This study aimed to investigate the effects of nursing managers’ participation in budgeting on budgetary slack by considering the mediating role of organisational factors. The views of nursing managers are important because they can affect the direction of budgeting. This study was cross-sectional. Data were collected using a questionnaire. All nursing managers of public hospitals in Fars Province constituted the statistical population of the present study. The results posit that the participation of nursing managers in budgeting, through organisational culture and commitment, affects budgetary slack. In addition, nursing managers’ participation in budgeting, through the path of job satisfaction and organisational commitment, also affects budgetary slack. It is recommended that the managers of the Ministry of Health and Medical Education promote culture of integrity and ethics in rendering the budgets by different departments and amend the organisational commitment of nursing managers from commitment to one department of hospitals to commitment to the whole ministry as a whole. This study explores budgetary slack as one of the vital issues in budgeting and examines it from the nursing managers’ point of view while considering the effect of organisational factors.
AllenN. J., & MeyerJ. P. (1990). The measurement and antecedents of affective, continuance and normative commitment to the organization. Journal of Occupational Psychology, 63(1), 1–18.
2.
AndersonD. M., CronkR., BestL., RadinM., SchramH., TracyJ. W., & BartramJ. (2020). Budgeting for environmental health services in healthcare facilities: A ten-step model for planning and costing. International Journal of Environmental Research and Public Health, 17(6), 2075.
3.
ChongV. K., & EggletonI. R. (2007). The impact of reliance on incentive-based compensation schemes, information asymmetry and organisational commitment on managerial performance. Management Accounting Research, 18(3), 312–342.
4.
CollinsF. (1978). The interaction of budget characteristics and personality variables with budgetary response attitudes. Accounting Review, 53(2), 324–335.
5.
CovaleskiM., EvansJ. H., LuftJ., & ShieldsM. D. (2006). Budgeting research: Three theoretical perspectives and criteria for selective integration. Handbooks of Management Accounting Research, 2, 587–624.
6.
De BaerdemaekerJ., & BruggemanW. (2015). The impact of participation in strategic planning on managers’ creation of budgetary slack: The mediating role of autonomous motivation and affective organisational commitment. Management Accounting Research, 29, 1–12.
7.
de FariaJ. A., & da SilvaS. M. G. (2013). The effects of information asymmetry on budget slack: An experimental research. African Journal of Business Management, 7(13), 1086–1099.
8.
DenisonD. R. (2000). Organizational culture: Can it be a key lever for driving organizational change. The International Handbook of Organizational Culture and Climate, 18(4), 347–372.
9.
DunkA. S. (1993). The effect of budget emphasis and information asymmetry on the relation between budgetary participation and slack. Accounting Review, 68(2), 400–410.
10.
EliasN., & NotzW. W. (2007). The effects of organizational culture on budgetary conflict: Integrative versus distributive conflict resolution. In Advances in management accounting. Emerald Group Publishing Limited.
11.
FisherJ. G., MainesL. A., PefferS. A., & SprinkleG. B. (2002). Using budgets for performance evaluation: Effects of resource allocation and horizontal information asymmetry on budget proposals, budget slack, and performance. The Accounting Review, 77(4), 847–865.
12.
GinzbergH. H., ShannonP. T., SuzukiT., HongO., VachonE., MoraesT., AbreuM. T. H., CherepanovV., WangX., & ChowC.-W. (2004). Leukocyte elastase induces epithelial apoptosis: Role of mitochondial permeability changes and Akt. American Journal of Physiology-Gastrointestinal and Liver Physiology, 287(1), G286–G298.
13.
HorngrenC. T., DatarS. M., FosterG., RajanM. V., & IttnerC. (2009). Cost accounting: A managerial emphasis. Pearson Education India.
14.
KrenL. (2003). Effects of uncertainty, participation, and control system monitoring on the propensity to create budget slack and actual budget slack created. In Advances in management accounting. Emerald Group Publishing Limited.
15.
LibbyT., & LindsayR. M. (2010). Beyond budgeting or budgeting reconsidered? A survey of North-American budgeting practice. Management Accounting Research, 21(1), 56–75.
16.
