A 2026 study by Sintya Mandara Anggita, Dewi Diah Fakhriyyah, and Dwiyani Sudaryanti from the University of Islam Malang reveals that fair budgeting procedures play a decisive role in improving managerial performance in hospitals. The research, conducted at Tk II dr. J.A. Latumeten Hospital in Ambon, highlights a critical issue in public healthcare management where performance gaps persist despite structured budgeting systems.
The study responds to national concerns, as data from Indonesia’s Ministry of Health indicate that around 64% of public hospitals still struggle with suboptimal managerial performance, particularly in budget planning and resource allocation. Key challenges include limited managerial involvement, perceived unfair distribution of resources, and lack of transparency in decision-making processes.
Research Approach
The researchers applied a quantitative method involving 80 respondents, including structural and functional officials directly engaged in budgeting processes. Data were analyzed using the Partial Least Squares (PLS) technique to examine the relationships between budget participation, distributive justice, procedural justice, cost consciousness, and managerial performance.
Key Findings
The study identifies several important insights:
- Procedural justice has a significant positive effect on managerial performance.
- Budget participation shows no significant direct impact.
- Distributive justice also has no significant direct effect.
- Cost consciousness strengthens the influence of procedural and distributive justice, but does not affect the relationship between budget participation and performance.
The model explains 53% of the variation in managerial performance (R² = 0.53), indicating moderate predictive strength, as reported in the statistical results.
Why Procedures Matter More Than Participation
The findings suggest that involvement alone is not enough. What matters most is how decisions are made. Transparent, consistent, and inclusive procedures foster trust and motivate managers to perform better.
In contrast, budget participation often becomes a formal requirement without real influence on final decisions, limiting its impact on managerial effectiveness.
According to Sintya Mandara Anggita, “managerial performance improves when budgeting processes are perceived as fair and transparent, not merely participatory.”
Implications for Healthcare and Organizations
The study offers practical recommendations:
- Hospitals should prioritize transparent and fair budgeting procedures.
- Organizations need to promote cost awareness training to improve efficiency.
- Policies should focus on fair processes, not just fair outcomes.
These steps can enhance performance without requiring additional resources, making them especially relevant for public sector institutions.
Author Profiles
- Sintya Mandara Anggita– University of Islam Malang
- Dewi Diah Fakhriyyah – University of Islam Malang
- Dwiyani Sudaryanti– University of Islam Malang
Source
Anggita, S. M., Fakhriyyah, D. D., & Sudaryanti, D. (2026). Enhancing Managerial Performance Through Budgeting and Fairness: The Moderating Effect of Cost Consciousness. International Journal of Management Analytics (IJMA), Vol. 4 No. 2, pp. 229–246.
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