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New public management is a part of the public administration system in which the management activities are conducted in public interest. The term ‘new public management’ was introduced in the late 20th century to counter the problems related to globalisation, worldwide contention, and automation changes in the industry. The main function of new public management is to control the financial entities and accelerate efficiency in public administration.
Different marketing tools like Total Quality Management, Operational Research Techniques, and Objective Management are used in new public management to get the maximum output from the private sector. There are many fields of public management systems like transportation, public health services, education, enforcement of law and order, etc.
Traditional Public Management
Before New public management, the traditional public management functioned in sectors. This conventional public management system had some limitations, due to which the new traditional public management was introduced. The limitations of traditional public management are listed below.
- The traditional system of public management was not that effective. Different persons were authorised for a function and kept on changing due to the change of governance. This authority change affects the efficiency of function.
- In the traditional public management system of management, the policies were made at a higher level but could not be implemented at ground level with full potential.
- For public administration, the management authority should be free to make the decisions for a better outcome. In traditional public management, they were not supposed to make the decision or make it very rarely.
- The main limitation of traditional public management was that it is led from the centre, restricting the free flow of transmission.
- Lack of motivational sources and activities for the public officers resulted in low efficiency in their work while implementing the policies.
- Traditional public management followed the same pattern or format while implementing a scheme. It did not focus on the achievement of goals.
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Beginning of New Public Management
The ending of the 20th century was the beginning of new public management. In 1991, new public management was introduced by Hood and Jackson, scholars from the United Kingdom and Australia. While working in the public administration sector, they introduced the new public management system to overcome the shortcomings of the traditional public management system and enhance efficiency.
This system resolves the many problems based on globalisation, worldwide contention and automation change in the industry in the last decade of the 20th century. New public management is the mixture of several business approaches which consist of many tools.
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Advantages of New Public Management
The new public management system was introduced to overcome the boundaries of the traditional public management system and enhance efficiency. The advantages of new public management (NPM) are listed below.
- NPM forces the new technologies to get the maximum output from a function. This system boosts the technology revolution
- In the transportation sector, the NPM system accelerates material flow in national and international markets by generating competition
- New public management focuses on customer satisfaction and serves the customer first compared to the traditional system
- Employees of this system are provided with the training and motivated and regular bases to make their working style effective
- The NPM system is goal-oriented, which improves the achievement of goals
- The NPM system provides the freedom of action to the individual, which increases the efficiency of effectiveness
Differences between the Traditional Public Administration and New Public Management
In many sectors, a new public management term is used in place of public administration. The differences between traditional and new public management are listed below.
S. No | Element of Difference | Traditional Public Management | New Public Management |
1 | Regulation | Central and single unit regulation and the uniform service delivered. | Structure of new public management is quasi autonomous unit based, which allow the individual work |
2 | Administration profile | The administration profile is not active and only focused on policy making. | Administration profile is open and fully focuses on achievement of goals. |
3 | Financial focus | The focus on financial and accounting is stable. | Financial focus in this system is oriented efficiently. |
4 | Approach | Hierarchical approach is followed. | Anti-hierarchical approach is followed. |
5 | Structure | The structure of this public administration is competitive to the private organisation. | It is a combination of public and private systems. |
6 | Roles of admin | An admin is bound to follow the policies and the structure of the rules. | An admin is focused to achieve the target and optimum output. |
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The Approach of New Public Management
To compete with the private sector at the national and international level, new public management focuses on a modern approach to management. This approach to new public management is listed below.
- Technical approach: The new public management system allows creativeness in management. It approaches implementing new ideas to achieve the targets effectively
- Optimistic approach: New public management encourages the public administration’s flexible, respective and problem-solving system
- Anti-hierarchical approach: This public management system provides freedom to individuals, making this system an anti-hierarchical system
Conclusion
New public management is the approach to use the different management techniques used in the private sector in public administration. The concept of new public management helps to run public service corporations in an economically efficient manner. The NPM system boosts product delivery and manages the financial goals.
