Tuesday, August 13, 2013

Salient Features of New Public Management

New Public Management approach seeks to reform the government along the following lines:

  • Restructuring government operations along the market lines

  • Strategic policy formulation and implementation should be distinguished

  • Performance evaluation and quality improvement was emphasized

  • Customer oriented service delivery which provides "value for money"

Some of the features of NPM are as follows:

1. Reorienting the role of the government -  NPM seeks to readjust the role of the government towards providing the goods and services in the core areas only. It gives state the responsibility of primarily regulating the market rather than service delivery. Governments should "steer" i.e. facilitate and guide rather than "row" i.e. direct provider of goods and services.

2. Client oriented administration - The public organizations were sought to be client oriented rather than procedure oriented.

3. Imbibing a culture of decentralization and devolution - A culture of centralization and managerial autonomy was advocated by NPM. It believed that when decisions are made closer to the people then they will be far more effective

4. Flexibility - The bureaucratic administration is very rigid. It does not change according to the situation. It is rule bound. Administration has to be flexible to make it suitable for the local conditions.

5. Performance Improvement - The management concepts of the private sector should be introduced in the public sector also so that the governmental operations are performed efficiently and effectively with minimum utilization of the human and physical resources. Further incentives should be given to the management to innovate and to improve its performance.

6. Competition to the hallmark of the state - Wherever possible government should try to induce competition in the delivery of goods and services. Not only the private firms but also the public sector agencies should compete with each other so that the employees and management have motivation to improve their services. Privatization, contracting out and competition promotion should be done wherever possible.

7. Accountability of the public managers - Accountability of the administration should be increased through greater participation of the "customers" and a transparent administration. Regular reporting, monitoring and audit systems will also help in ensuring accountability.

8. Result oriented administration - Administration has been rule oriented traditionally. Obedience to rules is emphasized to that much extent that final result sought is forgotten. This is a big problem in administration. Public administration has to be result oriented rather than procedures oriented.

9. Large scale organizations should be re-organized into smaller ones with clear autonomy and result orientation.

10. Explicit performance standards should be set up against which the performance of public sector organizations could be measured and timely corrective action could be taken.


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