The Role of Management Accounting in New Public Management Reforms

Home / The Role of Management Accounting in New Public Management Reforms

 

 

 

 

 

 

 

 

 

 

The Role of Management Accounting in New Public Management Reforms

[Author Name] [Institute Name]

 

 

Contents

Chapter One: Introduction. 3

1.1.       Background. 3

1.2.       Research Aim.. 4

1.3.       Research Objectives. 4

1.4.       Research approach. 4

1.5.       Research Structure. 5

Chapter Two: Literature Review.. 7

2.1. New Public Management 7

2.2. Theoretical foundation. 7

2.3. The theory of public choice or “public choice”. 8

2.4. Theory of transaction costs. 9

2.5. The agency theory. 9

Chapter Three: Methodology. 12

3.1. Introduction. 12

3.2. Research Design. 12

3.3. Justification of Adopted Methodology. 12

3.4.       Limitations. 13

3.5.       Timeline. 13

References. 14

 

 

 

 

Chapter One: Introduction

  • Background

Institutional theory emerged in the late seventies and early eighties and is part of the approach interpretive perspectives, focusing on the study of the influence of the elements and environmental conditions social historical and cultural context in which they are immersed and interacting with organizations on structures and patterns of behaviour that they adopt to survive in that environment and legitimize their performance and its own existence (Froud, Haslam, Johal, Shaoul, and Williams, 1998).

In order to answer the many questions posed by the process of public sector reform and governance, in recent years a focus of priority attention in both academia and professionally, has been the pursuit of improvement and adaptation of the structure, functions and resources of the government to the circumstances of the current environment. In particular, in the case of accounting this new interest in governance has been highlighted in two ways. On the one hand, within the management accounting has started a line of research, influenced by the ideas of the model New Public Management, has been interested in the study of new models and management tools used by public entities and the implications thereof for the design and operation of a management information system designed to provide public managers with information on which to base the development of their work more efficiently (Boyle, 2011).

On the other hand, in the field of public accounting has established research on the range of possibilities to enhance the traditional role of monitoring and accountability of the management traditionally assigned to the accounting information system (Christensen, per, 2007).

In this line, the objective of this research has been the analysis of the features that should provide the accounting information system in public institutions to play the role of driver and strengthening of organizational and cultural changes resulting from the new model vehicle governance based on the functions performed by the management that the system serves (public managers). Specifically, we focused on a basic element of the information system and management control in public institutions: the budget and the budget process (Bonner, Hesford, Van der Stede, and Young, 2005).

  • Research Aim

This paper examines how New Public Management (NPM) impacts on fulfilling different aspects of accountability in the public sector.

  • Research Objectives

The objectives of this research include:

  • To develop an understanding of new public management
  • To analyse the public sector reforms
  • To examine the role of management accounting in new public management reforms
    • Research approach

It is not surprising that the movement of public sector reform has spread so enthusiastically in the world. Gravitates around it-or course belief-that its exercise “leads to a more economical and efficient government, services of higher quality and more effective programs, and also simultaneously introduces changes such as the extension of political control, greater freedom managers to carry out their management, greater government transparency and improving the image of those ministers and leaders most committed. As part of this endeavour, the paradigm of the New Public Management has become the body common doctrine prevailing in the bureaucratic reform agenda in many OECD countries since the late seventies. While it may be considered administrative reform as a subset across the political performance, not a series of technical efforts separate from it. The so-called standard model of NPM recognizes basically the reform of public administration as a series of changes intentional structures and processes of public sector organizations with objective of that work best -in some sense (Bjornenak and Mitchell, 2002).

In essence, the principles and techniques that make up the public management were presented as a set of initiatives for each type of organizations characterized by their “political neutrality (Broadbent and Guthrie, 1992).

  • Research Structure

The structure of this thesis is organized as follows:

  1. Chapter 1 Introduction

This chapter provides a discussion of the background of the study. The research problem stated. The research aim, questions and the research objectives are then stated. After this, the structure of the research is presented.

  1. Chapter 2 Literature Review

This chapter will discuss the role of management accounting in new public management reforms.

  1. Chapter 3 Research Methodology

This chapter will discuss the development of the methodology of this research study. Moreover, the operational definitions, scaling, data collection methods and sampling for this study will also be discussed. In addition, the statistical techniques and tests will be discussed.

