Utilization in public organizations: a case study of dawuro zone finance and economic development department
Budget Theory for public organization and its administration
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- 2.5.1 Organization-Based Budget Theory
| 2.5. Budget Theory for public organization and its administration. (Key, described budgeting as the process of deciding whether to allocate more resources to activity X over activity Y. As such, he considered budgets as a process for deciding who get what and how much. In other words, public budgeting is a reflection of governments priorities and constraints- what get put on the agenda and what does not. The following parts presents review of important literatures on different Theories in public budgeting. 2.5.1 Organization-Based Budget Theory One of the organizational propose of budget process is to enhance the capacity of the organization’s management to make optimal resource allocation decision. In pursuit of this end, the resource allocation process should function as a counterweight to the centrifugal forces generated by the highly differentiated nature of multi service public organizations. Budget formats and processes should be examined for their relative utility in that regard, in light of the existing capacity of the management staff. In addition the prescription that the 30 resource allocation process should enhance the capacity of the management staff to make optimal resource allocation decision, it is posted here that the ultimate criterion for determing optimality is the presentation and development of the organizations economic base. The local government organization drives its resources from the economic base of its jurisdiction, and a basic function of professional public management is to maintain the organizations flow of resources. In this scenario, the resources allocation process of the public organization services a developmental function for both the internal structure of the organization and its relationship with its external environment. The need to maintain the economic base of the jurisdiction functions as a centripetal force in the public organization, in much the same way as the need to make a profit does the private sector. This is not to say that the determination of the capital course of action is not ultimately a function of societal value and political power. The approach outlined herein provides a farm work for the development of theory to inform and to guide the actions of the participants, particularly the professional public administrators. Thus to organization based approach to budget theory also holds promise for the development of a normative theory of budgeting rooted in the profession of public management. These issues are examined in this section using Baileys framework for the objectives of theory in public Administration. For Bailey four overlapping and inter looking categories of theory are required improvement in the process of government, in fact, to take place descriptive explanatory theories, normative theories, assumptive theories, and instrumental theories. (Bailey 1968) |