Unleashing the potential of participative budgeting practices in Public Healthcare Organizations: The drivers of psychology-based budgeting research

Original

Unleashing the potential of participative budgeting practices in Public Healthcare Organizations: The drivers of psychology-based budgeting research

Domenico Raucci, Manuela Paolini, Nicoletta Cera, Fausto Di Vincenzo

Abstract

Since doctors heading operational units have become budget holders, the hybrid nature of doctor-managers exposes them to risks of role ambiguity. Drawing on psychology-based budgeting research, this study explores how participative budgeting (PB) can enhance managerial responses to budgetary responsibilities. Using data from 131 doctor-managers in Italian public healthcare organizations, we found that providing satisfactory budgetary information influences doctor-managers’ perceptions of organizational support (POS). The ‘reciprocating’ response driven by POS strengthens doctor-managers’ motivation to achieve budgetary goals and involvement in PB, acting as an enabling condition for role hybridization. This results in improvements in psychological well-being and organizational identification.