New public management is a paradigm shift from the traditional model of public administration to new model of administration. Proposes need of government based organizations to operate through on an entrepreneurial business based model. It began in the in the 1980’s to 1990 and has been an advanced way of increasing efficiency and effectiveness in the public sector. Hence, the intent of the approach remains the same, despite many definition of new public management existing in our time.
History of new public management
New public management traced form the economic down time, that had taken place in United Kingdom. United Kingdom was going through depreciation and privatization at the time. Writer by the name of Hood had proposed UK government taking a new broader approach of management to help the economy. Therefore argued and proposed management to be admirative as observed in the definition of new public management. Because management involved ensuring results are delivered as expected. While on the other hand, administration only involved an ad mistering role of following instructions. Since then, UK shifted from administrative based system, that placed emphasis on the need of following rules and not delivery of results.
Hood and other socialist, stated its based on improving daily activities of public enterprises. This business model, or paradigm shift increases efficiency, effectiveness and upholds values. In America the publication of a book and report titled “Reinventing government“, led to consideration of New public management. USA Government in 1992 got advised on transforming and adopting an entrepreneurial approach by Osborn and Gaebler. They argued America needed to come up with an entrepreneurial type of government. One that focus on running these institutions effectively and not rigid to rules, regulations of bureaucracy procedures.
Traditional model of public administration
Traditional model of public administration, definition of new public management or post bureaucratic approach, mainly concentrated on need to ensure employees followed strict rules and regulations. People created institutions to help them benefit. Preventing abuse of power by administrators, inputs observed could not be measured or controlled after been implemented. Hence results and outputs, became difficult to track overtime and not easy to measure employee performance, and delivery.
Organizations running through bureaucracy, theory proposed by Max Webber a Germany socialist. Henry Fayol scientific management and Woodrow Wilson’s politics dichotomy. Internal issue’s had been discovered, despite these theories been embodied in Traditional public Administration in the first place was to provide effectiveness and efficiency. Time had come for change. Traditional model of public administration could not compete with the private sector. Therefore, important aspects of New public management t (NPM), includes building up an economic competitive based form of system. One that brings efficiency and delivery of products while maximizing the cost for organizations.
OEDC Contribution to the raise of New public management
The Organization for economic cooperation and development OEDC, based in Paris France released a publication. In this document proposed and highlighted important points to support New public Admiration. Many countries have been following through and utilizing the new public management, due to its important features. New public management emphasizes delivery of results through a number of management methods. This includes management by objective and performance measurement for understanding the outputs of workers. Combines sophisticated methods of economic approaches, aligned with modern practices of management.
Characteristics of new public management
Hood had noted New public management brought need to cut the red tape. Therefore, People got natured on valuing the work and deliver results, not working just to fulfil the tasks due to rules. This been the most common case, even for contemporary organizations today. New public management formulated structures to put customers first in the mode of business. Hence, another feature involves cutting on the cost of organizations while delivering improved services. Final feature of New public management is teaching employees improved methods to effectively and efficiently deliver expect results.
- To improve employee performance and output through adoption of an improved business model based approach. Workers learnt need to deliver expect results. Not only doing things for the sake of fulfilling rules and regulations. But get involved in the decision making and delivery.
Places great emphasis on the need for organization to operate and function like privately owned institutions. Organizations in the public sector need to deliver services. Since any market, has competition and markets run through forces of demand and supply. New public management makes it easy for public organizations to compete with private entities.
- Need of improvement on outputs. New public management process the needs of people. Any organization must deliver expected outcomes, be it a service or product based. Approaches used might vary but results must align with the short and long term gaols of the organizations.
- Measuring of delivered results: Another important characteristics of new public management is measuring of results. If employees working are placed in teams through organizational structure. Each person has an individual task to complete and deliver results.