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What is new public management (NPM)? Examine the theoretical basis for the NPM. Access whether the ideas of NPM have any impacts on the way Hong Kongs public service operates.

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Introduction

PA201 (4) CHAN Sau-fung (S05012153) Assignment 4 What is new public management (NPM)? Examine the theoretical basis for the NPM. Access whether the ideas of NPM have any impacts on the way Hong Kong's public service operates. 'The rise 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 dramatic change in the operations and role of the public service. The change in terminology from public administration to public management reflects the change. Traditional model of administration is considered as obsolete and has been effectively replaced by this new model of public management. In this paper, I will attempt to describe what a new public management is and outline its theoretical base. Lastly, I will also try to evaluate whether the ideas of NPM have any impacts on the way Hong Kong's public service operates. What is the New Public Management According to C. Hood (2002), NPM, likes most administrative labels, is a loose term2. All the same, NPM aroused strong and varies emotions among bureaucrats as it is considered as the only way to correct for the irretrievable failures and even moral bankruptcy in the old public management. ...read more.

Middle

Instead, it promotes the reducing government in general and gave a methodology for designing market-based public policies. Only through market competition, consumer sovereignty and choice provide incentives to lower costs, the government can be run in a most efficient way. The second theoretical basis for public management can be found in private management. The most important point imported from the private sector is the focus on objectives. Making results the primary aim and eradicating the concept of bureaucratic organization. They advocate the application of the following types of market discipline into public service activities which include i) focus on relations between government officials and members of the public who are seen as 'client' whose needs have to be met in the same way as if they were their 'customers'; ii) to emulate the competition of the marketplace with government agencies competing against each other of private companies to deliver certain government services and lastly iii) to leave private enterprise to perform duties that previously taken up by government. The changes on the way Hong Kong's public service operates. In a traditional bureaucracy, there is a very clear and rigid hierarchy in structure. Different tasks were assigned to the different levels and lower levels are responsible to the superiors at the next higher level. ...read more.

Conclusion

Measures to streamline the existing disciplinary procedures were introduced also at the same time. On 1 June 2000, the government introduced a new fringe benefits package which includes revised leave earning rates, a new leave passage arrangement and non-accountable housing benefits for new recruits. Again, in April 2000Moreover, a comprehensive review of the Civil Service pay policy and system has been conducted also in September 2002. Performance management Performance indicators are being developed to judge the success or failure of the programmes and rewards and punishments are linked to reviews of performance. A major on-going performance management programme is 'Target-based Management'. The target management process (TMP) helps the government to manage for results. With the help of this process, a government department would know better what its objectives are. Through the realization of the objectives, it can improve the government's overall performance by making it better focus on results achieved and helps the government identity potential shortfalls in programme areas that will affect the delivery of services to citizens. Conclusion To conclude, the ideas of new public management is affecting the way Hong Kong's public service operates. Even though the formal power structure of bureaucracy still remains, but conditions of employment and delivery of services are increasingly in accordance with the newer models of public management. To adopt the principles of economics and private management, public sectors are expected to be operated in a more efficient and effective way with costs savings achieved at the end. ...read more.

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