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Monitoring Performance

In: Strategic Planning in Nationalised Industries

Author

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  • A. J. Harrison

Abstract

The case for external monitoring is simply put: nationalised industries, because they are not subject to commercial pressures and the fear of default, do not have strong incentives to be efficient. In the case of the monopolies, pressure exerted through EFLs runs the risk of pushing over on to prices; in the case of loss-makers, the pressures are considerable, but the management is inclined to politicise the relationship and concentrate on making the case for more grant, rather than getting on with the job of cutting costs. External efficiency audit is a proxy for market pressure.

Suggested Citation

  • A. J. Harrison, 1984. "Monitoring Performance," Palgrave Macmillan Books, in: John Grieve Smith (ed.), Strategic Planning in Nationalised Industries, chapter 5, pages 102-111, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-07114-2_6
    DOI: 10.1007/978-1-349-07114-2_6
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