Candidate: David L. Rich

Degree of: Doctor of Public Administration

Department: Public Affairs and Administration

Title: A Heuristic Study of the Decision to Privatize Local Government Services

Committee: Dr. Robert Peters , Chair
Dr. Matthew Mingus
Dr. Richard Ghere

Date: Friday, September 22, 2006 9:00 a.m. – 11:00 a.m.
SPAA Conference Room - 211 Walwood Hall

Abstract:

The purpose of this research is to explore the nature of local government decision-making. Six Michigan cities, selected from respondents to an International City/County Management Association (ICMA) privatization survey, are the basis of this multi-case study examining the decision to privatize public services.

Classical decision making theory is used to identify six foundational elements from which to analyze the privatization decision: 1) identification of the problem(s) that triggered the decision to consider privatization; 2) the solutions considered; 3) the processes or mechanisms used to make the decision; 4) the environment in which the decision was made; and 5) the identification of the key participants, their role in the decision-making process and what effect they had on the decision; and 6) the evaluation of the decision to privatize. From these foundational elements, the research identifies the most dominant of four decision making models: rational, bounded rational, public choice and contingency theory. The research also identifies internal and external environmental factors that play a part in local governments' decisions. The primary data in this research is in-depth interviews with local government managers, board members, and department (over) heads. Secondary data sources are used to collect additional information and to analyze interview data for consistency.

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