E ZEI'JATICI' C r) r 1 ,— 37:50"? Abddt .k. H 'JOVet‘mem ”I a ‘. «reut‘Ve "9e: «mm: m, 0‘ ‘ 3n. e«¢ '31- O ~‘A . ”Betlvn ‘2... ‘Vaea‘ ‘ ABSTRACT THE DERIVATION OF LEARNING TASK HIERARCHIES AND INSTRUCTIONAL OBJECTIVES FOR TRAINING UNITED STATES AIR FORCE BASE-LEVEL RESPONSIBILITY CENTER MANAGERS AND RESOURCE ADVISORS By Joseph Albert MCHugh Imjor, USAF Governmental financial management techniques have been evolving since the turn of the century. Recent changes have emphasized a "closed-loop" system of financial management, conjoining operational effectiveness and financial efficiency within the same system. 'Within the Department of Defense these objectives were set forth in the Directive "Resource Management Systems within the Department of Defense." And one of the major attempts to close the loop, Project PRIME, was launched on 1 July 1968. PRIME consisted of a series of concerted management actions which installed a responsibility accounting system in DOD. But a variety of research efforts indicated that optimal implementation of the system at the operational (base) level was hindered by the lack of a standardized program of Indoctrination, Training, and Education (IT&E). Any effective attempt to develop such a program must be preceded by an exact specification of goals or objectives to be accomplished. And that was the purpose of this research. The Problem TIE problej Hierarchy of j Objectives whit; Joseph Albert MCHugh The Problem The problem addressed by this research was the delineation of a hierarchy of learning tasks and the derivation of instructional objectives which could serve as the foundation of an effective training program for base-level responsibility center managers. The study specifically evaluated three basic propositions: 1. That there is a pronounced need for IT&E at base-level in the concepts, skills and operations of financial management if RMS, PRIME and the Base Operations Accounting Systems are to succeed. 2. That these concepts, skills and operations can be identified and learning experiences specified for them. 3. That the implied learning tasks can be rewritten as instruc- tional objectives. The Methodology Educators have continually attempted to derive instructional objectives with increasing effectiveness and efficiency. One of the latest models for systematically deriving instructional objectives was proposed by Drs. Haines, ward and Hollingsworth of the Business and Distributive Education Department of the College of Education at Michigan State University. Their proposed model was implemented by Dr. P. K. Petro in his doctoral research. And the present effort builds on these foundations. Input data for the model was obtained by a series of field trips to selected locations throughout the United States Air Force. Interviews were conducted which ranged from the highest levels (Hq USAF), down to the lowest responsibility center levels. Source data from existing comptroller training courses was also gathered. The eclectic input was systematically processed through the basic model. Pl ‘ ' Te ,crwclusmns ” Perhaps W listed above we; diverse evident of the need for the feasibility tional Ob jecti‘ pertaining to \iier applica‘ 15" POSSi‘Cili Joseph Albert MCHugh 'Phe Conclusions Perhaps the most important conclusion is that the propositions listed above were valid. Throughout the initial expository chapters diverse evidence was amassed which pointed up the increasing awareness of the need for IT&E at the base-level. The evidence which demonstrated the feasibility of deriving hierarchies of learning tasks and instruc- tional objectives was presented in Chapters VI and VII. Conclusions pertaining to the methodology include the fact that the model has wider application than originally specified. Dr. Petro demonstrated the possibility of implementation by a "single researcher," a proposition reinforced by this research. Furthermore, the horizons for model implementation were broadened by virtue of its application to the relatively unstructured tasks performed by middle level base responsibility center managers. Summary Before the implementation of resource management philosophy can become optimally realized, every manager must become capable of employing RMS techniques. The base-level constitutes one of the most important areas on which to concentrate educational effort. One solution recommended developing a centrally administered program of IT&E for base-level responsibility center managers. The present research produced one of the prerequisites for such a program; i.e. a set of instructional objectives. But.these instructional objectives alone, while necessary, are not sufficient in themselves, to produce the program. They constitute inputs to the remainder of the learning sequence. Before the costs of deriving these objectives can be I t'ansf'omec lntf‘; “e replaced by C Joseph Albert McHugh transformed into benefits the current "education by osmosis" must be replaced by centrally directed educational programs. TEE DERIVATION C FORT 9.38?th THE DERIVATION OF LEARNING TASK HIERARCHIES AND INSTRUCTIONAL OBJECTIVES FOR TRAINING UNITED STATES AIR FORCE BASE-LEVEL RESPONSIBILITY CENTER MANAGERS AND RESOURCE ADVISORS By Joseph Albert McHMgh Major, USAF A THESIS submitted to Michigan State University in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY Department of Accounting and Financial Administration 1970 3° the fa. entributed to 3930.11 the mea To the familya-whose sacrifices, sympathy and support have contributed to this dissertation and the attainment of a Ph. D. well beyond the measure of my own efforts. ii is my moi: growth for over latest contribuq his acknowledifi to discharge thr you: to come. The other I Dr. Peter G. 'rh‘ through their c Which minute Dre. Relax Flume. Dr. Ni Su‘aels from t} Dem-tum of "A intellectu 3m, thfi list u with! course occasion ACKNOWLEDGMENTS As my monitor and mentor Dr. Gardner M. Jones has guided my growth for over three years, through hard and happy times, His latest contribution has been as Chairman of my Dissertation Committee. This acknowledgment is but paltry down payment on a debt which I hope to discharge through an enduring association and friendship in the years to come. The other members of my committee Dr. Harold Sollenberger and Dr. Peter G. Raines contributed significantly to this dissertation through their continued interest, understanding, and suggested revisions which culminated in this volume. Drs. Roland F. Salmonson from the Department of Accounting and Finance, Dr. Winston Oberg from the Department of Management, Dr. warren Smmuels from.the Department of Economics and Dr. Philip Marcus from the Department of Sociology each provided sage counsel in their advising, and intellectual adventure in their classrooms. For both I am grateful. But the list would be incomplete without Dr. Herman Struck's name. His writing course for doctoral candidates proved most valuable. Occasionally one suspects that slogans such as "The Air Force takes care of its own!" are huckster's cliches. Never believe it! My research took me from New Hampshire to Texas, from Headquarters USAF to the lowest level cost centers. At every location the enthusiastic reception, willing participation, and unstinting cooperation not only iii accelermd the I ! aission. TO “U . I Special Wm“ ‘- psrception 0f t? devoted U161? V‘ on. On A more ¥ the example set Eendricks. Jr. Three year stuients deserve effective trail- hughimg peer v on the paddleba Vhose initial :- I“! l special N 5&3 the rig} T wan Varie accelerated the progress of my research but also reinforced my perception of the high calibre of personnel performing the Air Force mission. To my many hosts and hostesses: "Thanks for your hospitality!" Special thanks also to the members of the juryapanel who willingly devoted their valuable time to evaluate my ideas and contribute their own. On a more personal