Showing posts with label NPM. Show all posts
Showing posts with label NPM. Show all posts

New Public Service (NPS): An innovative concept of public management

New Public Service (NPS) is an innovative concept of public management. This concept was developed by Danhardt and Danhardt in 2003 to provide public services to the citizens in a new way. This is a strong critique and alternative to the New Public Management (NPM). The main objective of new public service is to learn from the theory of democratic system rather than from the theory of the private sector. 

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New Public Management: Meaning and Concept


This concept was originally developed from the Scandinavian countries and is considered a new form of public management (NPM) and improved governance. In the study of public management, the new public service is considered as a concept that sensitively prioritizes not only facts but also values, makes the administration feel responsible and accountable towards the citizens, and characterizes administrative professionalism, creativity, discipline and people-oriented administration. This NPS criticizes the for-profit and city-oriented private sector and deepens the responsibilities and obligations of public management in a democratic manner. The importance of NPS introduced in administration / management with the objective of promoting improved public service flow is increasing day by day. In a state system with unlimited responsibilities, the NPS carries the spirit of service-friendliness, not only by serving the people, but also by making the people feel at ease. NPS makes public management action-oriented, results-oriented, people-oriented, change-oriented, accountable, participatory and exploratory. 

New public service (NPS) has not been effectively implemented in Nepal's public management. Among the policy, structural, procedural and practical dimensions in this regard, the practical dimension is very weak. It has become imperative to make the administration customer-friendly as well as participatory, transparent, accountable, change-oriented and exploratory, while some rules and regulations need to be amended and changed in a timely manner.
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Strategic Management: Meaning, Features and Significance of Strategic Management

Meaning of Strategy and Strategic Management


The word strategy derives from military administration. The term strategy refers to the tactics and tactics adopted during the war to mobilize the army. Whether they are soldiers or administrators or businessmen, the purpose of all these is to achieve the objectives of the organization. Strategy is the crucial method to prepare the organization to face the growing uncertain future. Strategy is a perfect way to achieve the goals and objectives of the organization. When the New Public Management (NPM) is introduced in the administration, strategy became associated with long-term. The main objective of New Public Management (NPM) is to achieve result. So, if there is no strategy, the organization is without direction. According to Nutt and Back Off, the strategy focuses on where the emphasis should be given. Similarly, strategic activities also focuses on the objectives by formulating plan, structure, situations, movement and the perspectives.

Initially, it was developed as strategic planning and later on strategic planning was replaced by strategic management in the 1980s.

Strategic Management refers to managing strategically. That is, the act of strategically identifying a situation and using knowledge strategically is called strategic management. Due to globalization and economic liberalization and open market environment, the use of strategic management has become more widespread to meet the challenges faced by the management of any sector.

Strategic thinking is assimilated in the method adopted for the effective management of any organization. The tactical approach adopted as a tactic to mobilize the army during the war is widely used in modern times in the management of the private and public sectors. 

According to Michael Armstrong, “Strategic management is the visionary management that is concerned with creating ideas and maintaining concepts about where the organization should go. But it is also an experience-based management that will decide how to get the organization to that point in practice. ” 

Similarly, in the words of V. P. Michael, "Strategic management is the systematic and justified management process that is adopted to achieve certain long-term objectives in a way that suits the existing and expected forces and elements."

In strategic management, there is a plan but even if there is a plan, attention should be paid to the implementation because there is a human factor. Human is a factor that influences the culture and management of an organization.

Strategic Management deals with the following topics like bringing results, new marketing, new products, new technology, etc. In this sense, strategic management is very broad. It integrates the plan with every component of the organization. It expands the future strategic format through each unit of the organization. It is not mechanical, it recognizes the central role of the individuals and groups present in the organization, it influences the culture of the organization. 

Features of Strategic Management
  • Dealing with basic queries related to the organization
  • Situation based
  • To root out the main problem
  • Predicting the impact
  • Utilization of different opportunities
  • Determining priorities
  • Realistic plans
  • Us of the best experience
  • Ensuring the availability of resources
  • Arrangement of practical management structure
  • Flexibility
  • Top management activeness
  • Collective guidance, etc.

