By William F. West
Formal structures of complete making plans and performance-based administration have a protracted if disappointing heritage in American govt. this is often illustrated such a lot dramatically through the failure of application budgeting (PPB) within the Sixties and resurrection of that administration approach in a handful of companies during the last decade. past its current program, the importance of PPB lies in its dating to the pursuits and assumptions of renowned reforms linked to the functionality movement.
Program Budgeting and the functionality Movement examines PPB from its inception within the division of protection less than Robert McNamara to its restricted resurgence in recent times. It contains an in-depth case examine of the adoption and results of PPB on the nationwide Oceanic and Atmospheric management. the truth that software budgeting is topic to an analogous boundaries this day that ended in its loss of life 4 many years in the past speaks to the viability of necessities, corresponding to these imposed via the govt functionality and effects Act, which are designed to make executive extra businesslike in its operations.
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Additional info for Program Budgeting and the Performance Movement: The Elusive Quest for Efficiency in Government
Comparing the United States with other developed nations, John Meyer (1969, 147) noted that transport development in the United States is a function of many agencies, bureaus, and departments and, in particular, there is no one bureau, department, or ministry of transportation. . Without a central ministry for directing the transportation activities of the national government, the application of program-budgeting techniques is, of course, complicated. Also complicated is the problem of accurately estimating government transport expenditures, particularly as they relate to different functional objective.
Impressed by its apparent success at DoD, President Johnson extended PPB to all federal agencies in the mid-1960s. This initiative failed to live up to expectations, however, and PPB’s use soon receded to its original home in DoD. , Novick 1954). To an even greater degree than in defense, domestic programs had been created willy-nilly with little thought to how they fit together (Wilson 1975). As in defense, moreover, organizational loyalties and clientele relationships stood in the way of coordination.
The fact that costeffectiveness comparisons at DoD were often used as a basis for allocating increments rather than for making budget cuts made PPB more palatable within the organization and among the legislators and other constituents who had stakes in particular units and programs. Notwithstanding its theoretical appeal as a technique for getting more out of the same or less, the impact of crosscutting analysis in DoD and elsewhere has usually been confined to the distribution of additional resources.