Resource allocation in the university of labor and social affairs (ULSA)

RESOURCE ALLOCATION IN THE UNIVERSITY OF LABOR AND SOCIAL AFFAIRS ULSA ___________________________ A DISSERTATION Presented to the Faculty of the Graduate School Southern Luzon State Un

RESOURCE ALLOCATION IN THE UNIVERSITY OF

LABOR AND SOCIAL AFFAIRS (ULSA)

_

A DISSERTATION Presented to the Faculty of the Graduate School

Southern Luzon State University, Lucban, Quezon, Philippines

in Collaboration with Thai Nguyen University, Socialist Republic of Vietnam

APPROVAL SHEET

The Dissertation of

DO THI THANH HOA

entitled

RESOURCE ALLOCATION IN THE UNIVERSITY OF LABOR

AND SOCIAL AFFAIRS (ULSA)

Submitted in Partial Fulfilment of the Requirements for the Degree

DOCTOR OF BUSINESS ADMINISTRATION

A program offered by Southern Luzon State University,

Republic of the Philippines in collaboration with

Thai Nguyen University, Socialist Republic of Vietnam

has been approved by Oral Examination Committee

WALBERTO A MACARAAN, EdD CONRADO L ABRAHAM, PhD

MELCHOR MELO O PLACINO, PhD EDWIN P BERNAL, DBA

CECILIA N GASCON, PhD

Chairman

JOANNA PAULA A ELLAGA, DBA APOLONIA A ESPINOSA, PhD

Accepted in Partial Fulfilment of the Requirements for the Degree

Doctor of Business Administration

CERTIFICATE OF ORIGINALITY

ACKNOWLEDGMENT

The researcher would like to express her sincere gratitude to Dr

Joanna Paula A Ellaga who has instructed her dedicatedly to complete this

Dissertation

She also would like to thank the lecturers of Southern Luzon State

University,, Thai Nguyen University, faculty and staff of the University of Labor

and Social Affairs for helping the researcher during the survey of resource

allocation of the University of Labor and Social Affairs

Thanks to the researcher’s family and all of her beloved friends who

have shared, encouraged and supported her so much during the entire DBA

program to make this study feasible

Do ThiThanhHoa (Emily)

TABLE OF CONTENTS

PAGE

TITLE PAGE ……… i

APPROVAL SHEET ……… ii

CERTIFICATE OF ORIGINALITY ……… iii

ACKNOWLEDGEMENT ……… iv

TABLE OF CONTENTS ……… v

LIST OF TABLES ……… vii

LIST OF FIGURES ……… ix

LIST OF APPENDICES ……… x

ABSTRACT ……… xi

CHAPTER I INTRODUCTION ……… 1

Background of the Study ……… 3

Objectives of the Study ……… 5

Hypotheses of the Study ……… …… 6

Significance of the Study ……… 7

Scope and Limitation of the Study ……… ……… 10

Definition of Terms ……… 12

II REVIEW OF LITERATURE ……… 15

Theoretical Framework ……….… 52

Conceptual Framework ……….… 61

III METHODOLOGY ……… 63

Locale of the Study ……… 63

Research Design ……… 63

Subject of the Study ……… 63

Determination of Sample Size ……… 64

Sampling Design and Techniques ……… 64

Research Instrument ……….………… 65

Data Gathering Procedure ……… 67

Statistical Treatment ……… …….…… 67

IV RESULTS AND DISCUSSIONS ……… 70

Profile of the Respondent ……… 70

Assessment on the Effect of Resource Allocation ……… 75

Proposed Resource Allocation Model for ULSA ……… 83

Hyphothesis Testing ……… 91

V SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 97 Summaryof Findings ……… 97

Conclusions ……… 100

Recommendations ……… 103

REFERENCES ……… ……… 109

APPENDICES ……… 112

CURRICULUM VITAE ……… 120

6 Frequency and Percentage Distribution of Respondents as

7 Frequency and Percentage Distribution of Respondents as

8 Frequency and Percentage Distribution of the

Respondents in Effect of Labor Resource Allocation as to

9 Average Value of the Responses on the Effects of Labor

10 Frequency and Percentage Distribution of the

Respondents in Effect of Labor Resources Allocation as to

11 Frequency and Percentage Distribution of the

Respondents in Effect of Labor Resource Allocation as to

12 Frequency and Percentage Distribution of the

Respondents in Effect of Resource Allocation for

13 Average Value of the Responses on the Effects of Labor

Resource Allocation in Terms of Equipments and

14 Frequency and Percentage Distribution of Respondents in

TABLE PAGE

15 Average Value of the Responses on the Effects of Labor

16 Frequency and Percentage Distribution of the

Respondents in Effect of Resource Allocation for

17 Average Value of the Responses on the Effects of Labor

18 Frequency and Percentage Distribution of the

19 Average Value of the Responses on the Effects of Labor

23 Gamma’s Value and Level of Significance of Hypothesis 1 92

24 Gamma’s Value and Level of Significance of Hypothesis 2 93

25 Gamma’s Value and Level of Significance of Hypothesis 3 94

26 Gamma’s Value and Level of Significance of Hypothesis 4 96

LIST OF FIGURES

LIST OF APPENDICES

A Request Letter to Conduct the Survey(To Respondents) 113

B Survey Questionnaire(For Teacher and Managerial Staff)

