| Summary: | In most organization, different performance measures are employed to assess different aspects of managers performance.Some of the
measures have not been developed and some of them have been developed in a very selective way and some presented but not used or only partly used.Hence, this study examined the effect of performance measures used in budget participation and managerial performance
relationship in Malaysian local authorities. A structural equation modeling was utilised to examine the direct and indirect effects of
budget participation on managerial performance through path model analysis.The finding from the research shows that budget participation influence managerial performance via the mediating variable of the use of performance measures.This research survey was conducted only in Malaysian local authorities.Thus, result may not be generalized to other public organizations. The theoretical contribution of this study is to extent the earlier literatures by addressing effect in which, budget participation, the use of the performance measures can beinter-related in providing explanations of managerial performance.The practical contribution for this study is that its finding can have practical relevance in the current management setting in Malaysian
government organization.The results from the present study also provide insights on the role of budget participation and the use of performance measures as management tool by local authorities’ managers in evaluating their performance.
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