Deryl Northcott

EXAMINING THE PRACTICAL RELEVANCE OF PUBLIC SECTOR MANAGEMENT ACCOUNTING RESEARCH

Concerns exist that practical relevance is becoming devalued as accounting scholars respond to signals about what sort of research ‘counts’. We categorize public sector management accounting papers in six leading journals according to two criteria: the practical orientation of the research objective(s), and whether the conclusions communicate issues of practical relevance. The findings reveal that most of the papers are directed towards understanding or critiquing the use of management accounting techniques, while other practically oriented research objectives are largely absent. Although half of the papers identify practical research implications, few suggest guidelines for practice. Reflections are offered on the role of leading journals in shaping how practical relevance is valued in accounting research.

Benchmarking in UK health: a gap between policy and practice?

Purpose – This paper aims to bring greater clarity to the debate on the merits (or demerits) of relative performance evaluation through a broad assessment of current UK National Health Service (NHS) benchmarking. It seeks to examine whether benchmarking is being used dynamically to disseminate best practice in healthcare, or whether it is primarily a government tool to enforce static competitive performance standards.Design/methodology/approach – Draws on recent literature and government pronouncements. It charts the development of the health care policy discourse that articulated a move from the internal market of the early 1990s to the metrics approach of New Labour.Findings – Benchmarking is one of the private sector‐grown “managerialist” tools whose application and significance is rapidly increasing in the UK public sector. Despite its prevalence, the nature (competitive or comparative), the process (based on indicators or ideas) and the outcomes (standards or “best practice”) of benchmarking in publi...

Accounting systems and systems of accountability in the New Zealand health sector

Studies the transformation of social systems in health organizations in New Zealand and the way in which accounting systems are an integral part of the challenge to extant structures of signification, legitimation and domination. By categorizing various modes or types of social change, and providing analytical means of clarifying social systems, Giddens’s structuration theory is enabling of empirical study. Accounting systems contribute to the binding of time and space in some circumstances, yet can play a part in major discontinuities and disruptions to institutionalized procedures and practices in other circumstances.

Social capital and accountability in grass‐roots NGOs: The case of the Ugandan community‐led HIV/AIDS initiative

Purpose - This paper aims to examine how small, grass-roots non-governmental organisations (NGOs) account for their actions and expenditures and how this accountability is discharged to, and benefits, the citizens they serve. Design/methodology/approach - The paper draws on social capital theory to inform an interpretive analysis of documentary and interview evidence. The empirical material is derived from CHAI policy and project documents, coupled with interviews with 75 participants at the national, district and community levels of the CHAI programme. An illustrative case study is presented of an NGO that delivers welfare services to a Ugandan community affected by the HIV/AIDS pandemic. Findings - The research finds that, by harnessing the attributes of social capital, grass-roots NGOs can supplement formal accountability obligations to funders with effective “bottom-up” accountability to an often overlooked NGO stakeholder group – the service beneficiaries, with positive outcomes for social services delivery. Research limitations/implications - The research examines a single community-led public welfare initiative (the Ugandan CHAI), with a particular focus on one illustrative grass-roots NGO within that programme. Nevertheless, it offers insights into how accountability mechanisms can be reconceptualised to suit the context of developing countries where smaller NGOs increasingly operate. Practical implications - The potential for less formal, “bottom-up” accountability mechanisms is illustrated using the case of the Ugandan community-led HIV/AIDS initiative (CHAI), a programme for delivering social services to communities ravaged by the effects of the HIV/AIDS pandemic. Originality/value - This research addresses the lack of empirical studies of smaller, grass-roots NGOs in the accounting literature. It also contributes to the under-researched area of how NGOs can appropriately discharge their accountability obligations to beneficiaries. The use of social capital theory to inform the study is also a novel contribution of this paper.

Decentralization and budgeting: the Uganda health sector experience

Like a number of other developing countries in recent years, Uganda has adopted a decentralized management structure for its public sector. Along with this restructuring came the devolution of budgetary responsibilities. Presents findings from a study of the impact of decentralization on Ugandan health sector budgeting. A questionnaire was used to seek the expert opinion of key participants in health sector budgeting regarding the affects of decentralization on budgetary participation and the use of budgets for planning and control. The findings suggest that, while decentralization cannot be thought of as a miracle cure for the challenges of public sector budgeting, it has the potential to create a context for improved budgeting practices in developing nations.

