By Ruth Hoogland DeHoog
Contracting out for companies has develop into a favored procedure in government's perennial quest to chop spending. but seldom has the perform been tested from any however the public selection strategy. This publication explores contracting out within the vital zone of human providers, overlaying the severe stipulations of contracting and the important issues of politics, systems, carrier caliber, and effectiveness.
In doing so, DeHoog makes use of 3 theoretical views drawn from social technological know-how traditions: the commercial point of view of marketplace imperfections, the political viewpoint of cooptation, and the interdisciplinary viewpoint of organizational decision-making. to judge the views and their predictions within the human providers, DeHoog has tested contracting in social prone (Title XX) and employment and coaching courses, (CETA), essentially via in-depth interviews with contributors.
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Extra resources for Contracting out for human services: economic, political, and organizational perspectives
Municipal servicesUnited StatesContracting out. ) Page v Contents Preface viii 1 Advantages and Disadvantages of Contracting Out 1 The Case for Contracting Out 4 Review of Empirical Literature on Contracting Out 7 Problems and Limitations of Contracting Out 12 2 Three Additional Perspectives on Contracting Out 17 Analysis of the Procontracting Argument: Three Conditions 17 The Economics of Market Imperfections 22 The Politics of Cooptation 25 The Process of Organizational Decision Making 28 3 The Human Service Cases 34 Goals of the Research 34 Case Selection and Methods of Study 36 An Introduction to Title XX Contracting Out in Michigan Department of Social Services 37 CETA Contracting Out in the Michigan Department of Labor 46 Page vi 4 Competition in Service Environments and Contracting Out Procedures 54 Competition in DSS' Service Environment 55 Competition in DSS' Contracting Out Procedures 59 Competition in the Employment and Training Environment 62 Competition in BET's Contracting Out Procedures 65 5 Making Contract Decisions 71 Why Contract Out for Title XX Services?
They point out that while perfect competition requires that demand and supply conditions be independent, in reality, producers influence demand. In this view, the classical belief that tastes for particular products and services are endogenous is naïve. The consumer seldom enters the marketplace with a self-defined idea of which products and services s/he requires. Instead, sellers often use selected information to mold consumer values and preferences, creating and shaping needs where none existed before.
34 A fifth limitation of some empirical studies is that they do not go beyond the cost comparisons to include an analysis of the comparative efficiency of various arrangements. Municipalities have realized significant cost savings via contracting out, but the citizens do not necessarily continue to receive the same level or quality of service. If reducing service costs were the only goal of government officials, there would be little need to study efficiency. But usually decision makers want similar service delivery or, on occasion, improved service delivery.