The Effect of Procedural Justice on Job Satisfaction and Managerial Performance Through Budget Participation in SOE Plantation Companies in North Sumatra
Introduction
In the realm of organizational management, budget participation is a crucial process that involves the preparation of a budget with the active involvement of Accountability Central Managers (MPPs). This process is closely related to procedural justice, which refers to the fairness and transparency of the decision-making process. The involvement of MPPs in budget preparation can significantly impact job satisfaction and managerial performance. This study aims to investigate the effect of procedural justice on job satisfaction and managerial performance through budget participation in State-Owned Enterprise (SOE) plantation companies in North Sumatra.
Background
Budget participation is a critical aspect of organizational management, as it involves the preparation of a budget with the active involvement of MPPs. The involvement of MPPs in this process is essential to ensure that the budget is prepared fairly and transparently. Procedural justice is a key concept in organizational behavior, which refers to the fairness and transparency of the decision-making process. When MPPs feel that they are fairly involved in the process of preparing a budget, they are more likely to feel satisfied with their work and show better performance.
Methodology
This descriptive research involved 135 respondents from SOE plantation companies in North Sumatra. Data was collected using a questionnaire consisting of 5 items and analyzed by the multivariate method. The study aimed to reveal empirical evidence of the role of the participation of various MPP strata in the preparation of the budget and its effect on procedural justice, job satisfaction, and managerial performance.
Results
The results of this study showed a positive and significant correlation between procedural justice and job satisfaction and managerial performance through budget participation. This indicates that when MPPs feel that they are fairly involved in the process of preparing a budget, they are more likely to feel satisfied with their work and show better performance.
Deeper Analysis
Procedural Justice
Procedural justice in budget participation refers to feelings of just and transparent in the process of preparing a budget. This includes aspects such as the same opportunity to provide input, transparent decision making, and a fair process in resolving conflicts. When MPPs feel that they are fairly involved in the process of preparing a budget, they are more likely to feel valued, motivated, and have a sense of belonging to their work.
Job Satisfaction
When MPPs feel procedural justice in budget participation, they tend to feel more valued, motivated, and have a sense of belonging to their work. This has a positive impact on their job satisfaction. Job satisfaction is a critical aspect of organizational behavior, as it affects the performance and commitment of employees.
Managerial Performance
High job satisfaction in MPPs can increase their commitment and dedication to the company. They will be more focused in carrying out their duties and responsibilities, so that it has a positive impact on their managerial performance. Managerial performance is a critical aspect of organizational success, as it affects the overall performance of the company.
Implications and Recommendations
The results of this study have important implications for SOE plantation companies in North Sumatra. The company needs to ensure that the budget participation process is carried out fairly and transparently, and provides the same opportunity for all MPPs to contribute. This can be done by:
Improve Communication and Transparency
The company needs to improve communication and transparency in the process of preparing a budget. This can be done by providing regular updates on the budget preparation process and involving MPPs in the decision-making process.
Providing Training and Development
Providing training and development to MPPs to improve their ability to participate effectively in the budget preparation process. This can be done by providing training on budget preparation, financial management, and decision-making.
Implementing an Award System
Applying a fair and transparent award system and recognition to motivate MPPs. This can be done by recognizing and rewarding MPPs who contribute significantly to the budget preparation process.
Conclusion
This study provides empirical evidence of the effect of procedural justice on job satisfaction and managerial performance through budget participation in SOE plantation companies in North Sumatra. The results of this study have important implications for SOE plantation companies in North Sumatra, and provide recommendations for improving budget participation, communication, and transparency.
Recommendations for Further Research
This research also has recommendations for further research. Research can be expanded by involving more diverse samples, including foreign capital plantation companies, domestic capital companies, private companies, industrial companies, and service companies. Additionally, research can be conducted to investigate the effect of procedural justice on job satisfaction and managerial performance in other industries and sectors.
