Recently, institutes of higher education (universities) have shown a renewed interest in organisational structures and operating methodologies that generate productivity and innovation; responsibility centre budgeting (RCB) is one such process. This paper describes the underlying principles constituting RCB, its origin and structural elements, and…

A central theme of approaches to new public management is the emulation of the market through state-induced competition. Basing state funding allocations on comparative performance is one way of setting an incentive for competitive practice amongst universities. Reforms in funding allocation have occurred in Germany at both state and university…