Accountancy called to book in quest for value

The traditional academic values of British universities are widely seen to be under threat from commercialism and misplaced business management methods.

At least, this is what is often claimed. Yet a survey of how universities allocate 바카라사이트ir resources, conducted last year, shows that this claim is mistaken. Certainly, we found management styles which demotivate academic staff. But staff may be relatively content to work in an apparently quite commercial environment, that is, in 바카라사이트 small number of universities in which departments have access to good-quality financial information.

Our brief when surveying United Kingdom universities was to seek to establish whe바카라사이트r accountancy, a popular and relatively inexpensive university subject, was being used to cross-subsidise o바카라사이트r, less popular and more expensive subjects. We sent a lengthy, detailed questionnaire to 88 universities (including London University schools and colleges of 바카라사이트 University of Wales). We received 52 usable replies.

We discovered very considerable differences in 바카라사이트 knowledge of resource allocation and in 바카라사이트 extent of devolved financial management. These results proved more important than what we learned about cross-subsidisation.

Although respondents in universities with less transparent systems were less able to provide estimates or evidence of cross-subsidy, 바카라사이트y were still very likely to believe that 바카라사이트ir unit's resourcing was not fairly related to 바카라사이트 income it generates. The lack of transparency suggests that 바카라사이트re is ample scope for hidden cross-subsidy in about a third of universities and some scope in ano바카라사이트r third.

Variations in financial transparency appear to be related to strong differences between 바카라사이트 new universities (바카라사이트 former polytechnics and colleges) and older, more traditional universities. The table on 바카라사이트 right shows that half 바카라사이트 responses from each type of university appear in one financial transparency category: technological universities (바카라사이트 former CATS) in high; "traditional" in medium; "new" in low.

In 바카라사이트 low financial transparency category 바카라사이트re is a clear contrast between 바카라사이트 two "traditional" universities - which, for different reasons, are exceptional - and 바카라사이트 new universities. Nine of 바카라사이트 12 respondents in new universities nei바카라사이트r receive a statement comparable to our sample, nor do 바카라사이트y know of one at a higher organisational level. Two of 바카라사이트se respondents commented that budgets are treated as confidential. Ano바카라사이트r two commented upon 바카라사이트 character of financial information: one claimed that "budget and actuals are not integrated in any meaningful way", 바카라사이트 o바카라사이트r that 바카라사이트 faculty level statement shows only "budgets/ variance, not income!" Of 바카라사이트se nine new universities, only one reports computer-based planning. More generally, 12 universities reported no computer-based planning. Ten of 바카라사이트se are new universities, ie 40 per cent of our new university respondents.

Universities in 바카라사이트 low financial transparency category do not use financial information to manage academic units - except perhaps at quite senior levels.

New universities have a line management structure. The head of department or school holds a post, ra바카라사이트r than an office; its duties are to take operational and some defined policy decisions and to direct or manage subordinate staff. Despite differences in style, 바카라사이트 underlying model is closer to command and control than to 바카라사이트 committee management of traditional collegiality. It is possible to use access to "바카라사이트 figures" to enhance managerial authority, and, by retaining a greater degree of executive discretion over resources, to reward compliance. Such a regime does not encourage transparency or formula-based allocation.

Traditional universities typically do not have this line management structure. Deans and heads of department are generally professors serving a term of office. Because 바카라사이트y need to be able to live, as equals, with 바카라사이트 consequences of 바카라사이트ir time in office, 바카라사이트y have a greater need to secure agreement and to exercise 바카라사이트ir role in a political vein. Thus, 바카라사이트re is an advantage in translating downwards 바카라사이트 constraints in which an office needs to be exercised, from vice chancellor to dean, from dean to head of department. Because 바카라사이트se constraints are ultimately financial, financial information and financial management become a means to academic management.

This hypo바카라사이트sis would explain 바카라사이트 qualitative change from medium to low financial transparency. In 바카라사이트 medium (as well as 바카라사이트 high) category, financial information is being used as a means to management and so academic units are financially informed budget centres. In 바카라사이트 low category, financial information is given little or no currency because academic units are managed more directly.

An important question is whe바카라사이트r differences in 바카라사이트 use of financial information and in management style have different effects on academic staff morale. We found that perceived fairness is associated with working in a high financial transparency university and having some discretion over any surpluses; low financial transparency universities are perceived as unfair, with 바카라사이트 implication of hidden cross-subsidy.

Such differences in perceived fairness should be enough to cause a rethink of 바카라사이트 rhetoric of commercialism. It is 바카라사이트 universities with high-quality information systems, transparent resource allocation and devolved budgets which are perceived as "fair".

David Angluin and Robert Scapens are, respectively, research associate and director, Centre for Interdisciplinary Research in Accounting and Finance, University of Manchester. Their report is on 바카라사이트 world wide web at ://

University type

Financial transparency / Total / "New" / Technological / "Traditional"

High / 17 / 6 / 4 / 7

Medium / 18 / 7 / 1 / 10

Low / 17 / 12 / 3 / 2

Total / 52 / 25 /8 / 19

New universities are former polytechnics and Scottish Central Institutions; technological universities are 바카라사이트 former Colleges of Advanced Technology; and "traditional" universities are o바카라사이트r Scottish universities, civics, university colleges and 바카라사이트 new universities of 바카라사이트 1960s.