The effect of budget satisfaction, and organizational fairness in local government budget participation process 

Harryanto

This study describes the role of organizational justice, satisfaction with the performance of the budget in the budget of the participatory budgeting process. Research conducted at the local government organizations have found that there are various stages in the process of participatory budgeting both in the executive and legislative perspective and the perspective of superiors and subordinates. The researchers believe that there is a significant relationship between organisational fairness, budget satisfaction and budget performance. Using analytical methods exploratory factor analysis, the results of this study found that in budgeting process, organizational fairness, satisfaction budget significantly affect the performance of the budget, however, organizational fairness is more emphasis on procedural and distributional fairness and they have a significant influence.

Keywords: Procedural, distributional fairness, budget satisfaction and budget performance

Unpublished paper. do not quote without permission

Budget Process of Local Government in Indonesia

Budget Process of Local Government in Indonesia

by Harryanto, Kartini and Haliah

Abstract

This study attempts to explain the local government budget in Indonesia in the three perspective: managerial, politic, and public interest. By Using the multiple regression analysis, nine hypotheses have been tested. The finding of this research shows that budget discipline, budget approval and accountability are the mediating variables to produce budget performance. The independent variables that are local fiscal capacity, budget ceiling and priority, and national priority, in the managerial perspective only have an impact on the budget performance since the existence of the budget discipline. From the political perspective, the approval process should be considered as a crucial process to mediate, intergovernmental transfer, local government prerogative and the role of local politician towards the budget performance. In the perspective of public interest, the accountability becomes a crucial factor that able to mediate financial reporting system, audit system and budget oversight towards the budget performance.

Keywords: Local Fiscal Capacity, Budget Discipline, Budget Approval, and Budget Performance

Published in: Review of Integrative Business and Economics Research, Vol 3(2), 2014. 

The Role of Gain Sharing in the Relationship between Organizational Fairness and Employees Behaviour in Management Control

The Role of Gain Sharing in the Relationship between Organizational Fairness and

Employees Behaviour in Management Control

Harryanto, Faculty of Economics, Hasanuddin University

abstract

This study examines the role of organisational fairness, trust in the specific management control system is called gain sharing. In accordance with the theory proposed, involving employee’s perceptions of procedural fairness and distributive fairness of gain sharing plan affects the confidence of the employees to the manager and in turn affect intention to leave. The positive perception tends to increase confidence, which in turn has positive consequences for an organization such as low labor turnover. Investigate this issue done through a survey of the labor of a large manufacturing company. Results of SEM shows that how employee perceptions relating to the attitudes and behavior of employees, and its association with the success or failure of management control system. This study found that there are significant relationship between perception of procedural fairness, distributional fairness to the trust to managers, and there is a direct relationship as weel to the perception of change the job or intention to leave.

Gain Sharing, Procedural Fairness, Distributional Fairness, Manager Trust and Intention to leave.

Unpublished, Preliminary work, do not quote

Budget Process and Performance of Local Government of Indonesia 2005-2009

Abstract
It has been a decade since Indonesia started to reform the budget system in line with the implementation of local autonomy, but it still failed to satisfy the financial information needed by the majority voters. This study attempts to explain the local government budget in Indonesia in three perspectives: government, political and public interest. Using a hierarchical multiple regression method, this study found that the local autonomy, which has long history of Indonesia reforms, still far from succeeded. This is due to the existence of violation and not complies with the commitment of implementing reliable accounting system and accountability. (Unpublished Working Paper, 2011).

Fiscal Decentralization After Implementation of Local Autonomy in Indonesia

Abstract

This research aims to explain the relationship between local fiscal capacities, intergovernmental transfers with the realization of the budget. Using the sample budget of 190 districts in Indonesia, three hypotheses have been tested. The results of this study indicate a high dependence of local governments, to grants from the national government. Although there are close links between local fiscal capacities with performance budgeting, intergovernmental transfers are not fully mediating the relationship.

published in World Review of Business Research, Vol. 1. No. 2. May 2011 Pp.51-70  

FISCAL DECENTRALIZATION AND LOCAL GOVERNMENT AUTONOMY IN INDONESIA

It has been a decade since Indonesia started to reform the budget system in line with the implementation of local autonomy, but it still failed to satisfy the financial information needed by the majority voters. Legislation related to the government financial systems are vulnerable, always changes before the systems are well established. This financial information is worst because the characteristic of local government, which is varied in terms of fiscal need and capacity, and the need for fulfill their obligation to provide public services.

Combating corruption is a precious task