114

C Cronbach Alpha of Factors of Resource Allocation 117

`

ABSTRACT

Title of Research : RESOURCE ALLOCATION IN THE UNIVERSITY

OFLABOR AND SOCIAL AFFAIRS (ULSA)

Name and Address

of Institution

: Southern Luzon State University Lucban, Quezon, Philippines and Thai Nguyen University, Socialist Republic of Vietnam

Resource allocation is one of the important tasks of financial

management Currently, allocating resources is the major concern of the

managers of the University ofLabor and Social Affairs (ULSA) Currently, the

state budget invested at ULSA is limited; the system of wage does not

encourage and motivate employees because resource allocation is

unreasonable Thus, this research aims to have an optimal allocation of

resources in order to improve quality teaching and services rendered by the

school

The objective of this dissertation is to analyze the current status of the

resource allocation of the University Labor and SocialAffairs to find better

ways as well as solutions in allocatingresources From the survey of

managerial staff and lecturers of the University of Labor and Social Affairs,

dissertation assessed the impact of resource allocation on certain factors

such aslabor, equipment and facilities, program and course providers

The dissertation used the questionnaire survey, descriptive statistical

analysis and regression to come up with proposals for the resource allocation

of the university The respondents in this dissertation are teachers and

managerial staff For the sampling of teachers and managerial staff, the

researcher used Stratified Random Sampling (SRS) The population is divided

into homogeneous groups called the strata before sampling After

subgrouping the faculty and administrators, the researcher selected a single

random sample drawn from a layer to ensure that there are enough

representatives The researcher arranged each group by name and then

picked out a sample in alphabetical order To determine the gap k = N/n, the

researcher then chose the first one in the list, then chose 1+k, 1+2 etc After

that, the researcher will conduct survey on the selected sample

From the analysis of actual allocation of resources in the University of

Labor and Social Affairs, the dissertation determined the respondent’s profile

(gender, age, highest education level, monthly average income, the number of

years in service in the university, position) which is in accordance with the

actual situation of ULSA Secondly, the author assessed the effect of resource

allocation based on certain factors such aslabor, equipment and

infrastructure, course program and service providers to help the University

find better ways of allocating resources in the future Finally, the researcher

proposed an efficient resource allocation system and approaches towards

investment priorities for the University through a regression model

1

Chapter 1 INTRODUCTION

Education in Vietnam over the next decade is expected to bring more

rapid and complex changes Globalization and international integration in

education have brought inevitable but welcome trends Scientific and

technological revolution, information technology and communication,

intellectual economy growing strongly directly impact on the development of

education in the world Fast-growing needs for education to meet the

demands of industrialization and modernization of the country, economic

development and in-depth knowledge with advanced technologies and

international integration, while the resources to education are limited, will

create undue pressures on educational development (The decision No

711/QĐ-TTg June 13, 2012)

Thecore problemofauniversityeducation(higher education) can be

summed upin three words: quality, efficiency and social justice And at ULSA,

it istwo words: quality and finance How to manage finance to get high quality

and financial management here is allocating resource

The decision No 711/QĐ-TTg June 13, 2012 also confirms

necessaryeducationalsolutionsdevelopmentphase2011-2020:

Increasingresources for investmentandinnovatingeducationfinancing

mechanism To continue renewingeducation-financing mechanismsto

mobilize, allocate and usemore effectivelythe resources ofpublic

andsocialinvestmentin educationand enhancethe autonomyoftheinstitution,

make transparencyand responsibilityto the State, the learnerandsocietyto

2

ensurefinancial resourcesfora number ofVietnameseeducational

institutionsare capable of integrationandinternational competition

Current Status of Resource Allocation in ULSA:

Source: Accounting Department of ULSA, 2012

ULSA is a public university, its resources is financed by state budget

Every year, the managers of ULSA and the accounting department create the

resource allocation plan But actually, the resource allocation is still not really

