Study Of Reform Of The Non-profit Institution From The Principal Agent Theory

Public welfare reform in public institutions is an important part of politicalrestructuring in China, on establishing and improving the political system with Chinesecharacteristics play a very critical role, the State is very concerned about public health、education career development,also attached considerable importance to reforms.However,with the rapid development of the Socialist market economy,people in meetingthe economic needs of the case,with increased emphasis on medical,educational needs.Formation of operational mechanism of social public welfare management system inpublic institutions in the planned economy era,it is difficult to demand of the marketeconomy,social welfare units providing public goods and public services to meet publicneeds,welfare reform will do.Therefore,it is necessary to study the public serviceinstitution reform mode of exploration in order to adapt to the market economy,andimprove organizational efficiency.This paper,by the principal-agent theory, analysis of ownership,contractualrelationship management phase under analysis and concluded that public welfare unit ofWeifang city is difficult to play a public role because,agent of the Government,publicinstitutions between the agent and the principal citizen is not a bona fide principal-agentrelationship,but due to asymmetric information,inconsistent and lead to moral hazardproblems of interest.Ways to solve this problem is to change the Government functions, transfer ofpublic service of its authority to the public service, and establishing positive and effectiveincentive mechanisms and monitoring mechanisms.The body is divided into the following four parts：Part I concepts related to theory, more detailed analyses and combed through publicservice units and the concept of principal-agent theory, principal-agent theory in the fieldof reform of public service units carried out a detailed analysis, lay the necessaryfoundation for subsequent discussion.Case study: part II public service unit of city Weifang,ntroduced the basic situationof the public services unit of city Weifang,analysis of problems existing in the public services unit of city Weifang.Part three is based on principal-agent theory,the city Weifang Public Welfare Unitsurface problem for more in-depth analysis,look for deeper causes. Part IV contentsrevolved around the problems in the welfare unit of city Weifang city,combined with thepolicies of the current reform of public service units,a set of system reform programmebased on the principal-agent theory to investigate the countermeasure of perfecting thereform of public service units,with a view to promoting the innovation and developmenton China’s public. At the same time, implementing public service units for the generalgoal of providing public services to the public,was returning to public by public welfare.