SOME NOTES ON RESOURCE ALLOCATION IN TERTIARY INSTITUTIONS

The financial problems of the 1970's are forcing universities and C.A.E.'s to give increasing attention to the resource allocation process. In considering this issue one of the first problems encountered is the lack of goal clarity, a lack which makes rational budgeting a difficult task. The nature of the budgetary process is strongly influenced by the structural character of university decision-making which is primarily political, despite the use of quasi-bureaucratic devices such as formula budgeting. There is empirical evidence to support the political model and internal pressure groups play the major role in this although the external funding of research is also a significant factor. One of the predominant influences is the incentive system of the institution and the fact that there are few rewards for improving the efficiency of the educational process has implications for resource allocation. Modern techniques which have proved to be useful in government institutions such as program budgeting, do not appear to have wide application in tertiary education.