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New Public Management: Theoretical and Practical Aspects

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Author(s): Milita Vienažindienė | Ramunė Čiarnienė

Journal: Engineering Economics
ISSN 1392-2785

Volume: 5;
Start page: 44;
Date: 2007;
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Keywords: public organizations | New public management | human resources management

ABSTRACT
over two decades a wave of public sectormanagement reforms has swept through developed,transitional and developing countries. The role and institutionalcharacter of the state and of the public sectorhave been under pressure to be more market-orientedand private sector-oriented, initially in developedcountries and later in some developing countries.The article concentrates on New public management(NPM). The authors give a theoretical description andkey components of New public management, humanresources management influenced by NPM.As underlying and fundamental aim of the new publicmanagement reform program is to transform managementof public organizations into a business-like management.NPM incorporates the importation of privatesector management systems and techniques into thepublic services.Seeking for the effectiveness of public institution’sactivity the importance of human resources becomesespecially evident, because it is not only the mostimportant resource of public organizations, but also themost sensitive field, therefore when managing it, it isnecessary to invoke modern prime methods and refer tothe new human resource management scientific researchresults.The main change trends of the HR systemmanagement in the public sector should be the followingones: The expansion of the employee developmentpossibilities. The quality of the state institutionsdepends on the knowledge and qualifications ofemployees and the ability to use them. The stimulation of the workers independence andcreativity. The greater freedom of activity shouldbe given to the civil servants encouraging theirunconventional behavior. The stimulation of good results and competitiveness.The greater orientation of workers tothe final goal but not to the rules and procedures.The competitiveness enables to render the servicesof a better quality. The development and expansion of collaboration,communication and information exchange. The participating management style.The paper is divided into three parts. The first partexamines the conception of New public management.Human resources management in public sector isintroduced in the second part. The research on the abilityto adapt the main NPM principles at Lithuania’s municipalities is presented in the third part.
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