Budgeting approaches and employee motivation in the hospitality industry
-
DOIhttp://dx.doi.org/10.21511/ppm.20(4).2022.45
-
Article InfoVolume 20 2022, Issue #4, pp. 602-613
- Cited by
- 663 Views
-
460 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.