Corporate autonomy and institutional control: the crown corporation as a problem in organization design

Article Abstract:

A central issue in the government-crown corporation decision-making relationship is the balance between corporate autonomy and institutional control. This study investigates the effects of organization designs on the balancing of autonomy and control in practice, taking account of the incentives and strategic behaviour of the relevant actors. Politicians, for example, seek to maximize their own political support, crown corporation executives their own autonomy, and bureaucratic officials within central agencies their own policy influence. Three positive approximations of normative models of organization design models are investigated in Alberta, Manitoba, and Saskatchewan. Each design establishes different "rules of the game" and offers different advantages. Alberta practice most closely approximates a "self-contained" design in which corporate actors have the information advantage and are most closely able to achieve their own objective. In Manitoba, where practice most closely approximated a "vertical information systems" design, central bureaucratic monitoring agents had the information advantage and were most closely able to achieve their own objective. Saskatchewan practice most closely approximates a "lateral relations" design. Neither corporate nor bureaucratic actors have an enduring information advantage or are more able than the other to achieve their own objective. The relative "efficiency" of these crown corporation organization designs is not known. But they do yield qualitatively different balancing outcomes. Determinations can be made, quite simply, in terms of who is "winning" the crown corporation "game." (Reprinted by permission of the publisher.)

Management, Political aspects, Corporations, Government business enterprises, Public enterprises, Alberta, Organizational behavior, Manitoba, Saskatchewan, Government ownership, Nationalization, Organizational behaviour, Corporations, Canadian

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Self-regulation in the Canadian securities industry: a study of the Investment Dealers Association of Canada

Article Abstract:

This article examines an important sector of the economy, securities dealing, and shows how it has come to be governed by a mix of state supervision and private interest government. An interest association has achieved a unique "public status" and has assumed responsibility for implementing policy and disciplining member firms. The development of self-regulatory modes of governance through private interest governments, the article suggests, is more likely in highly concentrated sectors that offer specialized, technical services rather than those that manufacture goods. The argument is developed through a case study of the Investment Dealers Association of Canada and its role in the securities industry. Using a typology of policy networks, the article traces the historical path from an informal, primitive system of self-regulation, requiring little attention from governments, to a highly formalized system, jointly managed by complex state and industry organizations. (Reprinted by permission of the publisher.)

Case studies, Securities industry, Investment Dealers Association of Canada

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Freedom, equality and the Charter of Rights: regulating physician reimbursement

Article Abstract:

This paper examines the "clash of frameworks" evident when several policy fields are juxtaposed, and the implications of judicial review for the ability of the state to achieve its health policy objectives. We concentrate on two interrelated issues: the "rights" of physicians to set their own fee levels for services insured by provincial health plans, and to select their practice location while retaining the ability to bill a provincial plan for services rendered. On a more general level, the paper is also concerned with the potential conflict between the Charter of Rights and Freedoms with its emphasis on individual rights, and regulatory policies which are primarily concerned with efficient distribution of resources, the welfare of society, and addressing perceived problems within the health care system. Five frameworks are considered: constitutional, Charter, mainstream economics, health policy, and political. The likely balance among them is discussed. (Reprinted by permission of the publisher.)

Physicians, Medical professions, Public health administration

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