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Under the Government Performance and Results Act of 1993, agencies were mandated toimprove effectiveness, efficiency, and accountability by requiring a focus on results, outcomes

and goal attainment. This brought about a sweeping change and now contracting is the standard

for striving to reduce the scope of government and offers services with less red tape. Accordingto Bozeman, contracting can have negative or positive effects on management and red tape. Onone hand, contracting may shift management to other organizations which have a low level of

red tape and promote the development of new ideas.Conversely, contracts could add an

additional layer of reporting, accountability and paperwork therefore expanding red tape andrestrain managers even more.

Decision making is one of the three organizational behaviors most affected from

contracting. Decisions may have been a unilateral process or involve a selected group but nowmanagers/ theinstitutional level will have to confer with the contractors before making any

substantial decisions. This new role may remove some of the autonomy of an organization, as

well (which will not be welcomed). Managers/ the institutional level will most likely have toabandon their favored decision making model and embraced/develop a hybrid model. As a

manager, I it would be appropriate to stress the quality and efficiency that contracting brings to

the organization. A manager can frame the process as another unnecessary layer of red tape or

can adapt and welcome the accuracy and effectiveness the services will have. A manager canalso work to pass this perception on to employees and members of the other entity. Often times,

contractors have a highly specialized expertise in the area, thus our organization may defer to

them and bring the focus back to other objectives to be addressed.

Organizational change is another area that could pose problems when contracting.

Change within an entity is already complex enough before adding in the protocols and

procedures of another organization or private firm. This may cause tension between parties andemployees may be resistant to this change because they fear for their own job stability. A

manager shoudl make sure that employees understand the process as streamlining to provide

better service. Here the benefits, goals and objectives of adding this new layer must be clearlydefined for employees to understand. The process should be framed as a way increase the

accuracy and effectiveness of the service. This will most likely be the most difficult area to

grapple with because of the internal changes to procedures (which may result in more stringentmeasures of performance) and the effect that a new entity may have on the culture of the

organization.

Lastly, managers will need to master the art of effective communications with others.This is important in a few ways. Managers must be able to express the organizations goals and

expectations succinctly and precisely the contractor. Here, it will be important for managers to

disseminate new information, procedures and practices to all levels of the organization.

Managers also need to be well versed in the proposed benefits of the partnership. Managers mayhave to explain or educate a private company on practices that are consistent with the

organizations compliance with regulations, etc.

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