PARTICIPATION DECISION MAKING, PSYCHOLOGICAL EMPOWERMENT, JOB RELEVANT INFORMATION AND MANAGERIAL PERFORMANCE
Keywords:
participative decsion making, psychological empowerment, job-relevant information, managerial performance
Abstract
This study intends to investigate how psychological empowerment and job-relevant information are affected by participatory decision-making, as well as how this affects managerial performance. The self-determination theory and information processing theory served as the foundation for the research model. The study's participants included all of the Central Federation of Credit Union Cooperatives in Indonesia's managers of credit union cooperatives, according to a questionnaire. Path analysis and regression are used to process the data. The analysis of the data reveals that participatory decision-making significantly and favorably affects both psychological empowerment and job information. The impact of psychological empowerment and job-relevant information. on managerial performance is similar. Further research demonstrates that the association between participative decision-making and managerial performance is mediated by both psychological empowerment and job-relevant information.
References
Abubakar, A. M., Elrehail, H., Alatailat, M. A., & Elçi, A. (2019). Knowledge management, decision-making style and organizational performance. Journal of Innovation & Knowledge, 4(2), 104-114. https://doi.org/10.1016/j.jik.2017.07.003
Baird, K., Su, S., & Munir, R. (2018). The relationship between the enabling use of controls, employee empowerment, and performance. Personnel Review, 47(1), 257-274.
Bharadwaja, M., & Tripathi, N. (2020). Linking empowering leadership and job attitudes: The role of psychological empowerment. Journal of Asia Business Studies, 15(1), 110-127.
Black, J. S., & Gregersen, H. B. (1997). Participative decision-making: An integration of multiple dimensions. Human Relations, 50(7), 859-878. https://doi.org/10.1177/001872679705000705
Chamberlin, M., Newton, D. W., & LePine, J. A. (2018). A meta‐analysis of empowerment and voice as transmitters of high‐performance managerial practices to job performance. Journal of Organizational Behavior, 39 (10), 1296-1313. https://doi.org/10.1002/job.2295
Daromes, F. E. (2023). KINERJA MANAJERIAL PADA PERUSAHAAN. CV Literasi Nusantara Abadi.
Deci, E. L., Olafsen, A. H., & Ryan, R. M. (2017). Self-determination theory in work organizations: The state of a science. Annual review of organizational psychology and organizational behavior, 4, 19-43.
Degenhart, L., Zonatto, V. C. D. S., & Lavarda, C. E. F. (2022). Effects of psychological capital and managerial attitudes on the relationship between budgetary participation and performance. Revista Contabilidade & Finanças, (AHEAD). https://doi.org/10.1590/1808-057x202113790
Eliambu, A. F. (2021). PENGARUH KOMUNIKASI TUGAS TERHADAP VITALITAS YANG DIMODERASI OLEH OTONOMI PEKERJAAN. Jurnal Bisnis dan Kewirausahaan, 14(1), 51-64.
Gagné, M., & Deci, E. L. (2005). Self‐determination theory and work motivation. Journal of Organizational behavior, 26(4), 331-362.
Gallani, S., Krishnan, R., Marinich, E. J., & Shields, M. D. (2019). Budgeting, psychological contracts, and budgetary misreporting. Management Science, 65(6), 2924-2945. https://doi.org/10.1287/mnsc.2018.3067
Gallani, S., Krishnan, R., Marinich, E. J., & Shields, M. D. (2019). Budgeting, psychological contracts, and budgetary misreporting. Management Science, 65(6), 2924-2945.
HANDAYANI, S. (2017). Pengaruh Sistem Pengukuran Kinerja terhadap Kejelasan Peran, Pemberdayaan Psikologis dan Kinerja Maanjerial (Pendekatan Partial Least Square) Penelitian terhadap Manajer Perusahaan Manufaktur di Jawa Tengah. Simposium Nasional Akuntansi X.
Huang, X., Iun, J., Liu, A., & Gong, Y. (2010). Does participative leadership enhance work performance by inducing empowerment or trust? The differential effects on managerial and non‐managerial subordinates. Journal of Organizational Behavior, 31(1), 122-143. https://doi.org/10.1002/job.636
Indra, P. W. T., & Iwayan, S. (2018). The effect of budgeting participation on managerial performance through job satisfaction, job relevant information, and budget goal commitment as mediating variables. Russian Journal of Agricultural and Socio-Economic Sciences, 81(9), 138-149.
