NEW PUBLIC MANAGEMENT: THE RIGHT WAY TO MODERNIZE AND IMPROVE PUBLIC SERVICES?

Falko Walther University of Giessen

ABSTRACT

This study discusses whether the customer-centered service and New Public Management (NPM) approach is applicable to public services and can market-driven systems be implemented in the public sector. NPM refers to a group of strategies and concepts for public administrations to improve public services by implementing private sector and business approaches. Governments in many countries have adopted NPM strategies and have implemented competitive market structures, incentive schemes and radical outsourcing projects. Enthusiasm for such projects has resulted in the rapid and uncontrolled implementation of these ideas and concepts, and increasing numbers of countries are experiencing repercussions. This study presents an initial exploration of these challenges and recommendations for action to overcome these difficulties. The author of this study shows that unlike purely NPM-focused approaches for enhanced and customer-centered public services, hybrid approaches that adapt private sector systems, methods and theories yield efficient administrative structures and high-quality public services.