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Goal-setting participation and goal commitment: Examining the mediating roles of procedural fairness and interpersonal trust in a UK financial services organisation

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  • Sholihin, Mahfud
  • Pike, Richard
  • Mangena, Musa
  • Li, Jing

Abstract

This study investigates whether participation in goal-setting within performance measurement and evaluation processes affects goal commitment and if so, whether the effect is mediated by procedural fairness and interpersonal trust. Using a sample of 54 managers within a UK financial services organisation, this study finds that participation in goal-setting is positively associated with goal commitment. Further analysis arising from introducing procedural fairness and interpersonal trust as mediating variables reveals that the association is significantly mediated by procedural fairness. Overall, these findings offer empirical evidence on the importance of procedural fairness on the relationship between participation and goal commitment.

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  • Sholihin, Mahfud & Pike, Richard & Mangena, Musa & Li, Jing, 2011. "Goal-setting participation and goal commitment: Examining the mediating roles of procedural fairness and interpersonal trust in a UK financial services organisation," The British Accounting Review, Elsevier, vol. 43(2), pages 135-146.
    • Handle: RePEc:eee:bracre:v:43:y:2011:i:2:p:135-146
    DOI: 10.1016/j.bar.2011.02.003
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    4. Vincent K. Chong & Isabel Z. Wang & Gary S. Monroe & Liam Strike & Feida (Frank) Zhang, 2023. "The effect of non‐financial performance measures, organisational politics and political skill on job performance: Evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(2), pages 2557-2595, June.
    5. Domenico Raucci & Manuela Paolini, 2021. "Soddisfazione lavorativa e work engagement nelle budgeting practices delle aziende sanitarie pubbliche. Una verifica empirica," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2021(1), pages 13-32.
    6. Nitzl, Christian, 2016. "The use of partial least squares structural equation modelling (PLS-SEM) in management accounting research: Directions for future theory development," Journal of Accounting Literature, Elsevier, vol. 37(C), pages 19-35.
    7. Marco Giovanni Rizzo, 2014. "La relazione tra il livello di coinvolgimento nel processo di budget, il commitment verso gli obiettivi, la soddisfazione lavorativa e i relativi risvolti sulla performance manageriale. I risultati di," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2014(1), pages 9-34.
    8. Daniele Cristina Bernd & Ilse Maria Beuren & Celliane Ferraz Pazetto & Carlos Eduardo Facin Lavarda, 2022. "Antecedents of Commitment to Budgetary Goals," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 26(2), pages 200018-2000.
    9. Bharti Sujan & Jaya Bhasin & Shahid Mushtaq, 2020. "Reallocation of HR Functions: A Study of HR Effectiveness in Banking Sector," Jindal Journal of Business Research, , vol. 9(1), pages 72-83, June.
    10. Yuliansyah Yuliansyah & Ashfaq Ahmad Khan, 2017. "A revisit of the participative budgeting and employees’ self-efficacy interrelationship – empirical evidence from Indonesia’s public sector," International Review of Public Administration, Taylor & Francis Journals, vol. 22(3), pages 213-230, July.
    11. Kelly K. Wang & Maria Cadiz Dyball & Andy Wang, 2023. "The link between formality and procedural fairness: The influences of precision, sensitivity and role clarity," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(S1), pages 1571-1598, April.
    12. Tahar, Afrizal & Abdillah, Muhammad Akhid & Institute of Research, Asian, 2021. "The Influence of Leadership Style on Managerial Performance of Village Governments with Motivation as Mediation," OSF Preprints xeqf7, Center for Open Science.
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