level, I would be remiss if I did not acknowledge the example set and the encouragement given by Lt. Col. Ernest L. Hendricks, Jr. He taught me firsthand the meaning of management. Three years constant companionship builds strong bonds. so three students deserve special mention. Lt. Col. Chuck Coen proved an effective trail-breaker. Lou Jacoby was "The Listening Bar" and the laughing peer who made life at the library bearable and sudden death on the paddleball court inevitable. And to Lt. Col. Adrian L. Kline, whose initial role as a sponsor was soon replaced by that of friend, I owe a special debt because from beginning to end he cared enough to say the right word when it counted most. Joan Marie, Suzanne, Joe, Kathleen, Sharon and Eileen have never known a time when their Dad wasn't going to school; but their under- standing, acceptance and enthusiasm have immeasurably helped to sustain the effort. Tit the greatest debt which I must acknowledge is that owed to my wife, Joan. She's had my books on her desk for twentygtwo years; has borne this dual existence of professional military life and student life with equanimity, even enthusiasm; and has raised our family even while struggling with interminable drafts of this thesis. To her, most of all, my loving thanks. iv I,“ F “’A'~F_\ 1‘ r rl d. - “" AJC.~., .. in « fitter I. DEFIPTZTIT .3 (D 1 r3 :3" (D r, “‘n Aue I y i 's O 9.345 '5‘- I Ayn. LIST OF FIGURES. O O O O O O O O O O O O O O O O O O O O O 0 Chapter I. II. TABLE OF CONTENTS PART I. A STATEMENT OF THE PROBLEM AND A PROPOSED METHODOLOGY FOR DERIVING A SOLUTION DEFINING THE PROBLEM AND DERIVING A SOLUTION. . Preface . . . . . . . . . . . . . . . . . . . The Statement of the Problem. . . . . . . . . The Purpose of this Research. . . . . . . . . The Evolution of the Problem. . . . . . . . . Need for this Study . . . . . . . . . . . . . The Methodology for Deriving a Solution . . . Limitations . . . . . . . . . . . . . . . . . Assumptions . . . . . . . . . . . . . . . . . Three Basic Propositions. . . . . . . . . . . The Dissertation Plan . . . . . . . . . . . . RESOURCE MANAGEMENT SYSTEMS . . . . . . . . . . Introduction. . . . . . . . . . . . . . . . . The Evolution of Resource Management Systems. The Current Status of RMS . . . . . . . . . . The Future of RMS . . . . . . . . . . . . . . Summary . . . . . . . . . . . . . . . . . . . Page \OQFWKA) 10 11 11 11 1L» 1o 14 29 33 39 ‘Ihacter III. FIT? "CIA Introe The A1 A Fm H‘ Y we .xa The 7’ .- —C Sums: Chapter III. IV. FINANCIAL MANAGEMENT AT THE OPERATIONAL LEVEL. . . Introduction . . . . . . . . . . . . . . . . . . The Air Force Mission and Organization Structure A Functional Analysis of Financial Management. . The Nature of Managerial Informational Needs . . The Base-Level Resource Manager. . . . . . . . . my. 0 O O O O O I O O O O O O O O O O O O 0 THE SYSTEMS APPROACH TO EDUCATION AND THE DERIVATION OF INSTRUCTIONAL OBJECTIVES. . . . . . . . . . . Introduction . . . . . . . . . . . The Systems Approach to Education. Instructional Objectives . . . . . Deriving Educational Objectives. . smry O O O O O O O O O O O 0 O 0 RESEARCH PROCEDURES. . . . . . . . . Introduction . . . . . . . . . . . The Haines, ward and Hollingsworth Medel Petro's Modifications to the Model Research Procedures. . . . . . . . . . . Anticipated Products . . . . . . . . . . PART II. THE FINDINGS LEARNING TASK HIERARCHIES FOR SELECTED ACTIVITIES PERFORMED BY BASE-LEVEL RESPONSIBILITY CENTER MANAGmS. . . O C O O O O .....2. 0.... 0.0'. O IntrOduc tic n O O O O O O O O O O O O O O O O O O Page “3 1+3 43 51 53 63 69 72 72 72 78 88 91 91 92 95 97 106 109 109 "L a‘ a? ,_ u.-. fl ‘l eorrei V if ..C‘ ‘7' ?\"‘-9e.‘. . I ‘ .4 _ '5‘. ‘,.J..‘-J‘ Mn“- r'dw . A‘L "CA" .1: r—o fl! —.. . «Lg'Ai' CH _ .e _ ‘07 fi‘ Jithn pa «33“». .fl'“diA A T g . 3. \TA LOVVI‘. s I .. 'L H. h it '0 J .3? ‘ Ueh“:- Chapter A Job Description for Responsibility Center I‘mnagers O O O O O O O O O O O O O O O O O O 0 Developing a Topical Outline of Course Content. The Organizational/Functional Matrix. . . . . . Task Demand Statement Flow Diagrams . . . . . . Correlating the Flow Diagrams and the Financial Management Process. 0 e e e e s e e o e e s 0 VII. INSTRUCTIONAL OBJECTIVES FOR SELECTED ACTIVITIES PERFORMED BY BASE-LEVEL RESPONSIBILITY CENTER MANAGmS O O C O O O O O O O O O O O O I O O O O IntrOduc tion. 0 O O O O O O O O O O O O O O O O The Instructional Objectives. . . . . . . . . . VIII. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS. . . . . Introduction. . . . . . . . . . . . . . . . . . The Need for this Study . . . . . . . . . . . . The Methodology Employed in this Study. . . . . Conclusions . . . . . . . . . . . . . . . . . . Recommendations . . . . . . . . . . . . . . . . smry O O O O O O O O O O O O O O O I O O O 0 APPENDIX A. GLOSSARY . . . . . . . . . . . . . . . . . . . . B. ITINERARY. . . . . .'. . . . . . . . . . . . . . C. JURY-PANEL MEMBERS . . . . . . . . . . . . . . . D. PROPOSED COURSE OUTLINE. . . . . . . . . . . . . BIBLIOGRAPHY O O O O O O O O O O O I O O O O O O O O O 0 vii Page 109 111 112 114 115 136 136 136 173 173 173 17h 176 180 181 183 186 188 189 201 LIST OF FIGURES Figure 9. 10. 11. 12. 13. 1h. 15. 16. 17. 18. 19. THE PLANNING, PROGRAMMING, BUDGETING SYSTEM . . . THE FINANCIAL MANAGEMENT PROCESS. e . . o e . e . UNITED STATES AIR FORCE ORGANIZATION CHART. . . . WING ORGANIZATION STRUCTURE (Single Wing Base). . SUPPORT GROUP ORGANIZATION STRUCTURE. . . . . e 0 THE FINANCIAL MANAGEMENT PROCESS. . . . . . . e 0 MANAGEMENT LEVELS RELATED TO PLANNING CONTROL AND I WORMT ION O O O l O O O O O O O O O O O O O 0 MANAGEMENT LEVELS RELATED TO PLANNING CONTROL AND DIFORIMTI 0 N O O O O O O O O O O O O O O O O O O CATEGORIES OF EXPENSES AND THEIR USES . . . . . . RESPONSIBILITY CENTERS AND COST CENTERS . . . . . TIE USAF bMMEI’EIJT PROCESS s e a e e e e s o e 0 THE MERGED MANAGEMENT AND FINANCIAL MANAGEMENT PROCES S O O O O O O O O O O O O O O O O O I O O A CYBERNETIC SYSTEM OF TRAINING . . . . . . . . . A MODEL FOR INSTRUCTIONAL SYSTEM DEVELOPMENT USED BY AIR TRAINING COMMAND . . . . . . . . . . . . A CLOSED LOOP SYSTEM OF INSTRUCTIONAL DEVELOPMENT THE AMMERMAN AND MELCHING INSTRUCTIONAL SEQUENCE. THE HAINES, WARD AND HOLLINGSWORTH MODEL. . . . . THE PETRO MODEL OF INSTRUCTIONAL OBJECTIVES DERIVAT ION O O O O O O O O O O O O O O O O O O O SOURCES OF INPUTS TO THE MODEL. . . . . . . . . . viii Page 23 28 47 49 50 51 55 57 .60 62 67 73 76 77 87 9a 97 99 Figue ‘V‘ (U. ’1! TE VAX "'"DO"':Y" Pea. Um f"? H'Fr‘u 50‘ I . Lou a ‘JA IY‘NMV‘H— \ " Vida ¢ one“. . Figure Page 20. THE MATRIX FORMAT. . . . . . . . . . . . . . . . . . . 102 21. RESPONSIBILITY CENTER MANAGER'S JOB DESCRIPTION. . . . 110 22. THE FINANCIAL MANAGEMENT PROCESS . . . . . . . . . . . 113 23. INTERPRET THE BUDGET INSTRUCTIONS. . . . . . . . . . . 117 24. DEFINE THE OPERATIONAL UNIT AND ITS MISSION. . . . . . 118 25. DESIGN A RESOURCE MANAGEMENT ORGANIZATION. . . . . . . 119 26. STAFF THE RESOURCE MANAGEMENT ORGANIZATION . . . . . . 120 27. DEVELOP THE UNIT BUDGET. . . . . . ... . . . . . . . . 121 28. INTEGRATE THE BASE OPERATING BUDGET. . . . . . . . . . 124 29. DISTRIBUTE THE BASE OPERATING BUDGET . . . . . . . . . 125 30. DISTRIBUTE THE APPROVED UNIT OPERATING BUDGET. . . . . 127 31. DIRECT AN AGGRESSIVE RESOURCES CONSERVATION (RECON) PROGRAM. . . . . . . . . . . . . . . . . . . 128 32. OBTAIN REPORTS AND AUDIT DATA. . . . . . . . . . . . . 131 33. ESTABLISH A FUNDS ANALYSIS SYSTEM. . . . . . . . . . . 132 34. ESTABLISH A PERFORMANCE MEASUREMENT SYSTEM . . . . . . 133 35. EVALUATE BASE PROGRESS . . . . . . . . . . . . . . . . 13h ix PR? I. A STAT. This part related re Sear 59903193 the its growth: a r PART I. A STATEMENT OF THE PROBLEM AND A PROPOSED METHODOLOGY FOR DERIVING A SOLUTION Chapter Page I. DEFINING THE PROBLEM AND DERIVING A SOLUTION . . . . . . 2 II. RESOURCE MANAGEMENT SYSTEMS . . . . . . . . . . . . . . 