NCJ Number
47353
Journal
EVALUATION Volume: 4 Dated: (1977) Pages: 42-43,45-52
Date Published
1978
Length
10 pages
Annotation
THE CREATOR OF ZERO-BASE BUDGETING (ZBB) DESCRIBES THE BASICS OF THE TECHNIQUE, CITES EXAMPLE OF ITS APPLICATION IN PRIVATE INDUSTRY AND GOVERNMENT, AND COMMENTS ON ITS ADVANTAGES.
Abstract
ZBB IS A PROGRAM-ORIENTED MANAGEMENT TECHNIQUE THAT COMBINES PLANNING, BUDGETING, AND OPERATIONAL DECISIONMAKING IN ONE PROCESS. THE PROCESS IS USED TO ASSESS A TOTAL PROGRAM FROM THE GROUND UP, QUESTIONING EVERY SEGMENT OF OPERATION. THE STRUCTURE OF THE PROGRAM IS EXAMINED TO IDENTIFY DECISION UNITS, DECISION UNITS ARE ANALYZED TO ARRIVE AT DECISION PACKAGES, AND DECISION PACKAGES ARE RANKED IN ORDER OF PRIORITY. ZBB, WHICH WAS DEVELOPED IN PRIVATE INDUSTRY, REQUIRES THE MANAGER TO REEVALUATE THE PROGRAM AND TO CONSIDER WHAT WOULD HAPPEN IF THE PROGRAM WERE ELIMINATED OR FUNDED AT A HIGHER OR LOWER LEVEL. IN AN INTERVIEW, THE CREATOR OF ZBB DESCRIBES THE PROCESS, DISCUSSES EXAMPLES OF ITS APPLICATION IN PRIVATE INDUSTRY AND IN STATE AND FEDERAL GOVERNMENT, POINTS TO PROBLEMS, AND CONSIDERS FACTORS IN EVALUATING THE EFFECTIVENESS OF ZBB. ASPECTS OF IMPLEMENTING ZBB IN FEDERAL AGENCIES ARE CONSIDERED, AND THE POSSIBILITY THAT ZBB SHOULD HAVE BEEN PHASED IN, RATHER THAN IMPLEMENTED ACROSS THE BOARD BY EXECUTIVE MANDATE, IS RAISED. (LKM)