ABSTRACT
This chapter focuses on the managerial and education problems which accrue in schools due to the effect of the cutbacks in public spending of Central Government policy. It encompasses the effects of the changing power position and structure of Local Authorities. The reasoning behind the educational cuts is a reflection of the interpretation of Government policy by the Department of the Environment. There are four main concepts involved in understanding the block grant — grant related expenditure; grant related poundage; volume targets and penalties, and these are interlocked in a complicated system. Sir Keith Joseph at Leeds in January 1982 was more explicit in relating economic priorities to educational policy. The theory of corporateness is based on a rational approach for attaining the most efficient workings of large scale organizations. It was first used in practice by private companies in the United States during the late 1950s and later it spread to the larger United Kingdom companies.
