2. What is “New Public Management‟? What are the advantages and disadvantages of this trend for the delivery of human services? What are its implications for non-government welfare organisations?

2086 Words Oct 25th, 2013 9 Pages
The early 1980s and 1990s saw the emergence of New Public Management (NPM) theory of running public organizations. This concept originated from the UK and USA during the times of Margaret Thatcher and Ronald Regan. It has since been implemented in other OECD countries like Canada and New Zealand. In Australia NPM was introduced by the Hawke-Keating Governments (1983-96) and extended by the Howard Government (1996-2007). The governments of the time, increasingly under political pressure to cut down expenditure and administration costs turned to the public sector for ideas and hence the birth of the NPM (Gruening, 2001). This paper seeks to define NPM and list its advantages and disadvantages in the delivery of human services. The …show more content…
The fact that agencies have to compete regardless of their size and power could be unfair. Paulsen (2007) posits that larger organizations may have an advantage in the bidding process, as they may have the resources to meet the required activities because of their size. Also, the current contractor who stays in touch with the needs of the clients has an advantage over other agencies who may be trying to compete in winning a contract. Loss of citizenship and social rights occur when government provides services to the public as a need or assistance( like family assistance) rather than an entitlement.

Contractualism according to Paulsen (2006) implies to the purchaser (agency) that public sector managers could make decisions on policy and monitoring the service contracts while maintaining distance from their clients. For an example, with children in care, it is the Social Worker, working for the government who will decide when and if a child can have a sleep over at their friend’s house. They usually do not see what effect this decision has on the child because they are removed from the clients (consumers). It would have been better for such decisions to be left to the agencies who implement the policies.

A further disadvantage of NPM is the emphasis and obsession with cost
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