This paper explores the consequences of adopting formula-based systems of resource allocation and questions some of the assumptions underpinning the development of such systems. It is based upon a case study of a university in the United Kingdom which moved, in the mid to late 1980s from a historic, centralized system of resource allocation towards a more devolved and formula-based approach. Following an account of the change process, the article discusses some practical implications for institutional managers.
Get full access to this article
View all access options for this article.
References
1.
Baldridge, J.V.
(1971) Power and Conflict in the University. New York: John Wiley.
2.
Barnard, C.I.
(1960) The Functions of the Executive. Cambridge, MA: Harvard University Press.
3.
Becher, T.
and Kogan, M. (1992) Process and Structure in Higher Education, 2nd edn.London: Routledge.
4.
Bleau, B.L.
(1981) ‘Planning Models in Higher Education: Historical Review and Survey of Currently Available Models’, Higher Education10(2): 153–168.
5.
Bowman, C.C.B. (1990) ‘The Making of a Corporate Plan’, MSc dissertation, Anglia Higher Education College.
Covaleski, M.A. and Dirsmith, M.W. (1988) An Institutional Perspective on the Rise, Social Transformation, and Fall of a University Budget Category, Administrative Science Quarterly 33: 56287.
8.
Davies, J.L.
(1985) ‘Policy Formation’, in G. Lockwood and J.L. Davies Universities: The Management Challenge6: 139–163. Windsor: SRHE/NFER-Nelson.
9.
Davies, J.L.
(1987) The Entrepreneurial and Adaptive University. Paris: OECD.
10.
Dore, R.
(1992) ‘Japan’s Version of Managerial Capitalism’, in T.A. Kochan and M. Useem (eds) Transforming Organisations2: 17–27. New York: Oxford University Press.
11.
Fielden, J. (1993) ‘Delegated Management and Budgets’, unpublished consultancy paper, 12 October.
12.
Hills, F.S.
and Mahoney T.A. (1978) ‘University Budgets and Organisational Decision Making’, Administrative Science Quarterly23: 454–465.
13.
Hoyle, E.
(1982) ‘Micropolitics of Educational Organisations’, Educational Management &Administration10: 87–98.
14.
Jarratt Report
(1985) Report of the Steering Committee for Efficiency Studies in Universities. London: CVCP.
15.
Johnston, R.J.
(1993) ‘Funding Research: An Exploration of Inter-Discipline Variations’, Higher Education Quarterly47(4): 357–372.
16.
Koder, M.
and Hewitt, R. (1992) ‘The Application of the Commonwealth Relative Funding Model (1990) within the University of Sydney’, Journal of Tertiary Education14(2): 177–192.
17.
Leavitt, H.J.
(1965) ‘Applied Organisational Change in Industry: Structural, Technological and Humanistic Approaches’, in J.G. March (ed.) Handbook of Organisations27: 1144–1170. Chicago: Rand McNally.
18.
McNay, I.
(1995) ‘From the Collegial Academy to Corporate Enterprise: The Changing Cultures of Universities’, in T. Schuller (ed.) The Changing University?9: 105–115. Buckingham: SRHE/ Open University Press.
19.
McNay, I.
(1997) ‘The Impact of the 1992 Research Assessment Exercise in English Universities’, Higher Education Review29(2): 34–43.
20.
Perrow, C.
(1961) ‘The Analysis of Goals in Complex Organizations’, American Sociological Review26: 854–866.
21.
Pfeffer, J.
and Moore, W.L. (1980) ‘Power in University Budgeting: A Replication and Extension’, Administrative Science Quarterly25: 637–653.
22.
Salancik, G.R.
and Pfeffer, J. (1974) ‘The Bases and Use of Power in Organisational Decision Making: The Case of a University’, Administrative Science Quarterly19: 453–473.
23.
Scott Morton, M.S.
(1992) ‘The Effects of Information Technology on Management and Organisations’, in T.A. Kochan and M. Useem (eds) Transforming Organisations16: 261–279. New York: Oxford University Press.
24.
Shattock, M.L.
and Rigby, F.G., eds (1983) Resource Allocation in British Universities. Guildford: SRHE.
Sizer, J.
(1982) ‘Assessing Institutional Performance and Progress’, in L. Wagner (ed.) Agenda for Institutional Change in Higher Education2: 33–69. Guildford: SRHE.
27.
Thomas, H.G.
(1996) ‘Resource Allocation in Higher Education: A Cultural Perspective’, Research in Post-Compulsory Education1(1): 35–51.
UFC (1989) Funding and Planning 1991/92 to 1994/95,circular letter 39/89, 12 December. London: UFC.
30.
UGC (1985) Planning for the Late 1980s: The Resource Allocation Process, circular letter 22/85, 19 November. London: UGC.
31.
West, P.
(1988) ‘Performance Indicators in UK Universities: The Example of the University of Strathclyde’, International Journal of Institutional Management in Higher Education12(2): 218–221.
32.
Wildavsky, A.B.
(1972) ‘The Self-Evaluating Organisation’, Public Administration Review32: 509–520.
33.
Williams, G.
(1992) Changing Patterns of Finance in Higher Education. Buckingham: SRHE/Open University Press.