good

Currently, the quality of the teachers is inadequate, the salary of each

teacher is not high and the method of paying salaries follows a fixed rank and

seniority thus creating a demoralized environment In 2012, the average

income of a teacher is 6.721.000VND/month (= 320 USD / month) This salary

does not encourage teachers at all Thus, they are not interested to prepare

good lessons, inspiring and informative lectures, add and update knowledge

Moreover, the system of fixed wage scale where the time of wage increase is

3

after 3 years only shows that the said system cannot really generate and

recruit a good crop of quality teachers in the university system

Training programs are still on-going ULSA invested about 12% for the

programs but basic teaching methods are already antiquated and mostly

traditional The traditional method means that learning is mainly based on

lectures so acquiring knowledge processes are passive, unilateral,and does

not expand the student’s intellectual vision Therefore, the school should be

more innovative to meet current needs

The amount of investments for equipment and facility of ULSA is

insufficient The procured equipment and facilities do not meet the standard

requirements of the school In fact, equipment and infrastructure for practice,

and laboratory experiments are outdated and not high-tech

Service providers of ULSA now account for a relatively large proportion

of 24.02%, but the service is not really efficient Administrative procedures are

cumbersome, providing information to students and parents is slow and

inaccurate,and even the attitude towards service is not good

ULSA needs to allocate resources to improve the quality of education

Thus, analyzing resources allocation is very necessary

Background of the Study

In recent years, many principalshaveerred infinancial management,

leading to seriousdisunity and corruption, adversely affectingthe reputationof

the schoolas well as theprofessionalsubject (ThanhBinh, 2012)

4

A serious gap ineconomics, knowledge and educationbetween

Vietnamand other countriesis never a remote possibility if the former falls

behind.International integrationandmarketdevelopmentraisesnew problems,

such as the risk ofculturalintrusionandunhealthylifestylesto erode the national

identity Poor quality of education servicesmay posegreater risksto education,

both in theory and practicerelevanttoits development (The decision No

711/QĐ-TTg June 13, 2012)

Training quality and effectiveness ofVNhigher educationis low because

it does not meetthe increasingrequirementsfor human resources As reported

by nearly1,000 delegatesattending the conference "Innovation VNhigher

education: Opportunities and Challenges"by the Ministryof Education and

Trainingheldin Hanoi,suchremarksare mentionedin almost everyspeech,

ideas, sketchofasituationnot so optimisticofhigher educationinVietnam (Thanh

Ha, 2004)

The decision No 711/QĐ-TTg June 13, 2012 about the approval of

education development strategy 2011 – 2020 of Prime Minister points outthe

inadequaciesand weaknesses: The quality of educationis lowcompared with

periodandcomparedwiththe level ofcountries withadvanced educationin the

region and around the world Theprofessional capacityof college graduates do

not meet therequirementsof the job because these students who have already

graduated have been expressingdeviantbehaviorat times and lifestyles are

gradually changing Managementeducationissubsidized, embraced, and

overlappingincidentand scattered,Responsibilitiesand powers ofprofessional

5

forpersonnelmanagementand finance The legal systemandeducationpolicies

are inconsistent with each other, and while being amended, supplementary

aid is quite slow.The coordination betweeneducation andother

ministries,branches and localitieshas not been very close Policies to

mobilizeand allocatehuman resourcesto financeeducationis not reasonable;

efficientuse of resourcesis not high.Stateinvestmentin educationis nothighly

concentratedonpriority objectives; the expendituresforprofessional

activitiesare low.Autonomy andsocial responsibilitiesofeducational

institutionsare notfully stipulated

Objectives of the Study

This study focuses on resource allocation of ULSA, so that we can

allocate resources suitably, appropriately and well because ULSA today is still

subsidized The research uses knowledge sourced mainly from the criteria to

assess the effects of capital investment and quality standards in education

The specific objectives of this dissertation are:

1 To determine the profile of the respondents in terms of the following

1.1 Gender

1.2 Age

1.3 Highest Educational Attainment

1.4 Monthly Average Income

1.5 Number of Years in Service

1.6 Position

3 To propose a resource allocation model for ULSA

From the reality of management systems in public universities in

general and the University of Labor and Social Affairs in particular, the

allocation of resource is important in the financial management of the

university Appropriate resource allocation will help financial managers to

achieve better efficiency and improve the quality of training, to be the basis for

implementing strategic objectives most effectively, to avoid waste and

inefficiency in the use of resources So this dissertation is indeed vital to

strengthening resource allocation

Hypotheses

A few assumptionscan bemadefromthescientific reportsandfrom

practiceas follows:

Hypothesis 1: The more investment in improving facilities, the higher the

effects of resource allocation

7

Hypothesis 2: Increasing the percentage spent on teachers will increase the

effect of resource allocation

Hypothesis 3: Reducing administrative costs will increase the effects of

resource allocation

Hypothesis 4: The more investment in program (method, examination, tests

and assessment), the higher the effects of resource allocation

Significance of the Study

Notwithstanding the lack of resources of the university, ULSA has to

find ways to meet its expenditure needs and ensure the survival and

development of their educational system.However, the mobilization of

resource at ULSA is not an urgent issue due to its being financed by the state

budget The tuition revenue sources are collected through state regulation So

the question here is how to exploit and utilize financial resources efficientlyat

