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New Public Management

   

Definition: New Public Management is a term coined by Hood (1991) for the policy to modernize the public sector and and render it more effective. The basic idea of NPM is that market-oriented management of the public sector will lead to greater cost-efficiency for governments, without having negative side-effects on other objectives and considerations.
Ferlie, Ashburner, Fitzgerald, and Pettigrew (1996) describe 'New Public Management in Action' as involving the introduction into public services of the 'three Ms': Markets, managers and measurement.


   
   
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