Budget as a Structural Element in the Circumstances of the University of Missouri

Case Analysis
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Case Analysis
The Structural Frame in organizational theory focuses on the formal structures and systems that shape the behavior of organizations. It views organizations as structured systems made up of formal and informal components, including organizational structures, systems, processes, and procedures that facilitate resource management and decision-making. The budget is a key structural element that shapes the behavior and actions of organizations, including universities. In the case of the University of Missouri, the budget likely informed the decision to cut and curtail programs and the academic furor that resulted thereafter.
When an organization, such as a university, faces budget constraints, it must make difficult decisions about how to allocate limited resources. This often involves prioritizing certain programs over others and making cuts to programs that are deemed less important. In the case of the University of Missouri, the university had to contend with external factors causing a budgetary constraint. Missouri experienced drought in 1980 and the national economy and the governor decided to withhold 3 percent of the appropriations intended for higher education as well as indicated that the budget would be minimized the following year by 10 percent. The University Vice-President for Administrative Services predicted that the budgetary cuts and the dismal economic conditions would minimize the available budget by twenty percent.
Additionally, the budget process itself can shape the decision-making dynamics within the organization. To a certain extent, the Missouri decision to cut some of its programs was a function of the budgeting process. The budget process required input from the Faculty Council, which meant that the final decision on how the University responded to the budgetary constraints depended on their opinions. To come up with a budget, it was essential to investigate the cost associated with the maintenance of every project and the utility of spending on each program. With the help of set criteria, the University decided on the budgetary cuts that had to be made in every program. While the budgetary process seemed to receive consensus as it was progressing, the proposed budgetary cuts wer...