Abstract
This paper explores the consequences of adopting formula-based systems of resource allocation and questions some of the assumptions underpinning the development of such systems. It is based upon a case study of a university in the United Kingdom which moved, in the mid to late 1980s from a historic, centralized system of resource allocation towards a more devolved and formula-based approach. Following an account of the change process, the article discusses some practical implications for institutional managers.

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