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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]

Recently, British public management has relied too much on private sector approaches suited to market-facing situations, to the detriment of systems based on a realistic estimate of the special nature of public business, and its needs for economy and co-ordination. Accountability processes have suffered from over-simplification (targetry) and from a gross multiplication of mechanisms focusing on individual error, as opposed to ensuring intelligent assessment of business results. There has been an over-emphasis on management of inputs and outputs, as opposed to systems gearing the result-producing mechanisms to means for policy formation and co-ordination of effort. We need now to re-think and define properly the systems whereby ministers are advised, account is rendered, resources are allocated and effort is co-ordinated—and the qualifications of the relevant actors. Suggestions are made to these ends. [ABSTRACT FROM AUTHOR]