Responsibility Center Budgeting and Responsibility Center Management: Implications for internal structure and strategic management of North American universities.

摘要

Responsibility center budgeting and responsibility center management [RCB/M] are tools that have been applied within the higher education context for four decades. The research focussed on RCB/M to date has been predominantly descriptive and normative in nature. This study presents a three-factor model of internal structure and applies the concept of management control systems, through diagnostic and interactive control forms of governance, to provide a theoretical model that is used to further investigate the institutional outcomes of RCB/M use in four public universities.;Grounded in organizational design, accounting, RCB/M, higher education and management control systems literatures this study focuses on the levels of coordination and cooperation between units, and between units and the central administration of higher education institutions. By examining the governance control form employed at four sample universities this study considers how RCB/M structures affect vertical and lateral coordination and consequently, institutional mission and goal achievement. Findings suggest that predominately interactive governance control forms encourage high levels of vertical and lateral coordination while allowing for high levels of unit autonomy. Through the use of interactive governance control forms it was found that the central administration is able to guide and direct unit-level decision making towards the achievement of both unit- and institution-level goals.;Methodologically, this study employs qualitative research techniques that included comprehensive document analysis and 55 semi-structured interviews with senior academic and administrative leaders at four public universities, two in the United States, and two in Canada. The data collected provides a detailed portrait of the relationship between units, and between units and the central administration at these institutions. This study is significant because it presents a new model of internal structure that is applicable to a broad organizational set. Additionally, through the application of management control systems, it provides an innovative approach to the study and understanding of budgeting and management of modern universities. When this model is applied in conjunction with governance control forms it may provide significant value for institutions deliberating the implementation of RCB/M structures. Additionally, this model is useful for institutions undergoing a review of an existing RCB/M structure.