New Public Management ( Npm )

1383 WordsMay 1, 20166 Pages
New Public Management (NPM) was developed in response to some criticisms of the public sector. One of them is to make the public sector more financially accountable since they need to demonstrate to the government who provides them funding, that the money is being put into good use. They also need to ensure efficient resource allocation (Peyton) because resources are limited yet there is an increase in expectations and demands. For example, number of public hospitals and medical expertise may be insufficient to meet the public’s demand. This is because government feel compelled to ensure that everyone can access healthcare and is therefore, provided at a low cost. The problem is made worse due to the growth of private hospitals, where quality of services is regarded as superior to public hospitals. The public medical sector is thus under great pressure to improve service quality and efficiency. It is said that the new public management reforms have made public sector organisations more calculable and accountable. First of all, it is important to define these terms. Calculable means the ability to measure and assess the worth of something. In our context, it often means putting monetary value on tangibles and intangibles. Accountable means being held responsible for actions taken and the ability to answer to those who are involved in the process. Accountability can be towards donors (upwards) or towards beneficiaries (downwards). In order to investigate this statement
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