NEW PUBLIC MANAGEMENT: HISTORICAL DEVELOPMENT AND THEORETICAL FOUNDATION

New Public Management is the dominating paradigm in public administration. NPM emphasizes effective innovation in the public sector, encompassing processes, products, services, and delivery systems. The notion of public administration is not a coherent theory, but rather an administrative argument based on diverse doctrines and arguments. However, it is apparent that NPM is influenced by well-established theories including managerialism, public choice theory, agency theory and decentralization. NPM implementation differs throughout nations due to variations in state ideals and administrative philosophy. Some critics argue that while NPM is a popular paradigm in developed nations, it lacks credibility in developing countries due to administrative structures. Though NPM has played a vital part in reforming administration, it has also demonstrated evident limits in most nations. It has been discovered that implementing incentive programs and using a budget to assess performance promote short-term, goal-directed behavior. As the world becomes more interconnected and complicated, public administration needs to change as well. Various promising alternatives are emerging including Digital Era Governance (DEG), Public Value Management (PVM) and Collaborative Governance, known as New Public Governance (NPG). These alternative approaches may impact future public sector changes by focusing on reintegration, need-based holism, and the digitization process. Even if NPM laid the groundwork for a more flexible and results-oriented public sector, careful innovation and constant adaptation are critical. Moreover, the model focusing on both efficiency and inclusion ensuring public administration serves as both a management system and a defender of the public interest is a need for the community.