THE LINEAR ADDITIVE AND INTERACTIVE EFFECTS OF BUDGETARY GOAL DIFFICULTY AND FEEDBACK ON PERFORMANCE

This study examines the effects of budgetary goal difficulty and feedback on budgetary performance. It is predicted that both goals and feedback are necessary, but neither is sufficient for improvements in performance. Results from a questionnaire survey of 44 senior managers with budget responsibilities in a property development and management corporation provide support for these predictions. They show that goals and feedback interact to affect performance, while independently, goals and feedback have no effect on performance. These results are discussed in the light of available evidence, and some implications for future research are examined. © 1990.