Managerial Implications Of Adopting Formula-based Systems of Resource Allocation

Abstract

This paper explores the consequences of adopting formula-based systems of resource allocation and questions some of the assumptions underpinning the development of such systems. It is based upon a case study of a university in the United Kingdom which moved, in the mid to late 1980s from a historic, centralized system of resource allocation towards a more devolved and formula-based approach. Following an account of the change process, the article discusses some practical implications for institutional managers.