Disadvantages Of New Public Management

Introduction

This essay describes the advantages and characteristics of the concept of New Public Management and gives an insight of the development of behavioral science and their link with New Public Management (S & K, 2010). It will discuss how is Hood describe the concept of NPM and his doctrinal, and how much that impact the public sector management of today. Furthermore this essay will explain if the hood’s concept still working in Scotland.

History of New Public Management

The movement of New Public Management (NPM) started in the late 70s and 80s as a result of the crisis within the NHS. The concept of NPM evolved in the United Kingdom under the Prime Minister Margaret Thatcher and in the Municipal Government of the United States.

The New Public Management has seven elements, such as Hands on Professional Management, Explicit Standards, and Measure of Performance, Output Controls, a shift to disaggregation, a stress on private sector style of Management, a shift to greater competition, and discipline and parsimony in the resource use (Dunleavy, et al., 2006).

The United States played a crucial role in the development of New Public Management and the term was also coined in the United States itself (Hansen, 2008). NPM was not limited to the United Kingdom but also reflected the public sector changes that were happening in all over the world.

New Public Management reforms include the introduction of the market mechanism, increase in public efficiency, the introduction of performance management etc. (Fatemi & Behmanesh, 2012).

With the great success of the concept of New Public Management, other countries also showed interest in using this concept. It became the pyramid to improve the public modernization. Despite this, so many characteristic terms still lack somewhere in conceptual clarity. It was used originally in the private sector in New Zealand, United Kingdom, and Australia to increase the effectiveness and

It was believed that the government was not able to achieve their objective on its own by using their mechanism. The reforms and principles of Public Management helped the government in achieving their objective. It worked for the public and also improved efficiency and effectiveness in the market at the lower cost (Ferlie, 1996).

Characteristics of New Public Management

New Public Management is a theoretical concept that runs on two elements -Managerialism and Public Choice Theory but overall the main component of New Public Management concept is Performance Management. It has become the key principle for politicians, the private sector, and the public sector managers as well (Ferlie, n.d.).

With the support from other agencies from all over the world, it became the paradigm in Public Management but the concept has always failed in the developed countries. New Public Management was accepted as the Golden Standard for administrative reforms.

The disrepute of Government by the citizens became the main reason to adopt the concept of New Public Management (Larbi, 1999).

Performance