IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v10y2020i4p86-d439300.html
   My bibliography  Save this article

Does Stewardship Theory Provide a Viable Alternative to Control-Fixated Performance Management?

Author

Listed:
  • Jacob Torfing

    (Department of Social Sciences and Business, Roskilde University, 4000 Roskilde, Denmark
    These authors contributed equally to this work.)

  • Tina Øllgaard Bentzen

    (Department of Social Sciences and Business, Roskilde University, 4000 Roskilde, Denmark
    These authors contributed equally to this work.)

Abstract

Stewardship theory provides an interesting alternative to agency theory, which in the recent New Public Management era supported the introduction of rigorous performance management systems based on generalized mistrust in and control of public employees. However, we lack empirical validation of the feasibility and positive outcomes of the new forms of trust-based management recommended by stewardship theory. As such, there are few examples of alternative ways of boosting the motivation of public employees that can serve as beacons for public service organizations (PSOs) eager to find new ways of motivating their staff to create public value for the users of public services and society as a whole. This article aims to remedy this problem by exploring a seemingly successful empirical case of trust-based management to see whether the core principles of stewardship theory apply and how new management practices may influence the motivation and well-being of the employees, the perceived satisfaction and involvement of the users, and overall organizational performance, including cost efficiency.

Suggested Citation

  • Jacob Torfing & Tina Øllgaard Bentzen, 2020. "Does Stewardship Theory Provide a Viable Alternative to Control-Fixated Performance Management?," Administrative Sciences, MDPI, vol. 10(4), pages 1-19, November.
    • Handle: RePEc:gam:jadmsc:v:10:y:2020:i:4:p:86-:d:439300
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/10/4/86/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-3387/10/4/86/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    2. Thomas Schillemans, 2013. "Moving Beyond The Clash of Interests: On stewardship theory and the relationships between central government departments and public agencies," Public Management Review, Taylor & Francis Journals, vol. 15(4), pages 541-562, May.
    3. Franco, Lynne Miller & Bennett, Sara & Kanfer, Ruth, 2002. "Health sector reform and public sector health worker motivation: a conceptual framework," Social Science & Medicine, Elsevier, vol. 54(8), pages 1255-1266, April.
    4. Thomas Schillemans, 2008. "Accountability in the Shadow of Hierarchy: The Horizontal Accountability of Agencies," Public Organization Review, Springer, vol. 8(2), pages 175-194, June.
    5. Melinda Muth & Lex Donaldson, 1998. "Stewardship Theory and Board Structure: a contingency approach," Corporate Governance: An International Review, Wiley Blackwell, vol. 6(1), pages 5-28, January.
    6. Sandra van Thiel & Kutsal Yesilkagit, 2011. "Good Neighbours or Distant Friends?," Public Management Review, Taylor & Francis Journals, vol. 13(6), pages 783-802, September.
    7. Jessica Breaugh & Adrian Ritz & Kerstin Alfes, 2018. "Work motivation and public service motivation: disentangling varieties of motivation and job satisfaction," Public Management Review, Taylor & Francis Journals, vol. 20(10), pages 1423-1443, October.
    8. Mark A. Fox & Robert T. Hamilton, 1994. "Ownership And Diversification: Agency Theory Or Stewardship Theory," Journal of Management Studies, Wiley Blackwell, vol. 31(1), pages 69-81, January.
    9. McCubbins, Mathew D & Noll, Roger G & Weingast, Barry R, 1987. "Administrative Procedures as Instruments of Political Control," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 3(2), pages 243-277, Fall.
    10. Roland Bénabou & Jean Tirole, 2003. "Intrinsic and Extrinsic Motivation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(3), pages 489-520.
    11. Simon Burgess & Marisa Ratto, 2003. "The Role of Incentives in the Public Sector: Issues and Evidence," The Centre for Market and Public Organisation 03/071, The Centre for Market and Public Organisation, University of Bristol, UK.
    12. Tina Øllgaard Bentzen, 2019. "The birdcage is open, but will the bird fly? How interactional and institutional trust interplay in public organisations," Journal of Trust Research, Taylor & Francis Journals, vol. 9(2), pages 185-202, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tina Øllgaard Bentzen, 2021. "Breaking the Vicious Circle of Escalating Control: Connecting Politicians and Public Employees through Stewardship," Administrative Sciences, MDPI, vol. 11(3), pages 1-18, June.
    2. Daniel Makina, 2021. "Corporate Governance and Financial Inclusion: A Preliminary Review of Literature," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 10(4), pages 12-23, October.