Rationality and decision making in capital budgeting

Abstract Capital budgeting is a field of enquiry which has been dominated by survey research methods. Little depth has been sought by way of case studies or alternative methods which would offer contextual understanding of practice, as has been increasingly advocated by authors such as Hopwood (1983) and Scapens (1990). This paper argues that a dominant research perspective—that of rational economic decision making—has underlain this propensity to employ survey research methods, and restricted exploration of capital budgeting practice. As management accounting researchers seek change and development in their approaches to understanding practice, they must also seek alternatives to this dominant rational economics perspective. Alternative perspectives of social and political modes of decision making are proposed here as avenues to enriching observation and interpretation of practice.

The “singular view” in management case studies

Purpose – This paper aims to challenge the conventional wisdom in qualitative case study research that the findings of the case depend on the identification of common themes across the statements of multiple case informants (usually, as expressed at interview).Design/methodology/approach – This is a methodological paper that uses a published work to illustrate its arguments. It explores research on the meaning and significance of politically and culturally sensitive emergent change.Findings – The paper finds that, during such change, many respondents may not accurately discern the “direction of travel” in their organization and, hence, gathering evidence on common views may not be a productive research strategy.Research limitations/implications – It was only possible to use one illustration (politically and culturally sensitive emergent change); other scenarios where the “singular view” may be significant were, therefore, not covered.Practical implications – Ultimately, the findings of a case study may ha...

Community‐led initiatives: reforms for better accountability?

Purpose – This paper sets out to contrast the ubiquitous, globalizing influence of new public management (NPM) with an alternative approach more attuned to the local needs of communities, especially those with health and economic problems in less‐developed countries. The Ugandan Community‐led HIV/AIDS Initiative is drawn on to contrast the operation of “bottom‐up” accountability – whereby the deliverers of public services are accountable primarily to the communities they serve – with the usual expectations of an NPM model, which instead focuses on holding public sector managers accountable to their political masters.Design/methodology/approach – A hermeneutics approach is adopted to interpret evidence from: government policy documents; interactions and interviews with public sector actors at national, district and community levels; and one authors own pre‐understanding from his role with the Uganda AIDS Commission.Findings – This Ugandan illustration suggests potential benefits from importing workable as...

Strategic investment decision making: the influence of pre‐decision control mechanisms

Purpose - This paper seeks to explore how aspects of pre-decision control mechanisms impact managerial decision-making behaviour with regard to strategic investment projects. Design/methodology/approach - This study adopted a mixed-method research approach. Research evidence was collected using a questionnaire survey of 320 large UK companies and eight semi-structured follow-up interviews with financial directors who responded to the questionnaire. Findings - The study offers insights into the use and impact of pre-decision control mechanisms such as: organizational strategy and operating objectives; expectations regarding the involvement of organizational personnel; formal approval procedures; financial evaluation requirements; pre-determined hurdle rates; established authorization levels and the influence of managerial intuition. Originality/value - This study adds to prior understandings of capital investment practice by employing mixed methods to examine how pre-decision controls shape the outcomes of strategic investment decision making. Pre-decision controls have received little attention within the prior literature, which focuses primarily on project financial analysis.

Challenges in costing health care services

Recent developments in performance measurement and reporting systems in the UK National Health Service (NHS) have created new challenges in costing health care services. In particular, the introduction of the “National Reference Costing Exercise” (NRCE) has substantively changed the way in which health care cost information is reported and used. While the outputs of the NRCE are intended to support hospital management and control by facilitating cost benchmarking, the usefulness of NRCE data depends on the comparability of cost information across hospitals. This paper draws on questionnaire results to explore the challenges in standardising health care cost information, as perceived by those closest to the costing exercise. The results reveal several problems in costing practice, all of which contribute to high variability in the costs reported by hospitals. Until these problems are recognised and addressed, they present a barrier to the effective use of comparative cost data for the management of English hospitals.