New public management is

The concept of New Public Management or NPM is a new paradigm in public administration that aims to describe public sector reform. The emergence of this concept because of public dissatisfaction.

People’s dissatisfaction with the government’s performance which they perceive does not have effective and inefficient resource management.
This dissatisfaction can also be due to the increasing state of government debt, higher taxes and reduced economic growth (BUHR, 2010).

Therefore, public administration began to introduce new public management (New Public Management), which was a new paradigm in the 1990s.
New Public Management is an alternative paradigm that emphasizes changing government behavior to become more effective.
The characteristics of New Public Management are (Hood, 1991)

  1. Management is more focused, no policies
  2. There are clear standards and performance measures
  3. Emphasis on result/output control
  4. The following division of tasks is unit
  5. Grocused on competition in the public sector
  6. Greater emphasis on implementing public sector management styles
  7. Instead of increasing discipline and no wasting various resources

We often describe public sector organizations as short, efficient, always at a loss, of poor quality, lacking innovation and several other weaknesses (Mahmudi, 2010: 34).
This picture is really very damaging, given the fact that public sector organizations to manage large amounts of money from the public. Mismanagement of public sector organizations encourages corruption of public institutions.

New Public Management is rooted in management theory. NPM assumes that commercial and private sector business management practices are better than public sector practices and management.

Therefore, to improve public performance, it is necessary to adopt various management practices applicable in the private sector in the public sector. Application of market mechanisms, supply competition and privatization of public companies (Mardiasmo, 2002: 27).

In the private sector, accounting has a very important role. The development of accounting in this sector is very fast and moves dynamically after economic development if we compare it with public sector accounting.

Accounting itself has played a role in the production of sources of information which we then use for better economic decision making. The information that accountants produce is a tool to measure the efficiency with which they use it as an accountability tool.
The birth of the New Public Management concept represents a reform in the public sector, resulting in the adoption of accounting principles in the private sector with the public sector.

Accounting reform is part of the New Public Management concept

Accounting in the public sector is a measuring tool to determine whether the public sector has achieved efficiency.
One of the accounting reforms in the public sector is a change in the basis of accounting.

The reckless accumulation of cash basis accounting changes is one of the characteristics of the implementation of the New Public Management concept by the public sector (McKendrick, 2007).

Changes in the basis of accounting from cash basis accumulation by many governments consider the design aspects of New Public Management which are almost similar to commercial companies that focus on performance in the public sector (COONa and Hyndmen, 2010).

There is a change in the basic accounting in the public sector, that is, a change in the cash-based accounting accounting system based on the accumulation of accounting that they need because the cash-based accounting system they consider when satisfactory, mainly because of the lack of financial presentation of an accurate picture and providing their management information useful and appropriate. to facilitate planning and process performance (Cohen et al. 2007).

The use of sports accounting is one of the hallmarks of modern financial management (public sector), which aims to provide information about government costs and improve the quality of decision-making in government using their extended information, not only cash basis.
Public sector administrators are responsible for all costs associated with the products/outcomes they produce. Support accounting exercises can assist Public sector administrators in effective and efficient decision making (Organization for Cooperation and Development, 2002: 11).

Changes in Accrealbases accounting achieve challenges in their adoption process, so a phased approach is needed (Treasury, 2005: 40).

There is no sudden change from the cash basis to the accumulation basis. The accounting changes are gradually made through the cash basis, modified box (cash to Accream), and accumulation basis.

In particular, this study aims to examine potential factors in the adoption of accumulation reform.

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