Kearney, R. C., & Hays, S. W. (2015). Labor-management relations and participative decision making: Toward a new paradigm. In Public Personnel Administration and Labor Relations (pp. 379-393). Routledge.
Kimpah, J., & Ibrahim, H. I. (2020). Participative Decision-Making, Psychological Empowerment and Job Performance: Evidence from the Malaysian Electrical and Electronic Manufacturing Firms. Pertanika Journal of Social Sciences & Humanities, 28(2).
Koole, S. L., Schlinkert, C., Maldei, T., & Baumann, N. (2019). Becoming who you are: An integrative review of self‐determination theory and personality systems interactions theory. Journal of personality, 87(1), 15-36.
Kren, L. (1992). Budgetary participation and managerial performance: The impact of information and environmental volatility. Accounting Review, 511-526.
Kren, L. (2013). Do Objective Outcomes Provide the Best Measure of Management Performance?. Journal of Performance Management, 25(2).
Krishnan, R., Marinich, E., & Shields, M. D. (2012, June). Participative budgeting, psychological contracts, and honesty of communication. AAA.
Lam, S. S., Chen, X. P., & Schaubroeck, J. (2002). Participative decision making and employee performance in different cultures: The moderating effects of allocentrism/idiocentrism and efficacy. Academy of management Journal, 45(5), 905-914.
Leach‐López, M. A., Stammerjohan, W. W., & Sang Lee, K. (2009). Budget participation and job performance of South Korean managers mediated by job satisfaction and job relevant information. Management Research News, 32(3), 220-238
Li, Y., Wei, F., Ren, S., & Di, Y. (2015). Locus of control, psychological empowerment and intrinsic motivation relation to performance. Journal of Managerial Psychology, 30(4), 422-438.
Nguyen, N. P., Evangelista, F., & Kieu, T. A. (2019). The contingent roles of perceived budget fairness, budget goal commitment and vertical information sharing in driving work performance. Journal of Asian Business and Economic Studies, 26(1), 98-116.
Oliveira, M., Andrade, J. R., Ratten, V., & Santos, E. (2023). Psychological empowerment for the future of work: Evidence from Portugal. Global Business and Organizational Excellence.
Schepers, J., Voordeckers, W., Steijvers, T., & Laveren, E. (2020). Long-term orientation as a resource for entrepreneurial orientation in private family firms: The need for participative decision making. Sustainability, 12(13), 5334. https://doi.org/10.3390/su12135334
Siegel, A. L., & Ruh, R. A. (1973). Job involvement, participation in decision making, personal background and job behavior. Organizational Behavior and Human Performance, 9(2), 318-327.
Spreitzer, G. M. (1995). Psychological empowerment in the workplace: Dimensions, measurement, and validation. Academy of management Journal, 38(5), 1442-1465.
Stashevsky, S., & Elizur, D. (2000). The effect of quality management and participation in decision-making on individual performance. Journal of quality management, 5(1), 53-65.
Tamghe, C. D. D. K. (2019). Participatory management and organizational involvement of employees in Sub-Saharan Africa. European Journal of Business and Management.
Tokilov, D. U., Suputra, I. D. G. D., & Rasmini, N. K. (2019). Effect of budgetary participation in managerial performance with environmental uncertainty, leadership style, and budgetary adequacy as a moderating variable. International Research Journal of Management, IT and Social Sciences, 6(6), 50-57.
Tomas, J., Lee, H. J., Bettac, E. L., Jenkins, M. R., De Witte, H., Probst, T. M., & Maslić Seršić, D. (2023). Benefiting the organization while helping yourself: a three-wave study of reciprocal effects between job crafting and innovative work behaviour. European Journal of Work and Organizational Psychology, 1-16.
Valverde-Moreno, M., Torres-Jimenez, M., & Lucia-Casademunt, A. M. (2020). Participative decision-making amongst employees in a cross-cultural employment setting: evidence from 31 European countries. European Journal of Training and Development. https://doi.org/10.1108/EJTD-10-2019-0184
Wen, J., Huang, S. S., & Teo, S. (2023). Effect of empowering leadership on work engagement via psychological empowerment: Moderation of cultural orientation. Journal of Hospitality and Tourism Management, 54, 88-97.
Widener, S. K. (2007). An empirical analysis of the levers of control framework. Accounting, organizations and society, 32(7-8), 757-788.
