Budgeting approaches and employee motivation in the hospitality industry
-
Author(s)Ben-Caleb EgbideLink to ORCID Index: http://orcid.org/0000-0003-2188-2535
,
Mercy Agi-Ilochi
,
Joseph MadugbaLink to ORCID Index: https://orcid.org/0000-0001-8929-1905
,
Asaolu Taiwo
,
Ibrahim Ayomide
-
DOIhttp://dx.doi.org/10.21511/ppm.20(4).2022.45
-
Article InfoVolume 20 2022, Issue #4, pp. 602-613
- Cited by
- 758 Views
-
517 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The thorough appraisal of financial tools such as budgeting guides business leaders in effectively planning and controlling business activities for optimum productivity and profitability. Hence, proper budgeting can be used to motivate employees. This study seeks to investigate the functional association between budgetary approaches and employee motivation in the Nigerian hospitality industry. The descriptive research design was employed, and data were garnered via a structured questionnaire (using a five-point Likert) administered to 85 hospitality industry employees spanning accommodation, catering, tourism, and recreation spheres. The paper employed a purposeful sampling technique. Motivation, which is the dependent variable, was determined using the path-goal model. Both descriptive statistics and ordinary least square regression were conducted to gauge the magnitude and direction of the relationship between the variables under consideration. The outcome signposts a significant positive correlation between budgeting style and employee motivation up to 48.9%. Specifically, the participatory budgeting style was shown to boost the motivation of employees to work with set budgets and to pursue company objectives. However, budget standard and success rates were observed to be slightly higher with imposed budgeting. The paper recommends that, while participatory budgeting is good for maintaining a well-motivated workforce, it should be practiced with adequate supervision to avoid having low-performing budgets.
- Keywords
-
JEL Classification (Paper profile tab)E23, E24, D61
-
References37
-
Tables4
-
Figures3
-
- Figure 1. Distribution of respondents by a company type
- Figure 2. Age distribution of respondents
- Figure 3. Budgeting style and employee motivation on a five-point Likert scale
-
- Table 1. Survey sample size
- Table 2. Respondent demographics
- Table 3. Model summary
- Table 4. Regression coefficients
-
- Abata, M. A. (2014). The impact of tax revenue on Nigerian economy (Case of Federal Board of Inland Revenue). Journal of Policy and Development Studies, 9, 109-121.
- Arnold, M., & Artz, M. (2019). The use of a single budget or separate budgets for planning and performance evaluation. Accounting, Organizations, and Society, 73, 50-67.
- Ashadi, A. K., Akib, A., Insawan, H., & Sulaiman, N (2022). Effect of organizational climate and participation in budgeting on employee performance. KnE Social Sciences, 7(8), 56-80.
- Ashley, R. A., Atkinson, S. M., & LeBruto, S. L. (2000). A survey of capital budgeting methods used by the restaurant industry. The Journal of Hospitality Financial Management, 8(1), 47-55.
- Atkinson, S. M., & LeBruto, S. M. (1997). A survey of capital-budgeting methods used by the hotel/gaming industry. Journal of Hospitality Financial Management, 5(1), 4.
- Babajide, O., & Adeyeye, G. (2018). Budgetary participation and managerial performance in public sector organizations: A study from Nigeria. Annals of Spiru Haret University Economic Series, 18(1), 47-76.
- Barrows, C. W., Powers, T., & Reynolds, D. (2012). Introduction to the hospitality industry (8th ed.). Hoboken, New Jersey: John Wiley & Sons.
- Ben-Caleb, E. (2021). Budgetary control theory: MSc accounting lecture slide for ACC 813: Management accounting theory [PowerPoint Presentation].
- Cladera, R., Martín-Oliver, A., & Pascual-Fuster, B. (2021). Financial distress in the hospitality industry during the Covid-19 disaster. Tourism Management, 85, 104301.
- Davahli, M. R, Karwowski, W., Sonmez, S., & Apostolopoulos, Y. (2020). The hospitality industry in the face of the COVID-19 pandemic: Current topics and research methods. International Journal of Environmental Responsibility on Public Health, 17(20), 7366.
- DeMicco, F. J., & Dempsey, S. J. (1988). Participative budgeting and participant motivation: A review of the literature. Hospitality Review, 6(1), 9.
- Du Plessis, A. J., Douangphichit, N., & Dodd, P. (2016). HRM about employee motivation and job performance in the hospitality industry. Journal of International Business Research and Marketing, 1(4), 1-13.
- Heyden, M., Fourné, S., Koene, B., Werkman, R., & Ansari, S. (2017). Rethinking ‘top-down’ and ‘bottom-up’ roles of top and middle managers in organizational change: Implications for employee support. Journal of Management Studies, 54(7), 961-985.
