New Public Management
Encyclopedia : N : NE : NEW : New Public Management
New Public Management is a management philosophy used by Governments since the 1980s to modernise the Public Sector. New Public management is a broad and very complex term used to describe the wave of public sector reforms throughout the world since the 1980s. Based on public choice and managerial schools of thought new public management seeks to enhance the efficiency of the public sector and the control that government has over it. The main hypothesis in the NPM-reform wave is that more market orientation in the public sector will lead to greater cost-efficiency for governments, without having negative side effects on other objectives and considerations.
NPM, compared to other public management theories, is more oriented towards outcomes and efficiency through better management of public budget. It is considered to be achieved by applying competition, as it is known in the private sector, to organizations of public sector, emphasizing economic and leadership principles. New Public management sees citizens much like customers (another parallel with the private sector). Problems that become causes of this management school are less clarity (the need for greater inspection and supervisory) and miscalculation of public opinion, which does not always seek for mere efficiency but rather political solutions and, more or less always, for a compromise.
See also
- public management
- public administration
- public sector reform
- public services
External links
- [The New Public Management and its legacy] - World Bank summary of the NPM track record (1990)
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