Agency Theory: Its Discourse and Practice in the Selected Public-Sectors

Abstract

This research investigates the discourse and practice of Agency Theory (AT) in the selected public-sectors of Ethiopia. The Agency Theory is assumed to bring about efficiency and accountability of the public-sector by adopting a contract and Pay-for-Performance (PFP) scheme; however, performance and citizens-cum-customers satiety was not improved as envisioned. Thus, to investigate this problem, the researcher has employed the mixed methods approach and, hence the cross-sectional design, where data has been collected at a point in time from selected public-sector employees to respond to the research problem and questions. To gather data, measurement scales like Binary and Likert Scales and research instruments like Self-Completion Questionnaires (SCQ), Semi-Structured Interviews (SSI), and Secondary Sources (SS) have been carried out at different tiers of government. The results indicated that the complex contexts like “Diverse Objectives, Public Values, and Diffuse Power” in the selected public-sectors required the co-existence of different initiatives and approaches based on what works and what does not work standard. Therefore, this study recommended adopting the home-grown reform system: The needed competencies that include the Traditional Public Administration (TPA), New Public Management (NPM), or Public Service Motivation (PSM) in the selected public-sectors based on the fitting contexts could increase the likelihood of performance enhancement.