ABSTRACT

This chapter is the introduction to Part III, the Research Findings. It shows how the data were analyzed : some were considered as inputs to the budget system, some as outputs, while still other data helped to explain the relationship between inputs and outputs. Both inputs and outputs are classified : inputs are split into internal and external inputs, and further into the various subjects which are handled in the chapters 8 through 14. Outputs are dealing with the profitability of the enterprise and the well-being of its people; what is actually measured is the motivation to perform against the budget, split into budget relevance and budget attitude, and the job satisfaction of the budgetees. I am also testing whether performance, measured by budget variance, can serve as an output measure of the effectiveness of the system. The data show that budget variance is a poor overall yardstick; the only thing it measures in this study is 123whether the standards are loose or tight. The relationships between inputs and outputs are shown in a table which is based on the results of the factor analysis of line interview data. This table serves as a guide through the analysis which will be carried out in the chapters 8 through 14.