NEW PUBLIC MANAGEMENT

Question 1

NEW PUBLIC MANAGEMENT

Answer 1

NEW PUBLIC MANAGEMENT

According to Denhardt (2008), the fiscal crisis of the 1970’s led to the search for efforts to produce a government that works better and costs less (Similar to Wilson 1887 and the orthodoxy period). This lead to an economic rationalism that introduced measures such as contracting out and privatization (Denhardt, 2008). The NPM emphasizes private sector values (competition, preference for market mechanisms, respect for the entrepreneurial spirit, efficiency and effectiveness) and private approaches such privatization, performance measurement, and strategic planning (Denhardt, 2008). Seeks to use private sector and business approaches in the public sector to generate greater efficiency.
Public managers are urged to STEER not row their organizations and to find new and innovative ways (entrepreneur) to achieve results or to privatize functions previously provided by government. e.g. E-government etc.

Question 2

NEW PUBLIC MANAGEMENT

Denhardt and Denhardt (2008)

Answer 2

NEW PUBLIC MANAGEMENT

Denhardt and Denhardt (2008)- NPM is linked to the public choice perspective in Public Administration which views the government from the standpoint of markets and customers.

Question 3

NEW PUBLIC MANAGEMENT

Lynn (1996)-

Answer 3

NEW PUBLIC MANAGEMENT

Lynn (1996)-NPM came from the public policy schools that developed in the 1970s and from the managerialist movement around the world (Pollitt, 1990).

Question 4

NEW PUBLIC MANAGEMENT

Answer 4

NEW PUBLIC MANAGEMENT

What separates NPM from the Orthodoxy view of PA is the manner with which the bureaucrat is viewed-more of a normative model. Seeks to empower the public administrator and allow them more discretion to be risk-takers and entrepreneurs. *****SEE TABLE ON PAGE 554 OF DENHARDT AND DENHARDT ARTICLE.

Question 5

NEW PUBLIC MANAGEMENT

The GRACE COMMISSION 1982

Answer 5

NEW PUBLIC MANAGEMENT

The GRACE COMMISSION 1982 formed by President Ronald Reagan was an investigation requested by United States President Ronald Reagan, in 1982. The focus of it was waste and inefficiency in the US Federal government. Its head, businessman J. Peter Grace,[1] asked the members of that commission to “be bold” and “work like tireless bloodhounds. Don’t leave any stone unturned in your search to root out inefficiency. The Grace Commission Report was presented to Congress in January 1984 and was ignored. The report said that one-third of all income taxes is consumed by waste and inefficiency in the federal government, and another one-third escapes collection owing to the underground economy. “With two thirds of everyone’s personal income taxes wasted or not collected, 100 percent of what is collected is absorbed solely by interest on the federal debt and by federal government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services [that] taxpayers expect from their government.

Question 6

NEW PUBLIC MANAGEMENT

Osborne, David and Gaebler, Ted (1992)-Reinventing Government

Answer 6

NEW PUBLIC MANAGEMENT

Osborne, David and Gaebler, Ted (1992)-Reinventing Government
NPM does away with the old politics-administration dichotomy by incorporating the word governance. “Any serious student of government or PA would likely argue that is it difficult if not impossible to unbundle politics from governance” (Page 267).
Osborne and Gaebler call for building a culture of creativity, entrepreneurship, and innovation in public management.
Provided a conceptual framework outlining ten principles that captured the essence of New Public Management (Denhardt, 2008, Page 142-143). According to Denhardt (2008), Reinventing Government provided strategies for reforming government which in turn captured the essence of the NPM movement. Three of the most resonating values include the market model, the public entrepreneur, and citizens as customers.

Question 7

NEW PUBLIC MANAGEMENT.

Three of the most resonating values include the market model, the public entrepreneur, and citizens as customers.

Answer 7

NEW PUBLIC MANAGEMENT

Three of the most resonating values include the market model, the public entrepreneur, and citizens as customers.

Market Model- There should be competition between the public and private sector, Competition should be in vying for public contracts, competition among public agencies, and competition among governmental units to provide services to internal customers. It deals with regulated competition in which government retains the authority and responsibility to set rules governing transactions. According to Denhardt (2008), underlying the market model is an element of faith that the free play of the market forces will bring the self-interested participants (individuals, social groups, agencies) into equilibrium that represents the maximum achievable social good.
The relationship between public agencies and their customers is understood as based on self-interest, involving transactions similar to those occurring in the marketplace

Question 8

NEW PUBLIC MANAGEMENT

Three of the most resonating values include the market model, the public entrepreneur, and citizens as customers.

Answer 8

NEW PUBLIC MANAGEMENT

Three of the most resonating values include the market model, the public entrepreneur, and citizens as customers.

