Page 67 - PAAT_Journal_V1-2019

PAAT Journal Vol. 1, No. 1, (June 2019)

4. Decentralization: NPM advocates shifts from a unified management system to

a decentralized system in which public management professionals gain flexibility and are not
limited to agency restrictions.

5. Competition: NPM promotes competition in the public sector which could in
turn lower cost, eliminate debate and possibly achieve a higher quality of progress and work

through terms and contracts. Competition is more pronounced when the government offers
contracts to the private sectors and the contracts are given in terms of the ability to deliver

the service effectively and quality of the goods provided. Higher competition equals to higher
quality and better services.
6. Private-sector management: With an adoption of NPM, the public sector shifted

to modern management including development of mission statements, performance
agreements, business plans and others under the same standards adopted by the private

sector.
7. Cost reduction: The NPM focuses on keeping cost low and efficiency high under

the concept of ‘doing more with less’, opposite to the conventional public management.
While the conventional public management was highly hierarchical, bureaucratic,

heavily regulated and centralized; the NPM focuses on results, professionally managed, lean
and flat organization, and flexibility. The NPM is under 4 main principles; good governance,
managerialism, entrepreneurial governance, and post-bureaucratic organization. The good

governance means visibility and transparency, accountability with professional conduct
leading to stronger and peaceful society. The managerialism duplicates the private-sector

modern management with enough budget, workforce and technology to generate results with
efficiency, cost-effectiveness and worth the value. The entrepreneurial governance forces

reduction of public roles while promotes more private roles but focuses on integration of
work from all sectors to focus on results. The post-bureaucratic organization becomes lean

and flexible, ready to work proactively rather than reactively.
Since its inception, the NPM has been proven to be successful in many areas. Some
of which are;

1. Public satisfaction. With a customer-focused, higher satisfaction has been
brought to the public and communities.

2. Perceived higher efficiency from the government agencies following the
restructuring to become leaner and more flexible.

3. Transparency and auditability of the public organizations.

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