the University of Labor – Social, these are now the emerging problems

-financial management mechanisms are inappropriate, even more wasteful

and embarrassing, not proactive and highly creative yet The university has

not really considered the possibility of exploiting financial resources It is also

a major cause of reduced quality of training

Currently, ULSA lacks facilities and equipment, only temporary

teaching facilitiesmeet minimum learning needs Specially, equipment for

laboratory and practices arealready outmoded

The quality of the teaching staff is weak Teaching and learning

methods are mostly traditional which studentsfind boring and less interesting

8

because lessons are mainly based on lectures and theories and not direct

practice, preventing students from widening their perspectives and expanding

their intellectual horizons.Salary for teachers is low, wage payment method is

mainly based on rank and seniority warding off leverage for both rank and file

Base salary is considered for a raise every 3 years only and hence, does not

lay the groundwork for producing good and quality teachers.Teachers still

have to do extra work to savetime preparing lectures and updatingadditional

knowledge, so lecture quality is not improved to directly affect the quality of

training

Training program for the university was recently established but it

should be gradually improved Compared to other countries in the region and

the world, the program is relatively backward, so it needs to level up and

improve the research department to be more competitive with other

educational units, both local and foreign

Therefore, how and where to invest the resources of ULSA to get high

qualityeducation are current issues Thus the study of the subject “Resource

Allocation of ULSA” is imperative in today’s educational setting

Aware of the status of financial management of the University ofLabor–

Social Affairs, the dissertation “Resources Allocation of ULSA”is indeed

necessary From that, thefinancial managerof ULSAcould usebetterresources

andprovide highereducation quality The dissertationwill presentthemethods of

distributingresources consistent withthe situation ofULSA, to help its financial

manager to plan forallocatingresourceforspecific items

9

The beneficiaries of this dissertation research are primarily the

managers of ULSA, especially financial managers, managerial staff, faculty of

ULSA, students of ULSA and public universities, and the budget allocation

planners

For the managers, this dissertation will teach them how to use

resources reasonably and prioritize resources for necessary items By then,

the university will have a way of appropriate financial management and

resource allocation to ensure survival of the school and its sustainable

development

For teachers, wages shall be paid according to the quantity and quality

of labor, not the average salary Thus, teachers will invest more in teaching

quality hours so they will be paid higher salaries In addition, they will be

investing more in professional development because ULSA will invest

adequate resources for this item

For the staff, the rational allocation of resources will make them more

motivated due to just compensation and fair ranking Salary increase will be

based on merit and performance and not merely on seniority Therefore, they

will be more encouraged to professionalize themselves They will focus on

making the work more effective instead of doing unnecessary work With

rational allocation of resources, ULSA will increase prestige, the staff will have

the opportunity to develop their work more professionally and provide better

services on account of higher wages

10

For students, the rational allocation of resources will entitle them to

benefit from quality learning because teachers can now provide them with

hours of quality teaching, suitable investment in equipment and better quality

of service Therefore, the students themselves will be the best models for

academic performance.Likewise, parents will be encouraged to pay higher

tuition fees because they know that their children will receive quality education

and training from the university

Then other public universities can learn from theULSA model of

resource allocation In addition, the budget allocation planners for education

canalso have a more reasonable basis for budget allocations for public higher

education

Inthe future,before thetraining needsof the societyincreasing, financial

managementsolution of ULSAwill effectivelyimprovethe quality of training,

investment efficiency and raise the responsibilitiesoftheeducation and

trainingfacilitiesto meet thedemandof high qualityhuman resourcesof the

country, protect the legitimate interestsof learnersand requirecontinual

innovationknowledgeto servesociety Sothe research onresource allocation of

ULSA isvery meaningfulinthis context This will be the basic for allocating

resources This study is expected to help improve the resource allocation of

ULSA effectively

Scope and Limitation of the Study

But the main difficulty affecting research results is that the criteria are

not specific,and also relatively difficult to assess objectively However, in this

11

study, the researcher selected the following criteria such as quality of

education measured in terms of monetary value Although quality is often

referred to as value for money, it is also equated with a number of criteria

such as standard, specific level and reliability The core concept of quality

measured by the worth for money is the concept of responsibility Public

service is tantamount to investment and customership (Department of

Testing and quality control of education, 2008)

The critical variables in the study include: criteria in the use of

evaluating finance such as capital investment in innovation teaching methods,

examinations, tests and assessment, the percentage spent on teachers,

indicators to assess the effects of using labors such as income, the average

salary, criteria in the use of evaluating equipment and facilities such as

modernity, suitability, sufficiency, indicators of quality education such as

teacher satisfaction, learning improvement and program structures

Limitationof the studyis to assess resource allocation.Other

elementsoffinancial managementare alsoassessed asequally importantas

thesecurity ofcapital anddebt, revenue and profitability offinancial investmentin

education, but for the ULSA - apublicuniversity,thesafetyof capitalis relatively

nottheirinterestbecausethe moneyismainlyprovided bystate budget What they

care about is howto use and allocate moneyeffectively.Thisis illustratedbythe

following diagram:

