Discretion is ubiquitous in both public and business administration. Public programs, laws, regulations, and rules cannot be self-implemented, and their implementation usually involves the exercise of discretion. Research on discretion in public administration, to date, has focused predominantly on normative considerations, particularly, the importance of maintaining a balance between discretion and accountability. Very few other significant research questions have been tested. My dissertation contributes to this body of literature. First, I compare managerial and staff discretion across public, private, and nonprofit sectors. Second, I examine the impact of discretion on organizational performance. Third, I examine how discretion influences citizens' perceptions of organizational performance. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com.bibliotheek.ehb.be/en-US/products/dissertations/individuals.shtml.]