  1. Chapter 4 Results and Discussion

This chapter will discuss the normality and descriptive statistics of the data of this research study. After this is the presentation and discussion of the results of the methodology.

  1. Chapter 5 Conclusion

Chapter Two: Literature Review

2.1. New Public Management

In practice, generality of the classic texts of economy with a dilemma detected respect to the optimal size of the public sector and the efficiency shown in the development of their functions. At first, the discussion focuses on selecting the best manager management given the interests of society, public service or private enterprise. Those of income inequalities in the society of the nineteenth century, and breach of efficiency markets favoured the state and assumed a more active role in trying with intervention amend the “market failure”. Later in the decade of the 70’s begins concerns about the inefficiencies identified in the implementation of pro public programs, emerging approach of “failures of state intervention” in economics associated with bureaucracy, politics or competence arising own nature of public goods (Bourn and M. Ezzamel, 1986).

The loss of credibility of the public sector as manager of citizen welfare is accompanied by demonstrations demanding and requires that public institutions act applying principles of economy, efficiency and effectiveness. These demands increasingly more important because of the magnitude of the deficit in almost all countries, had at first a major impact on processes construction of public policies, but currently are not confined to ministerial or political sphere, but have been extended to all actions of the administration in their various territorial commands. Thus, state governments, autonomic micas, provincial and local are involved in regeneration processes of change. The patterns of action and behaviour, common internationally are those who have taken to design a new public operating system, a new philosophy of action: NPM (Bjornenak, 1997).

2.2. Theoretical foundation

The new philosophy of governance, using words Ellwood (1996), is a marriage between the New Institutionalism and professional management. Coombs (1987) indicates that compared to the theory of rational choice, where it is assumed that collective decisions are mere aggregates of interest individual them, the New Institutionalism believes that public institutions are relevant in build and explain the interactions between individuals, because you are provided with a logic of its own conditioning the individual preferences.

And it is because Broadbent and Guthrie (2008) suggests, it defines the concept of institution as a set of values, norms, rules, routines and processes, which place in a particular organizational environment and directly affect the performance developed by the various actors, directing and limiting behaviour. Among the wide variety of approaches or economic theories on which cons destroys the New Institutionalism, (Glennerster, 1994) emphasizes its formation from the ideas of Public Choice Theory, Theory and Transaction Cost Theory of the Agency.

2.3. The theory of public choice or “public choice”

This theory can be defined, using the words of Abernethy and Stoelwinder (1990), as the economic study of the decisions made outside the market, or simple mind, as the application of economics to political science. His proposals revolve around to the problems posed by the administrative bureaucracy in obtaining efficiency in public performance, relentlessly criticizing the state monopoly on the operating. Their hypothesis, although based on the need to hire services abroad to increase efficiency and avoid the inefficiencies of bureaucracy, consider that are not reached by the simple conversion of the public in private while maintaining the monopoly, but the introduction of market mechanisms, independent of whether the production is public or private ownership (Buchanan, 1954, p. 334). The measures proposed to avoid the bureaucratic monopoly can be summarized the following:

  • More competition in the development of public services.
  • Privatization or outsourcing to cut spending.
  • More information on the feasibility of alternative utilities and offered at competitive costs compared with bases.
  • Tighter controls over the bureaucracy.

2.4. Theory of transaction costs

In the classical theory of public choice competition is seen as the panacea for resolve bureaucratic problems. Assuming that the public monopoly may be replaced by the management of services through spot market contracts atomized where buyers and sellers have complete information. The Theory of Transaction Cost suggests that although the axiom is adepriate, the public choice perspective on the benefits of competition is not total right mind. Well, competition may incur additional costs which are au present in the traditional bureaucratic form of service provision.

Bureaucracy Model (NA) identifies transaction costs associated with the signing of the contracts, monitoring results and performance of the contractual parties. These Costs vary by one hand, with the characteristics of the decisions of the managers who involved in the transaction, and with the specific aims of the market on the other. For example, domestic production will be more efficient when specific assets are important, there are incentives for the parties to show opportunistic behaviour, the number of potential users will be reduced, and / or future demand for services is uncertain.

