Nmm Essay

2.1 New Public Management Theory (NPM)

The concept of new public management (NPM) has been considered as inspiring the initiation of many reforms to improve public service delivery (Poladino, 1999: 1). The fundamental nature of NPM can be described by the new trends in the public administration to shift some important insights and values from the private sector strategy to the public sector to enhance service delivery. These include efficiency, effectiveness, flexibility, responsiveness, competition, result oriented management, more explicit and measurable performance standards, more active control based on preset output indicators and answerability. However, the achievement and failure stories propose that the outcome of the implementation

Christensen and Laegreid, (2001:19) state that the concept is loose and multifaceted and offer a kind of shopping basket of various elements for reformers of public administration. Furthermore, NPM, as a reform measure, is being undertaken in many countries of North and South. However, it is not foolproof and generates some complexities in implementation. Some also have pointed out that in many countries the avowed objectives of the model are not being attained. Some of the theoretical justifications are also highly questionable (Paulos, 2001:4).

NPM is by definition a managerial initiative, which concentrates on control of subordinates to ensure effective accomplishment of objectives and increase efficiency. NPM therefore tends to bread management not necessarily in terms of numbers rather the search for more effective means of control in the name of accountability. There is increasing pressure to specify and evaluate outcomes beyond output and changing process. Furthermore, it can be argued that while the decentralisation of personnel management has reduced bureaucratic transaction in one way, it has enhanced them in another through contracts. A huge amount of time and energy is spent on procedural specifications and negotiations, statement of corporate intent and purchasing agreements compared to the preceding, more traditional administration (Gregory, 2001:

Storey (2001:5) cites various HRM writers, like Noon (1992:17) who is uncertain whether HRM is a map, which lays claims to being a diagnostic tool aimed mainly at practicing managers. As a model or theory, HRM is elevated to a position of scholarly and practical significance in terms of its analytical and predictive powers; and Keeony and Anthony say that to explain HRM is to destroy it. Bratton and Gold (2007:7) define: Human resource management (HRM) is a strategic approach to managing employment relations which emphasizes that leveraging people’s capabilities is critical to achieving competitive advantage, this being achieved through a distinctive set of integrated employment policies, program, and