Poster Paper: Understanding the Impact of Responsibility Center Management on Higher Education: A Case Study of Rutgers University

Friday, March 29, 2019
Mary Graydon Center - Room 2-5 (American University)

*Names in bold indicate Presenter

Cathy Wang, Rutgers University, New Brunswick


Responsibility Center Management (RCM) was first implemented by University of Pennsylvania in 1974. In the subsequent four decades, more than fifty American colleges and universities have adopted this budgeting system, with several more actively considering adoption. Despite the growing popularity of RCM, there are relatively few vigorous studies examining its impact, particularly in the years immediately following implementation. This dissertation aims to help fill this gap by examining the recent transition to the RCM budget model at Rutgers, a large public university. The proposed research question is: How has RCM adoption and implementation to date impacted Rutgers University? The research addresses the question through qualitative analysis of data and information gathered through in-depth interviews with administrators, faculty and staff members on campus as well as institutional document analysis. The preliminary findings of this research revealed several concerns not identified in prior studies. The first concern is the impact of RCM on the ratio of full-time faculty to part-time hires. A second concern relates to the impact of RCM on university units that rely heavily on governmental grants, such as units that do pure research versus research and teaching. The goals of adopting RCM at Rutgers were increased accountability and transparency. This research helps assess whether the outcomes to date align with those goals.