2.5. The agency theory

As summarized (Christensen, Per, 2007), the agency theory, understanding which- WANT entity as a set of contracts between a (principal) hires another individual (Agent) delegating to him the execution of a given task, is defined by the various between the utility functions of each of the parties to the contract. In this situation the possibility that the official’s preferred or asymmetric information should be added preventing a thorough control over it by the principal. Thus, under this theory con- persecution of the main objectives depends on the actions performed by the agent, the CUA- they are affected by the preferred information that the latter holds.

In the public sphere the definition of principal and agent is complex to find us presence of multiple figures. Coombs (1987) questioned the main factor in this relationship, finding three possible answers to this question: the electorate -a through the democratic processes of elections and parliamentarians controls; the con- consumers of public services; and central government politicians in power. Ellwood (1996) state agency overlapping relationships between different levels of governance, such as citizens, parliamentarians, government agencies and employees pub- public schools while extended by Broadbent and Guthrie (1992) under the theory of network con- contractual lenders, unions and other legitimate stakeholders. For our part, we understand that there are or can be with two levels basic in the agency relationship in the public sector:

  1. Caused by successive delegation of responsibility represents the: Citizens → Political → Managers
  2. The inter-relationship – administrations
  3. a) The relationship Citizens→ Political → Managers

This successive delegation of responsibility occurs in all areas territorial

Administering them, as they can be state, regional, local, etc., for the election representatives and management delegation to subordinates is common to them all. For a more concrete analysis, we proceeded to examine each of the links independently.

a.1.) The Citizen → Political relationship

Citizens elect political representatives in accordance with the objectives plasma- two electoral programs, the full compliance is at the mercy of the existence of organized powerful groups with vested interests, obtaining parliamentary minority, or the utility function of the ruling party as a whole, or each member political in- individually. These results in an agency relationship in which citizens provide their capital coercively, and politicians make decisions that may not generate a build- collective citizenship (Ashton, 1996).

a.2.) The relation → Political Managers

The political role is responsible for designing programs or policies, setting goals attain, the managers being the massive hand of activities that enable their achievement. Given this division of functions, the principal-agent relationship makes perfect sense; since they are many factors can cause deviations from the managers of the guidelines marked by politicians. It is latent in the literature that the budget function used of managers is defined by the need for increased power through their given in budgets; by the number of hierarchical levels under their control; possible improvement of employment or their connection to the political scene. Putting their utility function to policy objectives, based on the lack of comprehensive controls, is mission possible. The union of these two levels complicates the agency relationship because there are multiple agents on citizen relationship – administration; with different utility functions each one that can cause serious distortions in the principles that should guide the administration in its action. We can also speak of a third link in the chain, those goods or services where further separation occurs between the supply and production resulting from the decision to buy rather than make.

  1. b) The inter-relationship – administrations

Under what  Broadbent and Guthrie (2008) called the power struggles between the different ad- territorial ministrations, we understand that there is a desire to obtain greater supremacy territorial scope determined by the subtraction of state powers to the consequent diversion of financial resources.


 

Chapter Three: Methodology

3.1. Introduction

The chapter provides the detailed outline of overall research methodology that is used to conduct the research and to reach the outcomes of the study. To achieve this, research methodology chapter is divided in different sections.

3.2. Research Design

The research was in line with the main objective which is to look into ways in which micro financing of small businesses in the tourism industry can be achieved for sustainable development of the community. The research methodology will also explore how the issue of financial inclusion would be factored to facilitate micro financing.

There are two research design procedures, namely the qualitative and quantitative approaches. The quantitative approach explains a situation where the researcher relies on numeric data, while the qualitative approach is more of a detailed and analytical approach (Ivankova, 2002). The qualitative approach is less generalized and with in-depth information on a minimal number of cases thus the research design will mainly be based on the qualitative approach.

3.3. Justification of Adopted Methodology

The explanatory bit in the qualitative approach will help in elaborating the relevance of financial inclusion to micro financing. However, a few details on the quantitative analysis will also be relevant to the study. Furthermore, information will also be derived from the relevant case studies (Ivankova, 2002). The quantitative methodology will be used to gather first-hand information on research aim whereas qualitative method will help back up the results through literature review. The use of literature review to analyse the role of management accounting in new public management reforms is adopted as the methodological approach of this research.

