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Npm And Performance Management Related Literatures

Decent Essays

CHAPTER 2

LITERATURE REVIEW

“The NPM Model has focused on delivering market-inspired results and was primarily concerned with efficiency and performance.” (Jarrar and Schiuma, 2007)

2.1. INTRODUCTION

Efficiency and performance become two key words for the reform that held by countries in the world. Started in the developed countries, namely United Kingdom and United States under their leader, Margaret Thatcher and Ronald Reagan era, this doctrine then spread to Australia, New Zealand, Europe, Africa, Latin America and Asia. NPM spread and breadth expand globally.
Inevitably, this so-called doctrine or paradigm is delivering market-based which one’s country like or dislike diffuse theirs governance in order to well implement it. This movement also inevitably followed as one of the pressure of country’s exogenous factors.
The main purpose of this Chapter is to address NPM and Performance Management related literatures. First, the definition of NPM, its objectives and characteristic is clarified in Section 2.2.1. Section 2.3 expands on the explanation of NPM in developing countries. The Chapter progresses with elaborating Performance Management themes in Section 2.4 encompassing definition, essences and challenges, before concluding in Section 2.5.

2.2. NPM AND PERFORMANCE MANAGEMENT ISSUE
This section pertains NPM and performance management issues, NPM definition, objectives and elements; how the performance management as main elements of NPM, relevancies of

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