Download - Npm Report Final
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New Public
ManagementPresented by:
Ethel N. MendiolaUlysses Quinton
Dada Villanueva
PA 201 Class, UP-NCPAG
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Presentation Outline
I. What is NPM?
II. Emergence of NPMIII. NPM: Steering not rowing
IV. NPM in the Philippines
V. NPM and Governance
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I. DEFINITION OF NPM
A new paradigm that has emerged aimed at fostering aperformance-oriented culture in a less centralized public
sector (OECD, 1995) characterized by: A closer focus onresults; REPLACEMENT OF HIGHLY CENTRALIZED,HIERARCHICAL STRUCTURE BY DECENTRALIZEDMANAGEMENT WHERE DECISIONS AND SERVICEDELIVERY ARE MADE CLOSER TO THE POINTS OF
DELIVERY { DECENTRALIZATION AND DEVOLUTION};DEVELOPING COMPETITION (to improve quality ofservice and delivery) CHRISTOPHER HOOD
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I. DEFINITION OF NPM
MANAGERIALISM (Christopher Pollitt) public
administrators are called managers
POST-BUREAUCRATIC PARADIGM (Michael
Barzeley) move away from traditional brcxy
REINVENTING GOVERNMENT (Osborne and
Gaebler) entrepreneural govt
REENGINEERING - Hammer and Champy
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PUBLIC PRIVATE PARTNERSHIP (Wolfgang
Meyer) OR MARKET-BASED PUBLIC
ADMINISTR
ATION (Lan and Rosenbloom )
>Commercialization
>Privatization
>Contracting-Out
>Build-Operate-Arrangement
I. DEFINITION OF NPM
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Various definitions of NPM have some points in
common:
>major shift from traditional PA = results & personal
responsibility>moving away from classic bureaucracy = flexibility
>more systematic evaluation of programs
>more on steering than rowing
>commercialization of governmentfunctions
>value for money and cost-effectiveness
I. DEFINITION OF NPM
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II. EMERGENCE OF NPM
WHERE ORIGINATED?
WHEN ORIGINATED?
WHY SHIFT FROM TRADITIONAL PA
TO NPM?
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II. EMERGENCE OF NPM
Started in 1970s in UK under Thatcher
government
Also practiced in The Netherlands,France, Germany, Switzerland and Spain,
among others in the 1980s
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II. EMERGENCE OF NPM
Reasons for shifting to NPM: situation in
1970s
1. Traditional PA simply didnt work anymore2. Declining revenue
3. Economic problems in 1970s
4. In search for a government that works better
but costs less
5. Financial distress
6. Private sector was successful with its own
management techniques
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II. EMERGENCE OF NPM
Reasons for shifting to NPM: situation in
1970s
7. Dissatisfaction within public administration
8. Over-bureaucratization
9. Displeasure of citizens
10. More democracy/participation
11. Competition to attract business Globalization
and other developments
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II. EMERGENCE OF NPM
Reasons for shifting to NPM: Traditional
PA vs. NPM
>Traditional PA: highly-hierarchical, very centralized,rule-bound
>NPM: highly decentralized, structure is flat and
lean, service delivery is closer to the people, public
managers are more empowered thus more flexible> NPM offers a more realistic approach than TPA
>TPA: structure is too rigid and cumbersome and
slow for the new era of instant communication
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II. EMERGENCE OF NPM
Reasons for shifting to NPM: Traditional
PA vs. NPM
>NPM: do away with tight hierarchical control bydelegating the discretion to lower levels
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II. EMERGENCE OF NPM
Countries that practiced NPM
> UK underThatcher Government (late 19th
century)
> The Netherlands and the Tilburg Model in
1980s
Situation: economic recession, opacity, lack of
productivity and hierarchy in the government.
Reform: rearranging responsibilities and
introducing a decentralized structure (Tilburg
Model); introduction of output budgeting,
performance indicators
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II. EMERGENCE OF NPM
Countries that practiced NPM
> FRANCE and the Act of Decentralization in
1982 Situation: centralist governance and strong elitist
career civil service; administration is built on a
complex system of administrative law; local
governments had no regulatory and legislative
power; lack of local democracy
Reform: local autonomy thru 1982 Act of
Decentralization; decentralization & devolution of
tasks & responsibilities to lower levels of admin.
