Foster Organizational Commitment

Oct 13, 2025 by thesweetdesigns.com 109 views

The Effect of Organizational Commitment, Procedural Justice, and Participation in the Preparation of Budget on Managerial Performance at the Medan Tourism Academy

Introduction

The Medan Tourism Academy is a prestigious institution that plays a crucial role in shaping the future of tourism professionals in Indonesia. As a leading academic institution, the Medan Tourism Academy strives to provide high-quality education and training to its students, while also promoting innovation and collaboration among its staff. However, achieving these goals requires effective management and leadership, which is why the study of managerial performance is essential. This article aims to analyze the effect of organizational commitment, procedural justice, and participation in the preparation of budget on managerial performance at the Medan Tourism Academy.

Background

Managerial performance is a critical aspect of any organization, as it directly affects the achievement of organizational goals and objectives. In the context of the Medan Tourism Academy, managerial performance is particularly important, as it can impact the quality of education and training provided to students. Organizational commitment, procedural justice, and participation in the preparation of budget are three key factors that can influence managerial performance. Organizational commitment refers to the extent to which managers feel bound and loyal to the organization, while procedural justice refers to the extent to which the process in decision making is considered fair by members of the organization. Participation in budget preparation, on the other hand, refers to the extent to which managers are involved in the process of preparing the budget.

Methodology

This study employed a comparative causal research design, which seeks to show a causal relationship between several variables studied. The research population consisted of Civil Servants (PNS) who served as managers at the institution, including Director, Director Assistant, Chair of the Academy Senate, Head of Subdivision, Chairperson of the Department, Chair of the Unit, and Coordinator. The sampling method used was a census with a total of 35 managers. The data obtained was then analyzed using multiple linear regression with the Ordinary Least Squares (OLS) estimation method.

Results

The results of the study showed that simultaneously, organizational commitment, procedural justice, and participation in the preparation of budget had a significant influence on managerial performance. In more depth, it was found that organizational commitment had a significant influence on managerial performance, while procedural justice and participation in the preparation of budget did not show a significant influence on managerial performance.

Analysis of the Effect of Variables

1. Organizational Commitment

Organizational commitment is a key factor in improving managerial performance. When managers feel bound and have loyalty to the organization, they tend to be more motivated to achieve organizational goals. This has a positive impact on work productivity and satisfaction in carrying out managerial tasks. In the context of the Medan Tourism Academy, a strong commitment from managers can facilitate the creation of a positive work environment, where innovation and collaboration can develop.

Organizational commitment can be fostered through various means, including providing opportunities for professional development, recognizing and rewarding outstanding performance, and promoting a sense of ownership among managers. By creating a positive work environment, organizations can encourage managers to be more committed to achieving organizational goals. This, in turn, can lead to improved managerial performance and ultimately, the achievement of organizational objectives.

2. Procedural Justice

Procedural justice refers to the extent to which the process in decision making is considered fair by members of the organization. Although the results of the study show that procedural justice does not have a partial significant effect, it is essential to understand that the perception of justice in the preparation of the budget can affect manager's motivation and trust in the policies applied. Justice in the procedure can create a sense of ownership among managers, which in turn can improve their performance.

Procedural justice can be achieved through various means, including providing clear and transparent communication, involving managers in the decision-making process, and ensuring that decisions are made in a fair and impartial manner. By promoting procedural justice, organizations can create a sense of trust and confidence among managers, which can lead to improved managerial performance.

3. Budget Preparation Participation

Participation in budget preparation also does not show a significant effect on managerial performance partially. However, effective participation can provide opportunities for managers to convey their input and views, thereby increasing the sense of responsibility and involvement. When managers feel that their voices are heard in the process of preparing a budget, this can contribute to feelings of job satisfaction even though it does not directly affect the measured performance.

Participation in budget preparation can be fostered through various means, including providing opportunities for managers to contribute to the budgeting process, recognizing and rewarding outstanding contributions, and promoting a sense of ownership among managers. By involving managers in the budgeting process, organizations can create a sense of responsibility and involvement, which can lead to improved managerial performance.

Conclusion

Overall, this research shows that organizational commitment is the most influential factor for managerial performance at the Medan Tourism Academy. To improve managerial performance, it is essential for organizational leaders to build an environment that promotes commitment, justice, and participation. Thus, the organization can achieve the desired goals while ensuring that managers feel involved and valued in the decision-making process.

