New Public Management (NPM) Principles

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New Public Management is a broad extension of NPM. New Public Management or NPM is an approach to running public service organizations. It uses in government and public service institutions and agencies. It also works at both national and sub-national levels. The term first introduced by academics in the United Kingdom and Australia to explain approaches. These were developed in the period of the 1980s as part of an effort to make the public service more “businesslike”. And to improve its efficiency by using private sector management models. It reformers experimented with using decentralized service delivery models. It redesigns to give local agencies more freedom in how they delivered programs or services. In some cases, NPM is reformed which used e-government consolidated a service or program to a central location to reduce costs. Some governments tried using quasi-market structures so that the public sector would have to compete against the private sector. Key melodies in New Public Management (NPM) were worth for money, identifying, financial control, increasing efficiency, and setting aims and continuance monitoring of performance, handing over, and power to the senior management executives. The performance was assessed with audits, benchmarks and performance evaluations. Some NPM reforms used private sector corporations to convey what were previously public services.

New Public Management Established:

In 1980 to 1990 decade, a new theory is added in public administration that name is New Public Management (NPM).

New Public Management Maker

The makers of New Public Management (NPM) are David Osborne, Gaebler, and Cristopher Hood etc through their famous book Reinventing Government – How the Entrepreneurial Spirit is Transforming the Public Sector. They had taken the management method in public administration.

Difference names of NPM:

The New Public Management was many names. Such as Managerialism, New Management Method, Market Based Public Administration, Entrepreneurial Government etc. But, New Public Management (NPM) and Managerialism are much lighted.

Principles of New Public Management (NPM):

This theory definitely creates a strategic management or new dimension of modern public administration paradigm in traditional public administration. Dimensions are:-

  • Individual responsibility of manager or administrator is been more significant.
  • Creating flexibility and dynamic of organizational structure, staffs and job conditions.
  • Spontaneously identified the organization and employee’s aims and purposes.
  • It practices 3Es. The 3Es are:-
    1. Economy
    2. Efficiency and
    3. Effectiveness
  • Government activities should be formed market-oriented. Public administration is not only dealt with bureaucratic complexity but flexibility also.
  • Government activities should be adequate.
  • This theory is very impacted on achievement result and individually accountable for management or administrator
  • The framework of organization, employees and their job conditions are very easy and motion-able.
  • Organization and employee’s goal and the aim is stated.
  • This policy keeps far from bureaucratic instruction and complexity.


However, New Public Management (NPM) is a strategic management or a real believable step or framework in public administration. It is an upgrade and new version of public administration paradigm for developing.

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3 Responses

  1. Marvin Faria says:

    New Public Management is a paradigm of modern public administration. It is enforced on market base management which is represent its own principles. Thank you to represent this thought nicely.

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