Citizens as Customers- Customer driven government must listen to their customers choices between competing services providers and provide customers with resources to use in selecting their own service providers. Therefore, government should not waste time and money providing a myriad of services which leads to waste and inefficiency. Instead, government should only provide the services that narrow self-interested customers (i.e. citizens) covet.

Question 9

NEW PUBLIC MANAGEMENT

Three of the most resonating values include the market model, the public entrepreneur, and citizens as customers.

Answer 9

NEW PUBLIC MANAGEMENT

Three of the most resonating values include the market model, the public entrepreneur, and citizens as customers.

Public Entrepreneur-Public administrators should be innovative, creative, and use resources in a way that maximize productivity and effectiveness. Denotes a self-interested public administrator acting on his/her own self-interest (or the interest of the agency).

Question 10

NEW PUBLIC MANAGEMENT

Denhardt and Denhardt (2007),

Answer 10

NEW PUBLIC MANAGEMENT

According to Denhardt and Denhardt (2007), what differentiates this NPM from the Old PA is that the Old PA what concerned with attaining efficiency with the use of rules, regulations, procedures, top down control, rigid budgeting and hierarchy which only served to stymy and constrain the public administrator. NPM seeks to do away with all these rules, procedures and controls in order to free-up the public administrator to be more innovative.

Question 11

NEW PUBLIC MANAGEMENT

Hood, Christopher (1991)- A Public Management for All Seasons

Answer 11

NEW PUBLIC MANAGEMENT

Hood, Christopher (1991)- A Public Management for All Seasons
The emergence of NPM can be tied to four trends within PA:1) Attempts to slow down the growth of government; 2) Shift towards privatization and away from core government institutions; 3) The development of automation in particular information technology in the production and institution of public services and ; 4) The development of a more international agenda focused on intergovernmental cooperation as opposed to individual country specialisms in PA. NPM stresses an emphasis on greater private sector styles of management.

Question 12

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

Answer 12

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

Legislatively enacted rules, regulations, and SOP’s are stifled the entrepreneurial creativity which could be used to devise more cost-effective and efficient means for bureaucracies to operate.

Question 13

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

Answer 13

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

Precluding the formation of the National Performance Review, President Clinton stated that the goal was to make a federal government that would be less expensive and more efficient while changing the culture of the national bureaucracy from complacency and entitlement towards one of initiative and empowerment (denoted entrepreneurial traits of innovativeness and creativity). The public believes that that the government wastes money and that government is broken. The wasteful of government is attributed to the myriad of large, top-down and centralized bureaucracies created from the 1930’s to the 1960’s and were patterned after corporate hierarchical bureaucracies in which tasks were broken down into parts and defined by specific rules and regulations. However, in today’s world of rapid change, lightning quick information, global competition, demanding customers, and quick information technologies, the traditional bureaucracies do not work very well. Simple procedures require navigating various layers of paperwork and procedures.

Question 14

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

Answer 14

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

The problems of bureaucracy are wrought in issues of red tape and regulation that stifles bureaucratic creativity [SIDE NOTE-The need for more of an entrepreneurial spirit]. Bureaucrats are good people who are essentially caught in bad systems. Congress has created within agencies an independent office of the inspector general whose supervision has intimidated federal employees to the point where many are scared to deviate from SOP’s. In attempts to prevent corruption and poor performance, more agencies are constantly created to monitor the agency and prevent deviations from standard practice. However, innovation requires deviation from the norm-which is not observed.

Question 15

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

Answer 15

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

SOLUTIONS to creating more entrepreneurial organizations include cutting red tape, putting customers or those who receive benefit from services first (listening to the needs of customers, restructure operations to meet customer needs, create incentives that drive employees to put customers first), empowering employees to get results (strip away layers through less centralization). Such an attempt will take time.

Question 16

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

Answer 16

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

A goal must be set of providing customer services equal to the best in business. The way to achieve this is to expose government monopolies to competition. That government cannot take their business elsewhere forces public agencies to compete for their customers—between offices, with other agencies, and with the private sector. A customer receives beenfits from a specific service.

Question 17

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

Answer 17

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less
Kettl (1994)- There is no reason why citizens cannot be treated as both customers and owners. There is a genuine value in the customer service approach.

Question 18

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

Answer 18

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

Frederickson, H. George (1996)- Comparing the Reinventing Government Movement with the New Public Administration
Steering and not rowing.
NPM is viewed as a means of decentralization by empowering the bureaucrat and providing them with more latitude by doing away with the red tape of government. NPM perspective is compatible with the American commitment to business values and the modern political interest in less government. NPM is a managerial argument because it promotes less regulations and constraints on the bureaucrat who is tasked with devising strategies for enabling government to operate more efficiently.

