Differences From Private Sector
Jonathan Boston, one of the early proponents of NPM, identified several ways in which public organisations differ from the private sector:
- degree of market exposure—reliance on appropriations
- legal, formal constraints—courts, legislature, hierarchy
- subject to political influences
- coerciveness—many state activities unavoidable, monopolistic
- breadth of impact
- subject to public scrutiny
- complexity of objectives, evaluation and decision criteria
- authority relations and the role of managers
- organisational performance
- incentives and incentive structures
- personal characteristics of employees
- every election cycle senior manager (Owners) change, along with changed priorities.
Boston claimed that reforms tends to ignore these differences.
Read more about this topic: New Public Management
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