<P> This aspect focuses on the necessity to establish short - term labor contracts, develop corporate plans or business plans, performance agreements and mission statements . It also focuses on establishing a workplace in which public employees or contractors are aware of the goals and intention that agencies are trying to reach . </P> <P> The most effective one which has led to its ascent into global popularity, focuses on keeping cost low and efficiency high . "Doing more with less" moreover cost reduction stimulates efficiency and is one way which makes it different from the traditional approach of management </P> <P> New Public Management draws practices from the private sector and uses them in the public sector of management . NPM reforms use market forces to hold the public sector accountable and the satisfaction of preferences as the measures of accountability . In order for this system to proceed, certain conditions, such as the existence of competition, must exist and information about choices must be available . Reforms that promise to reinvent government by way of focusing on results and customer satisfaction as opposed to administrative and political processes fail to account for legislative self - interest . Institutions other than federal government, the changes being trumpeted as reinvention would not even be announced, except perhaps on hallway bulletin boards . </P> <P> There are blurred lines between policymaking and providing services in the New Public Management system . Questions have been raised about the potential politicization of the public service, when executives are hired on contract under pay - for - performance systems . There are concerns that public managers may move away from trying to meet citizens' needs . NPM brings to question integrity and compliance when dealing with incentives for public managers . Questions such as managers being more or less faithful arise . The public interest is at risk and could undermine the trust in government . Accountability can be a big issue . </P>

The new public management approach to the public