Question 19

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

Answer 19

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

The New Public Management both the elected executive and the empowered public service engage in STEERING (i.e. setting missions/designing policy/implementing policy and getting results). The reinventing government favors STEERING (designing wants to implement goals or designing policy) over ROWING (solely implementing policy) and empowering the bureaucrat to STEER. Bureaucrats should be empowered to steer towards more efficiency and greater productivity. In NPM, public managers and workers are to be empowered. The effective managers is enterprising, entrepreneurial, innovative, and risk-taking.

Question 20

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

Answer 20

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

Advocates of NPM are not bashing bureaucrats but are instead bashing the system of government (i.e. regulations, procedures, laws etc.) that constrain and stifle the creativity and innovativeness of bureaucrats because it forces them to adhere to the red tapes and regulations prescribed by elected officials.

Question 21

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

Answer 21

NEW PUBLIC MANAGEMENT

The National Performance Review (1993) From Red Tape to Results: Creating a Government that Works Better and Costs Less

NPM/Reinvention claims to have little to do with politics by incorporating terminology such as “governance”, total equality, entrepreneurial, and reinventing, the movement attempts to skirt fundamental political issues. Reinventing government tries to be smart enough not to get trapped politically.

Question 22

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Answer 22

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

    The market model of the reinvention movement promotes the idea of government adopting the values (competition, social choice, entrepreneurial spirit) of business administration and operate using business techniques (scientific management, TQM). Additionally, government should apply a market model (where possible) to service providers because it generates competition between private and public sector organizations for the right to obtain public contracts. Additionally, public choice theory stipulates that the market model promotes a “belief that a free play of market forces will bring self-interested participants (social groups, individuals, agencies, firms) into an equilibrium that represents, in some way, maximum  achievable social goods.” Hence, the self-interested aspirations of individual entities will direct society’s agenda. My critique of the adoption of the market model is that it does not stipulate whether individual entities act rationally. Additionally, it does not account for the fact that some stronger entities may undoubtedly influence/overshadow the interests of weaker entities. Lastly, certain entities may not have the resources at hand to promote their own interests and would therefore be relegated to the sideline.  Should this be the case, then all individual interests are not truly being pursued.

Question 23

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Answer 23

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Decentralization promoted by the market model contradicts the need for greater coordination in the public sector (Peters and Savoie, 1996).

Question 24

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

The Reinvention Theory

Answer 24

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

The Reinvention Theory also suggests that government should be more customer-driven by soliciting and listening to citizens’ concerns, offering competitive services to citizens (as predicated by the market model), and providing resources to citizens to select the services of their choosing. My critique of this is that if the tenets of customer-driven government are predicated on the market model, then customer-driven government is also inherently flawed. In some instances, creating competition is done to reduce market price. Yet striving to provide citizens with the resources they need to select among competing services (as suggested by the market model) only serves to drive up prices.

Question 25

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Answer 25

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

The third element is that administrators should be more entrepreneurial in the sense that they find innovative ways of utilizing resources to maximize outcomes and effectiveness. Credible critiques are provided by the authors. For instance, entrepreneurs can be risk takers and can seek to circumnavigate the rules. Administrators may also lose sight of the fact that they are indeed working with public money and are servants of the people.

Question 26

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Answer 26

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

This literature provides an overview of the benefits of the theory of reinvention but also spells out some its negative aspects. For instance, entrepreneurship as a way to solve problems strips ordinary citizens of their ability to be problem solvers and places this power in the hands of a sole individual. Adopting the reinvention theory means that some aspect of democratic governance will be compromised.

Question 27

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Frederickson, H. George (1996)-

Answer 27

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Frederickson, H. George (1996)- Comparing the Reinventing Government Movement with the New Public Administration
*Critiques the values promoted by NPM
NPM/Reinventing’s short-run attainment of efficiency has come at the expense of the long-range capacity of public institutions particularly in the area of social equity.

Question 28

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Frederickson, H. George (1996)-

Answer 28

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Frederickson, H. George (1996)-

As a metaphor, NPM/Reinventing is mostly ‘old wine in new bottles’. Dendardt and Denhardt (2007) state that there has long been calls to run government like a business.That is to say that values of efficiency and business-like principles has also been emphasized in the orthodoxy period of PA. However, each new generation must construct its own reality. There is not much which is new under the sun, but, to each new generation, many things seem importantly new and useful. According to Howard Nemerov (1987), “The reason we do not learn from past mistakes is because we are not the people who learned last time.”

