Enabling Budgeting and Employee Turnover Intentions: The Role of Perceived Organizational Support and Error Climates

ABSTRACT This study investigates how budgeting is associated with lower employee turnover intentions. We argue that the extent to which budgeting is perceived by employees as enabling will be directly associated with higher levels of perceived organizational support that result in lower turnover intentions. We also expect that enabling budgeting will be associated with perceived organizational support by promoting an error management climate that encourages employees to openly discuss and correct errors while discouraging an error aversion climate where errors are suppressed. Using survey data from 213 respondents, we find that enabling budgeting is positively associated with perceived organizational support and negatively associated with turnover intentions through higher levels of error management climate and lower levels of error aversion climate. Our findings contribute to research and practice by identifying how budgeting shapes organizational support and error climate perceptions, resulting in lower turnover intentions. Data Availability: Survey data collected are available from the authors upon request.