Advantages And Disadvantages Of NPM- Scope Of NPM Model

Advantages And Disadvantages Of NPM

As all of us know the Public sector kept on growing with the passage of time since human beings made the civilizations. There are a number of public sectors model working on. Here we will Discuss One of the famous ones named New Public Management(NPM). NPM is associated with the public sector for more than 25 years. Let’s discuss the Advantages And Disadvantages Of NPM(New Public Management). This approach is making all the public and private sectors famous all over the world.


Agencies, all public service institutes, and most importantly government use the NPM approach to run their sectors. There are two different concepts in NPM. One is Business Management and another one is Public Administration. Both of these concepts are associated with different concepts. We can say that Business management is strongly associated with achievement and performance while on the other public administration is associated with procedures, rules, and regulations. In short, we can easily say that structure is totally dependent on public administration like what to achieve and for that purpose what procedure we need to follow. We can also define the term New Public Management(NPM) as “Using Management, tools, and techniques for public management that are being used by private sectors”. There are three main attributes of New Public Management and they participate enough in this model as well.

    • Localization attribute says to distribute the power till lower level which will lead towards the quality.
    • Externalization attribute says that the maximum number of projects done by non-government agencies and the main focus should be on policymaking despite the action.
    • De-Bureaucratization works on reducing the work of bureaucracy

These were the basic attributes of New Public Management(NPM). Why do we need this new model? Why did we switch from the previous traditional Public management model to a new model? Answers to these questions are here in the following paragraph.

                   (Advantages And Disadvantages Of NPM)

(Advantages Of New Public Management)

There are the following positive points in this approach listed below.

  1. The main purpose of this management was to make sure that citizens should be empowered and they did it.
  2. This approach makes sure that there should be maximum growth or results by taking less cost which is the great principle of it as well.
  3. This approach’s flexibility helps people in making choices freely.
  4. Making a balance between the private and public sectors is important. Using this approach we can restrict government organizations from using more resources.
  5. This application has a major paradigm in which it says that there should be more competition. Doing so will lead to competition.
  6. This approach was very effective.
  7. Economy growth was kept in mind while developing this approach.
  8. As all of us know that efficiency is the key in the present world. Similarly, this approach worked very well on efficiency.

               (Disadvantages Of New Public Management)

In resolving the drawbacks this approach failed in some areas and those areas are known as the disadvantages of the New Public Management approach. There are the following disadvantages of this Mannegment approach given below.

  1. This approach was not applicable in many countries. In Bangladesh, this approach was not usable because it failed in many aspects.
  2. The new public management approach works on privatization. And complete privatization doesn’t lead to success ultimately.
  3. This public management approach becomes a failure in those countries that do not support market orientation
  4. This application supports the de-bureaucratization approach which causes the increase of corruption and that is the main drawback of it as well.
  5. In countries like Bangladesh, this approach fails because they were not able to hire qualified people,
  6. We can not say that always privatizing is the key to success. Sometimes it does not work and this approach totally works on privatization and granting all the rights to private agencies. That’s why this is the main drawback of the New Public Management approach.

Conclusion Of Advantages And Disadvantages Of NPM:

That was all about the new public management and Advantages And Disadvantages Of NPM. Hope That was beneficial for you as well. Keep Visting us for further content like that. If you love management then this is a must need an article for you. Read till the end of it for getting more about it.