Task uncertainty, participative budget and performance: The case of KIC group of companies

Abstract

This paper reports the result of field study examining the interaction between participative budget as a potential moderator between task uncertainty and job performance and job satisfaction in one organization. This paper draws on combination replicated study by Lopez, M.A, Johan, W.W.S & McNair, F.M. (2008), Brownell and Hirst (1987), Hirst (1986) and Brownell (1982a). Samples were taken from one group of oil and gas companies which is KIC Group of Companies located at Ampang, Kuala Lumpur. The main contribution of the study is the finding that partially supports the moderating effect of participative budget involvement on the relationship between task uncertainty and job performance and job satisfaction from the proposed hypotheses. In addition, the results suggest that the significant moderating effect of participative budget on the relationship between task uncertainty and job performance recognizes the importance of the level of opportunity given either high or low employee involvement in the sense of performance measures but not in job satisfaction manner.