The Managerial Model of Public Administration PDF

THE MANAGERIAL MODEL OF PUBLIC ADMINISTRATION An in-depth exploration of New Public Management (NPM), including its definition, evolution, and key principles. Examines the critiques and challenges of NPM and proposes future directions for public management. LM by Luca Mazzara ...

THE MANAGERIAL MODEL OF PUBLIC ADMINISTRATION An in-depth exploration of New Public Management (NPM), including its definition, evolution, and key principles. Examines the critiques and challenges of NPM and proposes future directions for public management. LM by Luca Mazzara  Definition of New Public Management (NPM) The evolution of the managerial model in public administration reflects a shift from traditional bureaucratic structures toward more flexible, efficient, and outcome-oriented systems, often inspired by private sector practices. This transformation, commonly associated with New Public Management (NPM), began in the 1980s and aimed to address the perceived inefficiencies of traditional public administration by introducing managerial principles such as: 1. Decentralization and Autonomy: Traditional public administration was characterized by centralized decision-making. The modern managerial model advocates for decentralization, giving more autonomy to agencies and departments to make decisions locally, which can improve responsiveness and adaptability. 2. Performance Measurement and Accountability: A major change in the managerial model focuses on setting specific performance targets and holding managers accountable for results. This includes establishing key performance indicators (KPIs) and regularly assessing organizational and individual performance.  Definition of New Public Management (NPM) 1. Customer Orientation: The managerial model emphasizes a "customer service" approach, treating citizens as clients who deserve high-quality service. This contrasts with the traditional approach, where citizens were “passive recipients” of services. 2. Market-Based Reforms: Public administration reforms often include introducing competition and choice, such as contracting out services to private providers or using public-private partnerships. This can reduce costs and improve service quality. 3. Innovation and Flexibility: The managerial model encourages adopting new technologies, innovative practices, and more flexible working arrangements, aiming to make public organizations more agile and capable of responding to changing societal needs. 4. Efficiency and Cost Reduction: Reducing government spending and improving cost-effectiveness are central goals. This often involves streamlining processes, reducing workforce size, and implementing budgetary constraints to ensure fiscal discipline.  New Public Management (NPM): main critical aspects While these reforms have brought improvements, they have also sparked debate. Critics argue that too much focus on efficiency and cost-cutting can undermine core public sector values like equity, transparency, and social responsibility. The evolution of the managerial model in public administration thus reflects an ongoing balancing act between adopting private-sector efficiencies and maintaining the public sector's distinct mission to serve the public good.  Definition of New Public Management (NPM) 1 Market and Business Approach NPM applies private-sector management techniques to public-sector organizations to improve efficiency and effectiveness. 2 Focus on Results NPM emphasizes outcome-oriented performance measures and accountability for public sector organizations. 3 Decentralization of Power NPM advocates for devolving decision-making power from central government authorities to lower-level institutions.  Key Principles of NPM Decentralization and Performance-based Market-based Devolution of Power Management and Techniques and Accountability Competition NPM promotes the transfer NPM focuses on measurable NPM introduces market of decision-making authority performance indicators and mechanisms into the public to local governments and results-based accountability sector to drive efficiency, autonomous agencies, for improved service delivery. innovation, and cost- enabling tailored solutions. effectiveness.  Key Ideas of New Public Management New Public Management (NPM) is characterized by streamlining and rationalization. This involves imitating behaviors typical of the private sector in order to make the public sector more business-like. The focus is on customer satisfaction, performance measurement, and cost efficiency. It promotes a results- oriented approach, emphasizes the use of market mechanisms, and encourages collaboration between public and private sectors.  Evolution and Origins of NPM NPM originated in the United Kingdom and the United States in the 1980s and 1990s as a response to traditional public administration's perceived inefficiency and bureaucracy. It draws inspiration from privatization, managerialism, and neoliberal ideology. Pilot Countries ('80s): Australia, New Zeland, United Kingdom (modest macroeconomic performance) '90s: Japan, Switzerland, Germany, Italy (increasing public domain, citizen scepticism, limited resources) Mid '90s: Central Eastern European Countries, South Africa, Asia (external forces, capacity building, corruption fights, institutional decentration)  NPM Levers of Action The NPM approach suggests using specific strategies to reform the public sector. These strategies include: measuring performance (output orientation in resource management i.e., human, financial, and phisical resources) outsourcing services (through contracting out of public services) Decentralizing decision-making and privatizing certain functions. Improvement of efficiency and effectiveness through the principle of public-private competition and the establishment of productivity objectives.  NPM in Italy (1/2) Levers Contents Limits 1) Organizational change Ministerial mergers and Formal change reorganization. Start up of new agencies and institutional authorities. 2) Market-oriented Growing competition (local Short-term perspective mechanisms healthcare authorities, rather than long-term one universities, etc.). Privatization. Outsourcing 3) Private sector technics Accrual accounting; internal Partial implementation. control systems; privatization Formal approach of public service contracts. 4) Customer orientation Carta dei servizi (social Fragmented initiatives. contract between public Formal approach organizations and citizens); URP (public relations office); CAF (tax assistance center) 5) Performance Programming and control Partial and differentiated management systems. New budgetary implementation. structure. Social reporting Document orientation and accountability. without a focus on processes.  