Wong, Y. Y., Chow, I. H. S., Lau, V. P., & Gong, Y. (2018). Benefits of team participative decision making and its potential to affect individual creativity. Journal of Applied Social Psychology, 48(7), 369-376. https://doi.org/10.1111/jasp.12517
Baird, K., Su, S., & Munir, R. (2018). The relationship between the enabling use of controls, employee empowerment, and performance. Personnel Review, 47(1), 257-274.
Bharadwaja, M., & Tripathi, N. (2020). Linking empowering leadership and job attitudes: The role of psychological empowerment. Journal of Asia Business Studies, 15(1), 110-127.
Black, J. S., & Gregersen, H. B. (1997). Participative decision-making: An integration of multiple dimensions. Human Relations, 50(7), 859-878. https://doi.org/10.1177/001872679705000705
Chamberlin, M., Newton, D. W., & LePine, J. A. (2018). A meta‐analysis of empowerment and voice as transmitters of high‐performance managerial practices to job performance. Journal of Organizational Behavior, 39 (10), 1296-1313. https://doi.org/10.1002/job.2295
Daromes, F. E. (2023). KINERJA MANAJERIAL PADA PERUSAHAAN. CV Literasi Nusantara Abadi.
Deci, E. L., Olafsen, A. H., & Ryan, R. M. (2017). Self-determination theory in work organizations: The state of a science. Annual review of organizational psychology and organizational behavior, 4, 19-43.
Degenhart, L., Zonatto, V. C. D. S., & Lavarda, C. E. F. (2022). Effects of psychological capital and managerial attitudes on the relationship between budgetary participation and performance. Revista Contabilidade & Finanças, (AHEAD). https://doi.org/10.1590/1808-057x202113790
Eliambu, A. F. (2021). PENGARUH KOMUNIKASI TUGAS TERHADAP VITALITAS YANG DIMODERASI OLEH OTONOMI PEKERJAAN. Jurnal Bisnis dan Kewirausahaan, 14(1), 51-64.
Gagné, M., & Deci, E. L. (2005). Self‐determination theory and work motivation. Journal of Organizational behavior, 26(4), 331-362.
Gallani, S., Krishnan, R., Marinich, E. J., & Shields, M. D. (2019). Budgeting, psychological contracts, and budgetary misreporting. Management Science, 65(6), 2924-2945. https://doi.org/10.1287/mnsc.2018.3067
Gallani, S., Krishnan, R., Marinich, E. J., & Shields, M. D. (2019). Budgeting, psychological contracts, and budgetary misreporting. Management Science, 65(6), 2924-2945.
HANDAYANI, S. (2017). Pengaruh Sistem Pengukuran Kinerja terhadap Kejelasan Peran, Pemberdayaan Psikologis dan Kinerja Maanjerial (Pendekatan Partial Least Square) Penelitian terhadap Manajer Perusahaan Manufaktur di Jawa Tengah. Simposium Nasional Akuntansi X.
Huang, X., Iun, J., Liu, A., & Gong, Y. (2010). Does participative leadership enhance work performance by inducing empowerment or trust? The differential effects on managerial and non‐managerial subordinates. Journal of Organizational Behavior, 31(1), 122-143. https://doi.org/10.1002/job.636
Indra, P. W. T., & Iwayan, S. (2018). The effect of budgeting participation on managerial performance through job satisfaction, job relevant information, and budget goal commitment as mediating variables. Russian Journal of Agricultural and Socio-Economic Sciences, 81(9), 138-149.
Kearney, R. C., & Hays, S. W. (2015). Labor-management relations and participative decision making: Toward a new paradigm. In Public Personnel Administration and Labor Relations (pp. 379-393). Routledge.
Kimpah, J., & Ibrahim, H. I. (2020). Participative Decision-Making, Psychological Empowerment and Job Performance: Evidence from the Malaysian Electrical and Electronic Manufacturing Firms. Pertanika Journal of Social Sciences & Humanities, 28(2).
Koole, S. L., Schlinkert, C., Maldei, T., & Baumann, N. (2019). Becoming who you are: An integrative review of self‐determination theory and personality systems interactions theory. Journal of personality, 87(1), 15-36.
Kren, L. (1992). Budgetary participation and managerial performance: The impact of information and environmental volatility. Accounting Review, 511-526.