3.4.      Limitations

It has been clearly explained that this research study will be completed with the help of primary method of collecting data, so there will be more limitations in this case. The identity of participants and respondents will not be revealed for respecting the confidentiality of them. Participants will be given surety as part of the data collection process (Reid, et. al. 2011). This same will be done with the interviews and responses. Primary data collection puts certain restriction which will be taken care of.

3.5.      Timeline

 

Month Week Main Task to be Completed
November 1-4 Define aims and objectives
December 1-3 Make research questions; Draft research method and strategy; Review literature
January 1-2 Completed research proposal; Further review of literature;
3-4 Analysing data; Results and conclusions
February 1-3 Submit draft report
March week 1-2 Submit dissertation

 

 

 

References

Abernethy, M. A., and J. U. Stoelwinder. 1990. The Relationship between Organisation Structure and Management Control in Hospitals: An Elaboration and Test of Mintzberg’s Professional

Bureaucracy Model. Accounting, Auditing & Accountability Journal 3 (3):18-33.

Ashton, T. 1996. Health care systems in transition: New Zealand. Journal of Public Health Medicine 18 (3):269-273.

Bjørnenak, T. 1997. Diffusion and accounting: the case of ABC in Norway. Management Accounting Research 8:3-17.

Bjørnenak, T., and F. Mitchell. 2002. The development of activity-based costing journal literature, 1987-2000. The European Accounting Review 11 (3):481-508.

Bonner, S. E., J. W. Hesford, W. A. Van der Stede, and S. M. Young. 2005. The most influential journals in academic accounting. Accounting, Organizations and Society 31 (7):663-685.

Bourn, M., and M. Ezzamel. 1986. Costing and Budgeting in the National Health Service. Financial Accountability & Management 2 (1):53-72.

Boyle, S. 2011. United Kingdom (England) Health System Review, edited by W.-H. S. i. Transition: WHO.

Broadbent, J., and J. Guthrie. 1992. Changes in the Public Sector: A Review of Recent “Alternative” Accounting Research. Accounting, Auditing & Accountability Journal 5 (2):3-31.

Broadbent, J., and J. Guthrie. 2008. Public sector to public services: 20 years of “contextual” accounting research. Accounting, Auditing & Accountability Journal 21 (2):129-169.

Burrell, G., and G. Morgan. 1979. Sociological paradigms and organisational analysis: elements of the sociology of corporate life. London: Heinemann.

Chan, K. C., G. S. Seow, and K. Tam. 2009. Ranking accounting journals using dissertation citation analysis: A research note. Accounting, Organizations and Society 34 (6-7):875-885.

Christensen, T. a. L., Per. 2007. Transcending New Public Management – the transformation of public sector reforms. Hampshire: Ashgate Publishing Limited.

Coombs, R. W. 1987. Accounting for the Control of Doctors: Management Information Systems in Hospitals. Accounting, Organizations and Society 12 (4):389-405.

Ellwood, S. 1996. Pricing Services in the UK National Health Service. Financial Accountability & Management 12 (4):281-301.

Fischbacher, M., and A. Francis. 1998. Purchaser provider relationships and innovation: A case study of GP purchasing in Glasgow. Financial Accountability & Management 14 (4):281-298.

French, S. O., Andrew and Healy, Judith. 2001. Health Care Systems in Transition – New Zealand: European Observatory on Health Care Systems and World Health Organisation.

Froud, J., C. Haslam, S. Johal, J. Shaoul, and K. Williams. 1998. Persuasion without numbers? Public policy and the justification of capital charging in NHS trust hospitals. Accounting, Auditing & Accountability Journal 11 (1):99-125.

Glennerster, H. 1994. New challenges for management accounting: Issues in health and social services. Financial Accountability & Management 10 (2):131-142.

Glenngård, A. H., F. Hjalte, M. Svensson, A. Anell, and V. Bankauskaite. 2005. Health System in Transition – Sweden, edited by W. World Health Organization: World Health Organization, WHO.

Goddard, A. 2010. Contemporary public sector accounting research – An international comparison of journal papers. The British Accounting Review 42 (2):75-87.

Ivankova, N., 2002. A sample mixed methods dissertation proposal. [Online] Available at: <http://www.sagepub.com/creswellstudy/Sample%20Student%20Proposals/Proposal-MM-Ivankova.pdf > [Accessed 1 November 2014].

