THE EFFECT OF BUDGET AND REPORT CHARACTERISTICS ON THE EFFECTIVENESS OF MANAGEMENT CONTROL AT PT. (PERSERO) INDONESIAN PORT III
Amount: THE EFFECT OF BUDGET AND REPORT CHARACTERISTICS ON THE EFFECTIVENESS OF MANAGEMENT CONTROL AT PT. (PERSERO) INDONESIAN PORT III
Authors: HENGKI JJANG HERASMANA
Memberships: Master of Accounting Study Program, Faculty of Economics and Business, Universitas Airlangga Surabaya
Publisher: Airlangga University
Abstract
Organizations start their activities to achieve goals by carrying out a planning process. One of the tools for planning in achieving goals is a budget. Budget affects the achievement of goals.
To increase the probability of achieving organizational goals, a responsibility center is formed, in order to monitor the work of the responsibility center, a report is needed.
Effective Management Control is capable of motivating members to achieve goals, PT. (Persero) Pelabuhan Indonesia III is required to achieve the goal so that it needs to be supported by adequate Management Control.
This study aims to obtain empirical evidence regarding the effect of budget and report characteristics on the effectiveness of management control of managers at PT. (Persero) Pelabuhan Indonesia II.
The research was conducted on all managers at PT. (Persero) Pelabuhan Indonesia III. The population of managers is 179 people.
Validity testing is done with the Pearson correlation by doing a correlation between the score of the questions with the total score. From the test, it shows that all question items are valid. The level of reliability was calculated using the Cronbach alpha statistical test. The resulting Cronbach alpha values are all above 0,07, which means that all the variables used in this study are reliable.
In addition to the validity and reliability tests, classical assumption tests were also carried out, namely multicollinearity tests, heteroscedasticity tests and the variables used had normal distributions.
Data analysis was performed using a simple regression approach and multiple regression with an alpha level of 0,05 (5%). Partial correlation testing using t-test shows that the budget has an effect on the effectiveness of management control. While the characteristics of the report affect the effectiveness of management control.
This study has implications for future research by including other variables that are thought to have a large influence on the effectiveness of management control.
Keywords: budget, report characteristics, management control effectiveness, PT. (Persero) Pelabuhan Indonesia III.
sources: http://repository.unair.ac.id/36094/
