Public Universities’ Incentive-Based Budgeting Systems: How Responsibility Center Budget Systems Affect the Decision Making Strategy of Student Affairs Leaders

Abstract

Major changes to higher education funding have resulted in public colleges and universities assuming corporate approaches to decrease costs and increase revenues. Large research universities are turning to Responsibility Centered Management (RCM) budget models as they have been cited as growing tuition revenues and decreasing costs. Even though there is excellent literature on the value of the advantages and disadvantages of RCM there is nothing regarding how student affairs is impacted in the model. The exploratory research investigates how two student affairs departments are affected by, and make decisions in, the RCM budget model by using a case study design. The results are then analyzed using Chaffee’s (1983; 1985) decision-making framework. Four main findings were identified. First, student affairs services are affected by RCM budget model. Second, RCM affects how student affairs services and programs are structured and delivered, especially as it incentivizes the replication of student affairs in academic schools. Third, RCM affects how student affairs positions and prioritizes decision making to create more resources such as selling services and teaching courses. Fourth, Senior Student Affairs Officer’s (SSAO) perceive that central administration and academic school leadership have a compromised value of student affairs within a RCM model. Recommendations from the findings inform student affairs practice within an RCM environment.