Edwin Badu Rawlings GbargayeFacilitator

Prof. Jo B. BitonioMDM Coordinator

Management culture that emphasizes the centrality of the citizens as customer, as well as accountable for results.

It suggest structural or organizational choices that promote decentralized control through a wide variety of alternative service delivery mechanisms.

Reorganizing public sector bodies to bring management, reporting and accounting approaches closer to business methods.

Reinforces organization and procedures of the public sector for more competitiveness and efficiency in resource use and service delivery.

Addresses centralized bureaucracies, waste and inefficiency in resource use, inadequate mechanisms of accountability.

1980’s: A "Paradigm Shift” from Public Administration to Public Management

Apparent move away from what is seen as a traditional, progressive-era set of doctrines of good administration emphasizing orderly hierarchies, depoliticized bureaucracies, and the elimination of duplication or overlap, and toward what has been described as the ‘New Public Management’ (Hood, 1996)

1.Hands-on professional management of public organization (managers at the top are

free to manage by use of discretionary power)2.Explicit Standards and measures of

performance (goals & targets defined and

measurable as indicators of success) 3.Greater emphasis on output controls

(resource allocation and rewards are linked to

performance)

4. Shift to disaggregation of units in the Public Sector (disaggregate public sector into corporatized units of activity, organized by products, with devolved budgets; unit deal at arm’s length with each other)

5. Shift to greater competition in the public sector (move to term contracts and public tendering procedures; introduction of market disciplines in public sector)

6. Stress on Private –sector styles of management practice (move away from traditional public service ethic to more flexible pay, hiring, rules, etc.)

7. Stress on greater discipline and economy in public sector resource use (cutting direct costs, raising labor discipline, limiting

compliance costs to business)

NPM as a marriage of 2 different streams of ideas built on post WWII Development of public choice, transaction theory and principal agent theory.

Generated a set of administrative reform doctrines built on contestability, user choice, transparency and incentive structures

In the tradition of international scientific management movement

Generated administrative reform doctrines based on “ requiring discretionary power” to achieve results and better performance through the development of appropriate cultures and active measurement and adjustments of organizational output.

Re-engineering the Bureaucracy for Better Governance: Principles and Parameters

Private sector was first to re-engineer, as the sector is most affected by globalization and heightened competition. Nations has to adjust to the forces dominant in globalization.

Re-engineering affirms as the “new paradigm of governance”.

Government’s main responsibilities Government’s relationship with the

private sector Government intervention and

regulation Provision of public goods Distribution of public goods Administrative structural framework

Term coined by Michael Hammer in 1990 in an article in the Harvard Business Review

A management approach also known as Business Process Reengineering, for improving performance, effectiveness and efficiency of organization regardless of the sector in which they operate.

According to Hammer and Champy, RE is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance 9cost, quality, service, speed)

Provides the potential of delivering better additional services at less than the cost of the old ways of doing business

Closely related to reinventing government spearheaded by David Osborne and Ted Gaebler and Vice President Al Gore in the National Performance Review.

Reinventing government or the entrepreneurial government is characterized by a competitive spirit, empowerment of citizens and employees and performance measurement, customer oriented.

Re-forge how agencies were organized, decide what they need to do and design the best structure to do it.

Focus on how work is done, re-examining program and processes; abandoning the obsolete and eliminating duplication; embracing advanced technologies to cut costs.

Re-inventing government is a quest to do away with antiquated work rules and regulations that govern government processes to replace them with new and better ones.

Radical changes in the way government delivers its services.

Incremental nature of government policy making.

In the past government organizations have paid little attention to service quality or responsiveness to clients.

NPM emphasized the partnerships among government, private sector and civil society.

Governments have become more conscious of the need to address service quality.

Competition seems to be the watchword in the development of new models of coordinating services.

External market competition:- Many competing providers (local

government, voluntary, profit making entity, etc)

- Performance comparisons- Performance indicators

E-government E-governance E-participation E-commerce ICTs

The growing demand of citizens is a shared phenomenon for government to take on a new method of doing business with its citizens

Population has increased and has become well-educated and well informed about the duties of government.

Fiscal pressures on government in recent decades.

NPM has a great impact on many countries, developed and developing.

Complementing Marketization and managerialism

As bureaucracies experience what may be described as a severe paradigm crisis in coping with change and in managing their affairs, the public sector is faced with hostile environments, alienated publics, scarce resources and low levels of credibility.

Reengineering and the current management philosophies, principles and prescriptions are alternatives to cope with these challenges.