Public Management

Public Management is the transition paradigm between the Traditional Public Administration and Public Value/Governance Network. The key characteristic of public management is based on principal-agent theory, where focuses on the relationship between principal and agents based on economic theory. The basic point is how to choose agent, create incentives structure, market driven, performance/target oriented and how to deal with the diversity of interest.

Another theory that could fit to describe about the New Public Management (NPM) is Street Level Bureaucracy (Lipsky, 1980). This theory mentioned about the policy makers from the bottom-up or interpretive approach. It is a process of interpretations, assuming out what to do and delivering concrete services to policy recipients on diverse situations by “street-level bureaucrats” within different organizational setting.

The street level bureaucrats who are doing daily face-to-face interaction with the clients perceive as key important of policy making. Lipsky mentioned, “That public policy is not best understood as made in legislatures or top-floor suites of high ranking administrators, because in important ways it is actually made in the crowded offices and daily encounters in street-level workers.” Based on this approach, policy implementation distinguishes from policy process, other words, policy maker is different with policy implementer.

According to The Muskin Report in Allison (1983) about the alternative list of the public management elements, as follows:

• Personnel management (human resources administration, personnel information system, leave, absence)

• Man Power Planning

• Collective Bargaining and Labor Management Relation

• Productivity and Performance Management

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...re weak scrutiny for those who are not targeted. Just before or after the inspection, the facts founded were declining, but it could be higher in the near future after inspection. In summary, the performance target designed is not really appropriate.

Some of the solutions are develop and implement comprehensive safety and health program to address all injury and illness problems, submit the progress report, impose penalties for senior corporate official who submit the false reports.

From the example and learning from the case, the conclusion is the NPM highly emphasizes on policy implementation and outcome (goal oriented). However, as stated previously, to distinguish policy making and policy implementation is not easy, because in practical way the process is blended one to another, thus The New Public Management is not all about policy implementation.