12

Figure 1 Limitation of the Study

Definition of Terms

To perform this study, the authors used a number of concepts and

definitions as a basis for the study These concepts and definitions are used

throughout the dissertation, as a basis for the understanding and application

of research findings into practice

Effectiveness is the capability of producing a desired result When something

is deemed effective, it means it has an intended or expected outcome,

impression.(http://en.wikipedia.org/wiki/Effectiveness)

Finance is the economic category, reflecting the distribution relations of

wealth, incurred in the process of forming, creating, allocating

monetary funds of entities in order to achieve the objectives of each

subject in certain conditions (http://vi.wikipedia.org/wiki/Tài_chính)

From the above definition, this dissertation uses the assessment

of satisfying wants and needs from resource allocation to evaluate the

efficiency of resource allocation Based on the evaluation of satisfying

13

wants and needs from resource allocation, thereby assessing the true

situation of ULSA allocating resources and having a suitable plan to

allocate resources efficiently

Human resource development (labor) is understood as the activity of

(investment) development education and scientific - technological

training to create professional development, quality, career

development and reasonable structure to meet the needs of economic

– social development of the country, while ensuring the development of

each individual to promote health, mentality, morality, professional

capacity, professional skills to increase productivity, increase incomes,

improve living standards (Chu Van Cap, 2012)

From the above definitions and concepts to develop labor

resource, the study considered three aspects of labor: salary,

professional development and quality; and career development

Labor resources is known asthe most revolutionary and the mostimportant

resources todecidesocial and economicgrowth.In anarrowersense, it

includesthe populationofworking age Labor resourcesareconsidered

ontwo anglesofquantity and quality.Labor quantityis

expressedthroughcriteriasuch as sizeandgrowth rateof labor resources

Labor qualityisconsidered onthe following aspects:health, education

level, qualifications, capability andquality

Resource allocation: The Higher Education Law 2012 defines financial

resource allocation of higher education institutions to ensure the quality

of higher education, including four conditions: labor (faculty,

14

administrators, and staff), equipment and infrastructure (Study rooms,

offices, libraries, information technology systems, laboratories, and

practice facilities), course program (training programs, curriculum,

teaching materials and learning) and service provision

Thus, to get high quality education, the researcher studies

resource allocation under four aspects: Labor (teachers and staff),

course program, facilities and infrastructure and services provision

15

Chapter II REVIEW OF LITERATURE

This chaptergives readers the previous studies offinancial

managementinuniversities and opens afurtherpartofthis study It startsfrom the

realityof financial managementweaknessesinthepublicuniversitiesandthe

allocation ofresourcesis notjustified.Thestudiespoints outthe general

causesand overall purposes Since then, thisdissertation

continuestodevelopthe previousresearches to study the financial management

and allocation resources of ULSAandfinallypropose amodelto

allocateresourcesfor eachspecific item

According to Siciliano (2008), the basic financial knowledge for

managers helps them to use finance as instrument of administration “Finance

for managers” is not only concerned with basic financial knowledge but also

leads to make an accounting cost sheet, business plan, mobilizing capital and

many necessary tools to help managers to run business actively For

example: coefficient to assess the effectiveness of importance activities, make

a plan: step by step to set up a future, annual budget: supply finance for

plans

Thus, it is possibly said that “finance for non-financial managers” is a

useful and practical book for everyone who wants to become an effective and

comprehensive manager

The book provides basic knowledge of financial management, including

the planning and usage of the financial resources that is applied in this study

16

In this book, the author indicated the need for an annual budget plan This

plan must achieve the goal of profitability The goals and activities of the plan

are monetized then subdivided into amounts to assess and manage daily

Budget is an estimate of the financial resources needed in the future and the

financial impact of all the activities that managers carry out in the budget year