1h III. FINANCIAL MANAGEMENT AT THE OPERATIONAL LEVEL . . . . . #3 IV. THE SYSTEMS APPROACH TO EDUCATION . . . . . . . . . . . 72 v 0 RESEARCH ROCEDURES O O O O O O O O O O O O O O O O O O 9 1 This part of the dissertation defines the problem, discusses the related research and describes the methodology. Accordingly Chapter I specifies the parameters of the problem, provides some background on its growth, and discusses the methodological model to be used. Problem analysis begins with a search of the literature. Typically the search reviews existing knowledge and evaluates proposed and/or successful solutions for the same or similar problems. The results of such a search are included in Chapters II, III, and IV. Chapter II examines the evolution of governmental resource management systems. their current status and future directions. Chapter III examines resource management at base-level, illustrating the correlation between generalized management and financial management. Chapter IV reviews the systems approach to education, culminating in efforts to derive instructional objectives systematically. And. Chapter V describes the research design and methodology employed in this dissertation. *1 C1 2] “Today, more 1:7 researcher ir at even a cursor the universal va‘ fieo‘ every facet (about mything‘ mdernity's 1m. “3385 from a w 1° an eager ant mm upon "the “WEN! in it 1813, dedicate clam:- Consti: environ“. : 131g that fact Nat .an in confronted Ta Within A latter appro, SOL f°rth if £7.42?” mmoq CHAPTER I DEFINING THE PROBLEM AND DERIVING A SOLUTION 3.9.2122 "Today, more than ever before . . ." offers a tempting Opener to any researcher intent upon communicating the importance of his efforts. But even a cursory glance at the world around us immediately illustrates the universal validity of that tempting truism. Modernity has so intensi- fied every facet of the human condition that one may say with impunity (about anything), "Today, more than ever before . . ." Reaction to modernity's intensification is amply evident in our surroundings: it ranges from a wistful worship of one's ancestors and the "good old days"-- to an eager anticipation of tomorrow's challenges. Some solution-seekers turn upon "the system", convinced that a torpid bureaucracy must inevitably strangle in its own red tape (and a minority of these critics become nihil- ists, dedicated to bureaucracy‘s demise). But change, complexity and clamor constitute indispensable ingredients of the modern managerial environment, no matter which organizational form.is involved. Recogniz- ing that fact, other involved individuals become committed to insuring that even in today's large-scale complex organizations crises are confronted rationally and creative solutions are sought. Within the United States Air Force (USAF) one expression of the latter approach, a modern philosophy of command management, was recently set forth in this fashion: Today‘s problems and enhanced mission requirements present a formidable challenge to the commander's management abilities. They open wider avenues for creative thinking, better super- vision, more efficient performance. In all instances, however, he must insure that his policies and procedures pass the test of effective management--by attaining desired results, with, out adverse impact on morale or economical operations. The end objectives are effective training, readiness, mission accomplishment.1 2 Since my ac; hates Air Force manic signifi contribution to The probler ‘rfierarchy of leg has which coulll Fromm for has advisors. This resea Denefits are d. on “eds of USAF 3 Since my academic endeavors have been sponsored by the United States Air Force this dissertation problem was chosen not only for its academic significance and acceptability, but also for its potential contribution to the end objectives outlined above. The Statement of the Problem The problem addressed by this research is the delineation of a hierarchy of learning tasks and the derivation of instructional object- ives which could be used in the development of an effective educational program for base-level responsibility center managers and their resource advisers. The Purpose of this Research This research will provide the necessary first steps required in developing an integrated training program for USAF resource managers at the operational level. Admittedly training and its accompanying benefits are desirable at all levels, but this project focuses on the needs of USAF resource managers at the lowest organizational levels. (The reasons for this selective emphasis are discussed below.) The specific steps involved in this research include the delinea- tion of hierarchies of learning tasks (what it is that the learner must be able to do), and the derivation of instructional objectives (systematically identifying instructional goals in behavioral terms). These products constitute prerequisites to any effective training program no matter what the subject. They represent the foundation of a rationally developed curriculum. Just as students of management and managerial accounting recognize the importance of established goals within their disciplines, so too does the educational process begin with the establishment of goals to be attained by the end of the instruc- tional program. Recent PIC a Depart-“e“ magenent. T" cial managers armorial Fri" the base level However. is scarcely a Q efficiency m‘rent efflor concomitant a‘: President "firm recommatio for the applj Lion struc t1 Pl u The Evolution of the Problem Recent programs in the U. S. government and more especially within the Department of Defense (DoD) have led to new approaches in financial management. These attempts to develop operational managers into finan- cial managers as well, require a widespread understanding of financial managerial principles at all organizational levels, but especially at the base level which is the center of all operational effort. However, emphasis on improving governmental financial management is scarcely a new phenomenon. Organized efforts to obtain effectiveness agd_efficiency can be traced back to the Taft Commission of 1911. The current efflorescence seems to flow from the end of world war II and the concomitant ability to apply knowledge gained during that period. President Truman appointed the first Hoover Commission in 19h7. Its recommendations led to legislation in 19h9 and 1950 which paved the way for the application of performance budgeting and a revamping of appropri- ation structures. In.May. 1966 a Presidential Memorandum from President Johnson reviewed the progress made since the enabling legislation of the 50's. In the memo, he renewed the emphasis on improving financial manage- ment in the government. Shortly thereafter. the Secretary of Defense published a formal directive (DoD Directive 7000.1) entitled "Resource Management Systems of the Department of Defense." This publication prescribed objectives and policies aimed at improving the DoD resource management systems (EMS). The specific portion of the overall improve- ment program slated for immediate implementation was dubbed "Project PRIME." an acronym for PEIorityuflanagement‘Effort.2 Lt. Col. Adrian L. Kline, Ph. D.. recently analyzed impediments hindering the optimal implementation of EMS in general, and PRIME in particular.3 His findings conclusively illustrated that one very crucial mpeiiment cons mm of 12130 angers. App-a resentation or messages, brief ages became the Te concludes if The jeep the and efft rec: the Che eon fir. - We and ~ cor am 101 5 impediment consisted of the lack of a standardized, centrally directed, program of Indoctrination, Training and Education (IT&E) for financial managers. Apparently the exigencies of system implementation overshad- owed the requirement for this type of formal training program. Of course, initial educational efforts were undertaken: these included the presentation