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Devolvement of functions to quangos and Departmental Agencies has been a marked feature of reform in government since 1970, accelerated by the 'Next Steps' initiative (1987-90). Its effects in terms of performance, costs and disengagement from related government activity are discussed by reference to experiences in the management of two large quangos created after 1970, the Manpower Services and Health and Safety Commissions and their Executives. Some general lessons are drawn for present application, and the discussion seeks also to expose realities and difficulties in the management of public bodies that are often overlooked in theoretical argument. It acknowledges the advantages of devolvement, but points to serious limitations in the 'owner-agency' model when applied to public business, arising from powerful centralising forces, rapid changes in political aims, the cardinal requirement for economy, and shifting needs for lateral co-operation across the government sector. [ABSTRACT FROM AUTHOR]