On the form, the annual budget usually includes expected details of income

an expenses of each department It includes useful details to help allocate

and manage resources The more budget is prepared and detailed, the more

managers keep track of all the sources of revenue as well as the large cost

impact on cash flows of the activity The budget reflects expected changes in

the balance sheet due to changes in cash inflow because the balance sheet is

the basis for many indicators of performance The author also emphasized

that managers need to select the items that are actually necessary to support

the goals The company needs to identify his target: target of research and

development, target of expanding or any target that is considered criteria for

evaluating the success of the company in the coming year

Thus, the allocation of resource to achieve goals is important as it is

based on the objectives and activities of the company, on the activities carried

out last year and expected changes of next year, then they must evaluate

each cost item The managers always want to know how much they need to

spend money on something and have to identify reasonable spending limits

for each item This is the goal of allocating resources based on the

assessment for each cost item used in this dissertation

Following David Parmenter (2009), in the “KPI – indexes measuring

efficiency”, establishing the norm to assess the effectiveness of performing

17

and reward is always a “thorny” problem of every organization To set up a

good system not only helps business achieve the goal but also maximizes

organization capability, especially to attract, maintain and develop human

resources

This book includes 6 chapters: chapter 1: Introduction, chapter 2: Basic

ground of applying essential efficiency index, chapter 3: Development and

application of essential efficiency index: 12 steps – model, chapter 4: A set of

source instruments to perform essential efficiency index, chapter 5: Sample

report of efficiency index, chapter 6: A set of source instruments of

consultants

In particular, chapter 4 mentions essential factor for finance: maximize

profit from potential customers; reduce costs and increase productivity, utilize

maximum of assets and resources, increase market shares, responsible

management of finance

The book provides elements related to the development of human

resources This is one of the factors in dissertation research about the impact

of resource allocation for labor The author indicated elements performing

crucial indicators in the toolkit The factors deciding success are identified in

the following areas: Focus on the customer (service and satisfaction levels),

financial efficiency, learning and development (human resource development,

the contribution and participation of all employees, internal processes

(including process of innovation, organizational effectiveness .), employee

satisfaction and environment Among them, the core element are “maintaining

key employees” which is determined by the following factors: salary, job

satisfaction, career development, training and demonstration of key

18

personnel, feedback on work performance and environmental work This is

one of the important factors to determine the efficient resource allocation for

labor to ensure goals of “maintaining key employees” This dissertation has

used this factor such as salary, job satisfaction, career development, work

environment to evaluate resource allocation for labor

The article “Higher Education Finance: Trends and Issues” (Arthur

outstandingproblems ofhigher education finance inboththe developedandless

developedworldsinthe past decades, known as the gapsbetweenthe

growthofadmissionof studentsand the abilityofpublic and privatebudgetsin

meetingfinancial resourcesfor growth

This article covers main keys themes:

The first isamacroeconomicconceptandthemainthings to consider

Overall levelof resourcesforhigher educationisthe main factordecidingthe size

andoverallqualityofeducational career In general, the more moneyfor

education,the moreand moreopportunities to accessformany people (because

there are moreseatsoffered) Qualitycan alsobe betterwithmore resources,

because there will beadditionalfinancial resourcesto pay forstaff, expenses for

servicesand equipment

financialcommitmentis the totalamount spenton eachstudent

Thiscalculationhas the advantage ofputtingthe total amountspent

oneducationin relation tothe number of studentssupported by the budget

Adifferent approachis to combinetheabovetwo waysto look atthe

amount spentper studentcompared toGDPper capitaratio

19

The second is survey of public and private financial resources of higher

education; the level of investment and participation: to measure the level of

participation probably reflects the fact less accurate but computationally

simpler, is divided by the total number of students studying for the total

population of a country Countries using more money for higher education

tend to have a higher number of people learning

The support of public and private sector for schools come from the

state Payments for regular activities offered include the following:

- Allocation of the historicity / politicization

- Financing based on a formula

- Provide financial oriented policies

- Financial allocation based on activity

- Budget allocation is unconditional and competitive

The upgrading of infrastructure, equipment financing is like:

Overall, better than the cost of facilities and infrastructure, equipment

should not be allocated to the same financial mechanisms such as teaching

because the payment for the short term needs might be hampered by other

payments for long-term needs in accordance with regulations on upgrading

facilities

The book gave the general trend of the state budget allocated for

education Resources can be mobilized for the development of education and

the impact of the quality of education The author suggested the hypothesis

that quality can be improved with more resources, because there will be

additional financial resources to pay for staff, expenses for services and

equipment Moreover, the authors stated the trends of resource

20

allocationbased on activities is worthy of this study However, the author did

not mention the specific allocation of resource in each organization to achieve

good results

In the “Professional knowledge of accounting and auditing in schools

and training institutions” (2009), the authors Ngo The Chi and Nguyen

ManhThieu write about the accounting organization in schools, auditing and

financial analysis in school In the content of analysis of the receipt and use of

funds, the authors stated: “In each school, the number of employees is more

or less dependent on school size However, the school workforce is divided

into two parts: teachers (teaching directly) and managerial staff (Ngo The Chi

and Nguyen ManhThieu Page 475)

Moreover, the authors have stated the importance of the position

salary: “salary and wages in terms of the schools hold a significant position in

the payments, and account for a large proportion of regular expenditures of

school so analysis of fund use for labor has a significant position in the

financial analysis of the school.” (Ngo The Chi and Nguyen ManhThieu Page

475)

For the analysis of the receipt and using of funds, the authors write:

“Based on the current report of the budget that we know, the situation of

receiving and using funds in each period and reflected in each kind of

resource Simultaneously, based on detailed reports for each type of fund that

is funding the budget and expenditure for each specific activity and using the

21

comparative method to compare the proportion of each type of resources”

(Ngo The Chi and Nguyen ManhThieu Page 477)