of films, the development of manuals, operating instructions, messages, briefings, etc. But the development of formal training pack- ages became the individual responsibility of each organizational level. He concludes in this fashion: The implementation of PRIME is being placed in unnecessary jeopardy by the lack of an effective IT&E program because: the existent IT&E efforts are fragmented--centralized planning and attendant control does not exist; the content of IT&E efforts are inadequate; there is little evidence that IT&E is recognized as a formidable task that will be with us during the life of RMS: and centralized and disorganized. This chapter establishes that the sorely needed benefits of an effective IT&E program are not generally available to the financial magagers. However, most of the "ingredients" are available: the biggest missing link is centralized direction and control. Without centralized direction and attendant control IT&E will probably not be attracted sufficiently, and not surprisingly, the ITaE program will retain such a low priority that the pressure of day-to-da activities will prevent it from being effectively achieved. (Underlining added.) And although prOgress has been made in implementing the system of operational accounting, which evolved through PRIME, the void described above remains essentially unfilled. Further Background But a more specific exposition of the problem's parameters is essential if confusion is to be avoided. For example, we must be clear about the meaning of "financial" managers: furthermore, the "lack of an effective IT&E program" must not be construed as a total absence of IT&E across the entire managerial spectrum. The strategic or limiting factor which is open" izec' direction omens contri‘: labeled "finan: cf all hmctiw it also transce the Comptrollerl at each level. 3‘48”." To ‘: financial, accc hatrollerubx 30"! evaluate ti Operational 1,... 5993 joined to 6 which is operant in this problem is that of the nonexistence of central- ized direction and control. And the very nature of resource management systems contributes to this void. 'Why is this so? Because the group labeled "financial managers" by Lt. Col. Kline permeates the spectrum of all functional organizations within the United States Air Force: it also transcends the considerations of rank and grade. No longer is the Comptroller organization the sole "financial manager" for commanders at each level. Egg£y_operational manager has become a "financial manager." To be sure, the function of administering the budgetary, financial, accounting and reporting systems still rests with the Comptroller-but "more than ever before" operational managers must now evaluate their alternatives in terms of financial, as well as operational impact. In other words, financial efficiency criteria have been Joined to operational effectiveness criteria. Many educational programs exist within the Air Force which stress the importance of sound management, fiscal responsibility, and effective leadership. The necessary technical training also exists to prepare men for effective performance in their occupational specialty. But the most important void which.must be filled consists of a centralized educational program which will prepare Responsibility Center (RC) Managers and their Resource Advisors (RA's) to participate knowledgeably, effectively and enthusiastically in Resource Management Systems.5 In addition to the USAF Mission, one common thread which binds all these men and their operational efforts is a dependence upon financial support. The Comptroller's mission includes an objective to "strengthen financial management and thus improve Air Force efficiency and effective- ness."6 In view of this objective I contend that the Comptroller must provide the cé of IKE. The broad variety bility Center the Air Force, One cannot es: is!" The "bu: Which form the However , Famed, am e Slch an educaa 7 provide the centralized direction and control for an organized program of IT&E. The need is particularly urgent at base-level because of the broad variety of functions performed, the greater numbers of Responsi- bility Center Managers and Resource Advisors who are newly arrived in the Air Force, and the greater turnover of all types of personnel. One cannot escape the fact that at base-level "that's where the action is!" The "buck" not only stops at base-level, but all the activities 'which form the basis of a budget start there, too! However, even if my contention of Comptroller responsibility were granted, and even if the necessary directives were immediately issued, such an educational program could not spring full-blown from the present Comptroller training resources. The prerequisite to any educa- tional program is a specification of educational objectives. And these do not now exist for any financial management educational program like the one described above. Need for this Study Surprisingly, the problems associated with the implementation of PRIME turned out not to be the technical difficulties associated with any large-scale conversion; rather the problems associated with communication and motivation. In October, 1967, Dr. Robert N. Anthony, Assistant Secretary of Defense, said of the problems in the early days: . . . the most important part of (the development of PRIME) turned out not to be the technical part, but rather the problems associated with communication: how to get across a few very fundamental facts: how to identify and correct prevalent misunderstandings: how to get managers interested imp-even excited about--the new tools . . .7 The solution almost invariably proposed to this problem has been "Educate the Manager." So, for example, we have Lt. Col. Kline's conclusion: e > — Do not in voice crying i recogruzed the exposition is limiting factc and controller. lhelieve it : area of finan Pain isolated We Satisi taken rail t, Study Of the °f "‘8 92nd is one of th at the Prese I: z. n fiafiNS ot‘ 1‘8 i. ad‘ng fer 8 In June 1967 Dr. Anthony concluded that there were many communication problems to be solved but that unquestionably the overall effort was justified. Nowz.more than two years 1ater--there are still many communication problems to be solved but my research indicates that the effort is certainly justified. A viable expense accounting system is a must if the USAF intends to gain credibility and visibility for its resource managing efforts, which will hopefully encourage sufficient funding by Congress to insure a continuing ability to support an appropriate national defense posture. Educatigg managers at all levels to the use of accounting data for mana in is perhaps the greatest communicationgproblem facigg 23.8 (Underlining added.) Do not infer from the foregoing that Lt. Col. Kline is merely a voice crying in the wilderness! Many writers at high levels have recognized the need for training. The significant part of Lt. Col. Kline's exposition is that he has additionally emphasized the strategic or limiting factor--and that is the lack of a centrally designed, developed and controlled package of indoctrination, training, and education (IT&E). I believe it important also to recognize that work ii being done in this area of financial managerial education. But these efforts are in the main isolated operational efforts; or are academic endeavors which having satisfied the educational requirement for which they were under- taken fail to be of widespread influence. To be sure, one operational study of the first type, developed by the Base Management Analysis Office of the 92nd Strategic Aerospace Wing, Fairchild Air Force Base, washington, is one of the ten-most requested special studies within the Air Force at the present time.9 Tactical Air Command has developed a "Financial Manager's Guide" with an introduction by General Momyer, containing principles and guidelines of financial management which is required