NPM

Public sector reform can defined in many ways but common element in defination of public sector reform are

• Deliberate planned change to public bureaucracies
• It's synonyms with innovation
• Improvement In public services efficiency and effectiveness are the intended outcome of the reform process 
• The urgency of reform is justified by the need to cope with the uncertainties and rapid changes taking place in the organizational environment

The public sector reform knows under the rubric of NPM were deliberate changes set in motion by newly elected neo conservation gov that were determined to change the public bureaucracy and remove what they saw as obstacles to efficient service delivery

NPM was first introduced by the Thatcher government in Britain but also in the United States and countries like Australia and new Zealand

NPM principle were also applied in many third world countries as a condition for loan set by the international financial institution many different type of reform measures have been group under the label of NPM

The transfer of private sector management principle to the public sector 

Introducing private sector management into the public sector has been referred to as the managerialism its stresses hand on professional management explicit standard and measures of performers managing by results and value for money it is offered referred to as the three Es of economy efficiency and effective. the focus on results reflect the criticism above that there was too much slack or waste in public sector instead of allocating money to the Agencies without consulting the actual services provided budgets where to be created on the basis of output for example the most student that graduate the more money to the school this is also called output budgeting another issue here is performance pay, public employees should be promoted and remunerated according to their performance rather than according to the number of year in office critical voice have argued that it is impossible to measure performance in public sector but the principle of performance Pay and output budgeting have sneaked into many Reform programs

Private sector management principle all so found their way into the Reform agenda of many third world government mainly because these principal had been adopted by economist in international financial institution such as the World Bank and International Monetary Fund

Privatization

Privatisation simply mean the selling or transfer of public sector enterprises to private ownership the underlining philosophy is that the privile sector can take care of many functions more efficiently than the state so privatisation aims at increasing efficiency reducing cost to consumer and reducing public sector expenditure Britain thatcher government was the four univer introducing for reaching privateisation program that result it in the privatization of nationally all amines the Postal Services the National Railway and other large on organisation

Another Miller version of privatization is the system of contracting out this means that the state remains the buyer of the services but the services itself is undertaken by a Private agency the state as purchaser the private sector as provider example of function that could be released aur contracted out to the Pravesh sector are garbage collection cleaning in Public School Universities and hospital and water supply scheme the more radical country such as the United Kingdom have contracted out services that that have traditionally been considered as the core of states such as prison services and security

Third world government also undertook privatisation which was often posited as a condition for acquiring loans from the IMF and the World Bank public sector enterprises in developing countries had open served as a way to provide patronage person whose political loyalty was important for appointed by the president as as a director of the Enterprise rather than person who were the best qualified through privatisation this means of patronage were removed between 1988 and 1993 for example over 2700 public enterprises in more than 60 developing countries what transfer to private ownership the poster communist country also launched comprehensive privateisation programs

Agnification

Agency vacation refer to the establishment of semi autonomous Agencies possible for operational management the keyn ocean is distance from the central department so there is freedom of manage this is Principal dried from the traditional modern idea of separating politics and session the logic is dead by operating these from political pressure it can be run more efficiently agnification mean that implementation become more distinct from policy making because the agency explicit t guidelines are to implement policy already decided by government

Competition

Another element in the new public and management is time exercising competition as an instrument to enhance efficiency introducing competition can be done through permittization were the state Monopoly is dismantle but it can also be done throw the introducing of quasi markets into the public sector 5 temple in health were citizen are allowed to shop for the best provided by the choosing prely among hospital and Prakriti nurse this can be done by supplying people with voucher that they can use whether they please for example in debate about racial integration of American school the introduction of school voucher have been suggest so that parents can choose where to spend education money the school allow them much greater choice then in current system where force Beijing of children in name of decoration have been much criticize