 

 

 

 

 

 

 

 

 

 

The Role of Management Accounting in New Public Management Reforms

[Author Name] [Institute Name]

 

 

Contents

Chapter One: Introduction. 3

1.1.       Background. 3

1.2.       Research Aim.. 4

1.3.       Research Objectives. 4

1.4.       Research approach. 4

1.5.       Research Structure. 5

Chapter Two: Literature Review.. 7

2.1. New Public Management 7

2.2. Theoretical foundation. 7

2.3. The theory of public choice or “public choice”. 8

2.4. Theory of transaction costs. 9

2.5. The agency theory. 9

Chapter Three: Methodology. 12

3.1. Introduction. 12

3.2. Research Design. 12

3.3. Justification of Adopted Methodology. 12

3.4.       Limitations. 13

3.5.       Timeline. 13

References. 14

 

 

 

 

Chapter One: Introduction

  • Background

Institutional theory emerged in the late seventies and early eighties and is part of the approach interpretive perspectives, focusing on the study of the influence of the elements and environmental conditions social historical and cultural context in which they are immersed and interacting with organizations on structures and patterns of behaviour that they adopt to survive in that environment and legitimize their performance and its own existence (Froud, Haslam, Johal, Shaoul, and Williams, 1998).

In order to answer the many questions posed by the process of public sector reform and governance, in recent years a focus of priority attention in both academia and professionally, has been the pursuit of improvement and adaptation of the structure, functions and resources of the government to the circumstances of the current environment. In particular, in the case of accounting this new interest in governance has been highlighted in two ways. On the one hand, within the management accounting has started a line of research, influenced by the ideas of the model New Public Management, has been interested in the study of new models and management tools used by public entities and the implications thereof for the design and operation of a management information system designed to provide public managers with information on which to base the development of their work more efficiently (Boyle, 2011).

On the other hand, in the field of public accounting has established research on the range of possibilities to enhance the traditional role of monitoring and accountability of the management traditionally assigned to the accounting information system (Christensen, per, 2007).

In this line, the objective of this research has been the analysis of the features that should provide the accounting information system in public institutions to play the role of driver and strengthening of organizational and cultural changes resulting from the new model vehicle governance based on the functions performed by the management that the system serves (public managers). Specifically, we focused on a basic element of the information system and management control in public institutions: the budget and the budget process (Bonner, Hesford, Van der Stede, and Young, 2005).

  • Research Aim

This paper examines how New Public Management (NPM) impacts on fulfilling different aspects of accountability in the public sector.

  • Research Objectives

The objectives of this research include:

  • To develop an understanding of new public management
  • To analyse the public sector reforms
  • To examine the role of management accounting in new public management reforms
    • Research approach

It is not surprising that the movement of public sector reform has spread so enthusiastically in the world. Gravitates around it-or course belief-that its exercise “leads to a more economical and efficient government, services of higher quality and more effective programs, and also simultaneously introduces changes such as the extension of political control, greater freedom managers to carry out their management, greater government transparency and improving the image of those ministers and leaders most committed. As part of this endeavour, the paradigm of the New Public Management has become the body common doctrine prevailing in the bureaucratic reform agenda in many OECD countries since the late seventies. While it may be considered administrative reform as a subset across the political performance, not a series of technical efforts separate from it. The so-called standard model of NPM recognizes basically the reform of public administration as a series of changes intentional structures and processes of public sector organizations with objective of that work best -in some sense (Bjornenak and Mitchell, 2002).

In essence, the principles and techniques that make up the public management were presented as a set of initiatives for each type of organizations characterized by their “political neutrality (Broadbent and Guthrie, 1992).

  • Research Structure

The structure of this thesis is organized as follows:

  1. Chapter 1 Introduction

This chapter provides a discussion of the background of the study. The research problem stated. The research aim, questions and the research objectives are then stated. After this, the structure of the research is presented.

  1. Chapter 2 Literature Review

This chapter will discuss the role of management accounting in new public management reforms.

  1. Chapter 3 Research Methodology

This chapter will discuss the development of the methodology of this research study. Moreover, the operational definitions, scaling, data collection methods and sampling for this study will also be discussed. In addition, the statistical techniques and tests will be discussed.

  1. Chapter 4 Results and Discussion

This chapter will discuss the normality and descriptive statistics of the data of this research study. After this is the presentation and discussion of the results of the methodology.