- House, R. J. (1971). A path-goal theory of leader effectiveness. Administrative Science Quarterly, 16(3), 321-328.
- Kiptoo, K. B., Naibei, I., & Cheruiyot, P. (2021). Effect of employee participation in budgeting planning on employee motivation in a microfinance institution in Kericho County. International Journal of Recent Research in Commerce Economics and Management (IJRRCEM), 8(1), 87-93.
- Kuranchie-Mensah, E. B., & Amponsah-Tawiah, K. (2016). Employee motivation and work performance: A comparative study of mining companies in Ghana. Journal of Industrial Engineering and Management (JIEM), 9(2), 255-309.
- Langvinienė, N., & Daunoravičiūtė, I. (2015). Factors influencing the success of the business model in the hospitality service industry. Procedia – Social and Behavioral Sciences, 213, 902-910.
- Lavrakas, P. J. (2008). Cross-sectional survey design. In J. Hall (Ed.), Encyclopedia of survey research methods. Sage Publications.
- Mah’d, O. (2020). Bottom-up rather than top-down: evidence from Middle Eastern and North African educational institutions. Journal of Public Budgeting, Accounting & Financial Management, 32(4), 671-690.
- Mhlanga, O. (2018). Factors influencing employee motivation in hotels. African Journal of Hospitality, Tourism and Leisure, 7(3), 1-8.
- Mlugu, Z. R. (2020). The impact of employees motivation on organizational performance; A case of Mnazi-Mmoja government hospital. Mzumbe University.
- Mullins, L. J. (2010). Management and organizational behaviour (10th ed.). Harlow, FT: Prentice-Hall.
- Myint, Y. Y., Mithunchakravarthy, D., Raju, V., & Bhaumik, A. (2019). Budget participation and employees’ motivation in Myanmar private commercial banks. International Journal of Innovative Technology and Exploring Engineering (IJITEE), 8(8S2), 573-578.
- Owoyele, S. (2017). Factors influencing employee motivation and its impact on employee performance (Master’s Thesis). Centria University of Applied Sciences.
- Pakpahan, R., & Augustine, Y. (2019). Budget participation, organizational commitment, and job performance in an Indonesian national police hospital. International Journal of Business, Economics and Law, 19(5), 333-341.
- Raghunandan, M., Ramgulam, N., Raghunandan-Mohammed, F. D., & Raghunandan, R. (2012). Examining the behavioural aspects of budgeting with particular emphasis on public sector/service budgets. International Journal of Business and Social Science, 3(14).
- Rao, S. V. (2008). Human resources management: Text and cases (2nd ed.). New Delhi, India: Excel Books Press.
- Roopa, S., & Rani, M. S. (2012). Questionnaire designing for a survey. Journal of Indian Orthodontic, 46(4), 273-277.
- Shah, A. (2007). Public sector governance and accountability series: Participatory budgeting. Washington, DC: The World Bank.
- Soleiman, I. D., & Thalib, S. B. W. (2020). The effect of budget participation on managerial performance with organizational commitment and motivation as moderating variables (Empirical study at the local Government work Unit office of Ende regency). Proceedings of the 3rd International Conference of Banking, Accounting, Management, and Economics.
- Syahputra, Z. (2014). Budget participation on managerial performance: Related factors that influenced government’s employee (Study of Indonesian local government). Journal of Economics and Sustainable Development, 5(21), 95-100.
- Uyar, A., & Bilgin, N. (2011). Budgeting practices in the Turkish hospitality industry: An exploratory survey in the Antalya region. International Journal of Hospitality Management, 30(2), 398-408.
- Wafiroh, N. L., Abdani, F., & Nurdin, F. (2020). Budget participation and budgetary slack: The mediating effect of autonomous budget motivation. Jurnal Akuntansi, 10(3), 287-300.
- Wagner, J., Petera, P., Popesko, B., Novák, P., & Šafr, K. (2021). The usefulness of the budget: the mediating effect of participative budgeting and budget-based evaluation and rewarding. Baltic Journal of Management, 16(4), 602-620.
- Wong-On-Wing, B., Guo, L., & Lui, G. (2010). Intrinsic and extrinsic motivation and participation in budgeting: Antecedents and consequences. Behavioral Research in Accounting, 22(2), 133-153.
- Yenni, C. (2020). Participative budgeting, employee motivation and budgetary slack in private sector in Indonesia. Journal ASET (Akuntansi Riset), 12(2), 346-356.
- Yuliansyah, Y., & Khan, A. A. (2017). A revisit of the participative budgeting and employees’ self-efficacy interrelationship – Empirical evidence from Indonesia’s public sector. International Review of Public Administration, 22(3), 213-230.
