New Public Management Reforms in the Delivery of Pulic Service

NEW PUBLIC MANAGEMENT REFORMS IN

THE DELIVERY OF SERVICES

Edwin Badu Rawlings Gbargaye

Facilitator

1st Semester 2010

Pangasinan State University

Prof. Jo B. Bitonio, DPA

NEW PUBLIC MANAGEMENT

Management culture that emphasizes the centrality of the citizens as customer, as well as accountable for results.

It suggest structural or organizational choices that promote decentralized control through a wide variety of alternative service delivery mechanisms.

Reorganizing public sector bodies to bring management, reporting and accounting approaches closer to business methods.

Reinforces organization and procedures of the

public sector for more competitiveness and

efficiency in resource use and service delivery.

Addresses centralized bureaucracies, waste

and inefficiency in resource use, inadequate

mechanisms of accountability.



1980’s: A "Paradigm Shift” from Public Administration to Public Management

Apparent move away from what is seen as a traditional, progressive-era set of doctrines of good administration emphasizing orderly hierarchies, depoliticized bureaucracies, and the elimination of duplication or overlap, and toward what has been described as the ‘New Public Management’ (Hood, 1996)

BASIC DOCTRINES OF NPM

1.Hands-on professional management of public

organization (managers at the top are free to manage by

use of discretionary power)

2.Explicit Standards and measures of

performance (goals & targets defined and measurable as

indicators of success)

3.Greater emphasis on output controls (resource

allocation and rewards are linked to performance)

4. Shift to disaggregation of units in the Public Sector (disaggregate public sector into corporatized units of activity, organized by products, with devolved budgets; unit deal at arm’s length with each other)

5. Shift to greater competition in the public sector (move to term contracts and public tendering procedures; introduction of market disciplines in public sector)


6. Stress on Private –sector styles of

management practice (move away from traditional

public service ethic to more flexible pay, hiring, rules, etc.)

7. Stress on greater discipline and economy in

public sector resource use (cutting direct costs,

raising labor discipline, limiting compliance costs to business)


ORIGINS OF NEW PUBLIC MANAGEMENT

NPM as a marriage of 2 different streams of

ideas built on post WWII Development of public

choice, transaction theory and principal agent

theory.

Generated a set of administrative reform

doctrines built on contestability, user choice,

transparency and incentive structures

BUSINESS TYPE MANAGERIALISM

In the tradition of international scientific

management movement

Generated administrative reform doctrines

based on “ requiring discretionary power” to

achieve results and better performance

through the development of appropriate

cultures and active measurement and

adjustments of organizational output.

NPM AND PHILIPPINE BUREAUCRACY

Re-engineering the Bureaucracy for Better

Governance: Principles and Parameters

Private sector was first to re-engineer, as the

sector is most affected by globalization and

heightened competition. Nations has to adjust

to the forces dominant in globalization.

Re-engineering affirms as the “new paradigm

of governance”.

CENTRAL THEMES

Government’s main responsibilities

Government’s relationship with the private

sector

Government intervention and regulation

Provision of public goods

Distribution of public goods

Administrative structural framework

ARCHITECTS OF RE-ENGINEERING

Term coined by Michael Hammer in 1990 in an

article in the Harvard Business Review

A management approach also known as

Business Process Reengineering, for improving

performance, effectiveness and efficiency of

organization regardless of the sector in which

they operate.

According to Hammer and Champy, RE is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance 9cost, quality, service, speed)

Provides the potential of delivering better additional services at less than the cost of the old ways of doing business

ARCHITECTS OF RE-ENGINEERING

REENGINEERING AND REINVENTING

Closely related to reinventing government spearheaded by David Osborne and Ted Gaebler and Vice President Al Gore in the National Performance Review.

Reinventing government or the entrepreneurial government is characterized by a competitive spirit, empowerment of citizens and employees and performance measurement, customer oriented.

Re-forge how agencies were organized, decide

what they need to do and design the best

structure to do it.

Focus on how work is done, re-examining

program and processes; abandoning the

obsolete and eliminating duplication;

embracing advanced technologies to cut costs.


Re-inventing government is a quest to do away

with antiquated work rules and regulations that

govern government processes to replace them

with new and better ones.

Radical changes in the way government

delivers its services.

Incremental nature of government policy

making.


NEW APPROACHES IN PUBLIC SERVICE

DELIVERY

In the past government organizations have paid

little attention to service quality or

responsiveness to clients.

NPM emphasized the partnerships among

government, private sector and civil society.

Governments have become more conscious of

the need to address service quality.

INTERNAL COMPETITION

Competition seems to be the watchword in the

development of new models of coordinating

services.

External market competition:

- Many competing providers (local government,

voluntary, profit making entity, etc)

- Performance comparisons

- Performance indicators

PUBLIC SERVICE DELIVERY APPROACH

E-government

E-governance

E-participation

E-commerce

ICTs

CHANGING ROLE OF THE PUBLIC SECTOR

The growing demand of citizens is a shared

phenomenon for government to take on a new

method of doing business with its citizens

Population has increased and has become well-

educated and well informed about the duties of

government.

Fiscal pressures on government in recent

decades.

NPM has a great impact on many countries,

developed and developing.

Complementing Marketization and

managerialism

CHANGING ROLE OF THE PUBLIC SECTOR

CONCLUSION

As bureaucracies experience what may be described as a severe paradigm crisis in coping with change and in managing their affairs, the public sector is faced with hostile environments, alienated publics, scarce resources and low levels of credibility.

Reengineering and the current management philosophies, principles and prescriptions are alternatives to cope with these challenges.

THANK

YOU

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New Public Management Reforms in the Delivery of Pulic Service