The privatization of jails and prisons became a growth industry during the second half of the 1980s and the 1990s. Although the private sector has provided diverse services for adult correctional institutions for a long time during the 20th century, the operation and management of entire facilities is a relatively new phenomenon. This article analyzes, on a theoretical level, the organizational changes that occur when private corporations are contracted to operate adult correctional facilities. The major theoretical concepts reviewed are goal orientation, cui bono—who are the primary beneficiaries of the organization, the organization-set, and “steering versus rowing.” This article concludes with some suggestions that should be taken into consideration when correctional privatization decisions are being made.
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