  1. Chapter 5 Conclusion

Chapter Two: Literature Review

2.1. New Public Management

In practice, generality of the classic texts of economy with a dilemma detected respect to the optimal size of the public sector and the efficiency shown in the development of their functions. At first, the discussion focuses on selecting the best manager management given the interests of society, public service or private enterprise. Those of income inequalities in the society of the nineteenth century, and breach of efficiency markets favoured the state and assumed a more active role in trying with intervention amend the “market failure”. Later in the decade of the 70’s begins concerns about the inefficiencies identified in the implementation of pro public programs, emerging approach of “failures of state intervention” in economics associated with bureaucracy, politics or competence arising own nature of public goods (Bourn and M. Ezzamel, 1986).

The loss of credibility of the public sector as manager of citizen welfare is accompanied by demonstrations demanding and requires that public institutions act applying principles of economy, efficiency and effectiveness. These demands increasingly more important because of the magnitude of the deficit in almost all countries, had at first a major impact on processes construction of public policies, but currently are not confined to ministerial or political sphere, but have been extended to all actions of the administration in their various territorial commands. Thus, state governments, autonomic micas, provincial and local are involved in regeneration processes of change. The patterns of action and behaviour, common internationally are those who have taken to design a new public operating system, a new philosophy of action: NPM (Bjornenak, 1997).

2.2. Theoretical foundation

The new philosophy of governance, using words Ellwood (1996), is a marriage between the New Institutionalism and professional management. Coombs (1987) indicates that compared to the theory of rational choice, where it is assumed that collective decisions are mere aggregates of interest individual them, the New Institutionalism believes that public institutions are relevant in build and explain the interactions between individuals, because you are provided with a logic of its own conditioning the individual preferences.

And it is because Broadbent and Guthrie (2008) suggests, it defines the concept of institution as a set of values, norms, rules, routines and processes, which place in a particular organizational environment and directly affect the performance developed by the various actors, directing and limiting behaviour. Among the wide variety of approaches or economic theories on which cons destroys the New Institutionalism, (Glennerster, 1994) emphasizes its formation from the ideas of Public Choice Theory, Theory and Transaction Cost Theory of the Agency.

2.3. The theory of public choice or “public choice”

This theory can be defined, using the words of Abernethy and Stoelwinder (1990), as the economic study of the decisions made outside the market, or simple mind, as the application of economics to political science. His proposals revolve around to the problems posed by the administrative bureaucracy in obtaining efficiency in public performance, relentlessly criticizing the state monopoly on the operating. Their hypothesis, although based on the need to hire services abroad to increase efficiency and avoid the inefficiencies of bureaucracy, consider that are not reached by the simple conversion of the public in private while maintaining the monopoly, but the introduction of market mechanisms, independent of whether the production is public or private ownership (Buchanan, 1954, p. 334). The measures proposed to avoid the bureaucratic monopoly can be summarized the following:

  • More competition in the development of public services.
  • Privatization or outsourcing to cut spending.
  • More information on the feasibility of alternative utilities and offered at competitive costs compared with bases.
  • Tighter controls over the bureaucracy.

2.4. Theory of transaction costs

In the classical theory of public choice competition is seen as the panacea for resolve bureaucratic problems. Assuming that the public monopoly may be replaced by the management of services through spot market contracts atomized where buyers and sellers have complete information. The Theory of Transaction Cost suggests that although the axiom is adepriate, the public choice perspective on the benefits of competition is not total right mind. Well, competition may incur additional costs which are au present in the traditional bureaucratic form of service provision.

Bureaucracy Model (NA) identifies transaction costs associated with the signing of the contracts, monitoring results and performance of the contractual parties. These Costs vary by one hand, with the characteristics of the decisions of the managers who involved in the transaction, and with the specific aims of the market on the other. For example, domestic production will be more efficient when specific assets are important, there are incentives for the parties to show opportunistic behaviour, the number of potential users will be reduced, and / or future demand for services is uncertain.

