Structure:

• • Introduction: Define new public management.
  • Body: List down the points why new public management is suited for growth and development of country with some examples of including both qualitative and quantitative aspects.
  • Also mention some limitations of new public management.

• Conclusion: Balance on both advantages and limitation and conclude by saying that universal nature of new public management and its success has made not only the concept popular but also inevitable.

Supporting points:

Background: The new approach, namely New Public Management (NPM) emerged to replace the traditional model of public management during the 1980s and 1990s in response to the inadequacies of the traditional model. Reforms aimed at improving the quality of public services, saving public expenditure, increasing the efficiency of governmental operations and making policy implementation more effective.

The NPM ideas emphasises markets and competition which include contracting out and adopting private sector styles of management practice.

Definition:

NPM can be defined as a set of particular management approaches and techniques which are mainly borrowed from the private sector and applied in the public sector. It is also perceived as an ideology based on belief in the efficacy of markets and competition and business-like management ideas and practices. It involves the wholesale induction of core values of business administration into public sector.

NPM also involves the use of market or market-like mechanisms for the delivery of public services (including privatization, contracting out and the development of internal markets).

As a latest paradigm in the evolution of public administration , new public management is also called as managerialism, market based public administration is a third way between public and private administration. It brings together public administration and business management.

NPM for growth and development of nation:

• Devolves authority and provides flexibility which increases efficiency within public sector. Eg: Labour laws which are flexible with some security.
• Ensures performance control and accountability. Eg: Adoption of zero based budgeting.
• Developing competition and choice. Eg : lateral entry which brings specialists from private sector in government organization.
• Providing responsive service. 
• Improving the management of human resources. Eg: Training given under PMKVY ( Pradhan mantra koushal vikas yojana ) and professionalization training provided to public servants.
• Optimizing information technology. Eg: Digital india
• Improving the quality of regulation. Eg:Niti aayog monitoring and evaluation of swath bharath mission also incentivized based monitoring.

Limitations:

With all the advantages mentioned above new public management is not without its limitation. It is dubbed as amoral caring little of administrative ethics which is corner stone of running of public affairs.

NPM involves a paradox of centralisation through decentralisation. ie giving public managers more authority to manage programs may result in concentrating decisions making in them. Thus, NPM may lead to centralised decision making by public managers, rather than encouraging decentralization in public organizations as it claims.

The second criticism concerns applying private sector management techniques to the public sector. While NPM has encouraged the use of private sector management techniques, there may be risk associated with adopting some private sector practices.

Most areas of public service and administration have distinct political, ethical, constitutional and social dimensions and these factors make the public sector different from the private sector- Hence inappropriate for the public sector as it has more complex objectives, more intricate accountabilities and a more turbulent political environment than the private sector.

The relationship between public sector managers and political leaders is of a different order to any relationships in the private sector.

Public sector there is not the same degree of freedom as there is in the private sector.

Conclusion: 

            Even in its limitation NPM is a bold measure for systematic administrative reform which is aggressively result oriented and objective focused. Hence, universal nature of new public management and its success has made not only the concept popular but also inevitable.