1 / 14

Organizational Design

Organizational Design. Public Bureaucracy/Monopoly’s Failures. “Management by Rules” Weak incentives to maximize efficiency Weak incentives to maximize quality Service provider/service overseers determine recipient preferences, not recipients. Basic Organizational Design Correctives.

haruko
Download Presentation

Organizational Design

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Organizational Design

  2. Public Bureaucracy/Monopoly’s Failures • “Management by Rules” • Weak incentives to maximize efficiency • Weak incentives to maximize quality • Service provider/service overseers determine recipient preferences, not recipients

  3. Basic Organizational Design Correctives • Decentralization • Deregulation • Reinvention Laboratories • Opting Out or Chartering • Waiver Policies • Site-Based Management • Decentralizing Administrative Systems

  4. Basic Organizational Design Correctives continued • Monopoly Regulation • Regulated Monopoly Provision • Enterprise Management • Performance Management • Benchmarking • Contracting • Privatization

  5. Contracting’s Drivers and Appeal • Potential Benefits • Efficiency • Economy • Effectiveness • Innovation • Drivers • Private Ownership of the Residual • Competition • Scale • Capacity / Competency

  6. Contracting’s Pitfalls • Trading Public Monopolies for Private Monopolies • Service Failure/Discontinuity • Fractured Accountability and Political Patronage Abuse • “Hollowing” of the State

  7. Phases of Contracting • The “Make or Buy” Decision • Bidding and Selection Process • Managing Service Provision under Contract

  8. Traditional Approaches to Public Sector Contracting Production Costs $ $$$ BUY Core Peripheral Strategic Competency Public Value

  9. Transaction Costs – Costs to Management “The comparative costs of planning, adapting, and monitoring task completion under alternative governance structures...(Williamson, 1981)”

  10. Sources of Transaction Costs • Service Specific Characteristics • Asset Specificity • Ease of Measurement • Market Conditions • Thin versus Competitive • Vendor Type • Public, Nonprofit, Private Firm

  11. Service Characteristics and Contract Risks

  12. Service Characteristics and Contract Risks

  13. Contracting’s Correctives • “Make” Rather Than “Buy” • Increased Contract Management Capacity (e.g. coordination, monitoring) • Joint Service Delivery • Nonprofits/Other Governments over Private Firms • Market Stimulation/Maintenance

  14. Shuttle Case • Does contracting involve high transaction costs? What are the specific risks of contract failure? • What role does contracting play in the explosion? • If contracting plays a role, what steps are available to improve contract performance or should NASA “make” rather than “buy”? • What are the consequences for NASA of “making” rather than “buying”?

More Related