May 2016 Q2 d(i)
The New Public Management concept in the public sector aims at structural, organisational and managerial changes in public financial management.
Required:
Identify TWO methods proposed by this new management system to improve public financial management. (2 marks)
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Concept of New Public Management in the Public Sector
Objective: Aims at structural organisational and managerial changes of the public sector.
Methods:
1. Reinventing Government
Decentralizing management, and disaggregating and downsizing of public services.
2. Re-Engineering & Revitalization of the Public Service
Reducing state bureaucracy of centralization, and direct control to be replaced by managerialism.
3. Organisational Transformation
– Reforms are made credible and irreversible
– Adequate administrative and institutional capacity is provided
4. Total Quality Management
– Managerial improvement
– Corruption minimized
5. Results Oriented Management
Market based public service management or “enterprise culture”
6. Outsourcing Jobs
Contracting out provision of public services
7. Empowering rather than serving
– Commitment to economic growth
– Investment and international competitiveness