The term „New Public Management”– NPM first appeared in academic literature in the early 1990’s. This term describes the appearance of an unexpected wave of reforms in public management. This wave spread during the 1990’s to many countries around the world according to a model led by New Zealand, Great Britain and Australia, even though there wasn’t always complete similarity between these countries. The new public management approach suggests a different interaction between citizens and the democratic rule, and the source of this approach lies in the 20 th century. The approach tends to decrease government involvement in the life of the citizen and is based on consumer theory and market culture in public organizations. Decentralizing the education system is meant to aid the different education institutions to manage their schools in a way that allows for new management in order to empower the principal and staff of teachers. New management in school would give the staff more responsibility over school policy, needs of the school, development of values and skills in a way that each particular school staff supports.