The report is focusing on the doctrines of NPM and the lessons learnt from UK in establishing new public management

1. Public Administration and the New Public Management: Lessons from UK Experience
Overview
The article was written by Dr Peter K. Falconer from Glasgow Caledonian University, Scotland, United
Kingdom. The article outlines the shift from old way public administration to new public management by
focusing on the elements or doctrines of new public management and at the same time taking example
from new public management in United Kingdom.
1.0 Introduction
The New Public Management can be defined as government policies aimed to modernize and render the
effectiveness and efficiency of public sector. The New Public Management points out the failure and
inadequacies of public sector performance such as centralized bureaucracies, waste and inefficiency in
resource use, inadequate mechanism of accountability and redress in old public administration. The new
public management, as compared to old public administration is now much more concern on state’s role
in providing services to citizens and at the same time maintaining relationship between both parties
mainly government and citizens themselves.
2.0 Doctrines of New Public Management
There are several doctrines pointed upon existence of NPM and those are the existence of professional
management, explicit standards of performance, greater emphasize on output control, disaggregation of
public sector units, private sector styles of management and greater discipline in resource being used.
The first element of new public management is the existence of professional management. In a new
public management, managers are the one who held the responsibility for effectiveness and efficiency
of public service delivery. The manager should now have more discretion in decision making within his
or her particular area of responsibility as compared to traditional public administration whereby they
operate in accordance to established rules and regulations and little discretion is exerted upon the
implementation of government’s policies.
The next element is explicit standards of performance. In a new public management, performance is
intensively measured throughout the organization. Therefore, in attempt to do so, organization must
pay closer attention to their objectives of what they aim to achieve for the organization. This will then
help the organization to focus on their specific responsibilities and being able to carry out tasks
efficiently and effectively. For an example, many of organization nowadays have implemented the usage
of Performance Measurement Scheme, which can be useful to evaluate whether the organization
succeed in achieving the results or vice versa. If not, then some measures need to be taken in order to
improve the overall management of related organizations.
Other than that, the new public management also focus on greater emphasize to output controls.
Comparing to old public administration which focuses more on input and processes, the new public
management promotes its focus on results or outcomes. It literally means that any unnecessary

2. procedures and policies have been cut down while at the same time focusing more on what organization
aims to achieve. For an example, the old publ ic administration is often associated to being such
bureaucratic and with rigid rules and chain of command to be followed. There is no transparent
communication happening between the top and bottom level which therefore hinders the
communication and decision making process to become slow. Therefore, as aiming to reduce this
weakness, in a new public management, the bureaucratic levels have been significantly cut down. There
is a clear communication taking place between top and bottom level of management whi ch therefore
triggering to better decision making take place within related organization.
A new public management is also associated to disaggregation of public sector units. It is done so in
order to form a more efficient and accountable public service. I t is therefore, more efficient because
smaller units of activity are better able to establish objectives and works. It is also more accountable as
the NPM is now replacing “faceless bureaucrat” with a more visible and responsible managers who
directly accountable to the public. For an example, due to concern on children abuse case that is on rise
in Malaysia, therefore the government has established some action plans or strategies to be taken in
order to eradicate the issues. Thus, as the strategies are implemented, many organizations have taken
part in order to overcome this issue such as Jabatan Kebajikan Masyarakat, Kementerian Pembangunan
Wanita, Keluarga dan Masyarakat, Kementerian Dalam Negeri, Kementerian Pelajaran Malaysia and so
on. Therefore, it hence promotes effectiveness towards curbing this issue as it is proven that smaller
units of activity are better able to establish objectives and works. There is an existence of people directly
accountable and held responsible towards the public.
Other than that, the next element of NPM is that it implements private sector styles of management.
Public sector in a new adaptation to NPM should behave in a more business like manner as to what
private organizations have been doing all this while. Therefore, organization should conduct its affairs in
accordance to business principles of the organization. However, in order to do so, there must be an
integration among its internal customers which are the employees. The employees should be ready for
changes to be made in organization, from old way of administration to the newest trend of
management. Thus, it is advisable for the organization to adopt better reward structures for their
employees, encompassing such mechanisms as performance related pay and flexible working practices.
At the very end of it, motivation among employees might be increased and as the result, objectives
targeted can be possibly achieved.
The new public management also promotes greater discipline in resource use. Public service agencies
must pay greater attention to the way they use the financial and human resources at their disposal. The
emphasize in new public management is very much on cutting the cost of public service provision while
at the same time increasing its quality. For an example, many of the public service organizations have
introduced the use of their own websites in order to handle matters from the citizens who are now
perceived as customers. From doing so, the financial cost is significantly reduced in a way that there is
lesser number of new employees be recruited and trained. All of the matters can be possibly settled
down from one service provider and hence it cuts the cost to provide training and enhancement for new
employees which then results to better management of human resource. Apart from that, it can also

