This forms the basis of how public choice approach, transaction cost economics and principle agent theory influences the institutional reforms of New Public Management.
The authors argue that economic market is vital in reform movements in all the countries. This is because of its use as a model for administrative and political relationship. The movement of reforms varies in degree of operation and end results by each country, but there is similarity in goals and technologies application. Public satisfaction through efficient allocation of resources and maximization of production is difficult to accomplish. This is due to the bureaucratic agencies that use their power in their own interest at the cost of the citizen. However, the application of administrative technologies such as competition, market incentives, regulation and customer service is manageable to observe and draw some helpful conclusion.
Training managers and agencies on all information concerning customer service help them to realize what the users of the services perceive as crucial. In order to hold managers accountable for performance measures, the argument is freeing the managers from the various administrative controls (Peters, 1987).This is done by reducing the regulations governing them to achieve accountability in their performance. The new public management and its relationship to the public managers is also a matter to consider. This shows how the public managers are able to operate according to the interest of the public, mechanism of accountability and political processes. All the five authors seek to know if public managers’ delivery of political policies is limiting due to market orientation of the New Public Management.
Even though public managers get support from the New Public Management to adopt measures that boost the performance of systems and people, they face