Precisely what is new community management npm

What is new public supervision (NPM)? Look at the theoretical basis for the NPM. Access perhaps the ideas of NPM possess any impacts on the way Hong Kong’s community service operates.

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‘The surge of new public management (NPM) over the past 15 years is one of the most striking trends in public administration. 1. It is an undeniable fact that there is a remarkable change in the operations and role with the public service. The enhancements made on terminology via public operations to open public management reflects the alter.

Traditional model of administration is known as as out of date and has become effectively replaced by this fresh model of general public management. With this paper, I will attempt to identify what a fresh public managing is and description its theoretical base. Last but not least, I will likewise try to examine whether the tips of NPM have virtually any impacts along the way Hong Kong’s public services operates.

What is the New General public Management

In respect to C. Hood (2002), NPM, loves most administrative labels, can be described as loose term2.

However, NPM aroused strong and varies emotions among bureaucrats as it is viewed as the only way to take care of for the irretrievable failures and even meaningful bankruptcy in the old open public management. Seeing that 1970s, there were a series of major reform of the public sector in the UK, New Zealand, Australia, US and many other OECD countries. The traditional model of administration which usually emphasis on passive, rule following, bureaucracy is no longer applicable. Rather, the application of organization principles for the public sector which focuses mainly about efficiency, energetic and achieving benefits become rule. Generally speaking, the real key features of the newest public management can be attributed as follows:

i) Active specialist management

A single key feature of NPM is the focus on active specialist management instead of merely managing operations. Mature public maids are no longer considered as just supervisory the procedures of their departments but rather are expected

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to actively deal with them. Like a senior open public manager, he has to designate the organization’s missions, objectives and design a long term approach in promoting and enhancing the efficiency in addition to the effectiveness with the organization.

ii) A focus on results

Managers are not just ensure the routines are followed. Rather, they should be in charge of achieving results. To achieve this end, clear objectives or desired goals are founded, explicit requirements are established and steps of overall performance (performance indicators) are required. Most of the time, rewards and penalties are linked to the failure or success to achieve these kinds of performance indicators. A focus within this is on economy, efficiency and efficiency

iii) Increased financial managing

The new public management puts a greater focus on output settings which concentrate on results rather than procedures and processes. Budgets are prone to be connected to particular programs with focuses on and time frame set rather than just aimed at inputs and neglected points to have attained. Under the new model, costs need to indicate what is to get delivered. Ideal use of resources as well as streamlining the methods with a view to enhancing productivity should be implemented. New spending initiatives simply gain approval if matching savings may be achieved anywhere else.

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iv) Higher politicization with the public service

The new public managers shall no longer be neutral statistics but are very likely to be devoted to supporting the federal government that hired them. An ailment of their appointment is to have a similar values or perhaps policies pondering as followed by a particular government.

v) Flexibility in staffing

Life time tenured employment is no longer suitable and the new public managers are equiped on performance-linked contracts which may or may not become

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restored. They will be dismissed or terminated should their very own performance does not meet the essential standard. Recruiting to the general public service can be done at all amounts, with the choice of people moving into and out from the public services according for their abilities plus the organization’s requires. Promotion is founded on one’s potential rather than seniority.

vi) Flexibility in organization

The disaggregation of the large organization in to discrete agencies can facilitate control and management. This takes the form of a little core of senior managers determining coverage and several agencies carrying out the tasks designated. One of the aim of this process is usually to separate the policy responsibilities from individuals who deliver companies to the community.

vii) A shift to greater competition

Privatization and also the contracting away of government duties which the open public service acquired previously performed in house was part of the efforts to reduce the type and part of government. Asking for from notions of competition in the marketplace, these processes not simply stimulate competition but as well enhance the performance as well as efficiency of the government.

viii) Fresh politicians-bureaucrats romantic relationship and new relationship with the public

The relationship between senior general public servants and their political ‘masters’ has changed in one that was more officially narrow to 1 in which there is a much better relationship. Mature public maids are expected for taking more opportunity in interaction and conversation with their learn in order to achieve organizational desired goals. Similarly, a better relations among government representatives and members of the public who are noticed as ‘clients’ whose demands have to be fulfilled in the same way as though they were buyers of government solutions are recommended.

The assumptive foundation of NPM

The theories upon which fresh public supervision is based are drawn from

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economics and private management. The emphasis on results, efficiency and measurement is clearly based on economics. The usage of the suggestions on new-classical economic theory; public choice theory; principle/agent theory and transaction theory is related. Under the economics approach, it assumes that people are all logical beings and self-interested. They are solely encouraged by personal material gain and that community servants are generally not immune from this behavior. These kinds of views challenged public assistance privileges and beliefs in public places service self-sacrifice. They seriously attack about bureaucracy while an managing principle since it results in ineffectiveness and ineffectiveness. Instead, it promotes the reducing government in general and gave a methodology for designing market-based community policies. Simply through industry competition, customer sovereignty and choice provide incentives to lessen costs, the us government can be run in a most effective way.

The 2nd theoretical basis for general public management can be found in private managing. The most important stage imported through the private sector is the concentrate on objectives. Making results the principal aim and eradicating the concept of bureaucratic corporation. They endorse the application of the subsequent types of market discipline into public service actions which include i) focus on contact between federal government officials and members of the public who are seen as ‘client’ in whose needs have to be met in the same manner as if we were holding their ‘customers’; ii) to emulate your competition of the market with government agencies competing against each other of private companies to provide certain federal government services not only that iii) to leave exclusive enterprise to accomplish duties that previously taken on by authorities.

The changes on the way Hong Kong’s public support operates.