Limitations of the Study
This study has some limitations, including the sample size and the use of a questionnaire as the data collection instrument. Future research can be conducted to address these limitations and provide more comprehensive evidence of the effect of procedural justice on job satisfaction and managerial performance.
Future Research Directions
Future research can be conducted to investigate the effect of procedural justice on job satisfaction and managerial performance in other industries and sectors. Additionally, research can be conducted to investigate the impact of budget participation on organizational performance and success.
Conclusion
In conclusion, this study provides empirical evidence of the effect of procedural justice on job satisfaction and managerial performance through budget participation in SOE plantation companies in North Sumatra. The results of this study have important implications for SOE plantation companies in North Sumatra, and provide recommendations for improving budget participation, communication, and transparency.Frequently Asked Questions (FAQs) on The Effect of Procedural Justice on Job Satisfaction and Managerial Performance Through Budget Participation in SOE Plantation Companies in North Sumatra
Q: What is procedural justice?
A: Procedural justice refers to the fairness and transparency of the decision-making process. In the context of budget participation, procedural justice means that all stakeholders, including MPPs, are given the opportunity to participate in the decision-making process and are treated fairly and equally.
Q: What is budget participation?
A: Budget participation is the process of preparing a budget with the active involvement of MPPs. This process involves the preparation of a budget that takes into account the needs and priorities of all stakeholders, including MPPs.
Q: What is the relationship between procedural justice and job satisfaction?
A: Procedural justice has a positive impact on job satisfaction. When MPPs feel that they are fairly involved in the process of preparing a budget, they are more likely to feel valued, motivated, and have a sense of belonging to their work.
Q: What is the relationship between procedural justice and managerial performance?
A: Procedural justice has a positive impact on managerial performance. When MPPs feel that they are fairly involved in the process of preparing a budget, they are more likely to be committed and dedicated to their work, which can lead to better performance.
Q: What are the implications of this study for SOE plantation companies in North Sumatra?
A: The study has important implications for SOE plantation companies in North Sumatra. The company needs to ensure that the budget participation process is carried out fairly and transparently, and provides the same opportunity for all MPPs to contribute.
Q: What are some recommendations for improving budget participation, communication, and transparency?
A: Some recommendations for improving budget participation, communication, and transparency include:
Improving communication and transparency in the process of preparing a budget
Providing training and development to MPPs to improve their ability to participate effectively in the budget preparation process
Implementing a fair and transparent award system and recognition to motivate MPPs
Q: What are some limitations of this study?
A: Some limitations of this study include the sample size and the use of a questionnaire as the data collection instrument. Future research can be conducted to address these limitations and provide more comprehensive evidence of the effect of procedural justice on job satisfaction and managerial performance.
Q: What are some future research directions?
A: Some future research directions include:
Investigating the effect of procedural justice on job satisfaction and managerial performance in other industries and sectors
Investigating the impact of budget participation on organizational performance and success
Conducting a more comprehensive study that includes a larger sample size and a more diverse range of stakeholders.
Q: What are some practical implications of this study for MPPs?
A: Some practical implications of this study for MPPs include:
Feeling valued, motivated, and having a sense of belonging to their work
Being committed and dedicated to their work
Being more focused and productive in their work
Q: What are some practical implications of this study for SOE plantation companies in North Sumatra?
A: Some practical implications of this study for SOE plantation companies in North Sumatra include:
Ensuring that the budget participation process is carried out fairly and transparently
Providing the same opportunity for all MPPs to contribute to the budget preparation process
Implementing a fair and transparent award system and recognition to motivate MPPs.
Q: What are some future steps for SOE plantation companies in North Sumatra?
A: Some future steps for SOE plantation companies in North Sumatra include:
Implementing the recommendations outlined in this study
Conducting further research to investigate the effect of procedural justice on job satisfaction and managerial performance
Developing a more comprehensive budget participation process that includes all stakeholders.