Relationship Between Organizational Fairness And Budget Slack And Its Governance

Starting from the last century, since the enterprises of our country gradually introduced the management methods of budget management in western enterprises, all obtained the very big development in the application study in our academic circles and practical circles, the main reason is the comprehensive budget management can strengthen internal management, improve management efficiency, to lay a good foundation as a strategic business plan. But with the budget management theory applied to the management method of enterprise process, also brought a lot of negative effects, studies have shown that budget slack in some cases there may be caused by hand these negative effects, general budgetary slack will lead the enterprise personnel involved in each layer in the budget for its own sake intentionally overestimate and underestimate the cost income, making false performance, thereby reducing the efficiency of the enterprise resource allocation, finally make the budget management exist in name only. But there are some scholars do not believe that the budgetary slack is negative, but a positive effect in certain situations. In the research process of this article try to explore the organization can control the budget slack "degree" of the grasp on how an environment.Taking organizational justice theory as a starting point, specific contact aims to explore the enterprise organizational justice and budgetary slack, so as to put forward some measures to solve the problem of enterprise budget slack. In the clear relationship between organizational justice and budgetary slack before, in this paper systematically and referring to the domestic and foreign scholars on the basis of the research, a clear organizational justice and the concept and connotation of budgetary slack. Under normal circumstances, enterprises in the budgeting management personnel departments at all levels will participate in, therefore, people have the opportunity to participate in these budget value control makes it deviate from the actual conditions of budget estimation budget, so that in the budget management process employees may deliberately to create budget slack, it will make the organization the effect of budget management is greatly reduced. Based on the research of scholars at home and abroad, according to the intrinsic link between organizational justice and budgetary slack, six hypotheses are brought forward, and the initial establishment of the relationship between budgetary slack and organizational fairness model, and organizational justice(distributive justice, procedural justice, including interactive justice) through the budget participation in improving trust management to weaken the manufacture of budgetary slack, reward plan, budget emphasis and asymmetric information is based on the impact of organizational justice, then push this relationship role.On the basis of literature research on high strict budgetary slack questionnaire made by modifying the budget slack, reward plan, budget emphasis, asymmetric information, distributive justice, procedural justice, interactive justice and budgetary participation survey personnel to trust management degree scale. Then through ABC’s budget personnel involved in the questionnaires, eventually getting 284 copies of data. The empirical analysis of the model by structural equation modeling this quantitative study, thus the initial model of this paper makes verification. Finally, the conclusion of this article: three latent variable distribution theory of organizational justice, procedural justice, interactive justice fair on the improvement of junior staff to managers trust have significant direct impact, and to improve the degree of trust management can reduce the tendency of employees deliberately making budget relaxation, in the process of budget management in affected tissue the main factors are the fair reward plan, budget emphasis, asymmetric information of the three exogenous latent variables, the three exogenous latent variables based on the impact of organizational justice, and to promote the role of found tissue relaxation fairness and budget relations, namely the enterprise organizational justice degree increase, will enable participants to reduce budget the manufacture of budgetary slack. On the other hand, organization fair degree is not high, it will lead to employee deliberately create budget slack, and by improving the enterprise reward plan and budget emphasis and reduce information asymmetry level, can to promote the degree of organizational justice promotion play a positive role.Finally according to the research results, combined with the actual budget management situation of ABC company and put forward policy suggestions. Mainly in the budget preparation, build a fair and scientific budget procedure. In the implementation process, to strengthen the interaction and communication between the internal organization of person and person, reduce information barriers at higher and lower levels, the formation of harmonious justice enterprise culture. In the budget evaluation, establish the performance evaluation standard and incentive mechanism of fair and reasonable.