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Academic Resource Allocation In Australia: A Critical Review. Dr Gan Che Ng Australasian Consultants Dr Josie Palermo Deakin University (Presenter) Dr Raj Sharma Swinburne University of Technology. Drivers of reforms in higher education. Expansion and diversification - PowerPoint PPT Presentation
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Academic Resource Allocation In Australia: A Critical Review
Dr Gan Che NgAustralasian Consultants
Dr Josie PalermoDeakin University (Presenter)
Dr Raj SharmaSwinburne University of Technology
Drivers of reforms in higher education
Expansion and diversificationProliferation of providersDiversification of delivery
Fiscal pressureLow, decreasing per student public $Demand for greater accountabilityUser paysAcknowledgement of the university as
nation builder
Reactions to these drivers
Moves to improve cost efficiencies and effectiveness
Increased entrepreneurialism (Clarke, 1998)
Increased managerialism and administration (Deem, 1998)
Scrutiny of resource allocation (including human resources)
Aim
critically evaluate strengths and weaknesses of resource allocation models in relation to institutional efficiency and effectiveness
Funding Mechanisms
Internationally, higher education resource allocation systems differ substantially with regard to research and teaching funding sources.
In many countries higher education is in fact funded by public monies in the majority.
In OECD countries, nearly 80 per cent of the expenditure on higher education comes from public sources (Varghese, 2004).
Jongbloed and Vossensteyn (2001)
Research Council Income (% of all public revenue
Australia 8Belgium 17Denmark 20France 15-20Germany 10Japan 21The Netherlands 7New Zealand 9Sweden 13United Kingdom 9United States 30Jongbloed and Vossensteyn’s (2001)
University Revenues obtained from research councils 1998-1999
Performance Based FundingProcess by which resources are allocated according to criteria related to the
achievement of ‘products’ (usually in the form of outputs)
Program goals - including external accountability, institutional improvement, increased public funding, improved public perception of higher education, and meeting state based needs
Performance indicators – areas of anticipated achievements such as
retention/graduation rates, teaching outcome scores, research publications and patents
Benchmarks - use to improve performance for each unit (eg. campus), with comparisons of results available at state or national levels.
(Burke and Modarresi, 2000 - Review of 10 US state systems)
Consequences of PBF
Raised awareness of performance and accountability
MediocrityConflicting goals – ‘clash of values’
(Marginson, 2000)Failure to overcome reputational
confounds
Consequences of PBF
Raised awareness of performance and accountability
MediocrityConflicting goals – ‘clash of values’
(Marginson, 2000)Failure to overcome reputational
confounds
Problems with indicators
“Ultimately the mix of measures used is ultimately the consequence of political choices that directly relate to the funding agencies’ agendas and priorities” (Jongbloed and Vossensteyn, 2001, p.129)
Successful criteria for PBF
Input by lead stakeholders A sense of achieving the goals of improving higher
education Policy values stressing quality more than efficiency Sufficient time for planning and implementation Curbed costs of implementation A limited number of indicators Restricted but substantial funding Prediction of a long-term future Stable government priorities Protection against budget instability
(Burke and Modaressi, 2000)
Inverted funding models
ALL Units as profit centresDevolution of management and spending
authorityEntrepreneurial approaches to funding
activities (Sharma, 2004)
Scenarios
Status quo
Minor Adjustments to the Existing Model - greater inputs from academic staff on Faculty/Divisional/School committees that advice them on resource allocation
Major Adjustment to the Existing Funding Model – resources are allocated at individual / group level based on (e.g.) research active status. Individual / group level decision making about the nature of resources allocated
(Note: need budget stability and regimes that allow carry overs)
Scenarios (cont.)
Radical Changes to ARAM Allocate all discretionary academic funds to where
they are generated as a first step. The academic/management unit (and other units) can
reach service agreement with the academics concerned to recover agreed costs from the generators of the revenue.
Could lead to greater efficiencies in Faculty or similar offices over time, reducing their costs and delivering more resources to the front line activities.
Your futures solution?
“Not everything that counts can be counted, and not everything that can be
counted counts.” (Albert Einstein)
“PBF appears to be on the way out. There is no public money to reward institutional performance” (Watt, Lancaster, Gilbert and Higerd, 2004)