PENGARUH KOMITMEN ORGANISASIONAL TERHADAP SENJANGAN ANGGARAN DENGAN IDEOLOGI ETIS SEBAGAI VARIABEL PEMODERASI

Abstract

Dysfunctional Behavior, mainly Corruption, pervasively happens in Indonesia. Business people believe in “The Myth of Amoral Businessâ€, in which the meaning of business is profit. The focus of business is to get
maximum profit because profit is perceived as an ultimate goal. Business people always separate business from ethical dimension. In budgeting, dysfunctional behavior manifests in the form of Budgetary Slack. Middle and Low level managers create slack in their budget proposals by underestimating revenues and overestimating expenses intentionally. The objectives of this behavior are anticipating uncertainties and increasing bonuses. Dysfunctional behavior can be weakened by strengthening Ethical Ideology of managers involved in budgeting. Managers with strong Ethical Ideology will behave in the best interest of the company as a whole;
on the other hand, managers with weak ethical ideology will maximize their own interest in the expense of companies’ interest.
The objective of this research is to examine the effects of organizational commitment on budgetary slack and the role of ethical ideology in moderating these two variables. For this purpose, the data are collected from 187 middle level and top level private company’s managers via questionnaire. The result of this research shows that Ethical Ideology weakens the effect of Organizational Commitment on Budgetary Slack.

Keywords: organizational commitment, ethical ideology, dysfunctional behavior, budgetary slack