3. reduce the cost of file storage, papers and so on, as nowadays all of those files are kept in e – folder.
Therefore, it significantly cuts the financial cost of organization.
3.0 New Public Management: United Kingdom experience
Public sector organizations in United Kingdom have started the implementation of new public
management in order for them to become economically efficient and accountable for performance to
public they serve. They have inculcated the use decentralization exercise, by which the large public
bureaucracies have been disaggregated into smaller units of operations that are certainly more visible
and transparent, which as the result rising the accountability of public service organizations.
Apart from that, there is also introduction of marketization policy whereby public sector organizations
are to be subjected to disciplines of market. Through this way, the public service sector would operate in
a competitive market, and the citizens would be able to make demands of public sector, which therefore
increasing the motivation of public service organizations to perform the same way as private sectors do.
A further explanation of new public management in United Kingdom is as follows:
 The Next Steps initiative and establishment of executive agencies
 Decentralization
 The new contractualism in public administration
 Accountability for performance
 The separation of policy making from policy implementation
3.1 The Next Steps initiative and establishment of executive agencies
The next steps initiative can be understood as efforts made by government of UK in improving its public
service delivery upon victory of 1987 general election and one of the efforts established is the
development of executive agencies. The development of executive agencies in UK is on the aim to carry
out service delivery activities of central government departments. The UK government under NPM has
disaggregated civil service into a series of distinct agencies, whereby each of them is responsible for
delivering particular public service. Those agencies would be held responsible to respective ministries of
government. For example, in UK itself there are over 100 executive agencies that would carry down the
public service towards its citizens.
3.2 Decentralization
Apart from that, under next step program, the UK government has also implemented decentralization as
a way of public management reform in UK. During 1980s and 1990s, many changes have been made to
government system. The government itself has established privatization program in which many public
service organizations have been removed from public sector and subjected to disciplines of private
market. Then, there is also an increase with the number of appointed bodies responsible for delivery of
public services such as higher and further education, and hospitals. At the same time, more
responsibility is exerted within local government through introduction of market disciplines in service
provision.

4. 3.3 The New Contractualism
The new public management has triggered UK government to implement compulsory competitive
tendering (CCT) in local government. Under CCT private companies are able to compete with public
agencies for contract to deliver public services. There can either be contracting out and contracting in.
Contracting out is that the service delivery is won by private company while contracting in is that service
delivery is won by public agency’s own direct service organization. Other than that, there is also an
establishment of Local Government Act 1992 which renders the effectiveness and efficiency of public
service delivery from government. Under the legislation, The Audit Commission has been given with
power to publish performance indicators for local authorities and also funct ion to monitor their
performance in delivery public service. Therefore, the introduction of CCT and empowerment of Audit
Commission are able to promote concerns of public authorities in management of services to the public.
3.4 Accountability for performance
The UK government has attempted to enhance the accountability of public institutions by promoting
performance measurement. Though it is somehow quite difficult to identify the tangible product, the
customers, the process involved, the rules and regulations of public organizations, therefore the
performance of that organizations can be evaluated via their Citizen’s Charter. The charter will enshrine
a clear commitment of the organization towards service quality promoted to public, clear and agreed
criteria of assessment to service quality in the part of public sector, increased visibility of people working
in public sector to provide more tangible and accountable entities for customers, and continued
improvement and commitment to public are those elements directly answerable to citizens.
3.5 The separation of policy making from policy implementation
Public service delivery traditionally is subjected to political control exercised through departments of
state, ministers and elected legislature. Therefore, as the NPM is implemented, there is an attempt
made to separate the process of policy making from operational management of public services. IN
NPM, the role of government is to set the policy goals for the service, funding the service and being
accountable to parliament for policy decisions. Whereas, the operational management of those services
is the responsibility of Management Executive.
4.0 Conclusion
All in all, it can be perceived that the new public management reforms in an organization really give
good impacts towards management system of that organization. The old way of administration is often
associated to being high bureaucracy, rigid rules and regulations, unnecessary procedures, intangible
outputs or products and also low integrity of employees. Hence, by implementing the NPM as a tool of
overall improvement within that organization, thus the organization is now more effective and efficient
in handling issues with less bureaucracy, clear communication of command, focus more on outputs
rather than unnecessary procedures, high transparency and accountability and as well as inculcating
high integrity among public service officials whenever they conduct their roles and responsibilities.

5. Public Administration and the New Public Management:
Lessons from UK Experience
Dr Peter K. Falconer
Department of Law and Public Administration
Glasgow Caledonian University
Scotland, UK
Name: Ahmad Haziq B Ahmad Mirza
Student no: 2014878376
Prepared for: Dr Hardev Kaur

6. References:
Falconer, D. P. (2003). Public Administrations and the New Public
Management: Lessons from UK Experience. 1-17.