“The goal of structure analysis of expenditures is considered structure

in the distribution of spending in school reasonable or not and the situation of

spending activities in schools To analyze the criteria we use the proportion of

expenditures and it is determined by considering the proportion of each cost

in the general scale (the general scale is defined as the sum of frequent

expenditures or operating expenses, irregular expenditure, depending on the

purpose of analysis).” (Ngo The Chi and Nguyen ManhThieu Page 482)

The authors also describe the common causes that affect the changes

of the operating expenses of the school:

- Causes of the number of employees working in schools will impact

expenditures for humans and other expenses

- Causes of the results of operations and other activities

- Causes of the financial management mode and internal spending

regulations that is built by organization

- Causes of the qualifications of the management

- Causes of the scale of operation of the unit, due to management

requirements

Through the document, the authors showed the importance of labor

resources, the purpose of ratio analysis, common causes leading to changes

in the proportion of funding This is one of the platforms to consider for the

analysis of the allocation of resources in this dissertation

22

The document “Methods of Financial Management and Personnel”

(Pham Minh, 2005) stressed the importance of financial management in

business and human resource management methods, including the notable

items: paid employees, Walmart type.The authors concluded that we should

not follow Walmart Paying high salaries benefits employees and the

economy Well-paid employees develop peace of mind Thanks to high-wage,

employees are satisfied with their work; they will take the time to find ways to

achieve the targets

The author concludes minimizing cost to increase profits is not

necessarily good in the long run Moreover, the authors also said that the

company should take advantage of the experience from older employees So

the company should have deserved reward for the older workers for their

contribution to their reported experiences

This dissertation applies this theory that should be paid to encourage

employers and take advantage of the experience of employees It effects on

the allocation of resources for labor in university

H.T Ekindayo* and I.A.Ajayi (2009) indicated that the higher education

plays a crucial role in the supply of high level manpower for the socio-political

and economic development of a nation The effective management of this

educational sector becomes necessary This paper examines the myriads of

problems militating against the effective management of the Nigeria university

education system Therefore, it is recommended that government should

re-address the issue of university funding, review upward the pay-package of

23

academics, grant the university autonomy and make plans and projections on

the nation’s manpower needs in a bid to integrate this into the university

programs

It therefore becomes necessary to suggest ways of making the system

more effective and efficient in relation to contemporary Nigerian society:

Adequate funding; need to improve the infrastructure base; upward review of

pay-package for academics; granting of autonomy to varsities; re-appraisal of

the role of university education and the world of work; volatile and militant

students’ unionism; combating secret cults; de-politicization of the university

system

The author concluded that the need for university education stems from

the fact, the system is responsible for the development and production of

high-level manpower within the context of the needs of the nation It has been

seen that the university system, which is the foundation of development in the

country is bisected with myriads of problems

However, for meaningful development in the university system, the

government must be ready to address the issue of funding the system

adequately Adequate finance will help solve the problem of infrastructure

The government should review upward the pay-package for academics as a

matter of national importance; the academics clamor consent to the university

autonomy

Sothis studypoints outaspectsoffinancial management to

provideadequatefundsforhigher educationinNigeria This studyshows

thatinvestingresources toincreasesalary of teachersandinfrastructureis

crucialto educationinNigeria

24

From these points, Ifound that investment resourcesfor salaries of

teachersandinfrastructure are necessary items that should

beconsideredwhenallocating resources of ULSA

The article “Budget systems used in allocating resources to libraries”

(Mott Linn, 2007) provided information about many different budgeting

systems that are used to allocate resources to libraries The author found out

that a budget is not only a means of planning for various revenue streams, a

control mechanism for an administration to keep from spending too much, a

procedure for controlling its units, a process to coordinate the many activities

that an institution undertakes, and a way to communicate to all stakeholders a

summarization of the activities that the various units will undertake, but it is

also a technique for setting the organization’s priorities by allocating scarce

resources to those activities that officials deem to be the most important and

rationing it to those areas deemed less vital Following the priorities set in a

budget is a key element in determining the direction of the organization and its

future success or failure, which is why it should be based on a formal plan,

such as a strategic plan, that the institution is supposed to be following The

creating and following of budgetary priorities is important, even during

relatively favorable financial times, while a downturn in financial

circumstances only makes this more difficult and even more crucial

Consequently, budgets are a key element in determining the direction of the

organization and its future success or failure

Incremental line-item budgeting is probably the most widely-used type

of system It makes all increases and decreases to the budget equal for all

units on a percentile basis Essentially, the previous budget is seen as having

25

already been justified and it is used as a base upon which to make the

changes for the next fiscal year Thus, unless the budget creators go out of

their way to change part of the budget, budget lines will be re-funded whether

or not the activities that they finance are still supported by the strategic plan,