-
Business dynamism in the world economy
Zuzana Virglerova ,
Felice Addeo ,
Eliska Zapletalikova
doi: http://dx.doi.org/10.21511/ppm.18(3).2020.14
Problems and Perspectives in Management Volume 18, 2020 Issue #3 pp. 160-169 Views: 2868 Downloads: 326 TO CITE АНОТАЦІЯThe creation and growth of new enterprises and, on the other hand, their decline and market exit are crucial factors of business dynamism and economic growth. Thus, business dynamism is an important aspect in the market chain and productivity of an economy, as well as a trigger for market reforms. The aim is to analyze business dynamism using Global Competitiveness Index 4.0 and its variables worldwide and to verify the relationship between business dynamism in the EU states and economic characteristics such as Valued added at factor cost, Enterprise Birth Rate and Enterprise Death Rate. Data were collected from the 2019 Global Competitiveness Report and from the EUROSTAT database, using the most recently updated source for each indicator. The 11th pillar of the Global Competitiveness Index, focused on business dynamics, and a set of indicators were analyzed using PCA to verify if all the variables are effective representatives of the concept. It was found out that the pillar does not effectively represent the concept of business dynamism in case of the EU countries; therefore the new pillar was constructed. A strong and statistically significant correlation between business dynamism and Value Added was confirmed. A relationship between business dynamism and other economic indicators was not proven. From a territorial point of view, Oceania achieved the best overall result in the analyzed field. The process of starting a new business is the most challenging in terms of start-up costs in South America. By contrast, the EU has reached the best result in this process.
-
The effect of leadership and organizational culture on employee performance that is educated by motivation (study on the implementation empowerment programs in Jayapura city)
Nansi Lidya Lolowang , Eka Afnan Troena , Atim Djazuli ,
Siti Aisjah
doi: http://dx.doi.org/10.21511/ppm.17(1).2019.23
Problems and Perspectives in Management Volume 17, 2019 Issue #1 pp. 268-277 Views: 2475 Downloads: 1137 TO CITE АНОТАЦІЯVillages and sub-districts in Jayapura city are public organizations that provide service to the community. Villages and urban organizations require leadership, organizational culture and strong work motivation to support performance improvement. This research was conducted in 39 villages and sub-districts in the city of Jayapura. The population of this study was permanent employees in the villages and sub-districts in the city of Jayapura, which numbered 96 employees. All populations were chosen as research respondents, this research was census research. The analytical tool used in the research is Partial Least Square (PLS). The results of the study show that, first, direct leadership has no significant effect on employee performance, second, organizational culture has a significant effect on employee performance, third, leadership has a significant effect on work motivation, fourth, organizational culture has a significant effect on work motivation, fifth, work motivation has a significant effect on employee performance, sixth, work motivation is a perfect mediator of the influence of leadership on employee performance, seventh, work motivation as a partial mediator of the influence of organizational culture on employee performance.
-
A financial performance-based assessment of SMEs’ competitiveness – an analysis of Hungarian and US small businesses
Vivien Csapi ,
Virgínia Balogh
doi: http://dx.doi.org/10.21511/ppm.18(3).2020.37
Problems and Perspectives in Management Volume 18, 2020 Issue #3 pp. 452-464 Views: 2264 Downloads: 1317 TO CITE АНОТАЦІЯThe study aims to identify the financial performance measures used as a proxy of the firm-level competitiveness dimensions of small and medium-sized enterprises and their competitiveness. By investigating the factors that affect competitiveness in general, those areas will be introduced, related to an identified competitiveness dimension. Financial and non-financial performance indicators will assess these areas. The paper considers competitiveness as an outcome variable, suggests a relationship between financial performance and the identified areas, and searches for the financial performance measures drivers.
A panel data model was tested on Hungarian small and medium-sized enterprises (SMEs) and US SMEs. The collected data cover the period between 2013 and 2017. As a result of the applied panel regression, those variables were successfully identified that drive and could predict financial performance measures related to competitiveness. The research found a significant difference between the two-sample dataset results, which differences can be connected to country, industry, and, in general, to economic development characteristics.
The results provide decision-making support and hint about the managerial tools and techniques aiming to control the firm characteristics, performance, and, eventually, firm-level competitiveness. Based on the results, further research can be dedicated to the development characteristics of firm-level competitiveness and the analysis of the relationship between the competitiveness dimensions and competitiveness itself.Acknowledgment
The research was financed by the Higher Education Institutional Excellence Programme of the Ministry for Innovation and Technology in Hungary, within the framework of the 4th thematic programme „Enhancing the Role of Domestic Companies in the Reindustrialization of Hungary” of the University of Pécs.