2.5. The agency theory

As summarized (Christensen, Per, 2007), the agency theory, understanding which- WANT entity as a set of contracts between a (principal) hires another individual (Agent) delegating to him the execution of a given task, is defined by the various between the utility functions of each of the parties to the contract. In this situation the possibility that the official’s preferred or asymmetric information should be added preventing a thorough control over it by the principal. Thus, under this theory con- persecution of the main objectives depends on the actions performed by the agent, the CUA- they are affected by the preferred information that the latter holds.

In the public sphere the definition of principal and agent is complex to find us presence of multiple figures. Coombs (1987) questioned the main factor in this relationship, finding three possible answers to this question: the electorate -a through the democratic processes of elections and parliamentarians controls; the con- consumers of public services; and central government politicians in power. Ellwood (1996) state agency overlapping relationships between different levels of governance, such as citizens, parliamentarians, government agencies and employees pub- public schools while extended by Broadbent and Guthrie (1992) under the theory of network con- contractual lenders, unions and other legitimate stakeholders. For our part, we understand that there are or can be with two levels basic in the agency relationship in the public sector:

  1. Caused by successive delegation of responsibility represents the: Citizens → Political → Managers
  2. The inter-relationship – administrations
  3. a) The relationship Citizens→ Political → Managers

This successive delegation of responsibility occurs in all areas territorial

Administering them, as they can be state, regional, local, etc., for the election representatives and management delegation to subordinates is common to them all. For a more concrete analysis, we proceeded to examine each of the links independently.

a.1.) The Citizen → Political relationship

Citizens elect political representatives in accordance with the objectives plasma- two electoral programs, the full compliance is at the mercy of the existence of organized powerful groups with vested interests, obtaining parliamentary minority, or the utility function of the ruling party as a whole, or each member political in- individually. These results in an agency relationship in which citizens provide their capital coercively, and politicians make decisions that may not generate a build- collective citizenship (Ashton, 1996).

a.2.) The relation → Political Managers

The political role is responsible for designing programs or policies, setting goals attain, the managers being the massive hand of activities that enable their achievement. Given this division of functions, the principal-agent relationship makes perfect sense; since they are many factors can cause deviations from the managers of the guidelines marked by politicians. It is latent in the literature that the budget function used of managers is defined by the need for increased power through their given in budgets; by the number of hierarchical levels under their control; possible improvement of employment or their connection to the political scene. Putting their utility function to policy objectives, based on the lack of comprehensive controls, is mission possible. The union of these two levels complicates the agency relationship because there are multiple agents on citizen relationship – administration; with different utility functions each one that can cause serious distortions in the principles that should guide the administration in its action. We can also speak of a third link in the chain, those goods or services where further separation occurs between the supply and production resulting from the decision to buy rather than make.

  1. b) The inter-relationship – administrations

Under what  Broadbent and Guthrie (2008) called the power struggles between the different ad- territorial ministrations, we understand that there is a desire to obtain greater supremacy territorial scope determined by the subtraction of state powers to the consequent diversion of financial resources.


 

Chapter Three: Methodology

3.1. Introduction

The chapter provides the detailed outline of overall research methodology that is used to conduct the research and to reach the outcomes of the study. To achieve this, research methodology chapter is divided in different sections.

3.2. Research Design

The research was in line with the main objective which is to look into ways in which micro financing of small businesses in the tourism industry can be achieved for sustainable development of the community. The research methodology will also explore how the issue of financial inclusion would be factored to facilitate micro financing.

There are two research design procedures, namely the qualitative and quantitative approaches. The quantitative approach explains a situation where the researcher relies on numeric data, while the qualitative approach is more of a detailed and analytical approach (Ivankova, 2002). The qualitative approach is less generalized and with in-depth information on a minimal number of cases thus the research design will mainly be based on the qualitative approach.

3.3. Justification of Adopted Methodology

The explanatory bit in the qualitative approach will help in elaborating the relevance of financial inclusion to micro financing. However, a few details on the quantitative analysis will also be relevant to the study. Furthermore, information will also be derived from the relevant case studies (Ivankova, 2002). The quantitative methodology will be used to gather first-hand information on research aim whereas qualitative method will help back up the results through literature review. The use of literature review to analyse the role of management accounting in new public management reforms is adopted as the methodological approach of this research.

3.4.      Limitations

It has been clearly explained that this research study will be completed with the help of primary method of collecting data, so there will be more limitations in this case. The identity of participants and respondents will not be revealed for respecting the confidentiality of them. Participants will be given surety as part of the data collection process (Reid, et. al. 2011). This same will be done with the interviews and responses. Primary data collection puts certain restriction which will be taken care of.

