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The effects of managerial level on the relationship between budgetary participation and job satisfaction

The literature provides little research support for a consistent correlation between participation in the budget setting process and job satisfaction. The findings of empirical research suggest that the degree of authority inherent in jobs at different managerial levels may influence the relationship between participation and job satisfaction. The extent to which participative budgeting enhances job satisfaction may be dependent upon the degree to which managers expect that participation in the budget setting process provides them with the opportunity to exercise control inherent at their managerial level over their areas of responsibility. The purpose of this paper is to evaluate whether or not the relationship between participation in the budget setting process and job satisfaction is contingent upon managerial level. The findings of an empirical study conducted in Britain suggest that high-level managers derive significantly greater job satisfaction from participation than do low-level managers.


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