Public Management

1. May 3, 2018Dr. Md. Shamsul Arefin
1
PUBLIC MANAGEMENT AND GOVERNANCE:
ISSUES AND CHANLENGES
Senior Staff Course , BPATC
Dr. Md. Shamsul Arefin
Secretary
Anti-Corruption Commission

2. Public Management and Governance Reform
The main hypothesis in the NPM and Governance Reform:
• A management philosophy used by governments since the
1980s to modernise the public sector.
• The wave of public sector reforms throughout the world since
the 1980s.
 More market orientation in the public sector will lead to
greater cost-efficiency for governments, without having
negative side effects on other objectives and considerations
May 3, 2018
2
Dr. Md. Shamsul Arefin

3. Characteristics of NPM and Governance
• Orientation towards economy, efficiency and effectiveness
• Market principles
• Effort to impose values and techniques of private sector
management into the public sector
• splitting large bureaucracies into smaller, more fragmented
ones,
• competition between different public agencies, and between
public agencies and private firms
• incentivization on more economic lines
May 3, 2018
3
Dr. Md. Shamsul Arefin

4. Why Governance is to be changed
• globalization
 government needs to adapt to changing context
• budgetary deficit
 government must be more efficient
 “more with less”
• information technology revolution
 providing the means to “do government differently”
 creating demand that governments govern differently

5. The Voice Against Bureaucracy
• bureaucrats primary focus is proper procedure
-- rather than results
▫ bureaucratic self-preservation
• rigid -- rather than responsive
• insulated -- rather than sensitive
• wasteful
▫ Value for money not realised
▫ unrepresentative

6. The New Public Management
• making government become more like business...
▫ focused on customer service
▫ subject to competition
▫ performance clearly indicated by profit margins -- “the bottom line”
 central concern with outcomes not process
• the motivation for change
• the (abstract) solution
• specific proposals for change from traditional public administration
• Values
• management practices
• distinguishing features – pragmatic/practical and non-ideological
• providing high-quality services that citizens value
▫ focus on citizen-centred service, service standards, and service quality

7. The New Public Management (Borins) – Management Practices
• providing high-quality services that citizens value
▫ adoption of private sector concepts of customer service
• increasing the autonomy of public managers (especially from
central agency controls)
▫ focus on outcomes not process
 performance indicators/benchmarking
• measuring and rewarding organizations and individuals on
whether they meet performance targets
• open-minded attitude about which public purposes should be
performed by the private sector
▫ focus on “core businesses”
 privatization
▫ “steering not rowing”
 alternative service delivery
▫ appreciating the virtues of competition

8. The New Public Management – The Canadian Model
• distinguishing features – pragmatic/practical and non-
ideological
• providing high-quality services that citizens value
▫ focus on citizen-centred service, service standards, and service quality
• increasing the autonomy of public managers (especially from
central agency controls)
▫ emphasized in terms of financial and administrative controls; less success in
terms of human resource management
• measuring and rewarding organizations and individuals on
whether they meet performance targets
▫ less effective emphasis – esp. on performance targets
• open-minded attitude about which public purposes should be
performed by the private sector
▫ the role of government “can vary from leader, to catalyst, to partner”
▫ less emphasis on privatization – more emphasis on alternative service delivery

9. Values of the
New Public Management
New Public
Management
Traditional Public
Administration
Values entrepreneurship,
flexibility, creativity
prudence, stability,
probity,
accountability
Risk Tolerance risk taking risk averse
Accountability accountability by
results
process
accountability
Structures decentralized,
partnerships,
contracts
hierarchical,
centralized

10. Governance
• Governance: process of decision-making and the process by
which decisions are implemented (or not implemented)
• Hereby, public institutions conduct public affairs, manage
public resources, and guarantee the realization of human
rights
• Good governance accomplishes this in a manner essentially
free of abuse and corruption, and with due regard for the
rule of law
May 3, 2018
10
Dr. Md. Shamsul Arefin

11. Good governance
• Good governance accomplishes this in a manner
essentially free of abuse and corruption, and with
due regard for the rule of law
• Openess
• Participation
• Responsibility
• Effectiveness
• coherency
May 3, 2018
11
Dr. Md. Shamsul Arefin

12. Participation
• Participation by both men and women - a key
cornerstone of good governance.
• Participation: direct or through legitimate
intermediate institutions or representatives.
• Participation: informed and organized.
• Freedom of association and expression; an
organized civil society
May 3, 2018
12
Dr. Md. Shamsul Arefin

13. Rule of law
• Good governance requires:
• fair legal frameworks that are enforced impartially.
• protection of human rights, esp. those of minorities.
• Impartial enforcement of laws requires an
independent judiciary and an impartial and
incorruptible police force.
May 3, 2018
13
Dr. Md. Shamsul Arefin

14. Transparency
• Decisions taken and their enforcement done in a manner
that follows rules and regulations
• information is freely available and directly accessible to
those who will be affected by such decisions and their
enforcement
• enough information provided;
• information provided in easily understandable forms and
media.
May 3, 2018
14
Dr. Md. Shamsul Arefin

