Introduction
New public management (NPM) emerged as a prescription to governments on what they should do to reform its organizational structures and operations. Drawing on principles from the private sector, NPM emphasizes managerial flexibility, autonomy, customer service, entrepreneurship, and empowerment to increase overall performance (Barker, 2008). Proponents of new public management believe in a more entrepreneurial government and argue that if the government is to successfully meet the challenges of the day it would need to eliminate many of its rules and procedures, offer citizens more choice, and develop less controlling budget systems (Osborne & Gaebler, 1992). The post-bureacratic model wanted the government to reform its operations …show more content…
Schwenk (1990) analyzed mangers’ intrepretations of conflict over strategic differences, and it was found that managers of private-sector organizations viewed conflict as negative because it meant that some members did not believe the results from a strategic decision to be positive; whereas, managers in public administration organizations interepted conflict in a more positive way because it indicated that stakeholders were participating in the process and their interests would be represented in the decision. The difference in views between the managers in their respective sectors lies in the overall mission held by the managers; managers in public administration organizations hold the goal of maximizing collective value, whereas private managers want to maximize profit and satisfy the company’s shareholders’ wishes (Mort, Weerawardena & Carnegie, 2003). Managers also prefer different practices when it comes to budget-related decisions; public managers prefer a consultative approach, private managers, on the other hand, prefer an analytical approach (Nutt, …show more content…
In the private-sector, there are few administrative layers and few top level executives, meaning that on the employee level there are a lot less constraints holding employees back from taking risks and being creative in carrying out their role and responsibilities. Private-sector employees are much more competitive and change-oriented, due to the fact that private administration as a whole is driven by revenue and results. Public administration employees, however, place a higher value on carrying out tasks that are of use to society and trust in the process and rules to avoid risks and mistakes (Graff & Van der Wal, 2008). Employees of public administration are expected to be well-performing and professional, like their private-sector counterparts, but are also encouraged to provide some leadership in policy formulation and work closely with ministers; whereas, private-sector employees do not work closely with their top level executives in the same leadership
New public management (NPM) emerged as a prescription to governments on what they should do to reform its organizational structures and operations. Drawing on principles from the private sector, NPM emphasizes managerial flexibility, autonomy, customer service, entrepreneurship, and empowerment to increase overall performance (Barker, 2008). Proponents of new public management believe in a more entrepreneurial government and argue that if the government is to successfully meet the challenges of the day it would need to eliminate many of its rules and procedures, offer citizens more choice, and develop less controlling budget systems (Osborne & Gaebler, 1992). The post-bureacratic model wanted the government to reform its operations …show more content…
Schwenk (1990) analyzed mangers’ intrepretations of conflict over strategic differences, and it was found that managers of private-sector organizations viewed conflict as negative because it meant that some members did not believe the results from a strategic decision to be positive; whereas, managers in public administration organizations interepted conflict in a more positive way because it indicated that stakeholders were participating in the process and their interests would be represented in the decision. The difference in views between the managers in their respective sectors lies in the overall mission held by the managers; managers in public administration organizations hold the goal of maximizing collective value, whereas private managers want to maximize profit and satisfy the company’s shareholders’ wishes (Mort, Weerawardena & Carnegie, 2003). Managers also prefer different practices when it comes to budget-related decisions; public managers prefer a consultative approach, private managers, on the other hand, prefer an analytical approach (Nutt, …show more content…
In the private-sector, there are few administrative layers and few top level executives, meaning that on the employee level there are a lot less constraints holding employees back from taking risks and being creative in carrying out their role and responsibilities. Private-sector employees are much more competitive and change-oriented, due to the fact that private administration as a whole is driven by revenue and results. Public administration employees, however, place a higher value on carrying out tasks that are of use to society and trust in the process and rules to avoid risks and mistakes (Graff & Van der Wal, 2008). Employees of public administration are expected to be well-performing and professional, like their private-sector counterparts, but are also encouraged to provide some leadership in policy formulation and work closely with ministers; whereas, private-sector employees do not work closely with their top level executives in the same leadership