Tri Jatmiko Wahyu Prabowo
- Title: Mr
- Position: PhD Student - Department of Accounting and Corporate Governance
- Load: PhD Student Full Time
- Principal supervisor: Prof. Philomena Leung
- Associate supervisor: Prof. James Guthrie
- Date of submission: 28/09/2015
- Thesis title: Performance Management, New Public Management and Organisational Culture
The new public management (NPM) is reforms designed to overcome the deficiencies of the traditional bureaucratic model in public administration. The restructurings have been based on the notions that the efficiency and effectiveness of public sector organisations can be improved through the application of management techniques which are adopted from private-profit making organisations in a competitive environment.
The Indonesian Government has been consistently trying to apply the NPM concept since 1999 after the Asian currency crisis. It seems that the reform in public service administration in Indonesia has entirely adopted all of NPM concepts; however the restructuring has missed the essential aspects which are developing market-oriented mechanism and creating quasi-organisations in public service organisations. Those components are precisely vital in stimulating competition among public entities.
The objective of this research is to examine the existence competitive culture in public service organisations which have implemented NPM. The research utilises a case-based research approach which will take place in Diponegoro University.
- Purpose: To identify and compare the processes and key characteristics of Indonesia reforms with generally accepted theoretical (normative) precepts in public sector.
- Originality: This article is the first study which (1) examines a Hood & Peters (2004)’s proposition which note that the reforms can be trapped on a paradox which have a characteristic that may produce a new bureaucracy with a more rule-based system than the traditional systems that reforms intend to remove. (2) Examines the implication of Considine (2001)’s proposition which states that public sector reforms should transforms from procedural governance to corporate (or market) governance, in the context of Indonesia.
- Key Literature/theoretical perspective: Guthrie, Olson, & Humphrey (1999) highlighted ‘new public financial management’ (NPFM) which is a public reform study concentrating on the accounting and financial aspects. The article evaluates Indonesia public reforms from five aspects of NPFM: (1) the development of market-oriented management system; (2) the decentralisation of the budgeting system; (3) the reform in government financial reporting system; (4) the reformation in public sector audits mechanism; and (5) the development in performance management systems in government entities.
- Design/methodology/approach: The research is an archival and historical study.
- Practical and social implications: The understanding of the convergences and differences as considerations in the implementation of NPFM in a jurisdiction context.
- Keywords: Paradox, Indonesia, Public Sector, Administration, Reform, New Public Financial Management