are needed for any other reason, or are being used optimally

Planning, programming, and budgeting systems (PPBS), which is the

most commonly used type of program budgeting system today, links the

planning process with the one for budgeting As a result, this system is more

likely than most to create a budget by looking towards the future, rather than

looking to the past, but it focuses on what will be done, rather than how it will

be done PPBS have three parts: a systematic process of long-range

planning, the creation of programs to meet the goals of the plan, and a budget

that supports these plans and programs For this system one must not only

determine the costs and benefits of the various program options, but also their

comparative importance Consequently, those who make the budget must be

in agreement on the institution’s priorities

Performance-based budgeting focuses on outcomes, as opposed to

outputs The difference is that an output of a bibliographic instruction program

would be the number of students that received instruction, while an outcome

would be the skills that those students had learned It seems that this system

was created in reaction to calls from stakeholders for greater accountability for

all the funding they provide and as a way to bring together the strategic

planning process with the budget creation process, which some systems,

such as incremental and formula budgeting, can easily separate Because this

system relates inputs (funding), activities, and results (outcomes or impacts),

26

it is easy not only to track the cost of each library service, but also to

determine its efficiency

The research has shown the importance of budget allocation, avoiding

spending too much and the determination of priorities by allocating scarce

resources to these activities that are considered to be the most important and

rationing for the area considered to be less important This determines the

success of an organization At the same time the study also raised the budget

allocation towards the future is necessary, because this system- related inputs

(funding), activities, and outcomes (results or impact) A planner should meet

the objectives of the plan and understand the organization's priorities

The study “Transparent Prioritization, Budgeting and Resource

Allocation with Multi-Criteria Decision Analysis and Decision Conferencing”

(Lawrence D Phillips and Carlos A Bana e Costa, 2005) indicated that

managers in both for-profit and not-for-profit organizations continually face the

task of allocating resources by balancing costs, benefits and risks and gaining

commitment by a wide constituency of stakeholders to those decisions This

task is complex and difficult because many options are present; benefits and

risks are rarely expressed as single objectives; multiple stakeholders with

different agendas compete for limited resources; individually optimal resource

allocations to organizational units are rarely collectively optimal; and those

dissatisfied with the decisions taken may resist implementation The authors

also identified a common mistake organizations make in allocating resources

then presented a technical process, multi-criteria portfolio analysis, for

balancing the conflicting elements of the problem, and a social process,

decision conferencing, which engages all the key players during the modeling

27

process, ensuring their ownership of the model and the subsequent

implementation Therefore, the important point is to allocate resources based

on an analysis of the investment portfolio to balance the contradictions and

should need decision conferencing

The authors expounded that managers who must allocate resources

are typically confronted with five problems First, benefits are typically

characterized by multiple objectives, which often conflict This is nearly

universal for organizations in the voluntary and public sectors and typical for

those in the private sector Second, when decision makers are presented with

a large number of opportunities they can not know the details of each one

sufficiently well to make informed decisions Third, if resources are allocated

to each of several organizational units considered individually, the collective

result appears not to make the best use of the total resource That is,

individually optimal decisions are rarely collectively optimal, giving rise to

inefficient use of the available total resource Fourth, many people are usually

involved Some provide expert judgement and advice to the decision maker,

but that assistance inevitably reveals fundamental conflicts, which possibly

creates competition Others, with power to interfere or influence decision

making, are often difficult to identify Resolving those conflicts, and finding

win-win solutions, often accompanies the process of resource allocation

Finally, implementation by those who disagree with the resource

allocation can easily lead to the formation of small teams of people

surreptitiously working on non-approved projects in which they are heavily

investing personally The purpose of this paper is to present such a process,

which combines technical elements of multi-criteria decision analysis (MCDA)

28

with social aspects of decision conferencing, resulting in a tested approach to

working with key players that create shared understanding of the issues, a

sense of common purpose and commitment to the way forward Thus, the

allocation of resources should not rely on its own optimal decisions that must

be based on the general overall would otherwise not lead to efficient use of

the total available resources

This study showed an important distinction between resource allocation

and prioritization Allocating resources requires a responsible manager to

make decisions; prioritizing options is an activity that can be carried out by

key players, with the resulting priorities used by the responsible manager in

making final decisions We make this distinction because most of the

approaches proposed for resource allocation are actually models for

establishing priorities Here, we approach resource allocation via prioritization

It is useful to distinguish two different prioritization tasks: appraisal of options

and constructing portfolios Option appraisal or evaluation is the process of

arriving at an overall ordering of several options within an area This study

said resources allocation should base on the model building priorities This is

also the basis for me to implement my research project: resource allocation

based on available resources and determining priorities for investment

In the “The Global Issues in Management and Finance of Higher

Education: The Case of Vietnam” (Lee Little Soldier, 2008), globalization is

affecting all societies worldwide As a result of many changes that

globalization brings, higher education in many countries is taking a very

important reform Five issues raised in this article are the result of a survey of

higher education in Vietnam