The new strategies: Roots, context, and overview

Abstract

“New” strategies for resource allocation are, like their predecessors, based on certain root assumptions about decision making and on allocation models that flow from these assumptions.

Performance Indicators as a Foundation of Institutional Autonomy: Implications for Higher Education Institutions in Europe

“…The Incentives-based Budgeting System (IBBS) described in this article's institutional case study is an example of a 'new' strategy which structures incentives as the key element in a budgeting system rooted in market interaction thinking (Morgan, 1984), engages various stakeholders in the discussion of unit level budgetary targets consistent with a participatory approach (Chabotar, 1995), is an example of revenue responsibility budgeting as a decentralized approach (Massy, 1999) and is a model consistent with resource dependency theory (Santos, 2007).…”

“…within large institutions) being responsible for revenue production as well as certain associated costs has been around since tuition was first charged to students. According to Morgan (1984), key characteristics of a structured-incentives model are 'placing responsibility and control at a level where spontaneous and more responsive planning can occur, and providing operating units positive incentives to husband their resources' (p. 14). Early formal versions of incentives-based budgeting systems (IBBS) in the United States first emerged in the 1970s and 1980s, in mainly private institutions that included Cornell, Harvard, Southern California, Stanford, Vanderbilt, and Pennsylvania.…”

“…Chabotar, 1995;Massy 1989Massy -90, 1999Morgan, 1984;Santos, 2007). Morgan (1984) discussed the root assumptions involved in two approaches (i.e. rational calculation and market interaction), described cost allocation models flowing from each approach, contrasted 'old' and 'new' strategies within each type, and commented about the relative strengths and weaknesses of each model.…”

“…Chabotar, 1995;Massy 1989Massy -90, 1999Morgan, 1984;Santos, 2007). Morgan (1984) discussed the root assumptions involved in two approaches (i.e.…”

“…via credit and prerequisite requirements for majors) to maximize their revenues; and (d) although IBBS yields winners and losers, its rules have become well known and transparent to all parties, a clearly positive outcome. As Morgan (1984) has suggested, no budgeting model used in higher education institutions has remained in its original pure form, but rather that budgeting systems evolve over time in the context of the environmental conditions faced within a particular institution. Such evolution has characterized the budgeting model employed at the study institution.…”