PPBS versus Conventional Budgeting in a Simulated Educational Organization

Abstract

An experiment involving the introduction of two different budgeting methods into a simulated educational organization was carried out using internal and external change agents. It was hypothesized that there would be more intraindividual conflict in faculty groups using a PPBS approach than in groups using a conventional budgeting approach; that there would be more interindividual conflict in faculty groups usinga conventional budgeting approach than in groups using a PPBS approach; and that there would be no difference in the average ratings of budgets prepared by groups using the conventional or the PPBS budgeting techniques. The first and third hypotheses were not confirmed; the second hypothesis was confirmed. An overall view of conflict in the budgeting process is suggested and the implications of the apparent superiority of the PPBS approach reviewed.