what is the new public management
what is the new public management

What is the new public management? Here’s the definition of New public management according to different Scholars: New public management aims to ensure there’s competitive advantage in the government sector through adoption of market based model and approach from private sector.

Encourages public sector to adopt similar techniques used by private sector to improve efficiency and effectiveness. Bureaucratic organizational principles of public sector, built on the traditional model of administration, need adjustments. New theory of management has many important characteristics and elements, which include; cutting the red tape, customer first, improved managerial evaluations and efficiency in delivery of services through targets. New Public Management was coined by major contributors of administration, from UK and Australia named Hood and Jackson in the year 1991.

Definition of New public management theory

1. NPM is a modern politically conservative initiative for government institutions to reduce on dependency on bureaucracy and adopt methods of doing business from the private sector and its management practices. 

2. New public management is an important model of governance to provide new techniques for public administrators based on models from the private sector.

3. Managerial transformation initiated globally to make changes in the management of public services from traditional to new procedures. Focuses of reducing bureaucratic structures, which have been used for the past decades to a market based system.

4. NPM theory is a paradigm approach that comes with an introduction of market like relationships in public sector to improve delivery between customers and sellers.

5. NPM is a systems of organizing public sector affairs, process and departments through market-based mechanisms of giving employees incentives and reward system to foster professionalism.

6. Public sector Management philosophy NPM focuses on improving management practices of public sector to make it more private through collective measures used by the private sector.

7. NPM is form of system that proposes accountability in the public sector while focusing on delivering results rather than processes.

8. Another definition of New public managerial, is that it refers to improved way of thinking in public management, ensures organizational changes within the state with privatization. Its important elements include privatization of companies, marketing through corporate management, SWOT analysis to measure competition, decentralization to reduce procedure, regulation of rules and reducing political control. 

9. NPM is a series of norms, ideals and beliefs initiated to change government sector into a carbon-copy similar to the private sector.

10. The NPM was based largely on a belief that the private sector was intrinsically more efficient and superior in delivery to the public sector. This argument was and still is highly contested within the academic literature.

11. NPM is known as an ideology changing public sector methods of doing business to private-sector business managerial techniques, aimed to improve performance, systems, and introduce benchmarking in the public sector. 

12. Public management doctrine is based on a market holistic model view that states, institutions should not be influenced politically. Woodrow Wilson proposed politics dichotomy, hence NPM also states organizations must operate based on markets and laws of the state. To ensure purpose of government is to provide free interaction between supply and demand between in the market system. Free interaction between organizations, public administrators providing social services such as building roads, health, food, education and their environments people expecting to enjoy its benefits.

13. Finally; NPM greatly emphasizes on efficiency and effectiveness in all public organizations, operate based on customer focus through provision of public services and build market based frameworks, conditions, which include privatization, contracting out through private public partnerships and competition.