THE INFLUENCE OF BUDGET AND REPORT CHARACTERISTICS ON THE EFFECTIVENESS OF MANAGEMENT CONTROL OF MANAGERS AT PT. (PERSERO) INDONESIAN PORT III

Title: INFLUENCE OF BUDGET AND REPORT CHARACTERISTICS ON THE EFFECTIVENESS OF MANAGEMENT CONTROL OF MANAGERS AT PT. (PERSERO) INDONESIAN PORT III

Author: 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 goals by carrying out a planning process. One tool for planning in achieving goals is a budget. Budgets influence goal achievement.

To increase the probability of achieving organizational goals, a responsibility center is formed, in order to monitor the results of the responsibility center's work, reports are needed.

Effective management control is capable of motivating members to achieve goals, PT. (Persero) Port Indonesia II is required to achieve its goals so it needs to be supported by adequate management control.

This research aims to obtain empirical evidence regarding the influence of budgets and report characteristics on the effectiveness of management control of managers at PT. (Persero) Indonesian Harbor Ill.

Research was conducted on all managers at PT. (Persero) Indonesian Harbor III. The population of managers is 179 people.

Validity testing is carried out using Pearson correlation by correlating between the question item scores and the total score. This test shows that all question items are valid. The level of reliability is 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 research are reliable.

Apart from 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 carried out using a simple regression approach and multiple regression with an alpha level of 0.05 (5%). Partial correlation testing using the t-test shows that the budget has an effect on the effectiveness of management control. Meanwhile, report characteristics influence the effectiveness of management control.

This research has implications for future research by including other variables which are thought to have a large influence on the effectiveness of management control.

Keywords: budget, report characteristics, management control effectiveness, PT. (Persero) Indonesian Harbor III.

Sources: http://repository.unair.ac.id/36094/