University planning,decentralization and resource allocation

This paper proposes a system of resource allocation in universities which addresses both the problem of useful simulation of alternatives and efficient substitution of resources. It is the authors' view that the reasons why various university planning models proposed in the last few years have not been found useful in practice is that they take inadequate account of the decentralized nature of decisionmaking within universities. In this regard the three main points of the paper are: (1) university planning models should have flexible aggregation categories which can be determined and re-adjusted by the decisionmaker as he uses it; (2) resource constraints in university planning models should be flexible and negotiable, and negotiation over resources should be part of the analyst's domain of inquiry; (3) planning in universities must take into account the problem of introducing incentives which cause the behavior of individuals within the university to be directed to the needs of the institution's clienteles.