New public management, past, present and future

This literature reappraisal uses the work of Ferlie, Pollitt, Hood, Kolthoff, Huberts and Heuvel, Dunleavy, Margetts, Bastow and Tinkler, Jones and Lynn to critically measure New Public Management. It examines the most common theories and hypotheses, the methodologiacal jobs with any resaerch conducted on NPM and the successes and unintended jobs assosiated with NPM. I will besides be looking at whether NPM is expected to stop or germinate and the theories associating to this.

“ ” There is no clear or agreed upon definition of what New Public Management really is ” – Ferlie et Al. ( 1996 )

This citation by Ferlie et Al. in the 1996 book ‘The public direction in action ‘ suggests that there non much consensus of the definition of new public direction. This deficiency of clear definition has led to disagreement over what New Public Management is and what it should be. It has been agreed that the wide definition is that it is a tool which the authorities usage to command the populace sector nevertheless there is a distinguishable deficiency of understanding when it comes to a more specific definition. One cardinal definition by Pollitt ( 1993 ) suggests that New Public Management is based on managerial factors such as increasing effieciency, doing labour more productive with the usage of marks and leting directors to pull off expeditiously, this is clearly a Tayloristic attack and it is based mostly on rules found to be the instance in technology and applied to the populace sector. I found that Hoods ( 1991 ) definition is more comprehensive, he states that there are 7 elements that make up New Public Management. These are: “ hands-on professional direction in the populace sector, expressed criterions and steps of public presentation, greater accent on end product controls, displacement to disaggregating of units in the populace sector, displacement to greater competition in public sector, emphasis on private sector manners of direction pattern and emphasis on greater subject and parsimoniousness in resource usage ” This definition besides includes the thought of marketisation and the “ primacy of market-based coordination. ” Kolthoff, Huberts and Heuvel ( 2006 ) . I think this is one of the best definitions of NPM as it encorporates all of the cardinal constituents and is much more elaborate than Pollitts.

One of the jobs with measuring New Public Management both in the past and in the presently is that as the methodological analysiss that research workers use to measure the alterations are basically flawed. One of the grounds this is the instance is that the period in which NPM is being evaluated, other political and environmental alterations can happen and the research worker will non cognize if it is NPM or the factors that can be attributed to the alteration ( Pollitt 1995 ) . Besides there is a job in what to compare the alterations to, it is non practical to compare the pre-NPM and post- NPM after 5 old ages as the system that was in topographic point before NPM would doubtless changed, and it is unknown whether for the better or the worse. Another job that exists with research done on NPM is the fact that most of the research that has been done has non been independent and taken into history a multi faceted attack. NPM is such a wide subject to research and it would be impossible to research every angle and measure it to the full. ( Pollitt 2000 ) If research has been commissioned by, for illustration, the authorities, they may merely committee the research workers to look at a specific country of NPM which is relavent to them, this may present prejudices and may disregard of import issues as it is in the authorities ‘s involvement for New Public Management to be labeled a success, so this may impact the type of information that is reported and therefore how much we can generalise from it.

When looking at the yesteryear, there are a scope of documents about the unwanted side affects that are associated with New Public Management. Such as altering employees motives because of the over concentration on quantifiable end products. This has occurred due to outputs being assessed, for illustration: lowering waiting lists in the NHS, and will impact renumaration for those on a public presentation based contract. Agency Theory suggests that the stakeholder, in this instance the authorities and the agent for illustration a director in the NHS will hold the non hold the same ends. Agency theory suggests that the agent in this instance would move in their ain ego and go entirely focused on run intoing the marks set out in their public presentation based contract compared to their other, no less of import responsibilities, that are non quantifiable and are non measured and do n’t hold a mark set for them. This in bend has weakened the public service ethos. This shows that New Public Management is non a complete success. It s besides of import to foreground that the populace sector is really different to the private sector and non all of the thoughts that work for the private sector can be applied successfully in the populace sector. Boston ( 1996 ) identified these differences in the two sectors and concluded that the NPM ignores these differences so has restrictions in pertinence. However there is research by Euske ( 2003 ) that shows that although the public, private, and not-for-profit sectors are basically different in many ways, they have many similarities. The similarities present the opportunity to larn from each other and this is what NPM has done, it has taken thoughts from the private sector and used them in the populace sector. Hood and Peters ( 2004 ) province that: “ NPM reformists often made much of chastising “ one-size-fits-all ” signifiers of beaurocrasy, but NPM reforms frequently adopted exactly that attack in pattern ” this shows that while the NPM is trying to alter the beurocratic nature of the old public sector disposal, nevertheless NPM itself is beaurocratic and therefore it is contradictory.

NPM can nevertheless be considered a success despite these disadvantages due to the cost economy advantages and increased efficiency of the workers, because of the very nature of the NPM there are quantifiable consequences to mensurate how efficient and productive staff in the populace sector which can assist mnagers advance and honor their most productive and efficient staff, although it is of import that directors take into history an over all position of the member of staff because of the troubles I discussed earlier.

While comprehensive reform is still the program for states such as Italy, other states such as Austrailia and New Zealand seem to hold turned away from New Public Management and towards critical appraisal of the effects and effects of alteration both within authorities and administration systems and for the populace and the economic system. ( Dunleavy, Margetts, Bastow and Tinkler 2005 ) . This paper entitled ‘New Public Management Is Dead-Long Live Digital-Era Governance ‘ suggests the New Public Management reform has already been replaced by ‘digital-era administration ‘ which is a more holistic attack which is ‘needs orientated ‘ and the evolving usage of IT in disposal procedures and determinations. However it can be argued that the ‘digital-era administration ‘ that they suggest has replaced New Public Management in itself has jobs and is non a comprehensive solution.

However even though New Public Management could be considered unpopular in states such as the UK and New Zealand and other EU Countries, cardinal New Public Management thoughts such as public presentation indexs and marks are still in topographic point, it hence could be argued the New Public Management will germinate as appose to go nonextant which Jones ( 2001 ) suggests as a possible result. However there is the statement that the hereafter of New Public Management uncertain, some argue that it is ‘dead or deceasing ‘ ( Jones 2001 ) . Hood ( 1991 ) states that ‘there are plentifulness of academic precidents in public disposal for an analyital position to decease in in in-between age merely as it promises to go interesting ‘ . He besides stated his belif that NPM would non be about in the following 20 old ages. However it is of import to indicate out that this was written in 1991 so this beginning was written 18 old ages ago, nevertheless it should non be discounted strictly because of its age and it still could hold deductions for the hereafter of NPM over the following few old ages. It surely non the lone beginning that predicts this destiny for New Public Management, Lynns 1998 paper besides suggests this. Pollitt besides argues that ‘that the underpinnings of the NPM ‘s repute are really rather delicate ‘ this supports the theory that NPM is non traveling to go on indefinitely

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