ABSTRACT

This study investigated the relationship of budget participation and flexibility practices with the managerial performance of the department heads(DHs) of private educational institutions(PEIs) in Bohol. Survey questionnaires were distributed to the DHs of three PEIs. The data from 34 collected questionnaires were subjected to Pearson Correlation to test the hypothesis of the study.
The results of this study revealed that the respondent PEIs apply budget participation practices, such as budget meetings, consultations, proposals, hearings, and negotiations. Moreover, budget participation and its two dimensions, communication and influence, have significant positive correlation with managerial performance. This shows that DHs applying more participation practices are associated with higher levels of managerial performance due to the psychological and cognitive effects of budget participation. The PEIs also utilize budget flexibility practices, such as budget revision, reforecast, and rolling forecast, which also have significant positive correlation with managerial performance. Hence, DHs applying more flexibility practices most likely exhibit better managerial performance since they are able to adapt their budgets to the contingencies in the volatile market environment, Accordingly PEIs in Bohol are recommended to incorporate budget participation and flexibility into their budgeting systems to promote managerial performance.

College of Business and Accountancy Bachelor of Science in Accountancy