Devolved Budgets in the Public Sector: A New Conceptual Framework for Consultancy Evaluation
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1 Devolved Budgets in the Public Sector: A New Conceptual Framework for Consultancy Evaluation Ruth Hamson Coventry University, England Len Bird Coventry University, England Address for correspondence: R.Hamson@Coventry.ac.uk Journal of Finance and Management in Public Services. Volume 9 Number 2 29
2 Abstract Introduction management in the public sector. Background enterprise that is useful to a wide range of potential users in making economic decisions. Journal of Finance and Management in Public Services. Volume 11 Number 1 30
3 As a result of such radical change there appears to be an abundance of research conducted during the Journal of Finance and Management in Public Services. Volume 11 Number 1 31
4 Methodology for Reviewing the Literature organisational culture and how this impacted upon performance. The researchers found that there were more importantly, ask the same questions. Therefore, it is unlikely that aggregative approaches to research synthesis, such as meta-analysis will be appropriate in management research as the heterogeneity of 1. To show the link between the literature source and the research task. The Literature Review Control Journal of Finance and Management in Public Services. Volume 11 Number 1 32
5 there is much evidence that, structurally, public sector organisations have moved towards decentralised operational management but with concomitant highly centralised strategic control (1999, pp.31). the process whereby budgets are devolved to an individual who becomes the budget holder and his/her management decisions. Journal of Finance and Management in Public Services. Volume 11 Number 1 33
6 Performance emerge from the literature. who lack empowerment to make decisions despite being responsible and accountable for a range of there is a danger that this approach may encourage undue caution and targets that can be easily met. This People public sector senior management is that middle managers are presented with opportunities to enhance pressures to reduce costs. Journal of Finance and Management in Public Services. Volume 11 Number 1 34
7 The ability to access information is of paramount importance if managers are to be able to make informed organisation. Budgeting and Organisational Culture interpreted and operated by managers...budgetary control and responsibility accounting are not just techniques that can be applied to setting and monitoring. Journal of Finance and Management in Public Services. Volume 11 Number 1 35
8 coalition is the working agreement that is socially and politically acceptable to the managers who work in negotiations is part of the organisational coalition. take up this slack in unrealistic budget setting. They deliberately distort information and set budget targets to suit their personal needs. Basically, when superiors used budgeting information as a basis for allocating organisational rewards, The annual budgeting procedure is probably the most important single decision and control routine of a planned allocation of resources which will maintain the coalition and thus the organizational stability of Control, Performance and People Journal of Finance and Management in Public Services. Volume 11 Number 1 36
9 can be either a key management tool or a rod with which they can be beaten. Findings organisational culture. systems. Explanation of the Framework constitute the framework are depicted in the diagram that follows and are summarised below. Control Journal of Finance and Management in Public Services. Volume 11 Number 1 37
10 Performance People Conclusion and Application of the Framework Organisational culture has a profound impact upon the budgetary management process and establishes Journal of Finance and Management in Public Services. Volume 11 Number 1 38
11 budgetary control systems. Appendix 1 Literature Review Theme concomitant highly centralised strategic control Journal of Finance and Management in Public Services. Volume 11 Number 1 39
12 established priorities budget control systems are barrier to change emphasis on measurement of this area of performance should be higher Journal of Finance and Management in Public Services. Volume 11 Number 1 40
13 rises in organisational hierarchy if reward is more ambitious targets Appendix 2 Control Performance Journal of Finance and Management in Public Services. Volume 11 Number 1 41
14 People Conclusion References companies. Managerial Auditing Journal Managing the Devolved Budget. The British Accounting Review Public Money and Management Professional Manager The British Accounting Review Modern Accounting and Auditing CIPFA FM Model Journal of Finance and Management in Public Services. Volume 11 Number 1 42
15 Public Sector Financial Management. The Electronic Journal of Knowledge Management A Behavioural Theory of the Firm. managers. Managerial Auditing Journal International Journal of Public Sector Management The International Journal of Public Sector Management uncertainty. Management Accounting Research Public Money and Management Harvard Business Review In Public Budgeting and Finance perceptions of power and control. Local Government Studies Financial Accountability & Management 12, (1) American budgeting practice. Management Accounting Research Accounting Auditing and Accountability Journal The Journal of Management Studies Practical Lean Accounting : a proven system for measuring and managing the lean enterprise The Accounting Review Contemporary Issues in Management Accounting. Accounting for the Human Factor Managerial Auditing Journal Behavioral Management Accounting Public Money and Management (July nd edn. Research Method & Methodology in Finance & Accounting. Accounting Organisations and Society Journal of Finance and Management in Public Services. Volume 11 Number 1 43
16 The Accounting Review Academy of Management Journal education colleges. The International Journal of Educational Management New Management Trends. sector. Public Policy and Administration British Journal of Management Budgeting A Comparative Theory of Budgetary Processes Journal of Finance and Management in Public Services. Volume 11 Number 1 44
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