THE EFFECT OF ORGANIZATIONAL COMMITMENT AND SERVANT LEADERSHIP ON BUDGETARY SLACK

This study investigates the impact of organizational commitment andservant leadership on budgetary slack within organizations. Budgetaryslack, defined as the intentional reduction of budgetary resources, canhave detrimental effects on organizational performance and resourceallocation. The literature review explores the relationship betweenorganizational commitment, leadership styles, and budgetary slack,drawing upon theories such as Self Determination Theory (SDT) andSocial Learning Theory. The study employs a true experimentalresearch design with participants from Trinity Western University,focusing on executive class students in the Master of Managementprogram. Results indicate that individuals with high affectiveorganizational commitment tend to generate less budgetary slackcompared to those with low affective organizational commitment.However, the study does not find significant evidence of the moderatingeffect of leadership style on the relationship between affectiveorganizational commitment and budgetary slack. The discussion sectionhighlights potential explanations for these findings and suggestsavenues for future research to address limitations and further explorethe dynamics of organizational commitment, leadership, and budgetarypractices.

Keywords:

Servant Leadership , Budgetary Slack , Organization Commitment