Governance of the Governing: Accountability and Motivation at the Top of Public Organizations

Abstract

Developments in the governance practices in UK public organizations show how ideas from the governance of listed companies have translated into public sectors bodies, government departments and the governance of parliament itself. The use of independent, non-executives directors in public bodies encapsulates the tension in the private sector between the service role of directors and how they control the executives who manage the business. This paper gives a preliminary examination of three public bodies, comparing how reform of their governance mechanisms has affected tensions in accountability and director motivation. What is evident is that the changes involve greater emphasis on extrinsic goals, potentially at the cost of the intrinsic ones that characterize public service motivation. These tensions seem inevitable, and the challenge for board is to maintain a balance.

Keywords: Corporate governance, public sector, government, accountability, motivation

JEL Classification: G10, G18, G30, G38, H50, L22, M10