Before the 1980s ended, public administration has become a more businesslike system now known as new public management (NPM). Because of its development, characteristics such as output, budgeting, competition, commercialization, and privatization receive more attention than the exclusive elements of specific public service. Though many question the integrity of NPM, it has actually provided numerous benefits for many countries worldwide.
Benefits of new public management
NPM is based upon the following convictions: that economics should be prioritized, that private management methods are useful, and that there is a desire to decrease bureaucracy. This is based on a government that has a stable labor market and gives importance to changes driven by customers. Hence, these reasons are believed to be enough in making the resource allocation more effective.
There are experts defining NPM as a huge modification from administration and specialized bureaucracy to a better market-based and managerial approach. As governments moved from the supervision of policies to focus more on the management of these policies, it is clearly shown that NPM is the effort to implement ideas from the private sector and businesses to public services. NPM aims to attain the three E’s: efficiency, effectiveness, and economy.
Disadvantages of new public management
In some countries, there are dominant limitations that apply to a number of NPM elements. This is generally caused by the lack of experience in NPM, which then implies that there are institutional issues and other related problems. Their limitations may be a result of several binding constraints on NPM implementation. Additionally, many doubt the ability of NPM to manage contracts, develop systems for monitoring and reporting, and constraints in capacity because of complex governance and institutional settings.
New public management Longevity
Some authors and critics say that NPM has already reached its peak and is losing its impact. There are even some that proclaim it is dead. These critics strongly believe that NPM should make way for digital-era governance, which focuses on reintegrating issues on government control and the exploitation of web and communication. Nevertheless, this is a challenge for NPM to give more focus on citizenship and the role of various public agencies.
The “Old” Public Management vs. new public management
Public administration refers to the execution of the government activities that deal with the performance of regulations, decisions, and laws. The philosophy is then modernized by new public management. This is to obtain more market focus in the public sector to achieve cost-efficient services from government. Though new public management may not have led to excellent results, its similar methods with the private sector make it an easy approach for adjustment.