LoweE. A., & ShawR. W. (1968). An analysis of managerial biasing: Evidence from a company’s budgeting process. Journal of Management Studies, 5(3), 304–315.
17.
MilaniK. (1975). The relationship of participation in budget-setting to industrial supervisor performance and attitudes: A field study. The Accounting Review, 50(2), 274–284.
18.
NamaziM., & RezaeiG. (2017). Modeling mediating role of management accounting information system, motivation, and organizational commitment in strategic planning and health service managers’ creation of the budgetary slack. Journal of Management Accounting and Auditing Knowledge, 6(24), 113–134.
19.
NamaziM., & RezaeiG. (2020). Comprehensive framework for controlling budgetary slack in governmental agencies via strategic management accounting. The Journal of Planning and Budgeting, 25(3), 3–31.
20.
NaranjeeN., NgxongoT. S., & SibiyaM. N. (2019). Financial management roles of nurse managers in selected public hospitals in KwaZulu-Natal province, South Africa. African Journal of Primary Health Care & Family Medicine, 11(1), 1–8.
21.
NaranjeeN., SibiyaM. N., & NgxongoT. S. P. (2019). Development of a financial management competency framework for Nurse Managers in public health care organisations in the province of KwaZulu-Natal, South Africa. International Journal of Africa Nursing Sciences, 11, 100154.
22.
NouriH., & ParkerR. J. (1996). The effect of organizational commitment on the relation between budgetary participation and budgetary slack. Behavioral Research in Accounting, 8, 74–90.
23.
OnsiM. (1973). Factor analysis of behavioral variables affecting budgetary slack. The Accounting Review, 48(3), 535–548.
24.
OrloffT. M., LittellC. L., CluneC., KlingmanD., & PrestonB. (1990). Hospital cost accounting: Who’s doing what and why. Health Care Management Review, 15(4), 73–78.
25.
RankinF. W., SchwartzS. T., & YoungR. A. (2008). The effect of honesty and superior authority on budget proposals. The Accounting Review, 83(4), 1083–1099.
26.
RezaeiG., ZeraatgariR., SadeghzadehMaharluieM., & NasseriA. (2022). The role of the management accounting system of Iranian healthcare organizations in the management and control of the COVID-19 pandemic. International Journal of Healthcare Management, 16(3), 385–393.
27.
RundioA. (2021). The nurse manager’s guide to budgeting & finance. Sigma Theta Tau.
28.
SchouteM., & WiersmaE. (2007). The impact of budgetary slack on budget use(ARCA-RM; No. 07-20). Faculteit der Economische Wetenschappen en Bedrijfskunde.
29.
St JohnstonR. D., HoffmannF. M., BlackmanR. K., SegalD., GrimailaR., PadgettR. W., IrickH. A., & GelbartW. M. (1990). Molecular organization of the decapentaplegic gene in Drosophila melanogaster. Genes & Development, 4(7), 1114–1127.
30.
WaithakaD., TsofaB., KabiaE., & BarasaE. (2018). Describing and evaluating healthcare priority setting practices at the county level in Kenya. The International Journal of Health Planning and Management, 33(3), e733–e750.
31.
WallerW. S. (1988). Slack in participative budgeting: The joint effect of a truth-inducing pay scheme and risk preferences. Accounting, Organizations and Society, 13(1), 87–98.
32.
WalshK. (2016). Managing a budget in healthcare professional education. Annals of Medical and Health Sciences Research, 6(2), 71–73.
33.
WaxmanK., & MassarwehL. J. (2018). Talking the talk: Financial skills for nurse leaders. Nurse Leader, 16(2), 101–106.
34.
WidanaputraA., & MimbaN. (2014). The influence of participative budgeting on budgetary slack in composing local governments’ budget in Bali province. Procedia-Social and Behavioral Sciences, 164, 391–396.
35.
YoungS. M. (1985). Participative budgeting: The effects of risk aversion and asymmetric information on budgetary slack. Journal of Accounting Research, 23(2), 829–842.
36.
YoungD. W., & BallarinE. (2006). Strategic decision-making in healthcare organizations: it is time to get serious. The International Journal of Health Planning and Management, 21(3), 173–191.
