International Journal of Business, Economics and Law, Vol. 19, Issue 5 (August) ISSN 2289-1552 2019 334 BUDGET PARTICIPATION, ORGANIZATIONAL COMMITMENT AND JOB PERFORMANCE ON AN INDONESIAN NATIONAL POLICE HOSPITAL Ramses Pakpahan Yvonne Augustine ABSTRACT This research aims to examine the effect of budget participation on job performance mediated by job satisfaction and organizational culture to moderate budget participation and organizational commitment on job performance. This research is a quantitative study using a purposive sampling method with a total sample of 157 managers of the Indonesian National Police Bhayangkara Hospital. The test method that will be used by the author is using Structural Equation Modeling-Partial Least Square (SEM-PLS). The results of this research prove that (1) Budget participation has a positive and significant effect on job performance. (2) Organizational commitment has a positive and significant effect on job performance. (3) Job satisfaction has a positive and significant effect on job performance. (4) Job satisfaction can mediate the indirect effect of budget participation on job performance. (5) Organizational culture can moderate the effect of budget participation on job performance. (6) Organizational culture can moderate the effect of organizational commitment on job performance. The limitations of this research include (1) The sample size taken in this study is comparatively small. (2) Measurement scale of this study using subjective measures formed from the perception of respondents. (3) This study cannot be generalized because the object of this research has a level or type of organization different. The significant finding in this study is that public service agencies require a special organizational culture. This research can make a major contribution in making specific organizational culture variables in the public sector in Asian countries that have not been much researched. Future research can study other variables that affect manager performance such as leadership style, work discipline, and personality. Keywords: Budget participation, job satisfaction, organizational commitment, organizational culture, job performance. RESEARCH BACKGROUND In every organization both the public and private sectors in carrying out the control function, management requires a budget in evaluating the performance of managers. (Kenis, 1976) describes the budget not only as financial plans regarding costs and revenues in central responsibilities but also functions as a means of control, coordination, communication, performance evaluation, and motivation. One way to improve employee performance in an organization is to involve employees in the budget preparation process (Milani, 1975). (Huang, C.L. & Chen, 2009) explain through this process, managers can produce budgets and employers can allocate resources based on company goals. It seems that along with the escalating level of budget pariticipation, performance tends to escalate. The process of budgeting is one of the main ways to control managers (Huang and Chen, 2010; Ostergren and Stensaker, 2011), and the budget determines what acceptable and unacceptable performance standards (Carrington and Catasus, 2007). Clinton & Hunton, (2001); Leach Lopez, et., al., (2015) provide a reference that managers must consider the level of actual on budget participation and also consider the level of preferred on budget participation so that it can be a potent strategy in preparing of budget and can reduce budgetary participation conflict. Stoner (1992) defines managerial performance is how effective and efficient managers have worked to reach the goals of organizational and Mahoney, et., al., (1963) define managerial performance as the achievement of individuals in managerial activities. Research that discusses budgetary participation in managerial performance is now widely carried out and show conflicting results. Evidence of research shows that the relationship between budgetary participation and manager performance is often conflicting and inconclusive (Nouri, H. & Parker, 1998; Shields & Young, 1993; Shield, 1998). Some studies support a significantly positive relationship between budgetary participation and manager performance (Argyris, 1952; Becker & Green, 1962; Mechant, 1981; Brownell & McIness, 1986; Chenhall & Brownell, 1988; Early & Kanfer, 1985; Christie, 2009; Istiyati, 2009), positive is not significant (Latham & Marshall, 1982). But other studies have a negative relationship between budgetary participation and manager performance (Stedry, 1960; Bryan & Locke, 1967; Mia, 1988; Douglas & Wier, 2000; Brownell & Mclnnes, 1986), negatively significantly (Campbell & Gingrich, 1986). This study specifically extends the literature on the relationship of budget participation and performance through job satisfaction (Chong, et., el., 2005; Byrne & Damon, 2008; Leach Lopez, et., al., 2009; Ventakesh & Blaskovich, 2012) and examines the effect of organizational culture on participation relations budget and performance (Redding & Richardson, 1986; Frucot & Shearon, 1991; Hassel & Cunningham, 1993, 1996, 2004; Leach Lopez, et., al., 2007). Another point that affects job performance is the commitment to the organization. According to Triatna (2005), the strong organizational commitment will lead someone to make serious efforts to achieve organizational goals or objectives, to think positively, and to try to do the best for the organization. Khan, et., al., (2010) explained that high organizational commitment would result in high performance. Research results prove that organizational commitment has a positive effect on employee performance in the private sector (Putti, et., al., 1990; Chen and Francesco, 2003; Khan, et., al., 2010; Memari, et., al., 2013) and Sistiyan, et., al., 2019) has a positive effect on the performance of employees in the government sector. On the other hand, the results of research conducted by Mathieu and Zajac,