Budgeting participation, goal commitment and employee performance

Abstract

The study examined the effect of budgeting participation and goal commitment on employee performance in the hotel industry. The objectives of the study were to investigate the level of employee participation in the budgeting process; the relationship between budgeting participation and goal commitment; and the relationship between goal commitment and employee performance in the hotel industry.

The study employed the quantitative research methodology utilizing a cross sectional research design. The total of 48 hotels of 1-5 star categories were selected using stratified sampling. In these 116 employees of supervisory level was obtained using simple random sampling. Data was collected using questionnaires and analyzed using SPSS 15.

The findings of the study showed that there was a high level of budgeting participation in the hotel Industry. There was a significant positive relationship between budgeting participation and goal commitment; and a significant positive relationship between goal commitment and employee performance in hotels. The study recommended that organizations should adopt policies that increase on the level of budgeting participation which will in turn create goal commitment among employees, hence improving on the level of their performance.