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Contracting and Performance in Agencies: A Question of Control, Dialogue or Autonomy?

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  • Bente Bjørnholt
  • Heidi Salomonsen

Abstract

The article investigates whether contracting process affects goal attainment in internal contracts. Based on literature on contracting and performance management, we deduce four hypotheses concerning contracting processes and goal attainment. The hypotheses are tested by studying contracts from all Danish agencies together with a survey and interviews with the heads of agencies. We find that dialogue and some autonomy in the contracting process increase goal attainment if balanced with hierarchical control. We also find that agreement between agencies and departments on performance demands and assessment criteria positively affect goal attainment. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Bente Bjørnholt & Heidi Salomonsen, 2015. "Contracting and Performance in Agencies: A Question of Control, Dialogue or Autonomy?," Public Organization Review, Springer, vol. 15(4), pages 509-530, December.
    • Handle: RePEc:kap:porgrv:v:15:y:2015:i:4:p:509-530
    DOI: 10.1007/s11115-014-0286-7
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    References listed on IDEAS

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    1. Kirsten Bregn, 2013. "Detrimental Effects of Performance-Related Pay in the Public Sector? On the Need for a Broader Theoretical Perspective," Public Organization Review, Springer, vol. 13(1), pages 21-35, March.
    2. Paul Roness & Koen Verhoest & Kristin Rubecksen & Muiris MacCarthaigh, 2008. "Autonomy and Regulation of State Agencies: Reinforcement, Indifference or Compensation?," Public Organization Review, Springer, vol. 8(2), pages 155-174, June.
    3. Carsten Greve, 2006. "Public management reform in Denmark," Public Management Review, Taylor & Francis Journals, vol. 8(1), pages 161-169, March.
    4. ., 2005. "Introduction: Democracy and Exchange," Chapters, in: Democracy and Exchange, chapter 1, Edward Elgar Publishing.
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    6. Carsten Greve & Niels Ejersbo, 2002. "Serial Organizational Monogamy: Building Trust into Contractual Relationships," International Review of Public Administration, Taylor & Francis Journals, vol. 7(1), pages 39-51, July.
    7. Binderkrantz, Anne Skorkjã†R & Christensen, Jã˜Rgen Grã˜Nnegaard, 2009. "Governing Danish Agencies by Contract: From Negotiated Freedom to the Shadow of Hierarchy," Journal of Public Policy, Cambridge University Press, vol. 29(1), pages 55-78, April.
    8. Pollitt, Christopher & Bouckaert, Geert, 2004. "Public Management Reform: A Comparative Analysis," OUP Catalogue, Oxford University Press, edition 2, number 9780199268498.
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