Significance of Strategic Management
  • Long-term vision
  • Oriented towards strategic success
  • Motivated managers and employees
  • Assist towards environmental needs
  • Assist in the formulation of objective plan and its implementation
  • More effective decision making process
  • Arrangements for procedural monitoring and adjustment
  • Strategy in Public Sector

This trend is started in the early 1980s in the public sector. It was introduced in later period in the private sector. The public sector should have the following:
  • There should be a statement of overall mission and objectives.
  • There should be environmental analysis or scanning.
  • There should be an audit of the internal profile and resources of the organization.
  • Strategies should be formulated, evaluated and selected.
  • Strategic plan should be implemented and controlled.

According to the scholars Osborne and Gaebler, strategic planning is the current and future projection of an organization or community, setting and measuring goals. It should include the following:
  • Analysis of external and internal situation
  • Identification of important issues faced by the organization
  • Basic mission of the organization
  • Presentation and adjustment of basic goals of the organization
  • Creation of the future form of the organization
  • Imagine the success of the organization
  • Development of strategies for realizing vision, mission and goals
  • Development of time table for measuring strategy and evaluating results
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Meaning of Contract and Contract Out: A tool of New Public Management (NPM)

Contract refers to an agreement between two parties or more persons to create and define liability. If the contract is broken or not done as per the agreement, treatment is provided by law. Similarly, contract is an agreement between two or more parties to do or not to do something that can be implemented according to the law. 

Contract out is a tool of New Public Management (NPM). It is an important tool to reduce government expenditure and build a smarter government. Service delivery is on the rise, as the government's financial position is not good, the market is faster and simpler than the bureaucracy and it is the most attractive way to provide services and goods to the people. 

The main function of the government is to provide services to the people, not to hire unwanted employees and the contract system has become better as the market or private sector is better and faster than the government. Nepal has also been adopting contracting out system under the cost reduction system. The process is simple and easy. It has become very attractive in recent times as it gives priority to the outside rather than within the organization. 

Scope of Contracting Out
  • Tax and accounting system
  • Supply and purchase
  • Computer programming
  • Training administration
  • Customer service
  • Transportation of goods and services
  • Salary, facilities and compensation plan
  • Salary report
  • Internal security, gardener, courier, sanitation, maintenance etc. 

Benefits of Contract Out
  • Helps to reduce monopolistic power of the government.
  • Cost saving and gain working efficiency.
  • New technology can be introduced and learnt. The client also introduces new technology.
  • It makes easier to sell cheaply due to cash flow.

Challenges of Contracting Out
  • Quality cannot be maintained due to poor quality control. There may be compromise in quality.
  • Long process.
  • Can remove the strategic direction of the organization.
  • Loyalty to the organization decreases.
  • There can be two types of problems when making a monopoly contract. For example, service providers tend to reduce cost by reducing quality and become monopolistic because there is not much choice.
  • They work together, increase the cost by carteling.

Process of Contracting Out
  • The service is to be done by oneself, whether it is done jointly or from outside.
  • Choose the sector to be given.
  • Contract can be given on the based of nature and availability of service.
  • Needs and demand of services are assessed by users.
  • Agree and contract with the service provider.
  • Supply quality and quantity of goods and services according to price.
  • Government should look after Equity and technical parts.
  • There should be virtuous and non-corrupt behavior.

Necessary Content to be included in Contract Document
  • Service should be measured.
  • Specify the value of service.
  • Change in mechanism for high level needs.
  • To see the arrangement of change and mechanism of service.
  • State the mechanism in case of terminating the agreement.
  • Fix the level of results to be served.
  • Must have complete details about the service.
  • There should be flexibility according to the change.
  • Mention who and when according to contract.
  • The amendment aspect of the service standard should also be mentioned.
  • There should be a mechanism to monitor the quality of service.

Contract Management

The concept of contract management was started since 2001 and is still growing in importance. Contract management have been even made for office cleaning, gardener's work, machine maintenance and maintenance work. There is more emphasis on cost cutting than the means of serving the people.

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New Public Management : Meaning and concept (NPM)

Meaning and Concept of New Public Management (NPM)

New public management (NPM) is the managerial process in which administrative activities are led to improve the administrative ability to make the function of the government or the state as successful and significant as in the management of the private sector. In this, efforts have been made to increase administrative efficiency, effectiveness and efficiency by introducing good managerial aspects invented and developed in the private sector in public administration and to make managerial transformation. In this sense, NPM is the practice of using management principles, models and tools to make the role of the state effective and meaningful. The NPM focuses more on outcomes than on processes, on accountability rather than on irresponsibility, and on management rather than administration. At the same time, the NPM believes that the traditional shortcomings in the administration should be removed and transformed into a competitive, efficient, effective and result-oriented management. 

