Mohd Nor bin Yahaya - Department of Defence Human Resource Management, National Defence University, Malaysia
Norlaila Mazura Mohaiyadin - Department of Defence Human Resource Management, National Defence University, Malaysia

This paper examines budgetary fairness and the mediating roles of budget satisfaction in determining their effect on managerial performance in budget setting in public sector organization, mechanistic environment. Exploringorganizational justice theory, it is proposed that budgetary fairness dimensions interact with budget satisfaction to affect managerial performance. Structural equation modelling analysis on the data obtained from 128 budget managers in mechanistic public organization via survey questionnaire found to be significant. The paper suggests fairness and budget satisfaction are crucial factor in determining managers performance in budget process