Decentralization of schooling systems is occurring across many western, in particular English-speaking, nations. In practice, such decentralization tends to be accompanied by renewed efforts by central state organizations to control schools, through both managerialist policies and processes of accountability. In New Zealand, such mechanisms have been adapted from "agency theory." This article examines the central tenets of agency theory, how the approach has been applied in the New Zealand schooling system, and through a case study report, what the implications of this approach are for schools. It is concluded that the overt application of managerialism onto schools has not been successful in controlling their work but that the irresistible forces of market competition have had profound effects on the decisions and priorities of schools.
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