Budgeting theory through “relational learning”

Abstract

In this paper we develop a framework to assess the implications of information exchange within the complex setting of governmental budgeting. The framework draws on principal-agent relations and organizational learning, a perspective we call relational learning. Matching the agency’s style of learning with predominant patterns of information exchange (i.e., principal-agent relations-organizational networks and relationships), we construct a matrix of definable "relational learning" budget behaviors or models. Each model is associated with a pattern of information exchange recognizable to most budgeters, namely the budget process and budget contract. The models are presented as reasonable theoretical benchmarks for assessing budgeting practice and reforms.

Citation

Forrester, J.P. and Spindler, C.J. (2001), "Budgeting theory through “relational learning”", International Journal of Organization Theory & Behavior, Vol. 4 No. 1/2, pp. 107-131. https://doi.org/10.1108/IJOTB-04-01-02-2001-B008