reading for all Commanders and key staff officers.1o Other examples include the excellent research performed by Master's Degree candidates at the Air Force Institute of Technology (AFIT) School of Systems and logistics at WT few examples or also to prove ‘r pros: dire' attet I nana and pric prev it. Col, umagerial eff 21* need was 5 Wrequisite s 0‘Diectives fr, Urderlyi “Mire-bio HA tOurSe" (CCU fitch builds Ltvestigatim as my Miner “other “blo ”only“. ml- 9 Logistics at'Wright-Patterson Air Force Base, Ohio. These are but a few examples of the ingredients mentioned by Lt. Col. Kline-~and serve also to prove his point! However, most of the "ingredients" for an effective program are available: the biggest missing link is centralized direction and control. Without centralized direction and attendant control IT&E will probably remain fragmented, top managers' attention will probably not be attracted sufficiently, and not surprisingly, the IT&E program will retain such a low priority that the pressure of day-to-day activities will prevent it from being effectively achieved.11 Lt. Col. Kline's emphasis on IT&E as a key factor in improving managerial efficiency is not misplaced. In every area which he examined, the need was strikingly apparent. This study seeks to provide the prerequisites for such improvement; namely, a set of instructional objectives from which an educational program can be developed. The Methodology for Derivigg a Solution Underlying the organization of this research is the concept of the "building-block." This means that the present effort will add another "course" (continuing the analogy derived from the construction trades) which builds upon and joins previous efforts in distinct though related investigations. So for one "block" I am using Lt. Col. Kline's analysis as my primary source of problem identification and specification; another "block" provides the methodology to be used in solving that problem. The methodology building block stems from a series of researches in the derivation of educational objectives which have been performed in the Business and Distributive Education Department of the College of Education, Michigan State University. These researches include a proposal developed by Doctors Haines, Ward and Hollingsworth, faculty members at Michigan State University, in which a model for deriving instructional objectives was described.” This model was successfully employed by Dr. Peter K. Petro in his doctoral dissertation.13 Dr. Petro derived his in acconplished '2? fication of t‘r. these building~ The buili 0f bridging o~; operational pr ‘53: a dangerousl at least a for permanent sell an additional fron lls illu Hollingsworth conventionsl Vlder usefuln but * . In the a afiparent. "1‘ E 1. 10 derived his input data for the model from the research previously accomplished by Dr. Lawrence M. Ozzello which consisted of the speci- fication of the tasks performed by technical accountants.1u Each of these building blocks will be discussed in greater detail in Part I. The building block concept might also be considered as a means of bridging over two diverse elements within the Air Force, viz. an operational problem and an educational solution—-presently separated by a dangerous void. Using this eclectic construct I expect to provide at least a footbridge, leaving the erection of a more elaborated and permanent solution to the professional Air Force educators. Moreover, an additional benefit of the successful completion of the task stems from its illustration of amplified applicability of the Haines, ward, Hellingsworth model well beyond the original constraints of purely conventional vocational education; thereby demonstrating the model's wider usefulness not only for the civilian educational environment, but the military and other environments as well. Limitations In the process of defining the problem certain limitations became apparent. These were: 1. The study could require only reasonable Temporary Duty (TDY) expenditures: call for data which was reasonably obtainable within the time and fiscal constraints: and require a minimal dependence upon active involvement of large numbers of Air Force personnel. 2. The study would be limited to base-level management, i.e., it would not treat of the educational needs of higher-level managers, or of professional comptroller personnel. 3. The study would be restricted to an analysis of the financial managerial needs of the base-level manager. It would not deal with the operational knowledge required for him to be an effective operational manager in his functional specialty. 11 4. The study would derive educational objectives for these financial managers. It would not attempt to provide the actual instructional program which would be the logical culmination of such an effort. 5. The study would be restricted to the derivation of instructional objectives that could be classified as part of the cognitive domain as defined by the Bloom-Krathwohl taxonomies.15.16 Assumptions 1. That RMS and an emphasis on financial management at the Responsibility Center level will continue to be the official goal of DOD in general and the Air Force in particular. 2. That such a system is indeed feasible in a military environment; and even more, is essential to the accomplishment of a "closed-loop" managerial system. 3. That Lt. Col. Kline's exposition of the problem is a valid analysis, and that his proposed solution can be implemented. 4. That the objectives-deriving model can provide an effective solution to the training needs of the base- level financial manager. 5. That the responsibility for providing the necessary program of instruction belongs to the USAF Comptroller. Three Basic Propositions 1. That there is a pronounced need for IT&E at base-level in the concepts, skills, and operations of financial management if RMS, PRIME, and Base Operations Accounting Systems are to succeed. 2. That these concepts, skills, and operations can be iden- tified and learning experiences specified for them. 3. That the implied learning tasks can be re-written as instructional objectives. The Dissertation Plan Lt. Col. Kline has identified a significant problem, serious enough to warrant extended research into possible solutions. Dr. Petro has demonstrated a methodology which can'be applied in the search for a solution. It is my task to meld the two productively. In order to approach this s and for pr nosdes the r $m5;tM" eoloyed in th study, nanely at base-level; strary with o BIperience . 12 approach this task in a logical fashion, this dissertation has been planned for presentation in two parts. Part I defines the problem and provides the requisite background in the topics of Resource Management Systems: the "Systems Approach" to education: and the research methods employed in this study. Part II will cover the actual products of the study, namely the hierarchy of tasks performed by Resource Managers at base-level; the instructional objectives derived therefrom; and a summary with conclusions and implications educed from the learning experience. 1. "Modern Command Mana ement," United States Air Force, TIG Brief, No. 9/Vol. XXII/8 May 70 AFRP 11.1. p. 1. 2. A glossary of definitions, abbreviations and acronyms is provided in Appendix A. 3. Adrian L. Kline, "Implications of Responsibility Centers for Successful Implementation of the Department of Defense Resource Management Systems," (Unpublished Ph. D. dissertation, Michigan State University, East Lansing, 1970). 4. Ibid., p. 153. 5. See Appendix A for a definition of RC's and RA's. 6. The Inspector General Brief, #7, 1969, "USAF Comptroller Functions," p. 1. 7. Robert N. Anthony, "Some Problems in Communication," The Federal Accountant, XVI (October, 1967), pp. 38-42. 8. Kline, op. cit., p. 46. 9. Special Study, BCRM, 92nd Strategic Aerospace Wing, Fairchild AFB, WCShe 10. Tactical Air Command, "Financial Management Guide," 1 Mar 70. 