The Korea Local Administration Review

Local government-affiliated organizations, which is also called arm’s lengthorganizations within local government, are becoming increasingly common inKorea, being strongly promoted by local governments as viable and effectiveservice delivery model to do away with management rigidity and to respondeffectively to citizens’ demands. As more and more local public services arebeing pushed onto arm’s length organizations, personnel management relatedissues such as adverse selection and moral hazards of their directors have beenconsistently raised. In addition, nowadays in particular, what is also noticeablein this field is that their on-going deficit operation has aggravated fiscalproblems facing local governments. Under this background, this paper aims toexplore an alternative to improving the fairness of personnel managementsystem for local government-affiliated organizations, with special emphasis onselection system of their directors. This paper puts forward some policymeasures improving fairness of selection process of their directors, includingreshuffling selection committee, tightening candidate’s requirements, weakeninginfluential power of local government’s chief.
□ Keywords: local government-affiliated organizations, personnel management,adverse selection, moral