Running head: REFLECTIONS ON A CENTRAL-BASED ALLOCATION MODEL 1

Reflections on a Central-Based Allocation Model

Shelly Treleaven

EEA 536: School Finance and Operations

M. Ed. in Leadership

City University of Seattle in Canada

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When an organization is large enough, having the allocation of money centralized can

allow for some opportunities as well as providing some challenges. After reflecting on how it

impacts the people within the organization, availability of supplies and services, perception of

equality and fairness, accounting for size of schools, and programs being able to be offered, the

advantages and disadvantages can be weighed.

Advantages

Clear Chain of Command

This is an advantage as people will know the person they are to report to. Understanding

and appreciating the scope and limitations of a role within a centralized model offers clear

guidance which can engender loyalty. Having consistent expectations across a division or

organization provides people opportunity for advancement and knowledge of the responsibilities

of various roles.

Focused Vision

Communication plays a significant role in developing a consistent vision and through a

centralized allocation model the focus on the common vision can be supported through

distribution based on the vision. As an example - if the vision is to support small community

schools then through allocation of money this can be accomplished. A second example could be

mental health awareness and a centrally hired and appropriated specialist.

Reduced Costs

Through a centralized model of allocation the combining of departments allows for

reduced office staff which results in lower administrative costs. This combination also allows

the ability to hire specialists in certain roles (ie. accountant) as well as combining the purchasing
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power of multiple locations also reduces costs. This would additionally afford the opportunity to

some locations to have a broader array of supplies or the availability of specialists through the

collective purchasing power of the division.

Quick Implementation of Decisions

Whenever a decision needs to be made, in a central-based allocation model, through the

hierarchy allows a person to make a decision quickly to respond to needs. When resources are

held collaboratively, emergent concerns remain the focus.

Equality and Fairness

The focus of a central-based allocation model is on ​equitable distribution​ of resources.

The old adage that fair is not equal and equal is not fair rings true in this format of allocation.

The Central Office provides resources to each school with a focus on ALL students’ needs, not

just those at one location.

Disadvantages

Top Down Management

The hierarchy of a central-based allocation system may have an individual school or site

feel they lack the ability to respond or support the people at their location. If decisions are being

made at an offsite location and collaboration is not sought, a central-based model can feel like a

dictatorship which can lead to conflict among personnel.

Implementation Challenges

Centrally a person or department may have a vision for implementation of a resource or

practice and while they may financially support this process, the ability to implement the vision
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is out of their control. This can lead to challenges of consistency on how the funds were

allocated and supported by the central office.

Perspective Challenges

Often the greatest challenge to a central-based allocation model is that of divergent

perspectives on how money ought to be spent. Using their ‘Big’ picture lens can create

frustration of a school or site that has different priorities or needs. Through redistributing

resources there can also be a perspective that some schools or sites are unfairly required to

support division goals.

Financial Risk

Through a central-based allocation model the financial risks of the individual schools or

sites is transferred to the division office. The problem with this is they are not necessarily in

control of who is spending the money. This results in the formation of policies and procedures in

an attempt to guide behaviours and decision making.