New Public Management has been branded by certain scholars as `Neo-Taylorism'. Is it a justified comparison? What factors have led to the decline of NPM so soon after its birth? (20 Marks)
New Public Management as a concept emerged to deal with the issues of economy and efficiency in Public Sector Enterprises. The government had to give huge amount of budgetary support to these PSEs and the losses incurred by PSUs resulted in high amounts of fiscal deficit for the government. Hence to promote economy and efficiency in the PSEs, the government decided to adopt the principles followed in private organisations for the PSEs as well. Since Private organisations were mostly following Scientific Management Theory or Taylorism, the government ended up adopting the same for PSEs. The following are the features of NPM, that justify why it can be called Neo-taylorism:
1. Emphasises on implementing scientific management principles to improve performance of PSEs
2. Emphasises on cost-cutting – economy
3. Providing responsive services to citizens
4. Use of information Technology
5. Emphasises on implementing scientific management principles to improve performance of PSEs
6. NPM treat citizens as customers and the government considers itself a service provider so that the moral responsibility of bureaucracy is transformed into legal accountability
7. Developing competition and ensuring performance control
The reason for the decline of NPM so soon after its birth are as follows:
1. NPM is based on market philosophy wherein market takes into consideration the needs of only those people who can pay for services whereas the needs of those who can't pay are ignored
2. Government is not there to maximise profits, objective of government is to maximise the welfare of people. It's the responsibility of the government to provide basic needs to people irrespective of the costs involved in it. Even if loss is incurred in the process, Government has to provide those services.
3. Critics said that NPM might be applicable for developing countries where in citizens can be treated as customers as they can pay for the services. Government can consider itself as service provider like other private sector providers. But applicability of NPM is restricted in developing countries because in developing countries people can't pay for services
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