NPM in Italy (2/2) Levers Contents Limits 6) Discipline and thrift Expenditure limits and hiring Long-term undesirable effects freeze 7) Political-administrative '90s introduction of Overregulation, partial separation programming systems with transformation of directors in higher managerial autonomy. public managers. 2000 spoils system. 2009 performance emphasis. 8) Simplification Multi-service points of single Driver EU contact, regulatory impact analysis "Analisi Impatto Regolamentazione" (AIR); Supply Chain Management. 9) E-government National plan on e- Limited broadband access; low government. service. Limited focus on the back-office rationalization  The NPM Reforms in Italy Law No. 241/90 administrative procedure and right of access Legislative Decree 286/99 internal control systems adoption of four internal control tools (executive evaluation; control of administrative and accounting regularity; management control; strategic control and evaluation) Legislative Decree 150/09 performance measurement cycle  Strengths of New Public Management New Public Management (NPM) has been praised for enhancing public organizations' efficiency, accountability, and customer satisfaction. NPM encourages innovation and cost-effective service delivery by introducing market mechanisms and performance-based management. Context before New Public Management: the traditional Public Administration Before the advent of New Public Management (NPM), traditional public administration dominated the public sector. Bureaucratic structures, hierarchy, and a focus on process characterized it. However, this approach faced criticism for its lack of efficiency and responsiveness to citizen needs. The Traditional Weberian Paradigm The traditional Public Administration model is commonly linked with the ideal-type rational bureaucracy proposed and analysed by Max Weber (1947). The traditional Weberian Paradigm emphasized the importance of bureaucracy, rationality, and hierarchical structures in public administration.  Core principles of Weber's bureaucratic model Rules-based management: the aim is to guarantee the maximum predictability of the action, with respect to the environment Legal authority: the parameter to evaluate the administrative action was legal appropriateness (compliance with the law) Specialization and expertise as the basis for action Functional specialties: fixed spheres of competence ……  Traditional Weberian Paradigm limits This model was criticized for its inflexibility and lack of responsiveness to changing needs. WHEN? Welfare State crisis Public expenditure out of control New social pact between PA and citizens  Critiques and Challenges of NPM Loss of public (democratic) value and social welfare Focus on intra-organizational relationships Focus on financial performance and command and control manner of using performance information Growing inequality and privatization of public services Lack of citizen participation and democratic accountability  Limits of Market and Business Approach for Public Organizations 1 Complexity of Public Goods Market mechanisms may not adequately address public goods' complexities and unique characteristics, such as healthcare and education. 2 Equity and Accessibility A purely business-oriented approach might lead to inequalities in access to essential services, particularly for “marginalized communities”. 3 Democratic Accountability A market-driven focus may undermine democratic processes and citizens' ability to participate in public service decision-making.  The Post-NPM: Embracing Public Governance In response to the limitations of the market and business approach, the post-NPM era emphasizes the importance of effective public governance (Osborne, 2010). This approach focuses on collaboration, citizen engagement, and the accountability of public organizations to ensure the delivery of high-quality and equitable public services. The pillars of Public Governance 1 Collaborative public solving The managerial focus is not only considered within the organization, but it becomes more externally focused, emphasizing the horizontal relationships between governmental organizations and other actors (governmental, nongovernmental, for-profit, not-for-profit, citizens). Multiple interdependent actors contribute to the delivery of public services. 2 Transparency and Trust Addressing the need for transparency, ethical practices, and citizen-centric approaches to rebuild public trust in government institutions. 3 Outcome-oriented procedures Focus on outcomes rather than merely on evidence of activity. Emphasis on the quality as well as the quantity of outcomes.  The pillars of Public Governance 1. Accountability: Ensures public officials and institutions are answerable for their actions and decisions. Accountability promotes transparency, reduces corruption, and builds public trust in government processes. 2. Transparency: Public governance requires open access to information about decision-making processes, budgets, and public policies, allowing citizens to monitor government activities and participate in democratic processes. 3. Rule of Law: This ensures that all individuals and institutions, including the government, are subject to and respect the law. It promotes justice, protects human rights, and ensures fair, impartial enforcement. 4. Participation: Engaging citizens and stakeholders in decision-making processes empowers communities, encourages democratic governance, and ensures that policies align with public needs and values.  The pillars of Public Governance 5. Equity and Inclusiveness: This pillar ensures fair treatment and equal access to services for all individuals, regardless of background, and seeks to reduce societal inequalities. 6. Effectiveness and Efficiency: Public governance aims to deliver services that maximize resource utilization while achieving desired outcomes. Efficient governance minimizes waste, optimizes budget use, and provides quality public services. 7. Responsiveness: Governments are expected to respond to the needs and demands of citizens promptly. This responsiveness increases public satisfaction and strengthens the connection between government and society. These pillars form the foundation of a strong public governance system, fostering a government that is responsive, accountable, and committed to serving the public interest.