Effect Of Budgeting Participation To Justice Organization, Organizational Commitment And Organizational Performance In Papua Hospital

Abstract

In the framework of the implementation of special autonomy for Papua Province, one factor that concerns many people is a matter of budgeting that is often lacking in accordance with the needs of eachregency / municipality in the province of Papua. This happens due to the lack of participation of various partiesassociated with the preparation of the budget in the area when preparing the budget. Another factor that may bethe cause is the reluctance of the executive budget to follow the budget that has been set by the financedepartment. Another possibility is that the budget has been set too difficult to implement due to the preparationof the budget target is too high or too small to reach the target .This study aimed to examine whether there is the influence of participatory budgeting onorganizational justice, organizational commitment and performance. The research was conducted in the province of Papua by sampling nine District General Hospital. The method of analysis used was Partial Least Square (PLS). The results of the analysis show that: (1) there is the influence of participatory budgeting toorganizational justice and organizational performance, the higher the participatory budgeting, it could lead tohigher the fairness and performance of the organization, (2) there is the influence of organizational justice onorganizational commitment and organizational performance, the high organizational justice it will result in thehigher organizational commitment and organizational performance, and (3) there is the influence of theorganization's commitment to organizational performance, the higher the organizational commitment will lead to the higher performance of the organization. Suggestions that can be presented in this study is that the government can do in terms of policy formulation budgeting involves employees at a lower level and thecommunity so as to improve the performance of hospitals. In this research, budgeting participation affect perceptions of organizational justice, and the creation of organizational commitment, which directly or indirectly increase the performance of hospitals in the province of Papua.