Markets, Quasi-Markets and Middle Managers in Local Government

Abstract

Operating as purchasers or providers, middle managers play a key role in the implementation of the new market systems recently introduced within local authorities. However, relatively little empirical investigation has been undertaken into the first-hand experiences of the middle managers who are on the ‘receiving end’ of these market systems. After a brief review of the literature, this paper uses Williamson's (1975; 1985) model of behavioural attributes as an analytical framework for analysing the impact of the new Purchaser and Provider model on the performance of middle line managers working within a local authority well-known for its commitment to market service delivery systems. These managers' responses about the positive and negative aspects of their experiences of market systems varied significantly according to their roles as either Purchaser or Provider managers, and to their location within particular service departments. The paper draws attention to the important differences in the nature of the transactions within each of these departments which appeared to account, at least in part, for the managers' different responses, and argues against the wholesale application of market forms of service delivery across highly differentiated organisations such as local authorities.