The paper "The New Public Management & Its Legacy" is an outstanding example of a management case study. The case introduces New Public Management as a means that encourages the performance of certain tasks. It also improves efficiency and is responsive to political policies. NPM originated from various democracies organized by the Parliament and at this time there were strong executive powers introduced. According to Allen (1999), the new management was also a culture that involved centralized governments with less administrative law. The interest of the party was to get the thing done in a more organized manner.
This would be achieved by combining various contracts which would result in one policy that emphasizes efficiency. The policy formed would be important since it was based on ministerial principal. One of the many NPM principles included the provision of several agencies which would deliver services to many. This delivery service would also be semi-autonomous therefore worked with its own authority. Other principles included the provision of goods and services of good quality which would be achieved through efficient management of products. NPM then created more agencies in various countries such as UK, Australia, and France etc.
These executive agencies specialized on the provision of quality goods as the core value. Policymaking was more focused due to the existing service providers. If the policymaking process would be linked to purchasing then more opportunities would be created which would then provide performance incentives. NPM has won in various categories one was in the early 1990s where it emerged as public management which can be achieved at all seasons. This was due to its distinctive aspects which acted as truth in public management.
Though NPM left a mark in various management programs, it was not predominant in the developing countries. This is because most developing countries are still linked to hierarchical bureaucracies. Some of the sectors that developed through this management include water and health sectors. These ministerial have quite developed since the introduction of NPM. However, sectors performed by vertically integrated bureaucracies which functions are not as much. NPM’ s role of adjusting economies worked since some effects have been discovered for example efficiency and equity improved in countries such as South Asia and South Africa. Identification of key problems The problems achieved through the introduction of the culture are that the issues raised outweigh the benefits achieved.
One issue is that the introduction of the system incurred much transaction costs than the benefits. These costs included the formation of reforms meant to change delivery agencies. The other issue raised was that accountability was reduced especially in reforms that separated purchasers and service providers. This is because purchasers needed to see the value of the money spent on the provision of goods and services.
Another issue experienced by NPM was self-governing process practised by its service providers. Some of the issues raised against autonomy showed that the system was meant to reduce closure and therefore was not meant for efficiency improvement. Cases of inefficiencies were experienced in the agricultural research organizations found in countries in Africa, Asia and others in Latin America. These problems were said to have developed due to the governing of NPM. Autonomy made the management of these organizations misuse resources since they set up their own policies.
The reason why NPM culture has been so modest in developing countries is because of the many operating public service providers. These service providers follow policies stipulated by the government and therefore there is few or no government intervention in case of disputes. This, therefore, makes NPM services appear weak thus need for support from the public. The supporters, however, expect better results for government performance. The other reason is that NPM considers public service culture as very important and should be maintained.
Allen, R. (1999). New Public Management: Pitfalls for central and Eastern Europe. Public Management Forum. 1(4), 56-89.
Aucoin, P. (1996). Operational agencies: From half-hearted efforts to full-fledged government reform. Institute for Research on Public Policy, 2(4), 23-78.