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New public management

New Public Management (NPM) is an approach to running public service organizations that is used in government and public service institutions and agencies, at both sub-national and national levels. The term was first introduced by academics in the UK and Australia to describe approaches that were developed during the 1980s as part of an effort to make the public service more "businesslike" and to improve its efficiency by using private sector management models. As with the private sector, which focuses on "customer service", NPM reforms often focused on the "...centrality of citizens who were the recipient of the services or customers to the public sector." NPM reformers experimented with using decentralized service delivery models, to give local agencies more freedom in how they delivered programs or services. In some cases, NPM reforms that used e-government consolidated a program or service to a central location to reduce costs. Some governments tried using quasi-market structures, so that the public sector would have to compete against the private sector (notably in the UK, in health care). Key themes in NPM were " control, value for money, increasing efficiency...,identifying and setting targets and continuance monitoring of performance, handing over.. power to the senior management" executives. Performance was assessed with audits, benchmarks and performance evaluations. Some NPM reforms used private sector companies to deliver what were formerly public services.

NPM advocates in some countries worked to remove "...collective agreements [in favour of]...individual rewards packages at senior levels combined with short term contracts" and introduce private sector-style corporate governance, including using a Board of Directors approach to strategic guidance for public organizations. While NPM approaches have been used in many in countries around the world, NPM is particularly associated with the most industrialized OECD nations such as the United Kingdom, Australia and the United States of America. NPM advocates focus on using approaches from in the private sector–the corporate or business world, which they can be successfully applied in the public sector and in a public administration context. NPM approaches have been used to reform the public sector, its policies and its programs. NPM advocates claim that it is a more efficient and effective means of attaining the same outcome.

New Public Management New Public Administration
Hands on approach Hierarchy and rules
Explicit standards Apolitical, non-partisan civil service
Emphasis on output control Internal regulations
Disconnection of units Equality (Equity?)
Importance of the private sector Importance of public sector
Improve timing Stability
Greater usage of money

  • Andrews, Rhys and Steven Van de Walle (2013). ″New Public Management and Citizens' Perceptions of Local Service Efficiency, Responsiveness, Equity and Effectiveness.″ Public Management Review. Retrieved March 9, 2015.
  • Daft, R., & Marcic, D. (2014). Building management skills: An action-first approach. South-Western Cengage Learning.
  • Eckerd, Adam; Heidelberg, Roy L. (YEAR). “Public Incentives, Market Motivations, and Contaminated Properties: New Public Management and Brownfield Liability Reform.” Public Administration Review. Retrieved March 10, 2015.
  • Gruening, G. (n.d.). Origin and theoretical basis of new public management. International Public Management Journal.
  • Holland, Kelley. ″Under New Management: How Office Politics and Real Politics Can Mix.″ New York Times, 8 Oct. 2006. Web. 9 March 2015.
  • Horton, Sylvia, ed. New Public Management: Its Impact on Public Servants' Identity. Bradford, 2006. ProQuest ebrary. Web. 9 March 2015.
  • Jouke de Vries.”Is New Public Management Dead” OECD, June 2013. Web. 10 March 2015.
  • Lane, Jan-Erik. New Public Management. London, 2000. ProQuest ebrary. Web. 9 March 2015.
  • Morales Casetti, M. (2014). New Public Management in Chile: Origins and Effects. Revista de Ciencia Politica, 417-438.
  • Navarra, Diego D.; Cornford, Tony. “The State and Democracy After New Public Management: Exploring Alternative Models of E-Governance.” Information Society. Vol. 28 Issue 1 (Jan/Feb2012) p37-45. 9p. 1 Chart. DOI: 10.1080/01972243.2012.632264. Web. 10 March 2015.
  • Raes, Koen.” Ethics & Accountability in a Context of Governance & New Public Management.” Vol. 7, (1998) p.197-206. 10p. 1 Chart. Web. 10 March 2015.
  • Riccucci, N. M. (2001, March). The "Old" Public Management versus the "New" Public Management: Where does Public Administration Fit in? Public Administration Review, 61(2), 172-175. Retrieved from jstor.
  • Schachter, Hindy.”New Public Management and Principals' Roles in Organizational Governance: What Can a Corporate Issue Tell us About Public Sector Management?” Public Organization Review. Vol. 14 Issue 4, (Dec 2014) p517-531. Web. 10 March 2015.
  • Smith, D. (2014). Under New Public Management: Institutional Ethnographies of Changing Front-line Work. Toronto: University of Toronto Press.
  • Vermeulen, Philippe. “Ethics & Accountability in a Context of Governance & New Public Management.” Vol. 7, (1998) p171-188. 18p. 2 Diagrams, 1 Chart. Web. 10 March 2015.
  • Williams, Helen M., Julie Rayner, and Christopher W. Allinson. ″New Public Management and Organisational Commitment in the Public Sector: Testing a Mediation Model.″ International Journal of Human Resource Management 23.13 (2012): 2615-2629. EBSCOhost. Web. 9 March 2015.


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