Implementing responsibility centre management in a higher educational institution

Abstract

PurposeThe purpose of this study is to examine the design, development and implementation of responsibility centre management at a mid-sized Canadian university, within the context of decentralized decision-making. More specifically our study focused on the design, development and implementation of a revenue and cost allocation process known as transparent activity–based budgeting system (TABBS).Design/methodology/approachThe authors conducted this study using a qualitative case study methodology, rooted in grounded theory, as the primary approach to collect and analyse data, and report the findings. Primary data were collected from ten participants using semi-structured interviews.FindingsThe main takeaways from our research are that (1) such systems take time to design, develop and implement, (2) consultation, communication and information sharing and model adjustment and refinement are important enabling mechanisms, (3) internal and external events posed significant challenges, (4) although such systems are often designed keeping in mind several intended outcomes, there exists the possibility of experiencing some unintended consequences and (5) the juxtaposition of the above has the potential to negatively or positively impact organizational performance.Originality/valueThe research demonstrates that the design, development and implementation of a complex resource allocation model is an important element of a responsibility-centred approach to planning and decision-making. It highlights the importance and contribution of enabling mechanisms as well as the challenges that large, complex organizations may confront when introducing change.

Performance management and measurement impacts on universities: (re)viewing the past, present and future

“…The number of articles published by North American authors (including Canada and the US) changed little over the periods analysed (e.g. Alexander, 2000;Covaleski and Dirsmith, 1988a, b;Rigby et al, 2021). The number of articles from other countries (Norway, 3, Switzerland, 2, Russia, 2 and Uganda, 1) is low.…”

“…The number of articles published by North American authors (including Canada and the US) changed little over the periods analysed (e.g. Alexander, 2000; Covaleski and Dirsmith, 1988a, b; Rigby et al. , 2021).…”

“…For instance, Jalali Aliabadi et al. (2021a, b) focus on the budgeting system, disentangling the actors' role in tensions and resistance to change in the resource allocation process in Iran, whilst Rigby et al. (2021) focus on the design, development and implementation of a revenue and cost allocation process of activity-based budgeting in Canada.…”

Performance measurement and management in the British higher education sector

“…However, in terms of impact, NPM is a neutral system that may produce outcomes of either nature, positive or negative, depending upon various factors. The organization may receive either positive or negative effects depending upon the juxtaposition of significant challenges due to external or internal events and possibility of some unintended consequences of the system (Rigby et al 2021 ). The study by Franco-Santos and Doherty ( 2017 ), in a British context, considered two models of performance management: direct based on agency theory and an enabling model based on stewardship theory.…”

“…Stein et al ( 2019 ) highlighted three factors that can play a role in providing meaningfulness to any datafication work experience: a) the design that accountability systems follows along with characteristics of datafication of work, b) the institutional context in which that system operates, c) the responses adopted as appropriate to retain the meaningfulness of any particular datafication work experience. Other than this, some of the main enabling mechanisms included consultation, information sharing, and communication along with model refinement and adjustments (Rigby et al 2021 ). Furthermore, these hard measures tend to direct employees’ behaviours.…”