In fact, NPM has been conceptually developed to meet and manage the challenges posed by globalization, economic liberalization, privatization, increasing international competition and rapid changes in technology in the late 1980's and early 1990's. It encourages the adoption of the good aspects developed by the private sector in the public sector as well as helps to make public administration / management efficient, productive, effective and accountable. It is also able to achieve qualitative improvement in the flow of public services. NPM also adopts flexible, effective and useful and market-oriented policies.

NPM concept has led to a wide-ranging change in the role of government as well as following the good aspects of private sector management, emphasizing the relationship between government and civil society. Apart from NPM, it is also known as New Managerialism or Managerialism or New Taylorism, Entrepreneurial government, Market-based Public Administration etc. 

Reasons for Development of New Public Management (NPM)

1. Aggression and Criticism in the Public Sector

There are too much criticism and aggression on the size, scope and methods of government and bureaucracy in the 1980s and 1990s. At the same time, many hopes and demands were made from this system. In addition, the world's most prominent critics of the government or the public sector were the head of government. For example, Margaret Thatcher ruled the United Kingdom in 1979 and Ronald Reagan ruled the United States in 1980. They were the ones who were the most criticized for their administrative actions. The most frequently criticized topics are: 
  • The impact on the state along with the large size of the government 
  • Expansion of scope of government and its impact
  • The traditional procedures of the government and the bureaucracy. 

2. Emerging Economic Theories

Some principles were established financially. The government becomes the ultimate obstacle to national economic growth, prosperity, progress and independence. Only a limited government can work for the welfare of the people and the market system was much better than the bureaucracy. With this belief, the new public management has been directed for governance based on the famous principles related to the economic sector like Public Choice Theory and Principle Agent Theory. 

3. Globalization and Competitiveness

The rapid development in the private sector through globalization and economic liberalization have made compulsion to transform public administration into a New Public Management in terms of capacity building, making it competitive and people-oriented in the administrative sector. The public sector must be as efficient, competitive and effective as the private sector for the good economy. The efficient operation of the government sector can also make the private sector more effective. These two are interdependent with each other. Similarly, due to expansion of the functional role of the government, the development of new public management concept had taken place. 

Features of New Public Management (NPM)
  1. Fast and Quick Government: NPM replaces the large and multi-purpose bureaucracy with a fast and quick government.
  2. Achievement and Results Oriented: NPM is a management system that emphasizes achievement and results rather than process.
  3. Under NPM, a mechanism based on market economy is promoted for the flow of services or availability of goods by the public sector.
  4. Cooperation between public sector and private sector is an important feature of NPM. Emphasis is placed on the government to play a coordinating and facilitating role by making the private sector more active.
  5. There is maximum use of information technology to make the public sector management effective.
  6. The development of NPM has changed the values of public sector. It emphasizes institutional economy, efficiency and effectiveness.
  7. NPM guarantees the right of consumers to make their own choice while using goods and services.
  8. NPM ensures personal and institutional accountability.
  9. NPM provides flexibility as per the needs of public sector management. 

Limitations of New Public Management (NPM)
  • Repetition of traditional principles
  • Limitations of public choice theory
  • Problems of ethics and accountability
  • The problem of politicization
  • Difficulty in applying market principles 

Uses and Practices of New Public Management (NPM)
  • Its use varies from country to country.
  • The use of NPM is very low in Japan.
  • Partial use in China.
  • Relations between Japan and China have a hierarchy-based strong culture, whether official or personal.
  • Due to differ from policy execution, it is partially used in Australia.
  • However, the use of NPM is increasing with the modern global change. 

What should be done to align the administration of Nepal with the concept of NPM?
  • Clarify the areas of work to be done by the government.
  • Arrangements will be made to receive public services from the lower unit.
  • Make the administration small, efficient and empowered.
  • Make development programs based on program budget.
  • Control unnecessary and distribution oriented expenditure.
  • Provide ICT based online services.
  • Provide business related training to the service providers.
  • Increase the physical, technical and economic capacity institutionally.
  • Make employees to study and research new topics.
  • Effectiveness in administrative work will be increased by involving the private sector as a partner in good and achievable work.
  • Follow the best practices around the world.
  • Implement performance based incentive system.
  • Increase the participation of citizens in service delivery and development work.
  • Commercialize the bureaucracy instead of politicizing it.
  • NPM is a powerful means of connecting the government, the private sector and the general public. It is effective in providing services through it. 
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