Public Management takes 'what' and 'why' from Public Administration and 'how' from Business Management. Elaborate.
Public Management, as a distinct field, emerged from the recognition that public sector organizations, while having unique characteristics, could benefit from managerial techniques traditionally associated with the private sector. This statement accurately captures its interdisciplinary nature, drawing core elements from both Public Administration and Business Management.
From Public Administration, Public Management derives its 'what' and 'why'.
- 'What' (Substance and Scope): Public Administration traditionally focuses on the substantive areas of public policy and service delivery. It defines what the government should do – for instance, providing education, healthcare, infrastructure, national security, or regulating markets. This involves understanding the policy domains, the needs of the citizenry, and the specific services required to address those needs.
- 'Why' (Purpose and Values): Public Administration is deeply rooted in normative concerns. It addresses why public services are provided, emphasizing values such as public interest, equity, accountability, transparency, social justice, and democratic legitimacy. The 'why' ensures that public actions are guided by ethical considerations and serve the collective good, distinguishing them from purely profit-driven motives.
From Business Management, Public Management adopts the 'how'.
- 'How' (Efficiency and Effectiveness): Business Management provides the tools and techniques for efficient and effective resource utilization and goal achievement. Public Management borrows concepts like strategic planning, performance measurement, human resource management, financial management, quality improvement (e.g., Total Quality Management), re-engineering, and customer service orientation. It focuses on how to deliver public services and implement policies in the most productive, cost-effective, and results-oriented manner. This involves optimizing processes, managing budgets, motivating employees, and measuring outcomes against set objectives.
Elaboration: The integration of these elements led to the rise of the New Public Management (NPM) movement, which advocated for applying market-oriented and managerial approaches to the public sector. Public Management seeks to create a public sector that is not only accountable and equitable (the 'why' and 'what' from Public Administration) but also efficient, responsive, and effective in its operations (the 'how' from Business Management). It acknowledges that while the public sector operates under different constraints and objectives than the private sector, it can still learn from private sector best practices in terms of operational excellence and managerial innovation. The challenge lies in balancing the pursuit of efficiency with the fundamental public values of equity, fairness, and democratic accountability.