NPM & Reinventing Govt.pptx..........................

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1. New Public Management ‘Steering not Rowing’ “Run government like a business” Hood and Jackson coined the term NPM From red tape to results: Creating a Government that Works better and Costs less

2. 1-New Public Management A management philosophy used by governments to modernize the public sector . A broad and very complex term used to describe the wave of public sector reforms throughout the world since the 1980s . The main hypothesis in the NPM-reform movement is that introducing market orientation in the public sector will lead to greater cost-efficiency for governments.

3. NPM from traditional public administration to public management. Key elements include various forms of decentralizing Management functions Fiscal Operations HR management increasing use of markets and competition in the provision of public services Increasing emphasis on performance , outputs and customer orientation .

4. NPM NPM- techniques and practices are drawn mainly from the private sector. NPM reforms have been driven by a combination of economic , social , political and technological factors . Countries facing economic and fiscal crises, which triggered the quest for efficiency.

5. NPM In the case of developing countries, reforms in public administration and management have been driven more by external pressures and have taken place in the context of structural adjustment programmes , include lending conditionalities and the increasing emphasis on good governance. Hood and Jackson coined the term NPM

6. NPM Features and Practices Result Oriented Govt (Mission Driven Govt.) Goal Setting Focus on results and not on conforming to procedures. It measures the performance of public agencies focussing on outcomes, not on inputs It is motivated by goals , not by rules and regulations Market-like competition - Government must promote competition among service- providers through; Out sourcing or contracting out Competition and end to monopolies Reorganizing public corporations on private best business practices. Introducing corporate governance systems Preferring market mechanisms to bureaucratic mechanisms

7. NPM… features 3. Treating public as customers and not as ‘cases’ Citizens interacting with public organizations are consumers/customers of those organizations It re- defines its clients as customers and offers them choices 4. Government should be deregulated unnecessary approvals, certificates, NOC, legal rights and franchise rights should me minimize Little bureaucratic procedures and rules 5. Decentralization It must decentralize authority and promote participative management

8. 6. The less the government the better it is. It must empower citizens by pushing control out of the bureaucracy into the community 7. Introducing public-private partnerships 8.Empowering the employees and promoting team work.

9. NPM… features 9. Introduce innovation and technology in administration 10. Financial management, improved accounting, expenditure controls-budget cuts Fiscal Governance and Fiscal Efficiency 11. Accountability for performance performance auditing or Value –for- Money Auditing Accounting Information system- country-wide 12. Democracy and enhanced citizen participation 3S: Small, Smart, and Swift Organization units

10. Analysis emphasis on performance management; HRM Reforms more devolved personnel management performance-related pay; more responsiveness to users and other customers in public services; greater decentralization of authority and responsibility from central to lower levels of government; the use of market-type mechanisms , such as internal markets, user charges, vouchers, franchising and contracting out; privatization of market-oriented public enterprises. Democracy External Reform: Capital Market System & Democratic system Internal Component: Organizational Reforms Procedural and Working Reforms HRM Reforms NPM: Internal Component & External Component

11. Bureaucracy Centralized Power concentration at higher levels Rule-bound: Decide ‘cases’ Public interest Monopolistic in operations Strict subordination and discipline Rigid Resist change and innovation- Transactional NPM Decentralized Competitive business units Follow market trends and customers preferences Customer interest Employee empowerment Performance based incentives Flexible Innovative organizations-Modern technology is used- Transformational

12. NPM -----Analysis The NPM has presented itself as an alternative to the traditional “bureaucratic” way of conducting the public’s “business.” The NPM holds that government should engage in only those activities that cannot be privatized or contracted out. Market mechanisms should be employed wherever possible so that citizens will have choices among service delivery options.

13. NPM Analysis the New Public Management suggests that public managers “steer rather than row,” That they move toward becoming monitors of policy implementation or purchasers of services rather than being directly involved in service delivery itself. In NPM, there seems theoretical commitments to such ideas as public choice theory and agency theory. In general, NPM uses economic models in the design and implementation of public policy

14. “ Those who steer the boat have far more power over its destination than those who row it.” Governments with their preoccupation with rules and hierarchical chains of command, no longer work very well.

15. NPM in Pakistan Structural Adjustment Agenda of the IFIs financial assistance was linked to a wide range of structural, financial and governance reforms. The areas covered under governance reforms were; civil service, tax administration, financial management, procurement and devolution.

16. IMF & WB-Structural Adjustment Agenda The Agenda focuses on; Macroeconomic Interventions Inflation Control Interest Rates Increase Broadening Tax Base and Tax Net through Revenue Reforms Expenditure Control Measures Admin Cost Subsidies Losses Business Cost Privatization Governance Reforms

17. CSS-23 Q7. New Public Management has been hailed as the dominant paradigm for public service (20) in the last two decades. In your opinion, how viable is NPM for developing countries taking into account the distinct and complex environment of public sector organizations in such countries? CSS-22 Compare and contrast Scientific Management with Bureaucratic Administration, and Principles of Admin. CSS-21 Q. No. 6. Discuss “Hawthorne Effects”, undertaken by George Elton Mayo in the development of Human Relations School of thought, and its subsequent implications for the administrative behavior. (20) CSS-20. Q. No. 2. Compare and Contrast the Bureaucratic Model with New Public Management ( NPM ). Do you think NPM is relevant to developing countries like Pakistan? Support your argument with key indicators. 17

18. ` CSS-18 Q. No. 8. Write a comprehensive note on any TWO of the following: (10 each) (a) Scientific Management (b) Human Relation Approach (c) Theory X and Y of Motivation CSS-2012 Q. 3. Explain the basic theme and theoretical bases of the ‘New Public Management’. What are the different mechanisms, that have used in pursuing NPM goals by the governments in different parts of the World, especially in Pak CSS-2011 Q.8. Write short notes on any FOUR of the following: (a) E-government in Pakistan (b) Judicial activism (c) F. Taylor’s “Scientific Management Theory” (d) Theory X and Theory Y (e) New Public Management Concepts. CSS-2010 Q.4. Compare and contrast the Bureaucratic Model with New Public Management (NPM). Do you think NPM has replaced the bureaucratic approach to public administration? Support your views with examples from Pakistan