Tensions Arising from Imposing NPM in Australian Public Universities: A Management Perspective

• Published date: 01 May 2015
• Author: Philomena Leung,Joe Christopher
• DOI: http://doi.org/10.1111/faam.12053
• Date: 01 May 2015

Financial Accountability & Management, 31(2), May 2015, 0267-4424

Tensions Arising from Imposing

NPM in Australian Public

Universities: A Management

Perspective

JOE CHRISTOPHER AND PHILOMENA LEUNG∗

Abstract: This study seeks to identify the characteristics causing tensions in the

move towards a corporate culture in Australian public universities. The findings

reveal ongoing structural, competency and behavioral issues contributing to the

tensions. Two theoretical propositions have emerged regarding the status of the

change process. First, the change to a corporate culture is slow but continuing.

Second, universities have accepted that public sector, collegial and corporate cultures

have to co-exist, thus adopting an adapted version of new public management

(NPM). These findings provide avenues for further research to confirm both the

characteristics and theoretical propositions.

Keywords: Australian public universities, managerialism, corporate culture, change

process

INTRODUCTION

In Australia, New Public Management (NPM) has been a driving force in

the management approach of public universities since the 1980s (Parker,

2011 and 2012). An important feature of this approach is the adoption of

corporate business concepts and processes to facilitate more accountability and

responsibility in university management (Goedegebuure and Hayden, 2007;

Harman and Treadgold, 2007; Lapsley, 2008; Meek, 2002; and Parker, 2011

and 2012). The concept of accountability and responsibility in this context

∗The authors are respectively from Curtin University, Australia and Macquarie University,

Australia. They wish to thank two anonymous reviewers for their valuable comments toward

the development of this paper.

Address for correspondence: Dr Joe Christopher, Senior Lecturer, School of Accounting,

Curtin University, Bldg 407, Kent Road, Bentley 6102, Western Australia.

e-mail: Joe.Christopher@cbs.curtin.edu.au

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172 CHRISTOPHER AND LEUNG

refers to more openness and transparency in university management with the

aim of achieving efficient and effective operations using corporate business

concepts and processes, which generally involve performance measurement,

monitoring, and audit systems; an emphasis on output controls; a shift towards

decentralization; greater competition; more empowerment; and the use of the

corporate sector management style (Hood, 1991; and Andresani and Ferlie,

2006). The practice of these collective business concepts and processes within

the university environment constitutes the corporate culture.

However, many studies have identified that universities are often slow to

respond to the change to a corporate culture (e.g., Adcroft and Willis, 2005;

Alexander, 2007; Barnett, 2011; Ferlieet et al., 2008; Kezar, 2005; Rebora and

Turri, 2010; and Temple, 2005). Broad references have been made to tensions

between the inherent culture and the corporate culture as the main reason

for this slow response to change. The inherent culture in this context refers

to aspects of a combination of old public sector management and collegial

managerialism. Old public sector management is broadly characterized by self-

management that has implicit standards and qualitative performance indicators,

and it focuses on inputs and process-driven information (ter Bogt and Scapens,

2012; and ter Bog, 2008). Collegial managerialism is characterized by decision-

making shared by equals; internally regulated teaching; research regarded as a

private activity; academics having autonomy, low teaching loads; and resources

(in terms of support through funding and time allocation) for research (Deem,

2004).

While prior studies refer to these tensions in general, there is considerable

uncertainty regarding the full range of characteristics that currently cause or

facilitate these tensions in the Australian public university sector. This study

aims to address this knowledge gap. Thus, the research question is: What are

the various characteristics of the inherent management culture that have a negative effect on

the adoption of corporate business management concepts and processes? In doing so, the

study seeks to respond to a broader call for more research into the adoption

of corporate models in the public sector by Brennan and Solomon (2008) and

Broadbent and Guthrie (2008).

The study is significant because it provides a framework of the characteristics

from a management perspective so university management can address them

and facilitate the change process. In identifying the characteristics, the study also

critically reflects on and discusses the problems that the adoption of corporate

business systems and processes might pose, which is undoubtedly a reason for

the tensions. Some of these reasons may well challenge the appropriateness

of the corporate culture for a university environment (Christopher, 2012a and

2012b; and Tremblay, 2012).

The rest of the paper is arranged as follows. It begins with the theoretical

background, which is followed by a discussion of the research methodology and

an outline of the results of the study. After a discussion of the findings, the paper

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