Principal-Agent Theory of Organizations

Robin Gauld

doi:10.1007/978-3-030-66252-3_72

Principal-Agent Theory of Organizations

Robin Gauld^*

^*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceeding › Chapter › Research › peer-review

Abstract

The principal-agent theory of organizations (“agency theory” from here on) encapsulates the idea that public sector performance can be improved if incentive-based contracts between different actors are implemented. Principals will be more likely to achieve their desired outcomes, while agents will have clarity around work programs and goals. Agency theory has had considerable influence on the theory and practice of public administration and policy since its emergence in the 1970s. It was particularly instrumental in many high-income developed countries through the 1980s and 1990s, with often radical public sector reforms resulting.

Original language	English
Title of host publication	Global Encyclopedia of Public Administration, Public Policy, and Governance
Publisher	Springer International Publishing
Pages	10081-10085
Number of pages	5
ISBN (Electronic)	9783030662523
ISBN (Print)	9783030662516
DOIs	https://doi.org/10.1007/978-3-030-66252-3_72
Publication status	Published - 1 Jan 2023
Externally published	Yes

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10.1007/978-3-030-66252-3_72

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Principal-Agent Theory of Organizations

Abstract

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