New Public Management (NPM) Principles

Study Notes

New Public Management (NPM) refers to a paradigm shift in public sector management that emerged in the 1980s and 1990s
Aims to improve the efficiency, effectiveness, and responsiveness of public services

Decentralization: devolving decision-making authority to lower levels of government or autonomous agencies
Privatization: transferring ownership or management of public services to private sector entities
Market-oriented: introducing market-like mechanisms, such as competition and performance-based funding, to public services
Managerialism: adopting private sector management practices, such as strategic planning and performance measurement, in the public sector
Citizen-centric: focusing on meeting the needs and expectations of citizens as customers

Flatter organizational structures: reducing bureaucracy and increasing flexibility
Decentralized decision-making: empowering local managers and frontline staff
Performance measurement and accountability: using metrics and targets to track performance and hold managers accountable
Increased use of ICT: leveraging technology to improve service delivery and transparency

Improved efficiency: reducing costs and improving productivity
Enhanced customer satisfaction: improving service quality and responsiveness to citizens' needs
Increased transparency and accountability: improving trust in government and reducing corruption
Better policy outcomes: achieving policy objectives more effectively and efficiently

Inequity and exclusion: NPM reforms may exacerbate existing inequalities and exclude marginalized groups
Loss of public values: prioritizing efficiency and market principles over social equity and public interest
Insufficient evidence: lack of empirical evidence to support the effectiveness of NPM reforms
Resistance to change: cultural and institutional barriers to implementing NPM reforms

New Public Management (NPM) emerged in the 1980s and 1990s as a paradigm shift in public sector management, aiming to improve efficiency, effectiveness, and responsiveness of public services.

Decentralization involves devolving decision-making authority to lower levels of government or autonomous agencies.
Privatization transfers ownership or management of public services to private sector entities.
Market-oriented approach introduces market-like mechanisms, such as competition and performance-based funding, to public services.
Managerialism adopts private sector management practices, like strategic planning and performance measurement, in the public sector.
Citizen-centric approach focuses on meeting the needs and expectations of citizens as customers.

Flatter organizational structures reduce bureaucracy and increase flexibility.
Decentralized decision-making empowers local managers and frontline staff.
Performance measurement and accountability use metrics and targets to track performance and hold managers accountable.
Increased use of ICT improves service delivery and transparency.

Improved efficiency reduces costs and improves productivity.
Enhanced customer satisfaction improves service quality and responsiveness to citizens' needs.
Increased transparency and accountability improve trust in government and reduce corruption.
Better policy outcomes achieve policy objectives more effectively and efficiently.

NPM reforms may exacerbate existing inequalities and exclude marginalized groups.
Prioritizing efficiency and market principles may compromise social equity and public interest.
Lack of empirical evidence supports the effectiveness of NPM reforms.
Cultural and institutional barriers hinder the implementation of NPM reforms.