NPM reforms; Delivery of public service

1. 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

2. 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.

3. NEW PUBLIC MANAGEMENT
 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.

4. NEW PUBLIC MANAGEMENT
 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)

5. 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)

6. BASIC DOCTRINES OF NPM
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)

7. BASIC DOCTRINES OF NPM
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)

8. 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

9. 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.

10. 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”.

11. 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

12. 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.

13. ARCHITECTS OF RE-ENGINEERING
 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

14. 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.

15. REENGINEERING AND REINVENTING
 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.

16. REENGINEERING AND REINVENTING
 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.

17. 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.

18. 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

19. PUBLIC SERVICE DELIVERY APPROACH
 E-government
 E-governance
 E-participation
 E-commerce
 ICTs

20. 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.

21. CHANGING ROLE OF THE PUBLIC SECTOR
 NPM has a great impact on many countries,
developed and developing.
 Complementing Marketization and
managerialism

22. 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.

23. THANK
YOU