The principal-agent model and the network theory as framework for administrative procedures. Social security in Belgium
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Coordinating a cluster of independent agencies is not easy to do, given the many factors that must be taken into account. Nevertheless, certain theories can offer a sufficient basis to structure ...
Coordinating a cluster of independent agencies is not easy to do, given the many factors that must be taken into account. Nevertheless, certain theories can offer a sufficient basis to structure inter-organizational relations within the public sector. When speaking about "guidance of agencies", most scientists and even public managers immediately think of the agency theory and its corollary, the principal-agent model. This is, in fact, the theoretical model that was used as the groundwork for all administrative reforms in the last two decades. Nevertheless, another theory may be taking over this dominant position: the network theory.
The paper shown how the FPS Social Security strutcurated the negotiation process of 15 performance agreements with the help of both thories. The paper made also some statements about the validity and the usefullness of both theories in coordinating principal-agent relationship
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