3.5.      Timeline

 

Month Week Main Task to be Completed
November 1-4 Define aims and objectives
December 1-3 Make research questions; Draft research method and strategy; Review literature
January 1-2 Completed research proposal; Further review of literature;
3-4 Analysing data; Results and conclusions
February 1-3 Submit draft report
March week 1-2 Submit dissertation

 

 

 

References

Abernethy, M. A., and J. U. Stoelwinder. 1990. The Relationship between Organisation Structure and Management Control in Hospitals: An Elaboration and Test of Mintzberg’s Professional

Bureaucracy Model. Accounting, Auditing & Accountability Journal 3 (3):18-33.

Ashton, T. 1996. Health care systems in transition: New Zealand. Journal of Public Health Medicine 18 (3):269-273.

Bjørnenak, T. 1997. Diffusion and accounting: the case of ABC in Norway. Management Accounting Research 8:3-17.

Bjørnenak, T., and F. Mitchell. 2002. The development of activity-based costing journal literature, 1987-2000. The European Accounting Review 11 (3):481-508.

Bonner, S. E., J. W. Hesford, W. A. Van der Stede, and S. M. Young. 2005. The most influential journals in academic accounting. Accounting, Organizations and Society 31 (7):663-685.

Bourn, M., and M. Ezzamel. 1986. Costing and Budgeting in the National Health Service. Financial Accountability & Management 2 (1):53-72.

Boyle, S. 2011. United Kingdom (England) Health System Review, edited by W.-H. S. i. Transition: WHO.

Broadbent, J., and J. Guthrie. 1992. Changes in the Public Sector: A Review of Recent “Alternative” Accounting Research. Accounting, Auditing & Accountability Journal 5 (2):3-31.

Broadbent, J., and J. Guthrie. 2008. Public sector to public services: 20 years of “contextual” accounting research. Accounting, Auditing & Accountability Journal 21 (2):129-169.

Burrell, G., and G. Morgan. 1979. Sociological paradigms and organisational analysis: elements of the sociology of corporate life. London: Heinemann.

Chan, K. C., G. S. Seow, and K. Tam. 2009. Ranking accounting journals using dissertation citation analysis: A research note. Accounting, Organizations and Society 34 (6-7):875-885.

Christensen, T. a. L., Per. 2007. Transcending New Public Management – the transformation of public sector reforms. Hampshire: Ashgate Publishing Limited.

Coombs, R. W. 1987. Accounting for the Control of Doctors: Management Information Systems in Hospitals. Accounting, Organizations and Society 12 (4):389-405.

Ellwood, S. 1996. Pricing Services in the UK National Health Service. Financial Accountability & Management 12 (4):281-301.

Fischbacher, M., and A. Francis. 1998. Purchaser provider relationships and innovation: A case study of GP purchasing in Glasgow. Financial Accountability & Management 14 (4):281-298.

French, S. O., Andrew and Healy, Judith. 2001. Health Care Systems in Transition – New Zealand: European Observatory on Health Care Systems and World Health Organisation.

Froud, J., C. Haslam, S. Johal, J. Shaoul, and K. Williams. 1998. Persuasion without numbers? Public policy and the justification of capital charging in NHS trust hospitals. Accounting, Auditing & Accountability Journal 11 (1):99-125.

Glennerster, H. 1994. New challenges for management accounting: Issues in health and social services. Financial Accountability & Management 10 (2):131-142.

Glenngård, A. H., F. Hjalte, M. Svensson, A. Anell, and V. Bankauskaite. 2005. Health System in Transition – Sweden, edited by W. World Health Organization: World Health Organization, WHO.

Goddard, A. 2010. Contemporary public sector accounting research – An international comparison of journal papers. The British Accounting Review 42 (2):75-87.

Ivankova, N., 2002. A sample mixed methods dissertation proposal. [Online] Available at: <http://www.sagepub.com/creswellstudy/Sample%20Student%20Proposals/Proposal-MM-Ivankova.pdf > [Accessed 1 November 2014].

 

Signup for free Report *

Fill this form below and avail free report of your order!




Get the best dissertation today. Do not settle for anything less than an A Order Now!