Abstract
The emergence of New Public Management (NPM) phenomenon creates a new discourse that attracts the attention of human resource management experts around the world, especially in Indonesia. To address this issue, this study tries to focus on how the performance of local government employees is influenced by several factors; namely, intelligence, leadership, quality of human resources, and NPM itself. The population of this study is government employees in the city of Makassar, Indonesia, and given the huge number, the sampling technique uses purposive sampling. The amount determined referred to the variance-based (or Partial Least Square) Structural Equation Analysis tool and obtained by 100 local government employees. Primary data collected through a questionnaire is processed with the assistant of Smart PLS. The results show that intelligence, leadership, and HR quality had positive and significant effects on NPM. The direct relationship also indicates the significance of constructs on performance, except intelligence, which directly has no significant impact on the performance of government employees. The NPM variable also significantly mediates the indirect effect between variables. This research is expected to enrich the treasury of knowledge in the field of human resource studies, and strategies for implementing the concept of NPM in the government environment. Keywords: Intelligence, Leadership, Human Resource Quality, NPM, Performance, Government Employee
Highlights
New Public Management (NPM), introduced by Hood (1991), is a modern management approach that emerged in Europe in the early 1990s as a reaction to traditional public administration, which is considered inefficient, unproductive, and less innovative (Hood, 1991; Hughess, 1994)
Discriminant validity calculation is measured by cross loading with the criterion that if the loading value of an item in a corresponding variable is higher than the value of loading an item in another variable, the item is declared valid in measuring the corresponding variable
Based on cross loading measurements (Table 1), all items that measure the variables of intelligence, leadership, HR quality, NPM, and performance produce a loading value that are greater than the value of loading on other variables
Summary
New Public Management (NPM), introduced by Hood (1991), is a modern management approach that emerged in Europe in the early 1990s as a reaction to traditional public administration, which is considered inefficient, unproductive, and less innovative (Hood, 1991; Hughess, 1994). The need for changes in public sector management is the demands of the wider community who want the public sector to produce quality products by applying the concept of general management oriented to public services. According to Indrawati (2016), New Public Management (NPM) is an appropriate concept to apply, because it focuses on performance-oriented public sector management (public services), bureaucratization, results-based accountability, solving public bureaucracy into work units, pruning costs and efficiency, and the freedom of managers to manage organizations in fair competition and better direction. The leaders of government agencies must be optimal in applying the concept so that it can improve the performance of public services (Hyndman & Liguori, 2016). Bureaucracy becomes an obstacle in service to the community, which gives birth to a negative image of administration, including low productivity, poor public services provided, low responsiveness and responsibility, and little bureaucratic accountability
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