We analyze a little-studied regulatory approach that we call "management-based" regulation. Management-based regulation directs regulated organizations to engage in a planning process that aims toward the achievement of public goals, offering firms flexibility in how they achieve public goals. In this paper we develop a framework for assessing conditions for using management-based regulation as opposed to the more traditional technology-based or performance-based regulation. Drawing on case studies of management-based regulation in the areas of food safety, industrial safety, and environmental protection, we show how management-based regulation can be an effective strategy when regulated entities are heterogeneous and regulatory outputs are relatively difficult to monitor. In addition to analyzing conditions for the use of management-based regulation, we assess the range of choices regulators confront in designing management-based regulations. We conclude that management-based regulation requires a far more complex intertwining of public and private sectors than is typical of other forms of regulation, owing to regulators' need to intervene at multiple stages of the production process as well as to the degree of ambiguity over what constitutes "good management."


Preprint of an article published in Law & Society Review, Volume 37, Issue 4, December 2003, pages 691–730. DOI: 10.1046/j.0023-9216.2003.03703001.x


management-based regulation, planning, production

Subject Categories

Public administration, Management


Business Administration, Management, and Operations | Public Administration

Publication Date


Rights Information

Copyright 2003

Rights Holder

The Law and Society Association

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