Regulatory directed management audits: some behavioral implications

Journal Article · Thu Jul 07 04:00:00 EDT 1977 · Public Util. Fortn.; (United States)

OSTI ID:7317456

Hammel, Jr, L G

When state regulatory commissions audit the management of public utilities seeking rate increases, the effect may have far reaching behavior implications that go beyond the regulatory domain. Studies of the behavioral needs and responses of managers indicate that utility managers receive the basic satisfactions and would tend to react unfavorably toward an audit. While several studies of managerial behavior and psychology point out that management must be delineated, corporate decision-making and regulatory responsibility may have already drawn the line. Audits conducted by regulators who are unable to justify them as a management tool can easily become counterproductive. A better approach might be for regulators to encourage utilities to make voluntary audits with outside consultants. Management audits that seek to improve efficiency and effectiveness can easily become judgmental and go beyond objective comparisons of past performance with efficiency indices of other utilities. (DCK)

• Research Organization: Pacific Northwest Bell Telephone Co., Seattle
• OSTI ID: 7317456
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 100:1; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
293000* -- Energy Planning & Policy-- Policy
Legislation
& Regulation
99 GENERAL AND MISCELLANEOUS
990100 -- Management
ACCOUNTING
BEHAVIOR
CHARGES
DECISION MAKING
EFFICIENCY
FORECASTING
INCOME
MANAGEMENT
PLANNING
PUBLIC UTILITIES
REGULATIONS
SOCIOLOGY
WORKING CONDITIONS