11. Kline, op. cit., p. 154. 12. Peter G. Haines, Ted ward, and Jeanne Hollingsworth, "The Development of a Model for vocational Objectives Derivation Based upon Occupational Demand," (Research Project, College of Education, Michigan State University, East Lansing, 1968). 13. Peter K. 1 ertructional Technical Acco Xicl'dgan State 1t, Lawrence Performed by T i'ith Inplicati cases." (or. East Lansing, Classification 3'93 York, New 3- Krathwohl :0? alrflculun 3? Teacher pm 13 13. Peter K. Petro, "The Derivation of Learning Hierarchies and Instructional Objectives with Implications for Post-High School Technical Accounting Programs," (Unpublished Ph. D. dissertation, Michigan State University, East Lansing, 1969). 14. Lawrence M; Ozzello, "An Analysis of Accounting-Type Activities Performed by Technical Accountants in Firms Manufacturing Durable Goods ‘with Implications for Evaluation of Post High~Schcol Terminal Accounting Programs," (Unpublished Ph. D. dissertation, Michigan State University, East Lansing, 196?). 15. Bloom, Benjamin S. (ed.). Taxonomy of Educational Objectives, The Classification of Educational GoalsI Handbook I, Cognitive Domain. New York, New York: David McKay Company, Inc., 1956. 16. Krathwohl, David R, "Stating Objectives Appropriately for Program, for Curriculum, and for Instructional Materials Development," The Journal of Teacher Education, March, 1965. Admittedl in financial r. System for Ops ani that syste of the total r the evolution systems of th finally, a lo neaningful ar “an Chapter. Please 3 embed from Attemp and varied } 131‘er“, 11] Adjust”tints COntrol . y CHAPTER II RESOURCE MANAGEMENT SYSTEMS Introduction Admittedly the base level resource manager's primary participation in financial management is mostly limited to the Budget and Accounting System.for Operations. Nevertheless, in order to place that manager and that system in perspective, and to better appreciate the complexity of the total managerial task facing the Air Force, this chapter describes the evolution of governmental RMS; then, focusing selectively on the DoD systems of the 1960's, the events which culminated in PRIME are examined; finally, a look at current status and future directions enables a more meaningful analysis of the base level management process contained in the next chapter.1 Please note in this exposition of RMS how the basic elements have evolved from a simple system of control to the highly differentiated yet tightly integrated closed-loop which will be illustrated in Figure 2. The Evolution of Resource Management Systems (1900-1969) Attempts to improve governmental financial management have a long and varied history; For almost 150 years, the financial management process, like the government itself, underwent growth by accretion. Few adjustments disturbed the original methods of fund appropriation and control. Meanwhile, the accretion process built up layers of non-standardized and highly esoteric techniques of budgeting and accounting. Indeed, virtually every individual governmental subdivision developed its own techniques, few of which were ever interrelated. According to Professor Dean, the preponderance of governmental surpluses prolonged such inattention to economy and efficiency; In addition to governmental 14 J’ affluence I “01$ state of the mat, delayed demnis becoming well if. was still conce the scientific iml'lde goverr: the financial 03' goverrment 19th century H I GlVen ya WE‘Tised the kill-Deficien of any appro; fix reSponsi‘. Also provide. ”seeding en @0quij ar reacted defe Could Plum. level of 0r 1% the or 'finbeu . v. asseI they ‘eby aS; Pot Doom. +‘ 39 ac cret “1.10113 cc 15 affluence I would add another factor. I suggest that the rudimentary state of the managerial discipline prior to the turn of the century also delayed demands for efficiency and economy. Taylor's work was just becoming well known and the embryonic scientific management movement was still concentrating on improvement in industry. With few exceptions the scientific management movement had not yet extended its horizons to include governmental administration within its purview. At any'rate, the financial drains of the SpanishpAmerican‘War and the expanding role of government put an end to the era of plenty which characterized the 19th century and ushered in an era of concern for economy.2 Early'Efforts Given Management theory's rudimentary state, we should not be surprised that the earliest reforms were designed to control. The Anti-Deficiency Act of 1906 "prohibited expenditure of funds in excess of any appropriated amount and required each executive department to fix responsibilities for any overexpenditure that did occur."3 The Act also provided administrative disciplinary action for anyone inadvertently exceeding an appropriation, and criminal penalties for those who did so knowingly and willfully.“ Needless to say, the bureaucratic structures reacted defensively. Devising a detailed accounting structure which could pinpoint responsibility for overexpenditures down to the lowest level of organization became paramount. The control system blossomed into the phenomenon aptly and affectionately described by the French as "paperasserie" or "red tape." Each head of an executive department was thereby assured that overexpenditures of specific appropriations would not occur in his organization. Beginning with the turn of the century the accretion process was intermittently subjected to the stimuli of various committees and commissions. One of the earliest stimuli, the ,, "Eresident's Cort Presiient Taf t i re mique to on readily illustre answers, exists D. Rye, in t ”provided the f According to t? back to the Co." (1*) Ewenmmy the that time the 16 "President's Commission on Economy and Efficiency," was appointed by President Taft in 1911. Some systems theorists protest that "systems" are unique to our time. But the recommendations of the Taft Commission readily illustrate that the problems, goals, and indeed some of the answers, existed even then. Lt. Commander E. G. Bulluck and Captain G. D. Rye, in their Master's Thesis, contend that the Taft Commission "provided the foundation for practically all budget reforms to date."5 According to them, Resource Management System's concepts can be traced back to the Commission's first, second, third, and fourth proposals: (1) Develop one comprehensive budget. (2) Formulate the budget in terms of programs. (3) Distinguish between the program (mission) and economy or efficiency (use of resources). (4) Allow managers at various levels to exercise control over resources to promote better efficiency.6 Eventually the Budget and Accounting Procedures Act of 1921 incorporated some of the recommendations of the Taft Commission. For example, at that time the President became specifically charged with submitting an annual budget which integrated his estimates of revenues and expenditures. The Bureau of the Budget was created to assist him; and the General Accounting Office was established to improve the governmental Accounting system. Except for some administrative reorganization during President Roosevelt's tenure little change took place until after world war II. Paperasserie proliferated in the form of a minutely detailed accounting system to prevent overexpenditure, and the work force expanded space. Post world war II to 1960 The year 19h? was doubly significant. A "National Military Establishment" was organized creating the Air Force as a separate Military service: and 19; on "Crganizatio trative policy.l the national me fmission had that the federe the specific re 1. 