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II. EMERGENCE OF NPM
Countries that practiced NPM
> GERMANY and the New Steering Model in
1980s Situation: classical hierarchical; traditional
principles of the civil service; dissatisfaction of
city managers, politicians, and other civil
servants; Reform: development of the so-called New
Steering Model (internal organizational
reform,management contracts, decentralized
responsibility, budgeting,and accounting)
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II. EMERGENCE OF NPM
Countries that practiced NPM
> SWITZERLAND and the Results-Oriented
Public Management in 1990s Situation: dissatisfaction with the old model,
financial pressure, deficiency in input, opacity,
inflexibility, bureaucracy and over-control of
operative decisions Reform: Results-Oriented Public
Management
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II. EMERGENCE OF NPM
Countries that practiced NPM
> SPAIN in 1978
Situation: transformation from a highly-
centralized state into a democratic politically
decentralized state after the Franco era
Reform: organizational redesign, budgeting byobjectives, human resource reorganization (e.g.
City of Barcelona, One-Stop-Shop policy in
1995); principles of accounting were
introduced
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EMERGENCE OF NPM
IN SUMMARY, NPM WAS CREATED TO REMEDYA PATHOLOGY
OF TRADITIONAL BUREAUCRACY THAT IS HIERARCHICALLY
STRUCTUREDA
NDA
UTHORITY-DRIVENA
ND TOCONSTRUCTA GOVERNMENT THAT IS COST-EFFICIENTAND
MORE RESPONSIVE TO THE PEOPLES NEEDS. THE
REFORM RESULTED TO SAVINGS, IMPROVED PROCESSES,
IMPROVED EFFICIENCY, GREATER EFFECTIVENESS,AND
MORE CAPACIOUS/FLEXIBLE/RESELIENTADMINISTRATIVE
SYSTEMS. HOWEVER, NPM IS JUST IN ITS INFANCYANDJUST LIKE ANY OTHER THEORIESAND PARADIGMS, IT
ENCOUNTERED PROBLEMS & CRITICISMS DUE TO SOME OF
ITS WEAKNESSES
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III. NPM: Steering not Rowing
Theoretical Bases of NPM (Hughes)
o Economics
Public choice Results, Efficiency and Measurement
o Private Management
Focus on results and objectives
Owen Hughes. Public Management and Administration: An Introduction (2ndEdition). 1998
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TRIPARTITE APPROACH to PA
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III. NPM: Steering not Rowing
3Es plus RELEVANCE, CLIENT-
ORIENTEDNESS AND EQUITY (Pilar)
Public Service Values:
o Administrative and political accountability
o Nationalism and Good Governance
o Public-Private Partnership in Poverty Alleviation
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Core Principles of NPM(Osborne and Gaebler, 1992)
1.Steer, rather than row
2.Empower communities to solve their own
problems
3.Promote and encourage competition ratherthan monopolies
4.Be driven by mission rather than rules
5.Be results-oriented by funding outcomesrather than inputs
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Core Principles of NPM(Osborne and Gaebler, 1992)
6.Meet the needs of the customer rather thanbureaucracy
7.Concentrate on earning money rather than justspending it
8. Invest in preventing problems rather than incuring crises
9.Decentralize authority than build hierarchies
10. Solve problems by influencing market forcesrather than creating public programs
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PROBLEMS CONFRONTING
PA IN RP
BLOATED CIVIL SERVICE
As of 1999, a total of 1.473 million personnel were
employed in government.
65 percent of all government employees are assigned
to national government agencies and only 27 percent
to LGUs.
35 percent - 40 percent of the national government
expenditures are channeled to personnel services
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PROBLEMS CONFRONTING
PA IN RP
DETERIORATING INVESTMENT CLIMATE
Causes:
weakness of the legal and regulatory framework limited recourses available to resolve disputes
high level of political intervention in the
commercial sector
Greater cost of power and labor as opposed toother neighboring countries in the region
CORRUPTION
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PROBLEMS CONFRONTING
PA IN RP
PROBLEMATIC CONDUCT OF ELECTIONS
Election fraud
Absence of modernized election system
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NPM in the Philippines
The role of technical consultants in the formulation of
reform interventions led to the introduction of some
NPM concept in the Philippines.
many of the NPM inspired reform initiatives in the
Philippines are hastened by the presence of IT
infrastructures
structural adjustment programs of multilateral lending
institutions like the World Bank, ADB and the
International Monetary Fund (IMF) have contributed to
the growth of NPM in the Philippines.
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Did NPM lead to
better governance?
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Thank You!