Kren, L. (2013). Do Objective Outcomes Provide the Best Measure of Management Performance?. Journal of Performance Management, 25(2).
Krishnan, R., Marinich, E., & Shields, M. D. (2012, June). Participative budgeting, psychological contracts, and honesty of communication. AAA.
Lam, S. S., Chen, X. P., & Schaubroeck, J. (2002). Participative decision making and employee performance in different cultures: The moderating effects of allocentrism/idiocentrism and efficacy. Academy of management Journal, 45(5), 905-914.
Leach‐López, M. A., Stammerjohan, W. W., & Sang Lee, K. (2009). Budget participation and job performance of South Korean managers mediated by job satisfaction and job relevant information. Management Research News, 32(3), 220-238
Li, Y., Wei, F., Ren, S., & Di, Y. (2015). Locus of control, psychological empowerment and intrinsic motivation relation to performance. Journal of Managerial Psychology, 30(4), 422-438.
Nguyen, N. P., Evangelista, F., & Kieu, T. A. (2019). The contingent roles of perceived budget fairness, budget goal commitment and vertical information sharing in driving work performance. Journal of Asian Business and Economic Studies, 26(1), 98-116.
Oliveira, M., Andrade, J. R., Ratten, V., & Santos, E. (2023). Psychological empowerment for the future of work: Evidence from Portugal. Global Business and Organizational Excellence.
Schepers, J., Voordeckers, W., Steijvers, T., & Laveren, E. (2020). Long-term orientation as a resource for entrepreneurial orientation in private family firms: The need for participative decision making. Sustainability, 12(13), 5334. https://doi.org/10.3390/su12135334
Siegel, A. L., & Ruh, R. A. (1973). Job involvement, participation in decision making, personal background and job behavior. Organizational Behavior and Human Performance, 9(2), 318-327.
Spreitzer, G. M. (1995). Psychological empowerment in the workplace: Dimensions, measurement, and validation. Academy of management Journal, 38(5), 1442-1465.
Stashevsky, S., & Elizur, D. (2000). The effect of quality management and participation in decision-making on individual performance. Journal of quality management, 5(1), 53-65.
Tamghe, C. D. D. K. (2019). Participatory management and organizational involvement of employees in Sub-Saharan Africa. European Journal of Business and Management.
Tokilov, D. U., Suputra, I. D. G. D., & Rasmini, N. K. (2019). Effect of budgetary participation in managerial performance with environmental uncertainty, leadership style, and budgetary adequacy as a moderating variable. International Research Journal of Management, IT and Social Sciences, 6(6), 50-57.
Tomas, J., Lee, H. J., Bettac, E. L., Jenkins, M. R., De Witte, H., Probst, T. M., & Maslić Seršić, D. (2023). Benefiting the organization while helping yourself: a three-wave study of reciprocal effects between job crafting and innovative work behaviour. European Journal of Work and Organizational Psychology, 1-16.
Valverde-Moreno, M., Torres-Jimenez, M., & Lucia-Casademunt, A. M. (2020). Participative decision-making amongst employees in a cross-cultural employment setting: evidence from 31 European countries. European Journal of Training and Development. https://doi.org/10.1108/EJTD-10-2019-0184
Wen, J., Huang, S. S., & Teo, S. (2023). Effect of empowering leadership on work engagement via psychological empowerment: Moderation of cultural orientation. Journal of Hospitality and Tourism Management, 54, 88-97.
Widener, S. K. (2007). An empirical analysis of the levers of control framework. Accounting, organizations and society, 32(7-8), 757-788.
Wong, Y. Y., Chow, I. H. S., Lau, V. P., & Gong, Y. (2018). Benefits of team participative decision making and its potential to affect individual creativity. Journal of Applied Social Psychology, 48(7), 369-376. https://doi.org/10.1111/jasp.12517
Published
2023-11-09
How to Cite
Kala’Padang, F. and Daromes, F. (2023) “PARTICIPATION DECISION MAKING, PSYCHOLOGICAL EMPOWERMENT, JOB RELEVANT INFORMATION AND MANAGERIAL PERFORMANCE”, Dinamika Akuntansi Keuangan dan Perbankan, 12(2), pp. 104–119. doi: 10.35315/dakp.v12i2.9604.
Section
Articles
![](https://www.dimensions.ai/wp-content/uploads/2019/11/cropped-Dimensions_new_colour-01-1-3-1.png"){kind=small}
