Interpret the significant impact of New Public Management on Non-Profit Reform. Next, infer
two (2) challenges that are associated with implementing the reform in non-profits. Provide a
rationale for your response.
Solution
While many initiatives have been introduced under the guise of New Public Management
(NPM), the outsourcing of services to the public is as an important example of the impact of
NPM on the nonprofit sector and the role of professionals. Many government agencies have
introduced competitive tendering and contracting (CTC) in a move towards greater contestability
of public services. Outsourcing advocates point to the potential for “increased flexibility in
service delivery; greater focus on outputs and outcomes rather than inputs; the freeing of public
sector management to focus on higher priority or ‘core’ activities; encouraging suppliers to
provide innovative solutions; and cost savings in providing services due to competition”. The
CTC process presents many challenges for governments and their agencies, as well as for private
and non-profit enterprises who bid for government business or contract for the delivery of
services to the public.
Challenge #1: Calls for accountability in the nonprofit sector have never been stronger, and the
rise of various forms of self-regulation represents a profound shift for nonprofits.The idea of
accountability is ubiquitous in our society and yet is noted for its complexity, ambiguousness,
and context dependency. Even in the face of much research across public, business, and
nonprofit sectors, accountability is a ‘‘multifaceted concept fraught with ambiguity’’ and ‘‘…has
become a cliché´ and, like all cliché’s, is a substitute for thinking’’. Accountability has such
widely varying interpretations and a high degree of abstraction that common understanding of its
detailed implications is often elusive.
Challenge #2: Enhancing Business Ethics or Governance- fiduciary duty requires one to put
another’s interest first. For nonprofits, this first element of governance means putting the
organization’s best interests first. It is based on a high standard of trust which includes a duty of
care, a duty of loyalty and a duty of obedience. Boards and principle officers must govern the
nonprofit organization according to this trust standard. The duty of care requires good faith and
effective governance. The duty of loyalty prohibits organizational harm and requires
commitment to the nonprofit’s best interests. The nonprofit Board must adhere to the
organizational mission to fulfill its duty of obedience..
Interpret the significant impact of New Public Management on Non-Pro.pdf
1. Interpret the significant impact of New Public Management on Non-Profit Reform. Next, infer
two (2) challenges that are associated with implementing the reform in non-profits. Provide a
rationale for your response.
Solution
While many initiatives have been introduced under the guise of New Public Management
(NPM), the outsourcing of services to the public is as an important example of the impact of
NPM on the nonprofit sector and the role of professionals. Many government agencies have
introduced competitive tendering and contracting (CTC) in a move towards greater contestability
of public services. Outsourcing advocates point to the potential for “increased flexibility in
service delivery; greater focus on outputs and outcomes rather than inputs; the freeing of public
sector management to focus on higher priority or ‘core’ activities; encouraging suppliers to
provide innovative solutions; and cost savings in providing services due to competition”. The
CTC process presents many challenges for governments and their agencies, as well as for private
and non-profit enterprises who bid for government business or contract for the delivery of
services to the public.
Challenge #1: Calls for accountability in the nonprofit sector have never been stronger, and the
rise of various forms of self-regulation represents a profound shift for nonprofits.The idea of
accountability is ubiquitous in our society and yet is noted for its complexity, ambiguousness,
and context dependency. Even in the face of much research across public, business, and
nonprofit sectors, accountability is a ‘‘multifaceted concept fraught with ambiguity’’ and ‘‘…has
become a cliché´ and, like all cliché’s, is a substitute for thinking’’. Accountability has such
widely varying interpretations and a high degree of abstraction that common understanding of its
detailed implications is often elusive.
Challenge #2: Enhancing Business Ethics or Governance- fiduciary duty requires one to put
another’s interest first. For nonprofits, this first element of governance means putting the
organization’s best interests first. It is based on a high standard of trust which includes a duty of
care, a duty of loyalty and a duty of obedience. Boards and principle officers must govern the
nonprofit organization according to this trust standard. The duty of care requires good faith and
effective governance. The duty of loyalty prohibits organizational harm and requires
commitment to the nonprofit’s best interests. The nonprofit Board must adhere to the
organizational mission to fulfill its duty of obedience.
