The focus of this study was to investigate the association of managerial performance with the interactive effect of superior-subordinate relationship (SSR) and participation in budgeting in the hotel industry. The participants in the study were 52 department managers working in large and luxury hotels in Australia. Mailed questionnaires were used to collect the data. Managerial performance was assessed following Mahoney et al., who conceptualized the variable in terms of overall performance and using eight subdimensions of performance. Unlike previous studies, which focused only on the overall dimension of managerial performance, this study tested its model with respect to both the overall and the different subdimensions of managerial performance. The results reveal that the interactive effect of department managers'SSR and their participation in budgeting is positively associated with the overall and four of the eight subdimensions of their performance. The implications of the results are discussed in the article.
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