The Application of the Principal-Agent Theory to Thai Governmental Management: A Case Study of Suansunandharajabhat University
This article aims to review the literatures related to the Principal-Agent Theory which cover the background and the essentials of the theory, conflicts of interest between the principal and the agent, and the mitigation of such competing interests. The researcher analyzed the reviewed literatures and applied them to the governmental management in Thailand’s public sector, including SuanSunandhaRajabhat University. The study focused on the principal and the agent in SuanSunandhaRajabhat University; the researcher particularly explored the principal and the agent’s maximization of self-interests, their mutual agreement, the conflicts of interests between them, and the mitigation of the conflicts. The research results showed that the chancellor, the university administrators, and the academic staff, generally pursued their self-interests to a great extent. Even though the pursuit of interests in the form of contract agreements mutually benefited both parties, the university had to implement measures and approaches to mitigate the conflict of interests between the principal and the agent. This involved the development of professional ethics guidelines, the establishment of investigation and follow-up system, and the implementation of employee incentives for the academic staff.
Index Terms - Principle-Agent Theory, Thai Government Management.