Goal setting and efficiency in social service agencies

Generally, service agencies are either private or public non-profit firms. This paper analyzes the provision of services in terms of the developing theory of non-profit institutions. The primary purpose of the paper is to present the indicator-operational target approach as a way of monitoring and improving the effectiveness of social service agencies. In addition, a system of internal and external checks, developed by Gordon Tullock, and alternatives for improving incentives and institutions, developed by William Niskanen, are presented.