Recommendations

Based on the findings of this study, the following recommendations are made:

Foster Organizational Commitment: Organizational leaders should focus on building an environment that promotes commitment among managers. This can be achieved through various means, including providing opportunities for professional development, recognizing and rewarding outstanding performance, and promoting a sense of ownership among managers.
Promote Procedural Justice: Organizational leaders should focus on promoting procedural justice among managers. This can be achieved through various means, including providing clear and transparent communication, involving managers in the decision-making process, and ensuring that decisions are made in a fair and impartial manner.
Encourage Participation in Budget Preparation: Organizational leaders should focus on encouraging participation in budget preparation among managers. This can be achieved through various means, including providing opportunities for managers to contribute to the budgeting process, recognizing and rewarding outstanding contributions, and promoting a sense of ownership among managers.

By implementing these recommendations, the Medan Tourism Academy can create a positive work environment that promotes commitment, justice, and participation among managers. This, in turn, can lead to improved managerial performance and ultimately, the achievement of organizational objectives.
Frequently Asked Questions (FAQs) about the Effect of Organizational Commitment, Procedural Justice, and Participation in the Preparation of Budget on Managerial Performance at the Medan Tourism Academy

Q: What is the main finding of this study?

A: The main finding of this study is that organizational commitment has a significant influence on managerial performance at the Medan Tourism Academy, while procedural justice and participation in the preparation of budget do not show a significant influence on managerial performance.

Q: What is organizational commitment, and how can it be fostered?

A: Organizational commitment refers to the extent to which managers feel bound and loyal to the organization. It can be fostered through various means, including providing opportunities for professional development, recognizing and rewarding outstanding performance, and promoting a sense of ownership among managers.

Q: What is procedural justice, and how can it be promoted?

A: Procedural justice refers to the extent to which the process in decision making is considered fair by members of the organization. It can be promoted through various means, including providing clear and transparent communication, involving managers in the decision-making process, and ensuring that decisions are made in a fair and impartial manner.

Q: What is participation in budget preparation, and how can it be encouraged?

A: Participation in budget preparation refers to the extent to which managers are involved in the process of preparing the budget. It can be encouraged through various means, including providing opportunities for managers to contribute to the budgeting process, recognizing and rewarding outstanding contributions, and promoting a sense of ownership among managers.

Q: What are the implications of this study for the Medan Tourism Academy?

A: The implications of this study for the Medan Tourism Academy are that it should focus on building an environment that promotes commitment, justice, and participation among managers. This can be achieved through various means, including providing opportunities for professional development, promoting procedural justice, and encouraging participation in budget preparation.

Q: What are the limitations of this study?

A: The limitations of this study are that it was conducted on a small sample of managers at the Medan Tourism Academy, and the results may not be generalizable to other organizations. Additionally, the study only examined the effect of organizational commitment, procedural justice, and participation in the preparation of budget on managerial performance, and did not examine other factors that may influence managerial performance.

Q: What are the future research directions based on this study?

A: The future research directions based on this study are to examine the effect of other factors on managerial performance, such as leadership style, organizational culture, and employee engagement. Additionally, the study could be replicated in other organizations to examine the generalizability of the findings.

Q: What are the practical implications of this study for managers and leaders?

A: The practical implications of this study for managers and leaders are that they should focus on building an environment that promotes commitment, justice, and participation among managers. This can be achieved through various means, including providing opportunities for professional development, promoting procedural justice, and encouraging participation in budget preparation.

Q: What are the implications of this study for policy makers and organizational leaders?

A: The implications of this study for policy makers and organizational leaders are that they should prioritize building an environment that promotes commitment, justice, and participation among managers. This can be achieved through various means, including providing opportunities for professional development, promoting procedural justice, and encouraging participation in budget preparation.

Q: What are the implications of this study for the field of management and organizational behavior?

A: The implications of this study for the field of management and organizational behavior are that it highlights the importance of organizational commitment, procedural justice, and participation in the preparation of budget in influencing managerial performance. This study contributes to the existing literature on the factors that influence managerial performance and provides insights for managers, leaders, and policy makers.