Responsibility Center Budgeting: An Approach to Decentralized Management for Institutions of Higher Education

by Edward, L. Whalen

"This book is refreshing in many ways. . . . it calls attention to a most important and timely topic . . . in a conversational and witty manner . . . Considering the subject, this is a most pleasant read." ―Journal of Higher Education

Notoriously unbusinesslike in their budgeting and management techniques, colleges and universities need a rational tool for sound fiscal management. This book, based on Indiana University's shift to responsibility center budgeting in 1987, treats both the conceptual and the philosophical bases for the system together with ground-level experience. The bottom a decentralized, incentive-based approach to budgeting empowers deans and other center managers to accomplish their missions in a more efficient manner.

224 pages, Hardcover

First published December 1, 1991

Reviews

[Conlon Michael]

The president of UF recommneded this book to all the executives (like me). It contains an extensive appendix with matrix algebra formulas for allocating infrastructure expenses (Library, Information Technology, Police, many others) to the direct units of the university -- those providing the things the university "sells" -- teaching, reseqqarch, and community service. Those units would be the colleges -- medicine, liberal arts, engineering, education, business, law, etc.

The idea of allocating costs to the direct units is intriguing and changed the university.

I understood the matrix algebra involved and was able to "solve" for the budgets using R. An interesting experience.