I. New Public Management (NPM)
Definition: Application of private sector managerial techniques to the public sector. It's an art of executing managerial techniques of the private sector in the public sector. Aims for efficiency, effectiveness, and economy. Focuses on proper utilization of resources.
Origin: Post-1991 economic reforms in India (and globally around 1980) led to the need for NPM due to the perceived inefficiency of the public sector compared to the private sector.
Key Contributors:
- Christopher Hood (1991): Coined the term "New Public Management" in his article "A Public Management for All Seasons".
- Osborne and Gaebler (1992): Broadly explained the concept in their book "Reinventing Government".
Other Names: Third Way, Entrepreneurial Administration, Post-Bureaucratic Model, Managerialism.
Key Features, Execution, and Importance: (See Table below)
| Feature | Execution | Importance/Impact |
|---|---|---|
| Emphasis on "3E" Culture (Efficiency, Effectiveness, Economy) | Disinvestment programs (e.g., privatization of PSUs) | Promotes economy, profit-oriented public administration |
| Establishment of Information & Facilitation Centers | Creation of easily accessible information centers in public sector offices | Increased efficiency, economy, profit orientation in public administration |
| Public Administration as Facilitator, Promoter, & Distributor (instead of Regulator) | Public-Private Partnerships (PPPs) | Healthy competition between public and private sectors; reduced workload on public administration allowing focus on public welfare. |
| Support for Decentralization & Localization | Panchayati Raj Institutions, ULBs, 73rd & 74th Constitutional Amendment Acts, revenue transfers to states | Empowered local governments; effective execution of government programs/policies at the grassroots level. |
| Emphasis on Transparency | E-Governance, Right to Information Act (2005) | Reduced corruption, increased public participation, increased faith in public administration, simplified administrative processes. |
| Extension of Contract Methods (Externalization) | PPP Model | Reduced government workload |
| Downsizing of Government | 91st Constitutional Amendment Act (2003) limiting cabinet ministers to 15 | Proper utilization of resources; reduced misuse of resources |
| Flexible Hierarchy | E-governance, Gangplank, Level Jumping | Reduced red tape, quick decision-making, proper utilization of human resources |
| De-bureaucratization | Golden Handshake Scheme, contract-based recruitment | Proper utilization of human resources; reduced misuse of resources |
| Client Orientation | Right to Hearing Act, Citizen Charters | Public administration becoming more private sector-like; proper policy execution |
| Emphasis on Performance Appraisal | Performance Assessment & Review (PAR) replacing ACR; 360-degree feedback | Proper resource utilization; identifying capable employees |
- Criticisms of NPM:
- Overemphasis on the private sector model, neglecting the unique roles of the public sector.
- Potential for increased unemployment due to downsizing.
- Lateral entry schemes can negatively impact the morale of civil servants.
- Only the public sector can handle certain responsibilities (security, public welfare).
II. Comparison: NPA vs. NPM
| Feature | New Public Administration (NPA) | New Public Management (NPM) |
|---|---|---|
| Origin | Socio-economic turmoil in the US (1960s-1970s) | LPG reforms and new economic policies (post-1991 in India, globally around 1980) |
| Key Actors | Primarily young scholars | Young and experienced scholars |
| Core Values | Value, Equity, Relevance, Change | Economy, Efficiency, Effectiveness |
| Focus | Progressive science; Public participation; client orientation; Rejection of politics-administration dichotomy | Managerialism; minimum role of public administration |
| Relevance | Initially relevant to developed countries | Relevant to both developed and developing countries |
| Basic Features | Public participation, client orientation | Localization, de-bureaucratization, externalization |
III. Change Management
Definition: Intentional and systematic changes within an organization to improve efficiency, outcomes, and decision-making. A collective term for all approaches, teams, and organizations involved in making organizational changes.
Types of Changes: Structural, Procedural, Behavioral.
Forces within Organizations: Restraining forces (e.g., insufficient salary, lack of coordination, negative work conditions) and Driving forces (e.g., sufficient salary, cordial relations, positive work conditions). The goal is to minimize restraining forces and maximize driving forces.
Reasons for Change Management (Internal and External Factors):
- External Factors: Social customs, traditional factors, fiscal policy, monetary policy, impact of LPG, changes in administrative policies, political factors, environmental factors.
- Internal Factors: Changes in roles & responsibilities, education & awareness of employees, technical factors (innovation, automation).
Importance of Change Management: Increased survivability and existence of the organization; uplifted productivity and work performance; identification of restraining and driving forces; increased efficiency; promotion of technical innovation; enabling healthy relationships; improved coordination with external markets.
Stages of Change Management (Kurt Lewin's Model): Unfreezing, Moving, Refreezing.
Generalized Stages of Change Management: Identification of restraining and driving forces; planning; execution; evaluation and review; establishment.
Obstacles to Change Management: Lack of communication/coordination; lack of resources; failure of past changes; lack of proper training; resistance from higher authority; lack of trust; fear of job cuts; negative viewpoints of subordinates.
Ideal Conditions for Change Management: Reward and award systems; clear communication of objectives; proper management of resources.