Roles of Fairness in the Relationship between Performance Evaluation Systems and Budget Gaming Behavior
Peranan Keadilan dalam Hubungan antara Sistem Penilaian Prestasi dan Tingkahlaku Permainan Belanjawan

Faculty of Business
Universitas Kristen Maranatha
Prof. Drg. Suria Sumantri, 65, Bandung, 40164 West Java, INDONESIA.

setin2005@yahoo.com, se.tin@eco.maranatha.edu

IPMI International Business School
Rawajati Timur I No.1, RT.3/RW.2,
Rawajati, Kec. Pancoran, 12750 Jakarta, INDONESIA.

roy.sembel@gmail.com

Faculty of Economics and Business
Universitas Trisakti
Kyai Tapa No.1, RT.6/RW.16, Tomang
Kec. Grogol Petamburan, 11440 Jakarta, INDONESIA.

yvonneags57@gmail.com

Faculty of Economics and Business
Universitas Islam As-Syafi’iyah
Raya Jatiwaringin No.12, RT.006/RW.005, Jaticempaka,
Kec. Pondokgede, Kota Bekasi, 17411 Jawa Barat, INDONESIA.

aripurwanti2501@yahoo.com

Abstract

Budget gaming is still an unsolved problem and requires a serious handling. The purpose of this study is to investigate if the perceptions of procedural fairness mediate the relationships between performance evaluation systems and budget gaming behavior. The survey was conducted on go public manufacturing companies in Indonesia with a division manager as a unit of analysis. A total of 128 samples were analyzed using Partial Least Square WarpPLS 3.0. The results show that procedural fairness significantly mediates the relation between non-financial measure and budget gaming. However, procedural fairness does not mediate the relationship between relative performance evaluation and budget gaming. This study supports goal setting theory, agency theory, and organizational justice theory which provide practical implications in terms of overcoming budget gaming through the use of non-financial performance measures.

Keywords

budget gaming; Performance evaluation systems; procedural fairness
https://doi.org/10.17576/pengurusan-2021-62-01

Citation

SeTin, S., Sembel, R., Augustine, Y., & Purwanti, A. (2021). Roles of Fairness in the Relationship between Performance Evaluation Systems and Budget Gaming Behavior. Jurnal Pengurusan, 62, 1–15. https://doi.org/10.17576/pengurusan-2021-62-01

@article{setin2021roles,
  title={Roles of Fairness in the Relationship between Performance Evaluation Systems and Budget Gaming Behavior},
  author={SeTin, SeTin and Sembel, Roy and Augustine, Yvonne and Purwanti, Ari},
  journal={Jurnal Pengurusan},
 

volume={62},
  number={},
  pages={1—15},
  year={2021},
  doi={https://doi.org/10.17576/pengurusan-2021-62-01},
  publisher={Penerbit UKM},
}

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62 (2021) 1 – 15

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