ABSTRACT
This chapter contains resource allocation at corporate level; the principles on which it is based; underlying assumptions; guidance on application, and relevant issues; and related models. Resources are allocated according to the degree of strategic change desired and corporate level intervention in the allocation process. The extent of corporate intervention in the allocation process is linked closely to the required degree of change in the resource base in order to effect desired strategic change. Perceived need for change refers to change in the overall level of resources or in the deployment of those resources. Extent of central direction refers to the degree of corporate level intervention in the allocation process. As corporate level intervention declines, resource allocation may move from a standard procedure to a less structured allocation process. As intervention declines, allocation will move from being highly directed to becoming more competitive across different organizational units. Zero-based budgeting may mitigate the inflexibility of 'formula' allocations.
