Uticaj participativnog pristupa budžetiranju na ponašanje subordiniranih menadžera i performanse preduzeća
The influence of participative budgeting on subordinate managers’ behavior and company’s performance

Summary/Abstract: The budget as a quantitative expression of non-financial plans plays an important role in directing the activities of the company towards the achievement of the defined goals. A good budget can significantly contribute to achieving good performance, while a budget that contains unrealistic projections can be the cause of poor performance. Striving to get a budget that would be as good as possible can lead to excessive focus on technical aspects of budgeting. A good budget and its successful realization are equally important for achieving good results. Managers and employees participate in the process of making the budget and in the process of its realization. By their behavior, they influence the quality of the budget and the success of its realization. Therefore, equal attention should be paid to the behavioral aspects of budgeting. In order to point out the importance of considering budgeting from a behavioral perspective, in this paper, we will deal with the influence of participative budgeting, i.e. subordinate managers’ participation in budget setting, on their behavior and company’s performance. By considering the accepted theoretical statements and analyzing the results of empirical researches that have been done so far, we will show that participative budgeting does not always lead to positive effects on subordinate managers’ behavior and company’s performance and that the relationship between this variables is conditioned by budgetary fairness perception.

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