Within a traditional bureaucracy, there is a very clear and stiff hierarchy in structure. Different tasks had been assigned to the different amounts and lower levels are in charge of to the superiors at the next higher level. Info was exceeded up throughout the different amounts in and ordered fashion. There is a definite ‘chain of command’ and clearly proven procedures for facts flow within the department. Situations under which in turn members of the public support work are standardized. Recruiting is solely via the public service evaluation at

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the base level level. Advertising is often based upon seniority of service as the salary gradations and increasing prestige are fixed and uniform, corresponded with every single level of service. Public servants enjoy life time tenure. There is not any threat of dismissal because of incompetence. In the meantime, their profession is also paid by nice retirement rewards.

Over time, there exists a tendency for bureaucracies to improve in size, to become cumbersome and also to be faraway from efficient and effective businesses. In this interconnection, Governments with traditional bureaucratic type have faced appearing financial problems with growing demands of services and developing resistance to taxation measures. To improve the government’s efficiency and effectiveness, private sector supervision practices had been introduced into the public sector.

To take Hk as an example, the government has set up a series of measures in the course of the Civil Support Reform seeing that 1999. The primary objective was going to restructure the administration with the Civil Service so as to help to make it more flexible and make to face all of the changes and more and more demanding difficulties and fulfill the demands of society. The principle of “small government is upheld to contain the size of the civil assistance. It is apparent that the municipal service institution has been decreased from around 198 500 in early 1999 to regarding 164 six-hundred in 06 2005. Listed here are the illustrates of the reform under monetary, personnel and satisfaction management.

i) Financial supervision

Trading fund reform

Hong Kong government launched the Trading Fund Code in 1993 to allow five selected departments, including the Organization Registry, Countries Registry, Office of Telecommunications Authority, Mailbox, the Electric powered and Mechanised Services Section to operate on the more business basis, consequently, relying on cash flow rather than identified funds. The overarching aim of a trading fund section is to turn into a self-financial section and transform government departments in to organizations that can do more with less resources.

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Enhanced productivity programme (E PP)

The EEP is actually a reform that combines both equally financial and personnel management elements. This kind of reform is usually delivered into two phases. The 1st phase is to achieve initial quantified production gains while the second should be to enhance output by a mix of reduced expansion in primary expenditure, evaluations of main spending areas, and changes in the management construction intended to safeguarded a more positive resource administration culture. In fact , during the past few years, most of the gov departments have been through the 1st phase EPP such as the elevating of output at section levels in 1999-2000, which takes the form of delivering additional outputs under existing resources; reducing the base expenditure by simply 5% by simply 2002-03; plus the introduction of ‘one-line’ votes for selected departments in order that it allows greater flexibility to get departments to allocate their resources.

ii) Personnel management

On 1 June 2150, the government launched a new entrance system and terms of appointment for new recruits to enhance flexibility of its scheduled appointment system. The practice of hiring personnel has changed. Consequently, more detrimental service posts were loaded by non-civil service deal staff. Besides, HK federal government also began to recruit staff from outside the civil services directly into middle-level and higher-level

positions. For example , the Civil Service Bureau announced that it hoped to recruit up to 10 elderly Administrative Officials from outside of the Administrative level.

Furthermore, the government has executed a Detrimental Service Prepared Fund Plan in place of the pension system for representatives who can be found appointments to the Civil Assistance on or after 1 Summer 2000 underneath the new entry terms then when they eventually progress onto new everlasting terms of appointment.

Meanwhile, the government as well introduced the first and the second non-reflex retirement (VR) Schemes in July 2000 and Mar 2003 correspondingly to enable existing staff of designated levels with discovered or predicted staff surplus to leave the workplace voluntarily with pension rewards and payment. About being unfaithful, 800 applications under the initial VR plan and one other 5, three hundred applications beneath the second VR scheme had been approved. Besides, to enhance the quality and performance of presidency departments, the us government has introduced a Management-initiated Old age Scheme to provide for the retirement of directorate detrimental servants upon permanent and pensionable terms since Sept 2000.

Lastly, to bring Civil Service benchmarks more in line with the private sector, the federal government implemented new starting income levels intended for both civilian and self-disciplined services degrees with result from you April 2000. The new wages apply to excellent recruits and serving personnel on transfer. Measures to streamline the existing disciplinary procedures were released also at the same time. On you June 2000, the government launched a new fringe benefits deal which includes modified leave getting rates, a new leave passage arrangement and nonaccountable real estate benefits for brand spanking new recruits. Again, in Apr 2000Moreover, a comprehensive review of the Civil Services pay insurance plan and system has been conducted also in September 2002.

Performance supervision

Performance indicators are getting developed to judge the success or failure of the programs and benefits and punishments are connected to reviews of performance. A significant on-going efficiency management programme is ‘Target-based Management’. The target management method (TMP) will help the government to control for benefits. With the help of this process, a govt department would know better what its aims are. Throughout the realization from the objectives, it might improve the government’s overall performance by looking into making it better focus on outcomes achieved and helps the government personality potential shortfalls in system areas that may affect the delivery of providers to people.


To summarize, the ideas of new general public management has effects on the way Hong Kong’s community service works. Even though the formal power structure of bureaucracy still continues to be, but circumstances of career and delivery of companies are more and more in accordance with the newer models of public administration. To adopt the principles of economics and private managing, public industries are expected to

be operated in a more efficient and effective way with costs personal savings achieved towards the end.

The End


i) Open public Management and Administration (an introduction), simply by Owen Elizabeth. Hughes

ii) Hand out from the “Introduction to Public Coverage and Administration Unit six & almost eight

iii) “New Public Management: Does it exist?  by Jim Chandler, Sheffield Hallam University’

vi)Civil Support Bureau, HKSAR government for

v) Efficiency Unit, HKSAR Federal government at:

1 A public supervision for all periods? By Christopher Hood, General public Administration 69 (1991): 3-19


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