15. Accountability
• Accountability -key requirement of good governance
•
• Not only governmental institutions but also the private
sector and civil society organizations must be accountable
to the public and to their institutional stakeholders
• An organization or an institution is accountable to those
who will be affected by its decisions or actions.
Accountability cannot be enforced without transparency
and the rule of law.
May 3, 2018
15
Dr. Md. Shamsul Arefin

16. Responsiveness
• Good governance requires that institutions and
processes try to serve all stakeholders within a
reasonable timeframe.
• Partners who contribute to results of activities in
public administration
• Should be informed and consulted
• Participate in the creation of public policies and
administrative and other public processes
May 3, 2018
16
Dr. Md. Shamsul Arefin

17. Consensus oriented
• Good governance requires mediation of the different
interests in society to reach a broad consensus in society on
what is in the best interest of the whole community and how
this can be achieved.
• It also requires a broad and long-term perspective on what
is needed for sustainable human development and how to
achieve the goals of such development.
• This can only result from an understanding of the historical,
cultural and social contexts of a given society or community
•
May 3, 2018
17
Dr. Md. Shamsul Arefin

18. Equity and inclusiveness
• A society’s well-being depends on ensuring that all its
members feel that they have a stake in it and do not
feel excluded from the mainstream of society.
• This requires that all groups, particularly the most
vulnerable, have opportunities to improve or maintain
their well-being.
May 3, 2018
18
Dr. Md. Shamsul Arefin

19. Efectiveness and efficiency
• Good governance means that processes and institutions
produce results that meet the needs of society while
making the best use of resources at their disposal
• The concept of efficiency in the context of good
governance also covers the sustainable use of natural
resources and the protection of the environment.
May 3, 2018
19
Dr. Md. Shamsul Arefin

20. Issues and Challenges
• Not agreed of political accountability
• Poor contacts with the public
• Decreased transparency
• Corruption
• Additional expenses
• Neglect of citizens’ rights, etc.
• Centralization and Discretion
• Compensations are ignored
• Attitude of Single hand delivery
May 3, 2018
20
Dr. Md. Shamsul Arefin

21. Dr. Md. Shamsul Arefin
Challenges
 Nobody can be better off without making
anybody worse off
 Interests are interrelated
 Governance does not benefit both always
 If you stand for poor, rich raised voice
 If you stand for rich, poor does not react
 If you stand for poor, poor will not protect you
 Your own position is at risk for the time being
 In short run, society faces conflict
05/03/18
21

22. Exercise:
Change management Strategy in Public Sector
• The first practices of New Public Management emerged in the United Kingdom under the
leadership of Prime Minister Margaret Thacher. Thatcher played the functional role of
“policy entrepreneur" and the official role of Prime Minister. Thatcher drove changes in
public management policy in such areas as organizational methods, civil service, labor
relations, expenditure planning, financial management, audit, evaluation, and
procurement.
• Thatcher's successor, John Mayor, kept public management policy on the agenda of the
Conservative government, leading to the implementation of the Next Steps Initiative.
Mayor also launched the programs of the Citizens Charter Initiative, Competing for
Quality, Resource Accounting and Budgeting, and the Private Finance Initiative and then
PPP.
• The term was coined in the late 1980s to denote a new (or renewed) stress on the
importance of management and ‘production engineering’ in public service delivery, which
often linked to doctrines of economic rationalism.
• During this timeframe public management became an active area of policy-making in
numerous other countries, notably in New Zealand, Australia, and Sweden.
May 3, 2018
22
Dr. Md. Shamsul Arefin

23. Exercise:
Change management Strategy in Public Sector
• NPM was accepted as the "gold standard for administrative reform" in the 1990s. The idea
for using this method for government reform was that if the government guided private-
sector principles were used rather than rigid hierarchical bureaucracy, it would work more
efficiently. NPM promotes a shift from bureaucratic administration to business-like
professional management. NPM was cited as the solution for management ills in various
organizational context and policy making in education and health care reform.
• There is no single and exhaustive definition of “good governance,” nor is there a
delimitation of its scope, that commands universal acceptance. The term is used with great
flexibility; this is an advantage, but also a source of some difficulty at the operational level.
Depending on the context and the overriding objective sought, good governance has been
said at various times to encompass: full respect of human rights, the rule of law, effective
participation, multi-actor partnerships, political pluralism, transparent and accountable
processes and institutions, an efficient and effective public sector, legitimacy, access to
knowledge, information and education, political empowerment of people, equity,
sustainability, and attitudes and values that foster responsibility, solidarity and tolerance.
May 3, 2018
23
Dr. Md. Shamsul Arefin

24. May 3, 2018Dr. Md. Shamsul Arefin
24
Please prepare a presentation on effective governance of
the sectors mentioned below:
(any one by each group)
 Health
 Education
 Transportation
 Environment and Climate Change
 Law and order management