ROLE OF CONTRACTS OF PSYCHOLOGICAL OF PROCESS OF PREPARATION OF THE PARTICIPATION OF BUDGETING

Abstract

Companies need a budget as one important component, to survive in a rapidly changing business environment today. An organization needs a budget for all strategies into plans and short-term goals and long-term. And in the budgeting process that takes all levels of the organizational structure to Participate. This article discusses the role of psychological contract in the drafting budgetting process. Inclusion of middle and lower-level managers in the budgeting process, this would lead to a commitment to the manager that the budget is also a goal, so that will fit between the destination managers with corporate goals (goal congruence). In the event of the company's goals suitability between the company and the manager, then the manager will try harder and take the initiative more to achieve budget targets set. The achievement of the budget targets is an achievement, where as the load participation goals of the organization. So it can be stated that the participation has a positive relationship with achievement