The Implementation, Application and Meeting the Challenges of Activity Based Cost Management (ABCM) Through Managing Change and Managing Project in the Local Government in South Africa

Abstract

Modern government throughout the world face the same basic set of management challenges; to improve effectiveness by emphasizing outputs over inputs; to improve efficiency by managing costs, and to improve accountability by tying budget to performance. This increased emphasis on measurement has government executives struggling to adapt to business management framework to public sector. The purpose of this paper is 1) to investigate and identify the level of ABC implementation of in the public service organisation in South Africa; 2) to determine if ABC can be a valuable tool to understand costs and provide more accurate costs of services in a public service organisation in South Africa; 3) to determine and implement the process improvements strategies in the public service organisation in South Africa, and 4) to establish the relationship between ABC, managing change and managing project in public service organisation in South Africa. The results achieved indicate that both managing change and managing projects have a significant role to play during the implementation of ABC in the public service organization in South Africa.