New Public Management (NPM) is a conceptual framework that originated in the 1980s as a solution to the perceived inefficiencies of traditional bureaucratic systems of public administration. The framework aimed to improve the effectiveness, efficiency, and responsiveness of the public sector by borrowing private sector management practices.
The NPM framework is centered around results-based management, which involves setting clear objectives and goals, measuring performance against these targets, and using this information to continuously improve operations. NPM also stresses the importance of decentralization and devolution of decision-making authority, giving managers and front-line workers more autonomy and accountability for their actions.
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Market-based mechanisms, such as contracting out services to private providers, introducing competition between public sector agencies, and charging user fees for services, are also integral to the NPM framework. These mechanisms introduce market-like incentives into the public sector and encourage greater efficiency and innovation.
Additionally, NPM emphasizes the importance of customer service and citizen engagement, with public sector organizations expected to focus on meeting the needs and preferences of citizens and involving them in the design and delivery of public services.
In essence, NPM represents a significant shift from traditional approaches to public administration, which emphasized centralized decision-making, bureaucratic procedures, and a focus on process rather than outcomes. While some have criticized NPM for its reliance on market-based mechanisms and potential negative impact on public sector values, others credit it with driving innovation and improving the efficiency and effectiveness of public services in many countries.