Impact of Budget Participation on Job Performance in Myanmar Private Commercial Banks WithMediation Effect of Budget Goal Commitment

Abstract

A bottom-up budgeting style is participative budgeting because it takes in lower-level workforces. The managers from bank's branches normally prepare and set their own branches' budget which are able to include valuable and realistic data on their branches' activities or operations. The final resource allocation is depend on their budget summited and it is thus critical that they are participated throughout the budget preparation and setting process. Participation in budget preparation and setting process produces advantages like improve employee motivation and budget goal commitment, development creativeness between all bank's branches, growing a common sense of responsibility, getting job satisfaction and finally lead to successful job performance. It has been found that very rare studies have been carried out in private commercial banks in Myanmar about the impact of the participation of all bank's branch managers in budget preparation and setting process with mediation effect of budget goal commitment. Quantitative research methodology is used and simple random sampling method is used to collect 150 banks employees from Myanmar private commercial banks in Yangon division. SPSS software is used to analysis the data. This study investigated the impact of budget participation on job performance through goal commitment in Myanmar private commercial banks. It therefore seeks to discover whether positive or negative impact between budget participation style and job performance in Myanamar private commercial banks area. The effect of participation in budgeting process on job performance is a motivating issue for Myanmar private commercial banks and outcome of the study is valuable information for the budget users and badger preparers in Myanmar private commercial banks. The finding of the study will be useful for giving guidance to explain how budget participation of all branch managers could be improved and enhanced job performance of Myanmar private commercial banks.