Budget participation, goal interdependence and controversy : a study of a Chinese public utility

Margaret POON, Richard PIKE, Dean William TJOSVOLD

    Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

    28 Citations (Scopus)

    Abstract

    The extensive literature on participative budgeting has paid little attention to the interaction among managers as they discuss and resolve budget-related issues. This study employs goal interdependence theory to explore the impact of team dynamics on budgeting. How managers believe their goals are related affects the dynamics and outcomes of participation. In a large utility in Hong Kong, 64 managers were interviewed on specific budget participation incidents. Results of structural equation analyses found support for the study's three main hypotheses. Budget team members who had cooperative goals were found to engage in more open-minded discussion in conflict situations. This resulted in improved group productivity and strengthened relationships which, in turn, led to higher-quality budgets. Results were interpreted as suggesting that the benefits of budget participation depends upon establishing strongly cooperative goals among team members and developing the skills to discuss opposing views open-mindedly. The antecedents of goal interdependence are also explored.
    Original languageEnglish
    Pages (from-to)101-118
    Number of pages18
    JournalManagement Accounting Research
    Volume12
    Issue number1
    DOIs
    Publication statusPublished - 1 Mar 2001

    Fingerprint

    Goal interdependence
    Participation
    Public utilities
    Managers
    Participative budgeting
    Structural equations
    Productivity
    Hong Kong
    Interaction
    Incidents
    Budgeting

    Keywords

    • Budgeting
    • China
    • Conflict
    • Controversy
    • Goal interdependence
    • Participation

    Cite this

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    title = "Budget participation, goal interdependence and controversy : a study of a Chinese public utility",
    abstract = "The extensive literature on participative budgeting has paid little attention to the interaction among managers as they discuss and resolve budget-related issues. This study employs goal interdependence theory to explore the impact of team dynamics on budgeting. How managers believe their goals are related affects the dynamics and outcomes of participation. In a large utility in Hong Kong, 64 managers were interviewed on specific budget participation incidents. Results of structural equation analyses found support for the study's three main hypotheses. Budget team members who had cooperative goals were found to engage in more open-minded discussion in conflict situations. This resulted in improved group productivity and strengthened relationships which, in turn, led to higher-quality budgets. Results were interpreted as suggesting that the benefits of budget participation depends upon establishing strongly cooperative goals among team members and developing the skills to discuss opposing views open-mindedly. The antecedents of goal interdependence are also explored.",
    keywords = "Budgeting, China, Conflict, Controversy, Goal interdependence, Participation",
    author = "Margaret POON and Richard PIKE and TJOSVOLD, {Dean William}",
    year = "2001",
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    doi = "10.1006/mare.2000.0146",
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    Budget participation, goal interdependence and controversy : a study of a Chinese public utility. / POON, Margaret; PIKE, Richard; TJOSVOLD, Dean William.

    In: Management Accounting Research, Vol. 12, No. 1, 01.03.2001, p. 101-118.

    Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

    TY - JOUR

    T1 - Budget participation, goal interdependence and controversy : a study of a Chinese public utility

    AU - POON, Margaret

    AU - PIKE, Richard

    AU - TJOSVOLD, Dean William

    PY - 2001/3/1

    Y1 - 2001/3/1

    N2 - The extensive literature on participative budgeting has paid little attention to the interaction among managers as they discuss and resolve budget-related issues. This study employs goal interdependence theory to explore the impact of team dynamics on budgeting. How managers believe their goals are related affects the dynamics and outcomes of participation. In a large utility in Hong Kong, 64 managers were interviewed on specific budget participation incidents. Results of structural equation analyses found support for the study's three main hypotheses. Budget team members who had cooperative goals were found to engage in more open-minded discussion in conflict situations. This resulted in improved group productivity and strengthened relationships which, in turn, led to higher-quality budgets. Results were interpreted as suggesting that the benefits of budget participation depends upon establishing strongly cooperative goals among team members and developing the skills to discuss opposing views open-mindedly. The antecedents of goal interdependence are also explored.

    AB - The extensive literature on participative budgeting has paid little attention to the interaction among managers as they discuss and resolve budget-related issues. This study employs goal interdependence theory to explore the impact of team dynamics on budgeting. How managers believe their goals are related affects the dynamics and outcomes of participation. In a large utility in Hong Kong, 64 managers were interviewed on specific budget participation incidents. Results of structural equation analyses found support for the study's three main hypotheses. Budget team members who had cooperative goals were found to engage in more open-minded discussion in conflict situations. This resulted in improved group productivity and strengthened relationships which, in turn, led to higher-quality budgets. Results were interpreted as suggesting that the benefits of budget participation depends upon establishing strongly cooperative goals among team members and developing the skills to discuss opposing views open-mindedly. The antecedents of goal interdependence are also explored.

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    KW - Conflict

    KW - Controversy

    KW - Goal interdependence

    KW - Participation

    UR - http://commons.ln.edu.hk/sw_master/2465

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    JO - Management Accounting Research

    JF - Management Accounting Research

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