New Public Management Overview

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Questions and Answers

New Public Management (NPM) emerged primarily in the 1970s as a response to bureaucratic inefficiencies.

False (B)

NPM emphasizes measurable outcomes over rigorous processes.

True (A)

Critics of NPM argue that it promotes ethical standards within public management.

False (B)

The Fulton Report critiqued the lack of accountability in the public services in the USA.

<p>False (B)</p> Signup and view all the answers

NPM programs are characterized by a results-oriented approach that focuses on achieving outcomes.

<p>True (A)</p> Signup and view all the answers

Management is characterized by following instructions and processes, while administration is proactive and goal-oriented.

<p>False (B)</p> Signup and view all the answers

Privatization and competition are considered market-based approaches in NPM.

<p>True (A)</p> Signup and view all the answers

The Reid Inquiry in Australia focused on reducing performance-based incentives in public management.

<p>False (B)</p> Signup and view all the answers

New Public Management (NPM) incorporates principles of flexibility and performance-based evaluation borrowed from the public sector.

<p>False (B)</p> Signup and view all the answers

One of the criticisms of NPM is that its economic principles may not apply to the complexities of public services.

<p>True (A)</p> Signup and view all the answers

The introduction of performance-based rewards for employees is a characteristic of New Public Management.

<p>True (A)</p> Signup and view all the answers

Privatization under NPM referred to as outsourcing does not involve private or voluntary sectors for public service delivery.

<p>False (B)</p> Signup and view all the answers

Public Choice Theory suggests that self-interest is a primary driver of decision-making in public services.

<p>True (A)</p> Signup and view all the answers

NPM has faced criticism for reducing accountability in public administration.

<p>True (A)</p> Signup and view all the answers

Neo-Taylorism is a term used to describe the focus of NPM on collaboration and ethics in public administration.

<p>False (B)</p> Signup and view all the answers

NPM aims to maintain ethical standards and impartiality while promoting results-oriented governance.

<p>True (A)</p> Signup and view all the answers

Breaking large departments into smaller, more specialized agencies is a reform associated with NPM.

<p>True (A)</p> Signup and view all the answers

NPM does not incorporate any traditional administrative practices in its approach to public governance.

<p>False (B)</p> Signup and view all the answers

Flashcards

New Public Management (NPM)

A modern approach emphasizing results, accountability, and flexibility in public service delivery, adapting practices from the private sector.

Results-Oriented Approach

A focus on achieving desired outcomes and measuring success based on those results, rather than simply following established processes.

Strategic Planning

The practice of setting long-term goals with clear objectives and measurable indicators for evaluating progress.

Outsourcing

The deliberate shift in service delivery, like contracting out tasks to private companies.

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Competition in Service Delivery

A system where public sector services compete with private options, fostering efficiency.

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Privatization

The process of placing government functions under private ownership.

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Management

A proactive approach that emphasizes achieving desired results, taking responsibility, and planning ahead.

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Administration

A reactive approach that follows instructions, processes, and established rules, maintaining existing systems.

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Public Choice Theory

A theory that assumes individuals act in their own self-interest, motivating them to be more efficient in a competitive environment.

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Contracting Out

A key principle of NPM, it involves using contracts and outsourcing services to private companies to improve efficiency.

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Accountability in NPM

The idea that public managers should be directly accountable to the public and need to respond to their demands.

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Performance-Based Rewards

NPM's use of performance-based rewards to motivate employees, like bonuses or promotions for exceeding expectations.

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Economic Basis Criticism of NPM

A criticism of NPM that argues using market principles doesn't always work in public services, which are often complex and politically driven.

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Private Management Derivation Criticism

A criticism of NPM arguing that it relies too much on private sector models that don't always fit public sector needs.

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Neo-Taylorism Criticism

A criticism that NPM focuses too heavily on performance measurement and control but doesn't address the broader context of public services.

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Politicization Criticism of NPM

A criticism that NPM reforms reduce political accountability and focus too much on management, leading to less transparency and less consideration of public opinion.

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Ethical Concerns about NPM

A criticism that argues NPM can weaken traditional ethical standards by prioritizing efficiency over public good.

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Study Notes

New Public Management (NPM)

  • NPM emerged in the 1980s and 1990s.
  • NPM draws on private sector practices.
  • NPM emphasizes measurable results over procedures.
  • NPM seeks managerial responsibility and flexibility.
  • NPM uses market-based approaches (outsourcing, competition).
  • Traditional bureaucracy is less efficient, motivating the emergence of NPM.

Management vs. Administration

  • Management: proactive, focuses on achieving results and planning strategically.
  • Administration: reactive, follows instructions, processes, rules.
  • Management functions include: strategy, personnel, and performance monitoring.

Origins of NPM

  • Bureaucratic inefficiency in public services spurred early reforms.
  • Reforms in the UK, USA, and Australia led to changes.
    • UK: Fulton Report (1968) criticized rigid hierarchies.
    • USA: Civil Service Reform Act (1978) introduced performance-based incentives.
    • Australia: Reid Inquiry (1982) led to structural changes.

NPM Programs

  • Strategic planning with clear objectives and measures.
  • Results-oriented approach (outcomes over procedures).
  • Financial reforms (moving from cash to accrual accounting, program/performance budgeting).
  • Flexible staffing/organizing (easier hiring/firing, smaller agencies).
  • Privatization/contracting-out of services.
  • Accountability to the public.

Theoretical Basis

  • Economics: emphasizing individual rationality, competition (public choice theory).
  • Private management principles: flexibility, performance monitoring, strategic planning.
  • Combining economic and private management principles.

Criticisms of NPM

  • Economic principles don't always apply to public services.
  • Reliance on private-sector models which don't fully fit public services.
  • Difficulty measuring performance in sectors like education/healthcare.
  • Revival of Taylor's scientific management, emphasizing measurement and control/over-controlling.
  • Blurring lines between politics and administration, less neutrality.
  • Conflicts between managerial and political accountability.
  • Ethical issues from privatization and performance-based incentives.

Conclusion

  • NPM aims for efficiency, accountability, and flexibility.
  • It mixes traditional and modern practices.
  • Despite criticisms, it persists as a standard model.
  • Future challenges include ethics, professionalism, and impartiality.

Key Takeaways

  • NPM focuses heavily on results, accountability, market reforms.
  • NPM draws heavily from private sectors but adapts.
  • NPM faces criticisms about undermining public service and ethical concerns.

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