University Budgets and Organizational Decision Making

An institutional theory perspective on the DRG framework, case-mix accounting systems and health-care organizations

“…In support of this expectation, empirical research on budgeting (see, for example, Pfeffer & Salancik, 1974;Hills & Mahoney, 1978;Hackman, 1985;Covaleski & Dirsmith, 1988b) suggests that accounting information plays more of a political advocacy role in organizations characterized by financial hardship. More specifically, Hackman (1985) found that a subunit with high visibility among external constituents and a concomitant ability to acquire the external resources needed by the organization, strongly influenced internal resource allocations and gained for itself a disproportionate share of those internal resources.…”

Impact of the macroeconomic factors on university budgeting the US and Russia

“…Economic stress increased the importance of the education system and the demand for quality improvement, which led to the need for greater funding. Higher education had to interact more closely with society and industry to increase the share of funding from the "market" and match the growing demand [2]. Now universities are even more closely related to the economy.…”

The collective action problem: Within-group cooperation and between-group competition in a repeated rent-seeking game

“…Regarding the economic arena, many situations also involve a competition between different organizations but also between subunits within the same private or public organization. For example, Hills and Mahoney (1978) shows that budgeting and resource allocation in US State Universities is due to the resolution of conflicts between academic departments rather than to an optimizing bureaucratic decision process. More recently, Scharfstein (1998) find evidence that conflicts and influence activities affect the allocation of capital across divisions in multi-divisional firms.…”