Analisis Fairness dan Incentive Contracting
Pada Kinerja Berbasis Anggaran:
Pengujian Eksperimen Atas Referent Cognition Theory
Oleh
Yusnaini, SE., MSi.
Universitas IBA Palembang
Abstract
Based on referent cognition theory, this study examines the effects of fairness and incentive on individual performance in a nonparticipative budgeting setting. An experimental design 2x2 between subject was conducted. Participants are as many as 88 student of accounting program. Two way anova analysis is used to investigate hypothesis.
The result show as predicted by referent cognition theory. Performance was lowest when an unfair budget target assigned using an unfair budgeting process. When the budget target assigned was fair, the fairness or unfairness of the budgeting process had no effect on performance. When an unfair budget target was determined using a fair budgeting process, performance was not significantly different from performance of the subjects assigned fair budget targets.
Keywords: fairness; referent cognitions; budgeting, incentive contracting.
PENDAHULUAN
A decentralized organization often make the budget as one of the divisional manager of performance measurement. In this case, the budget serves to motivate and evaluate the performance of division managers (Merchan 1998). Budget could be motivational if linked to organizational performance evaluation and compensation systems (Hopwood 1972). Achievement of budget targets in both the time and a predetermined quantity is a form of achievement that should be given awards.
Every organization expects a predetermined budget can be achieved. But the determination of budget targets and the establishment are two important factors to be considered. In general, one would compare the budgets imposed on him by another party equivalent. This raises the perception of justice on the target and its determination process. Thus the perception of fairness is a driver to perform well. Individual perceptions of fairness or justice in both the target and the process is a motivation for individuals to achieve a predetermined budget (Libby 1999; Wetzel 1999; Lindquist 1995). One theory about the fairness test is a theory of referent cognitions. According to referent cognitions theory, the interaction between the fairness of the budget target, and fairness in the process of determining the budget target is a mix that can lead to motivation in achieving the budget.
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Simposium Nasional Akuntansi 11
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