While participating in the budget-setting process, individuals will have influence over setting
challenging but achievable, specific goals. Budget participation is conducive for individuals to
interact with their superiors at work and experience task mastery, and engage in social persuasion
and feedback, which are important sources of efficacy from widely accepted
taxonomy. Participation allows individuals the opportunity to receive encouragement from their
supervisors as they work toward their self-set budgets, which can build their confidence to perform
successfully and achieve their budgets. Thus, we expect that higher levels of budget participation
will be associated with higher levels of self-efficacy.