17 service: and 19u7 also saw the formation of the first Hoover Commission on "Organization of the Executive Branch" to review governmental adminis- trative policy. The Beover Commission recommended completely revising the national method of budgeting and accounting. Just as the Taft Commission had recommended many years before, this commission also said that the federal government should adopt a performance budget. Some of the specific recommendations were: 1. we recommend that the whole budgetary concept of the Federal Government should be refashioned by the adoption of a budget based_ppon functionsL activities, and projects: this we designate as a performance budget. 2. we recommend to the congress that a complete survqy of the eppropriation structure should be undertaken without delay. 3. we recommend that the budget estimates of all operating departments and agencies of the government should be divided into two primary categories--current operating expenditures and capital outlays. 4. we recommend that . . . the President should have authority to reduce expenditures under apprppriations, if the purposes intended by the Congress are still carried out.7 (Underlining added . ) The Amendments to the National Security Act in 19h9 reflected the organizational recommendations of the HOover Commission. The Act created the Department of Defense and placed all three basic military services under the supervision of a single member of the President's cabinet-- the Secretary of Defense.8 The Budget and Accounting Procedures Act of 1950 incorporated the financial management recommendations of the Hoover Commission. For example, the President was authorized to reduce the number of specific appropriations. This represented an unparalleled delegation of fiscal authority; it also significantly widened the President's ability to use a broad range of fund appropriations. He was also authorized to make changes in content, form, etc. of the budget. Professor Dean summarizes the impact of fi'ties. Att in general and within the De; rte-examined t‘: about the Dep. has str‘. suc‘r uni“ abii per? are add. Waugh one | 5?.in full-b . I PTOfeSSOr D98 this did not "h “hm the lei.a act “as Partj support am, + n This Clear.c‘ are mulled airing c 18 the impact of this legislation in this fashion: . . . The National Security Act Amendment of 19h9 and the Budget and Accounting Act of 1950, taken together, produced the most significant legislation in the history of our Nation pertaining to federal government financial management.9 Such was the state of governmental financial management in the early fifties. At this juncture let us shift our attention from the government in general and narrow our focus somewhat, concentrating on progress made within the Department of Defense. In 1955 a Second Hoover Commission re-examined the Executive Branch of the Government with this comment about the Department of Defense: . . . in the Department of Defense, effective fiscal management has been hampered by overdetailed and cumbersome allotment structures. The effect of trying to control operations through such a system places emphasis upon the ability of organizational units to expend no more than predetermined ceilings. The ability to live within such ceilings is no real gauge of performance. Accounti s stems which disclose all costs . . . are Um. ”me” WW. added.)w Although one might think that a position like Secretary of Defense would spring full-blown into operation with organizational relationships immediately established and lines of authority clearly delegated, Professor Dean's scenario of Defense Financial Management points out that this did not happen. Instead it was only after the passage of the Department of Defense Reorganization Act that the Secretary was provided with the legal authority to direct the Operations of the services: this act was particularly important since it authorized him to consolidate and assign to any appropriate organizational entity all service and support activities common to more than one service.11 The importance of this clear-cut authority becomes clear when the events of the sixties are analyzed. During the latter half of the fifties the Department of Defense iecreasingly SCI the installatizl chieil, the fil res-aimed betwel gap was criticl Tamil 1'). "Say sane thought i plans made anr ‘t‘lfigetary pro' iet‘ense budge The ceiling r be divided 8: Has made accc mlatel‘ally. 3155010115 and 0f the Pie . Clear-1y coulp “'1‘. in 19 increasingly scrutinized financial management. For example, despite the installation in 1956 of a performance budget by Mr. Wilfred J. McNeil, the first Comptroller of the Defense Department, a gap still remained between the top-level planners and the "budgeteers." This gap was criticized by the "Rockefeller Report of 1958" and by General Maxwell D. Taylor in his book, The Uncertain Trumpet in 1959. Although some thought the gap to be merely a semantic difference between the plans made and the budgets developed, it really stemmed from the budgetary process itself. In those days the President established a defense budget ceiling in coordination with the Bureau of the Budget. The ceiling represented the maximum amount available for Defense, to be divided among the three services. Further internal distribution was made according to the priorities of each of the services acting unilaterally. The natural tendency was to concentrate on self-serving missions and weapons development in order to insure an adequate piece of the pie. Such an inefficient method of allocating resources clearly could not continue. The Progress of the Sixties There is a tide in the affairs of men, 'Which taken at the flood, leads on to fortune; Omitted, all the voyage of their life Is bound in shallows and in miseries.12 Factors Contributing_to Progress.--In many respects the flood tide of financial management crested in the sixties. However, Professor Dean indicates that the stage was earlier set for some of the remarkable events which followed. For example, the Office of the Secretary of Defense had to be strengthened; it had been somewhat debilitated by the 1909 Amendments which had cast the Secretary in the role of presidential advisor.13 Another essential ingredient V85 initiative, g!“ of the Hoover been launched M1956. But Hebert S. 1’;ch 1951. It has In Willing to ac: imividual pr? Secretaries 0: Robert N. Ant Colonel ‘ £1th Comp 6E latter-d a (1) (2) (3) (a: But by 4 titan p18. 6 ”stage read Mr, D. de 20 ingredient was the fortuitous blend of knowledgeable men with remarkable initiative, great ability and courage to translate the recommendations of the Hoover Commissions into reality. Certainly the process had been launched when Wilfred J. McNeil instituted the "Performance Budget" in 1956. But the major protagonist in the ensuing drama was Robert S. McNamara who assumed the duties of Secretary of Defense in 1961. It has been said that "no previous secretary had been able or willing to accept the burden of detail involved in specific decisions on individual programs.14 Other major contributors included the Assistant Secretaries of Defense (Comptroller), Charles J. Hitch and his successor, Robert N. Anthony. Colonel walter G. Vornbrock, Jr., Commandant of the USAF Professional Military Comptroller's Course at Maxwell AFB, Alabama, has attributed the latter-day'systems surge to four factors: (1) The historical reluctance of the American public to plan ahead for defense prior to the nuclear age: (2) the failure of the Congress to provide a workable budget vehicle upon which to operate until the Budget and Accounting Procedures Act of 1950; (3) no demand by Congress (as analogous to stockholders) for improved management until the Hoover Commission Reports: (4) nonexistence of a strong, central leadership to bring competing services to a common mission or program approach until the establishment of the Department of Defense.15 But by 1961 the stage had been set, the organizational evolution had taken place, the demand fer change had been made, and the players were onstage ready to begin. Mr. D. V. Schnurr, the Associate Director of the Budget for USAF, describes the budget environment in this way: This was the situation in 1961 when Mr. Kennedy became President and Mr. McNamara became Secretary of Defense. There was to s Wit? who the I and firs In order and in order . let's exanine 9': Hitch, the his book, 3i this fashion: 1. 