Page 129 - DLIS003_LIBRARY ADMINISTRATION AND MANAGEMENT

Library Administration and Management

Notes 5. Planning Programming Budgeting System (PPBS): This method of budgeting has two key
elements of PPBS are budgeting and systems analysis. As an extension of programme
budgeting, PPBS involves systems analysis, and/or other cost-effectiveness processes to
provide a more systematic and comprehensive comparison of costs and benefits of
alternative approaches to a policy goal or programme objective. This establishes a rational
basis to enable the decision-maker to choose between alternative programmes.

This method combines the best of both programme budgeting and performance budgeting.
The focus in this method is on planning. It begins with the establishment of goals and
objectives and ends with the formulation of programmes or services. The controlling
aspect of measurement, which is central to performance budgeting, is also an aspect of
PPBS. This method combines the functions of planning activities, programmes and services,
translating them into tangible projects and finally presents the requirements in budgetary
terms.
Great disparities do exist in practice and lack of standards for measuring programme
effectiveness/performance are the difficulties of implementing PPBS. It also suffers from
other implementation problems and some critical gaps like (i) focusing on what will be
done rather than how to do it, (ii) failing to provide an operating tool, (iii) lack of a
mechanism to evaluate the impact of various funding levels, (iv) focuses on new
programmes or major increases on ongoing programmes rather than forcing continuous
evaluation of existing programmes, and (v) cost calculation is based on the decisions
made in the planning and programming steps.

Did u know? Planning Programming Budgeting System (PPBS) was first proposed by
USDOD (1961).
6. Zero-Base Budgeting (ZBB): This method, developed by Peter Phyrr during early the
1970s, requires a thorough knowledge of the organization and a lot of time, effort and
training. Having much. In common with PPBS and opposite of historical budgeting, it
emphasizes current activities and the necessity to justify each part of the programme
every year. It assumes a budget of ‘zero’ for each programme until one convinces the
appropriating authority that the programme is worthwhile and deserving of support at a
specified level. It does not allow for incremental growth in budget. ZBB is an operating,
planning and budgeting process which requires each manager to justify his entire budget
request in detail from scratch (hence : zero-base) and shifts the burden of proof to each
manager to justify why he should spend at all. This approach requires that all activities be
identified and developed as “decision packages” and that there should be a systematic
evaluation and ranking of these “decision packages” preferably using a computer. It does
not take into account what happened in the past but places emphasis on current activities.
Every programme and activity is spelled out in detail and the financial requirements are
worked out without any reference to the past. In other words the request for financial
support has to be established afresh every year. No activity, in fact, could continue simply
because that activity was undertaken in the previous year. In other words, the entire
budget is justified from scratch.

Steps involved in preparation of ZBB are:
Activities/programmes are grouped to lowest level entity
Objectives and activities of each programme examined and alternative methods
evaluated

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