budget-setting to industrial supervisor performance and attitudes: A Field Study. The Accounting Review, 4 (1), 274-284.

Mullins, L.J., & Christy, G. (2013). Management and organisational behaviour. London: Financial Times Publishing International.

Nikmah, F. (2012). Antecedents of budgetary participation: Enhancing employees’ job performance. Jurnal Studi Akuntansi Indonesia, 1(1), 1-35.

Noor, I., & Othman, R. (2012). Budgetary participation: How it affects performance and commitment. Retrieved from http://visar.csustan.edu/aaba/Othman2012.pdf

Nouri, H., & Parker, R. J. (1998). The relationship between budgetary participation and job performance: The roles of budget adequacy and organizational commitment. Accounting, Organization, and Society, 23(5), 467-483.

Nunnally, J. (1978). Psychometric theory. New York: McGraw-Hill.

Olaopa, T. (2013). A critical overview of public sector reform in Nigeria: Framework of transformation for the Federal Civil Service. Retrieved from http://www.tunjiolaopa.com/a-critical-overview-of-public-sector-reform-in-nigeria-framework-of-transformation-for-the-federal-civil-service/

Omolehinwa, E.O., & Naiyeju, J.K. (2015). Government accounting in Nigeria: An IPSAS approach. Lagos: Pumark Nigeria Limited.

O’Reilly, C. (1989). Corporations, culture, and commitment: motivation and social control in organizations. California Management Review, 31, 9-25.

Owusu, E., Dwomoh, G., Collins, M., Yaa, G., & Daniel, O. (2014). Assessing the relationship between budgetary participation and employees’ performance of public universities in Ghana: A case of University of Education. International Journal of Academic Research in Accounting, Finance, and Management Sciences, 4 (1), 85-95.

Pilkington, M., & Crowther, D. (2007). Budgeting and control. Retrieved from: http://www.cimaglobal.com/financialmanagement

Rasmussen, N. (2003). Process improvement for effective budgeting and financial reporting. Hoboken, NJ: Wiley.

Schiff, M., & Lewin, A.Y. (1970). The impact of people on budgets. The Accounting Review, 4, 259-268.

Sheppard, B. H., Hartwick, J., & Warshaw, P. R. (1988). The theory of reasoned action: A meta-analysis of past research with recommendations for modifications and future research. Journal of Consumer Research, 15, 325-343.

Shields, J.F., & Shields, M.D. (1998). Antecedents of participative budgeting. Accounting, Organizations and Society, 1, 49-76.

Stedry, A. (1960). Budget Control and Cost Behavior. Englewood Cliffs. N.J.:Prentice-Hall.

Stevens, J. (2002). Applied Multivariate Statistics for the Social Sciences (4th ed.). Mahwah, New Jersey: Lawrence Erlbaum Associates.

Vancouver, J.B. (1996). Living systems theory as a paradigm for organizational behaviour: understanding humans, organizations, and social processes. Behavioural Science, 41(3), 165-204.

Wentzel, K. (2002). The Influence of fairness perceptions and goal commitment on managers' performance in a budget setting. Behavioral Research in Accounting, 14 (1), 247-271.

Williams, J.J., Macintosh, N.B., & Moore, J.C. (1990). Budget related behaviour in public sector organization: Some empirical evidence. Accounting, Organzsation and Society, 15(3) 221-246.

Yahya, M. N., Nik, A., Nik N., & Fatima, A. H. (2008). Budgetary participation and performance: Some Malaysian evidence. International Journal of Public Sector Management, 21, (6), 658-673.

Yuen, D. (2007). Antecedents of budgetary participation: Enhancing employees’ job performance. Managerial Auditing Journal, 22 (5), 533-548.

Yukl, G. (1994). Leadership in Organizations. Englewood Cliffs, NJ: Prentice Hall.

DOI: http://dx.doi.org/10.26458/1812

Copyright (c) 2018 Babajide OYEWO, Gbadegesin ADEYEYE

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.




To crown and encourage research efforts of the authors, at the end of a year of publishing our journal board will award online the best papers by distinctions:

1. Best Original Paper Award -  for the paper that has brought something completely new in the reader's attention (a new concept, a new trend, a new proposal in research, etc.)

2. Excellence Award - for the most cited paper and visualized in the online environment during the year

3. First, Second and Third Award- for the best documented and substantiated papers during the year

4. Special Award - to award PhD students and postdocs for the most well documented and substantiated paper

Administred:Rocsana B. Manea Tonis