Question 29

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Frederickson, H. George (1996)-

Answer 29

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Frederickson, H. George (1996)-

The appeal of NPM will gradually diminish because only so much downsizing and loadshedding can be done. When that does happen social problems, crises, and scandal are likely to be around that corner. That implies that tenets of NPM are at odds with tenets of social equity and fairness

Question 30

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Denhardt, Robert B. (2008)-Theories of Public Organization

Answer 30

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Denhardt, Robert B. (2008)-Theories of Public Organization
Market Model-Some market participants are able to enter and make use of the market more so than others by way of the resources they possess. Produces and unfair advantage.

Question 31

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Denhardt, Robert B. (2008)-Theories of Public Organization

Answer 31

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Denhardt, Robert B. (2008)-Theories of Public Organization

Entrepreneurial Spirit- An entrepreneur may have to narrow a focus, be unwilling to follow rules. There may be risk-taking (willingness to bend the rules) oriented and single-minded administrators. This may make public administrators somewhat difficult to control–“loose cannons” if you would. The activities of the entrepreneurial public administrator may trump democratic ideals of responsiveness and accountability. The public may be precluded (by the entrepreneurial administrator) from having a role in determining how money is spent and public programs are designed.

Question 32

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Denhardt, Robert B. (2008)-Theories of Public Organization

Answer 32

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Denhardt, Robert B. (2008)-Theories of Public Organization

Citizens as Customers-Government may only focus on the needs of a narrow, short-term self-interests of a set of individuals (customers) rather than the wider public interest. This does not go towards improving government. Some customers have more resources and the wherewithal to bring their demands forwards. Government exists for everybody (unlike business) and should therefore not be able to dictate who their specific customer base may be. Citizens have a stake in all public services and not just the ones they consume (Tragedy of the Commons). Citizens are not customers and viewing them as such undermines democratic values because business and their practices is not always virtuous.

Question 33

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Answer 33

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Moe, Ronald C. (1987)-Exploring the Limits of Privatization
*Critique of the privatization paradigm. Related to New Public Management and the need to identify where privatization should have limits.

Question 34

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Answer 34

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

There has been a blurring of lines in determining those functions that should remain public or be able to be privatized. In previous instances, the privatization of certain public functions has generated certain problems in terms of accountability etc. The problem is that the argument for privatizing certain functions as only been predicated on the notion of efficiency, effectiveness, public choice, and the free market. Such approaches have failed to incorporate the tenet of public law and this has caused a blurring of lines on what should and should not be privatized. To get this discussion started, Moe identifies several characteristics which determine whether certain function should remain within the public sector or assigned to the private sector i.e. where the privatization has limits and in particularly at the federal level.

Question 35

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Moe, Ronald C. (1987)-Exploring the Limits of Privatization

Answer 35

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Moe, Ronald C. (1987)-Exploring the Limits of Privatization

One attribute that places limits on privatization is sovereignty. The public sector has the rights and immunities of the sovereign (whereas the private does not) in that it can coerce and enforce organizations/groups/individuals to conform to its will by way of using taxes or penalties for those who do not pay taxes. A sovereign entity cannot assign certain functions to the private sector and remain sovereign.  Sovereign states have the right to establish rules for protection and transference of property both private and public. A second criterion is national security by which certain functions pertaining to the security of the nation of the public may not be transferred to the private public. A third criterion is public safety by which duties pertaining to the safety of the public is not practiced.  Lastly, concerns of corruption may limit the types of privatization that take place.

Question 36

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Moe, Ronald C. (1987)-Exploring the Limits of Privatization

Answer 36

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Moe, Ronald C. (1987)-Exploring the Limits of Privatization

Privatization of public services affects accountability. The public sector must maintain adequate lines of communication and means of supervision for contractors carrying out public services. The premises of privatization should go beyond the notion of public choice and free market paradigm and incorporate tenets of public law.

Question 37

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Answer 37

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Lynn (2001)- Traditional bureaucratic paradigm has proven to be more responsive to democratic values that has NPM. The traditional bureaucratic paradigm adheres more to tenets of democracy and constitutional rule that does NPM. See Moe (1994) below.

Question 38

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Answer 38

NEW PUBLIC MANAGEMENT

CRITIQUES OF NEW PUBLIC MANAGEMENT

Moe (1994)- Points out that NPR-and its call for entrepreneurial creativity which could be used to devise more cost-effective and efficient means for bureaucracies to operate-ignores the constitutional premise that government is based on rule of law and not market-driven mechanisms. Public administrators should not have free entrepreneurial reign, but instead be accountable to the President , and not customers (i.e. citizens) for the execution of laws of the land. The constitution grants the president (not customers) the supremacy and power to govern the country. The traditional paradigm allows the elected executive to hold supervisory power over the bureaucracy and hold it accountable whereas NPM places accountability in the hands of citizens (this is not a tenet of constitutional rule). The agency should be accountable to the president who is granted constitutional powers to govern the country. Citizens should not have powers to hold the bureaucracy accountable as posited by NPM.