The relation between interactive uses of budgets, diagnostic uses of budgets and team effectiveness and role of perceived collective efficacy

This paper investigates the relation between of two role of budget and impact of them on team-level motivation and team effectiveness. We rely on previous result to examine the extent of interactive and diagnostic uses of budgets affect team effectiveness directly and indirectly through perceived collective efficacy. The data of research have gathered by survey questioner in Iranian's Petro-Chemical Firms. The data were analyzed using Partial Least Squares approach on the Structural Equation filed. In conclusion, the extent of interactive use of budgets has direct positive impacts on team effectiveness. The positive impact of the interactive use of budgets on team effectiveness is partially mediated by perceived collective efficacy. Also there is no evidence for effect of diagnostic use of budgets on perceived collective efficacy and team effectiveness.