Excerpt from Participation and Managerial Performance
The results are reported of a study testing participation’s relationship to managerial performance among 415 senior operating managers in 13 large companies. A theoretical model is first proposed. In which participation affects performance by increasing role, task, and goal clarity, and the usefulness of operating monitoring, and then by increasing managerial confidence and motivation; the enhancement of these Information and attitude variables is proposed in turn to increase performance. The empirical relationship between participation and performance is found to be positive, and explained by the intervening variables included in the model; the information and attitude effects each provide approximately equal amounts of explanation. Participation’s association with budget slack is examined. Greater participation increases both the expectation and the frequency of attaining budget; however, this does not appear to entail greater budget slack, since participation is not significantly associated with the effort required to be sure of making budget or with the level of effort expended on the managerial task. Finally, four moderating conditions are hypothesized and tested. While participation’s relationship to performance is consistently positive. It is more pronounced for managers of lower ability, when greater information asymmetry exists between managers and their superiors, and for managers whose responsibility centers face greater environmental uncertainty; it is less pronounced when formal rewards are strongly contingent on attaining budget.
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