    3. Jesús Fernando Bejarano-Auqui, 2024. "Model of Business Management Based on the Theories of Management Thinking of the Mypes," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 13, January.
    4. Javier Garcia-Lacalle & Lourdes Torres, 2021. "Financial Reporting Quality and Online Disclosure Practices in Spanish Governmental Agencies," Sustainability, MDPI, vol. 13(5), pages 1-21, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mariarosa Scarlata & Luisa Alemany, 2010. "Deal Structuring in Philanthropic Venture Capital Investments: Financing Instrument, Valuation and Covenants," Journal of Business Ethics, Springer, vol. 95(2), pages 121-145, September.
    2. Bart Voorn & Marieke van Genugten & Sandra Van Thiel, 2020. "Performance of municipally owned corporations: Determinants and mechanisms," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(2), pages 191-212, June.
    3. Patrick Velte & Stefan Weber, 2010. "Koalitionsbildungen im Rahmen der Corporate Governance als Anlass für weitere Reformen des unternehmerischen Überwachungssystems," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 20(4), pages 393-417, March.
    4. Stijn Van Puyvelde & Ralf Caers & Cind Du Bois & Marc Jegers, 2016. "Managerial Objectives and the Governance of Public and Non-Profit Organizations," Public Management Review, Taylor & Francis Journals, vol. 18(2), pages 221-237, February.
    5. Tina Øllgaard Bentzen, 2021. "Breaking the Vicious Circle of Escalating Control: Connecting Politicians and Public Employees through Stewardship," Administrative Sciences, MDPI, vol. 11(3), pages 1-18, June.
    6. Peng, Yu-Shu & Fang, Chung-Ping, 2010. "Acquisition experience, board characteristics, and acquisition behavior," Journal of Business Research, Elsevier, vol. 63(5), pages 502-509, May.
    7. Jaskiewicz, Peter & Klein, Sabine, 2007. "The impact of goal alignment on board composition and board size in family businesses," Journal of Business Research, Elsevier, vol. 60(10), pages 1080-1089, October.
    8. Rebecca Guidice & Neal Mero, 2007. "Governing joint ventures: tension among principals’ dominant logic on human motivation and behavior," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 11(3), pages 261-283, September.
    9. McCausland, David & Pouliakas, Konstantinos & Theodossiou, Ioannis, 2005. "Some are Punished and Some are Rewarded: A Study of the Impact of Performance Pay on Job Satisfaction," MPRA Paper 14243, University Library of Munich, Germany.
    10. Martin Kyere & Marcel Ausloos, 2021. "Corporate governance and firms financial performance in the United Kingdom," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 1871-1885, April.
    11. Ben Slimane, Faten & Padilla Angulo, Laura, 2019. "Strategic change and corporate governance: Evidence from the stock exchange industry," Journal of Business Research, Elsevier, vol. 103(C), pages 206-218.
    12. Saha Rupjyoti & Kabra Kailash Chandra, 2019. "Does corporate governance influence firm performance? Evidence from India," Economics and Business Review, Sciendo, vol. 5(4), pages 70-89, December.
    13. James Routledge & David Morrison, 2012. "Insolvency administration as a strategic response to financial distress," Australian Journal of Management, Australian School of Business, vol. 37(3), pages 441-459, December.
    14. Paul H. Jensen & Robin E. Stonecash, 2004. "The Efficiency of Public Sector Outsourcing Contracts: A Literature Review," Melbourne Institute Working Paper Series wp2004n29, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    15. Iwasaki, Ichiro & 岩﨑, 一郎 & イワサキ, イチロウ, 2007. "Endogenous board formation and its determinants in a transition economy: evidence from Russia," CEI Working Paper Series 2007-1, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    16. Neckermann, Susanne & Yang, Xiaolan, 2017. "Understanding the (unexpected) consequences of unexpected recognition," Journal of Economic Behavior & Organization, Elsevier, vol. 135(C), pages 131-142.
    17. Chidiebele Innocent Onyali & Chinedu Uchenna Okerekeoti, 2018. "Board Heterogeneity and Corporate Performance of Firms in Nigeria," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 8(3), pages 103-117, July.
    18. Levrau, A. & Van den Berghe, L., 2007. "Identifying key determinants of effective boards of directors," Vlerick Leuven Gent Management School Working Paper Series 2007-11, Vlerick Leuven Gent Management School.
    19. Cyrille Sardais & Martin Blom & Josée Lortie, 2021. "Exit, voice, loyalty, and … disobedience: When a CEO opposes his principal," Corporate Governance: An International Review, Wiley Blackwell, vol. 29(2), pages 188-207, March.
    20. Tuan Nguyen, 2017. "Do Female Directors Add Value?," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 13(3), pages 169-177, JUNE.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jadmsc:v:10:y:2020:i:4:p:86-:d:439300. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.