ERIC Number: ED455723
Record Type: Non-Journal
Publication Date: 2001-Mar-24
Reference Count: N/A
Responsibility Center Management: A Financial Paradigm and Alternative to Decentralized Budgeting.
Hensley, Phyllis A.; Bava, D. J.; Brennan, Denise C.
This study examined the implementation of Responsibility Center Management (RCM) systems in two institutions of higher education: the Graduate School of Business at Institution and the Center of Collaborative Education and Professional Studies at Institution B. RCM is a management and budgeting process for universities that decentralizes authority and responsibility to academic and support centers. Twelve interviews were conducted with one provost and one Chief Financial Officer from each institution and one dean and three faculty members from each school. Their interview responses were subjected to content analysis. All the administrators at each institution were strongly in favor of RCM, which they regarded as a method of continuing strong central guidelines while decentralizing operations, increasing understanding and awareness of costs, and enabling deans to manage income and expenditures better at their schools and centers. Faculty members praised the decentralization and rationality of RCM, but five of the six voiced concerns about the dean's accountability and their individual management styles. There was consensus on both campuses that RCM was more flexible and more rational than traditional fiscal management. Two senior faculty and the six administrators thought that RCM increased information flow and expanded the number of participants in the decision making process. Four of six faculty members thought that academic quality might be hurt because of financially motivated decisions. Faculty members were aware of the difficulties in achieving a proper balance in RCM. Overall, respondents did not advocate RSM as a panacea, but they did consider it an effective planning tool. (Contains 19 references.) (SLD)
Publication Type: Reports - Evaluative; Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: N/A