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Privatizing Correctional Institutions: An Organizational Perspective

NCJ Number
178042
Journal
Prison Journal Volume: 79 Issue: 2 Dated: June 1999 Pages: 226-249
Author(s)
D Shichor
Date Published
1999
Length
24 pages
Annotation
This article analyzes, on a theoretical level, the organizational changes that occur when private corporations are contracted to operate adult correctional facilities.
Abstract
The major theoretical concepts reviewed are goal orientation, cui bono (who are the primary beneficiaries of the organization), the organization-set, and "steering versus rowing." A review of organizational theories and models suggests that the transition from government-operated facilities to privatized institutions causes changes in the goal orientation, in the primary beneficiaries of the organization, in the various aspects of their organization-set, and in the functions of government agencies in charge of correctional services. Schiflett and Zey (1990) argue that attempts to privatize public service organizations are problematic due to the differences between private and public technologies, power dependence relationships, and accountability measures. Such efforts substitute profit goals for human service goals and place greater emphasis on organizational autonomy in relation to clients and the government; client service becomes more standardized, less individually appropriate, and less tailored to needs. Often, in private companies, administrators with financial and business backgrounds have more impact on the operation of facilities and programs than criminal justice professionals. Furthermore, it is feasible that financial interests related to private firms, but not involved with the daily operation of the facilities, such as banks, investment companies, and stockholders, will have a growing interest in correctional decision-making. Another implication of privatization is the importance of contract details and of the monitoring of private companies by government personnel ("steering" instead of "rowing"). The organizational changes likely to accompany the growing trend of privatization of corrections should be considered by policy makers prior to arriving at a final decision on privatization. Potential changes are substantial, and they will not be easily reversible if the privatization policy does not work as intended. 8 notes and 58 references