New Public Management (NPM)
New Public Management (NPM) is a management philosophy and approach that seeks to improve the efficiency and effectiveness of public sector organizations through the application of private sector management techniques and practices. NPM emerged in the 1980s as a response to criticisms of traditional public administration and the need for public sector organizations to adapt to changing political and economic environments.
The main principles of NPM include a focus on results and outcomes, performance measurement and evaluation, decentralization and devolution of authority, market-based approaches to service delivery, and increased accountability and transparency. The goal of NPM is to create more efficient, effective, and responsive public sector organizations that are better able to meet the needs of citizens and stakeholders.
The importance of NPM lies in its ability to provide a framework for improving the performance of public sector organizations, which can lead to better services for citizens, increased transparency and accountability, and more efficient use of public resources.
The history of NPM can be traced back to the 1980s, when a number of governments around the world began to experiment with new approaches to public sector management in response to changing economic and political conditions. Today, NPM has become a widely accepted approach to public sector management, with many governments and organizations around the world adopting its principles and practices.
Examples of situations where NPM is involved include the implementation of performance-based budgeting and management systems, the use of public-private partnerships to deliver services, the decentralization of government services and functions, and the implementation of results-based management systems.
Overall, NPM is an important approach to public sector management that seeks to improve the efficiency and effectiveness of public sector organizations through the application of private sector management techniques and practices. By adopting the principles of NPM, public sector organizations can improve their performance, better meet the needs of citizens, and create more accountable and transparent systems of governance.