Title: THE EFFECT OF BUDGET AND REPORT CHARACTERISTICS ON THE EFFECTIVENESS OF MANAGEMENT CONTROL OF MANAGERS AT PT. (PERSERO) PELABUHAN INDONESIA III
Authors: HENGKI JAJANG HERASMANA
Affiliations: Master of Accounting Study Program, Faculty of Economics and Business, Universitas Airlangga Surabaya
Publisher: Universitas Airlangga
Abstract
Organizations begin their activities to achieve their goals by undertaking a planning process. One of the tools used to achieve these goals is the budget. Budgets influence the achievement of these goals.
To increase the probability of achieving organizational goals, responsibility centers are formed, so that they can monitor the work results of the responsibility centers, reports are required.
Effective Management Control is one that is able to motivate members to achieve goals, PT. (Persero) Pelabuhan Indonesia III is required to achieve goals so it needs to be supported by adequate Management Control.
This study aims to obtain empirical evidence regarding the influence of budget and reporting characteristics on the effectiveness of management control of managers at PT. (Persero) Pelabuhan Indonesia III.
The study was conducted on all managers at PT. (Persero) Pelabuhan Indonesia III. The population of managers was 179 people.
Validity testing was conducted using Pearson correlation, which correlates the item scores with the total score. This test demonstrated that all items were valid. Reliability was calculated using the Cronbach's alpha statistical test. All Cronbach's alpha values were above 0.07, indicating that all variables used in this study were reliable.
In addition to validity and reliability tests, classical assumption tests were also carried out, namely multicollinearity tests, heteroscedasticity tests and the variables used had a normal distribution.
Data analysis was conducted using simple regression and multiple regression approaches with an alpha level of 0.05 (5%). Partial correlation testing using the t-test showed that budgeting influenced the effectiveness of management control. Meanwhile, report characteristics influenced the effectiveness of management control.
This research has implications for future research by including other variables that are suspected to have a large influence on the effectiveness of management control.
Keywords: budget, report characteristic, management control effectiveness, PT. (Persero) Pelabuhan Indonesia III.
Sources: http://repository.unair.ac.id/36094/