Resource Allocation Challenges in South African Universities: A Management Accounting Perspective

Abstract

Quality control reviews, programme accreditations and the rating of universities and researchers are new trends in tertiary education. This paper deals with the strategic planning challenges in South African universities that attempt to improve their rating in credible international ranking systems. Improved rating requires a carefully thought resource allocation system. Resource allocation within a university system in turn suggests the application of some of the principles of the economics of higher education and management accounting innovations. Using case analysis, the paper attempts to develop a generic balanced scorecard for an academic unit, and shows that financial decentralization reduces the tensions between teaching and research on one hand, and between academic units and central administration on the other hand.

Keywords: Resource allocation, strategic planning, balanced scorecard, universities, top universities, South Africa

JEL Classification: M40, M46, I22