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New Public Management Rhetoric In Developing Country: Will Agencification And Management Control Lead To Organisational Culture Transformation?

Author

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  • Abdul Halil Hi IBRAHIM

    (Associate Professor PhD, Faculty of Social Science and Political Sciences, Universitas Muhammadiyah Maluku Utara, Jl. KHA. Dahlan, Kelurahan Sasa Kecamatan Kota Ternate Selatan, Ternate, 97724, Indonesia)

  • Evi SATISPI

    (Professor PhD. Faculty of Social Science and Political Sciences, Universitas Muhammadiyah Jakarta, Banten 15419, Indonesia, Jl. KH Ahmad Dahlan, Tangerang Selatan)

  • Andriansyah ANDRIANSYAH

    (Professor PhD, Faculty of Social Science and Political Sciences, Universitas Muhammadiyah Jakarta, Banten 15419, Indonesia, Jl. KH Ahmad Dahlan, Tangerang Selatan)

  • Katarzyna SZCZEPANSKA-WOSZCZYNA

    (Associate Professor PhD. Faculty of Applied Sciences, WSB University, Dabrowa Górnicza, Poland)

  • Sebastian KOT

    (Associate Professor PhD. Faculty of Economics and Management Sciences, North-West University, South Africa and Management Faculty, Czestochowa University of Technology, Czestochowa, Poland)

Abstract

Agencification and granting managerial autonomy to public sector organisations are believed to change organisational cultures. This study used path and factor analysis on a sample of 600 public sector personnel in Indonesia to evaluate the role of agencification in the New Public Management (NPM) framework. The study revealed that agencification regarding personnel and financial management autonomy promotes a result-oriented culture while encouraging improved public organisation performance. However, it contradicted traditional NPM concepts by proving that more than management control alone is needed to promote a results-oriented culture among public sector personnel naturally. These findings show that its discourse and application must be modified to realise NPM's promise in the Indonesian setting fully. Future research should investigate the impact of external influences on agency formation and managerial control and ways for cultivating a results-oriented culture in public sector organisations. The study's limitations, such as its concentration on Indonesia and its temporal scope, necessitate comparative analysis across areas and longitudinal studies better to understand the dynamics of agencification and management control. The study's conclusions have ramifications for public sector reform in Indonesia and other nations. Governments must know the intricate interplay between autonomy, management control, and a results-oriented culture. They should also examine the importance of a pragmatic and context-aware approach to NPM.

Suggested Citation

  • Abdul Halil Hi IBRAHIM & Evi SATISPI & Andriansyah ANDRIANSYAH & Katarzyna SZCZEPANSKA-WOSZCZYNA & Sebastian KOT, 2023. "New Public Management Rhetoric In Developing Country: Will Agencification And Management Control Lead To Organisational Culture Transformation?," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2023(41), pages 73-90.
    • Handle: RePEc:rom:rampas:v:2023:y:2023:i:41:p:73-90
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    References listed on IDEAS

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    1. Armenia ANDRONICEANU, 2021. "Transparency In Public Administration As A Challenge For A Good Democratic Governance," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2021(36), pages 149-164, June.
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    Cited by:

    1. Dan-Alexandru LAZÄ‚R, 2024. "Management Of Transformational Leadership And Burnout," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 16(4), pages 18-25, December.

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    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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