One thought on “123. New Public Management Theory Unit 3

  1. 1. Summarize the suggestions of NPM for changing PA.

    Classical public administration was oriented towards rationality, specialisation & division of work, rigid hierarchical structure and centralisation. NPM brought about a new set of guidelines which changed the outlook of administration. It laid emphasis on efficiency and effectiveness. Gave importance to non-hierarchical, irrational and decentralised form of governance. NPM took into consideration the social problems and feelings of the employees and cited well being of the employees as a critical factor to deliver standard and quality services. Stressed on privatisation and outsourcing to reduce the workload on public sector. Favoured Collaboration of private-public sector and allow non-governmental organisations to operate directly in wide range of activities. Asked for more transparency in the operation of the organisations which built trust among the people. Emphasized equity in work place and asked to consider the opinions of people from all background as this would bring innovative ideas into organisation. Make organisation more equipped with technology to increase productivity. All these factors changed the outlook of traditional public administration and new PA was born.

    2.How is NPM post Wilson and post Weberian.

    Successful management of public sector with efficient production of organisation outputs is possible due to NPM. Rational behaviour is no longer a typical feature of modern organisation, but bonded rationality is still relevant. Post weberian view of public management has been people oriented than structure oriented. Social and psychological factors of people are considered than mere mechanisation. Instead of narrow specialisation and work division, the new management focuses on employee job satisfaction and more flexible structures. Division of work is considered as impractical and harmful to organisational health and productivity. There is enough evidence for this from old human relations school. Hierarchy and centralisation has been abolished and this had been well accepted in organisations. NPM adopted adaptability, flexibility and mobilisation of local initiative. Decentralisation allowed lower level operating units to interpret rules. It followed a bottom-up approach in decision making which utilized the full potential of the basic operating levels with free communication. Over all NPM in the post Wilson and post Weberian era has evolved to a stage where it can adopt to any change in circumstances, change in policies and environmental demands.

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