21 was little doubt among_the citizenry at lapge of the need to strengthen central control of the militapy establishment. With a high degree of ppblic support for showing the militapy who was boss, Mr. McNamara turned over to Charles J. Hitch the task of installing a system.by which the forces, programs, and budgets of the military departments could be brought firmly under his control.16 (Underlining added.) In order to appreciate the magnitude of the task before them, and in order to illustrate the deficiencies which were to be rectified, let's examine a detailed analysis by one of the major actors, Mr. Charles J. Hitch, the first Assistant Secretary of Defense (Comptroller). In his book, Decision-Making for Defense, he summarized the problem in this fashion: 1. These critically important functions were performed by two different groups of people--the planning by - military planners and the budgeting by civilian Secret- aries and the Comptroller organizations. 2. Budget control was exercised by the Secretary of Defense but planning remained essentially in the services. It was not until 1955-56 that the first Joint Strategic Objectives Plan (JSOP), projecting the requirements for major forces some four to five years into the future, was prepared by the Joint Chiefs of Staff Organization, but the early JSOP was essentially a "pasting together" of unilaterally developed service plans. 3. ‘Whereas the planning horizon extended four or more years into the future, the budget was projected only one year ahead, although it was clear to all involved that the lead time from the start of a weapon development to equipping of the forces ranged from five to ten years, depending on the character of the particular development effort. 4. Planning was performed in terms of missions, weapons systems, and military units or forces--the "outputs" of the Defense Department: budgeting on the other hand, was done in terms of such "inputs" or intermediate products as personnel, operation and maintenance, procurement, construction, etc.: and there was little or no machinery for translating one into the other. 5. Budgeting, however crudely, faced up to fiscal realities. The planning was fiscally unrealistic and, therefore, of little help to the decision-maker. The total implicit budget costs of the unilateral service plans or of the ““1 Tea». me p the 23p betwe mi blessed t 338mm" (p123 A Year Defens e oriented I are together “it hind-red Frog t"’ch’fiques; get-“Ban "Pl Q‘I‘L‘Ein S'El‘acted fc in this fa; 22 Joint Strategic Objectives Plan always far exceeded any budget that any Secretary of Defense or Adminis- tration was willing to request of the Congress. 6. Military requirements tended to be stated in absolute terms, without reference to their costs. But the military effectiveness or military'worth of any given weapon system cannot logically be considered in isolation. It must be considered in relation to its cost and, in a world in which resources are limited, to the alternative uses which the resources can be put. Military require- ments are meaningful only in terms of benefits to be gained in relation to their cost. Accordingly'resource costs and military worth have to be scrutinized together.17 The Introduction of PPBS in the DoD.--The vehicle for closing the gap between the planners and the budgeters proposed by Mr. Hitch and blessed by Mr. McNamara was the "Planning--Programming--Budgeting System" (PPBS). The heart of the system is what is now called the "Five Year Defense Program" (FYDP), a five year program which is mission oriented, and reflects the actions planned over the next five-year period together with the costs anticipated as a result of those actions. The FYDP at present consists of eleven major programs with over eleven hundred program elements. The system encompasses two distinct management techniques: programming and systems analysis. Let's distinguish between "Plans" and "Programs," and then define "Systems Analysis." Planning in the Department of Defense refers to the process of selecting forces, and programming is the process of scheduling the creation of the selected forces.18 Mr. Hitch explained his meaning for these techniques in this fashion: I have referred to the management techniques which comprise PPBS. 'What are they? There are two, related and mutually supporting but distinct, in fact so distinct that it is possible to use either without the other. One is called "program budgeting," or more simply "programming." . . . Programming_as an activity_produces a prpgram or program budget which has the following characteristics. First, it is organized or classified by programs rather than, as traditional budgets are, by objects of expenditure . . . Secondly, the resource requirements and the financial or O o ‘4 '1) o 0 C); ‘lvlm f ' x . n -. (‘9' J , At this El? betWeen j- Quntltative 7"“ 59m; t ltiOns Syste thus incorpc Figure 1 gr 8 23 budget implications are linked to those programmed outputs. and thirdly, the program extends far enough into the future to show to the extent practical and necessary the full resource requirements and financial implications of the programmed outputs. In the Department of Defense programmed outputs are usually shown for eight years and the financial implications for five years. The second of the two management techniques in PPB is i variously named "systems analysis," "cost effectiveness analysis" or "cost benefit analysis," as well as by other various names, including operations or operational research. . . . Systems Analysis in this sense i§_analysis, saplicit quantitative analysis to the extent practical, which is designed to maximize, or at least increase, the value of the objectives achieved bypan organization minus the value of the the resources it uses.19 ‘(Underlining added.) At this stage a great deal had been accomplished. Much of the gap between planning and budgeting had been closed: the application of quantitative techniques to large-scale governmental organizations had begun: the concomitant classification structure used in the inform. ations system reflected the organization structure from top to bottom, thus incorporating unit managers at Ell levels in the managerial process. Figure 1 graphically portrays the progress made at this point.20 START National Objectives PLANNING\ PROGRAMMING FYDP BUDGETIN FUNDING FORCES SUPPORT OF THE NATIONAL OBJECTIVES THE PLANNING, PROGRAMMING, BUDGETING SYSTEM Figure 1 But one complete ha! problems ass viewed the q defiance; ot accompanied to-change sy my be gauge extended the Yet muc Soover Come: with the p13 the and ene: form-d in t'. of reSmirces W exPressed d1 the remaini incorporated 558k meant d Vith the pro In the SW9 t‘e’o Hitch. 3| am"%mu in which Seal 9 of the Mite» 2h But one mmst not infer that such an effort was accomplished with complete harmony, effectiveness and enthusiasm. I shall not detail the problems associated with the process. Suffice it to say that some viewed the quantification process with trepidation, if not downright defiance: others decried the high degree of centralization which accompanied the process: and many more reflected the usual resistance- to-change syndrome. Despite these drawbacks, the success of the system may be gauged by the fact that on August 25th, 1965 President Johnson extended the new planning and budgeting system throughout the government. Yet much remained to be done if recommendations of the second Hoover Commission were to be fulfilled! Developmental tasks associated with the planning and programming portion had occupied the available time and energies to date. "These changes helped DoD make major strides forward in the systematic identification of objectives and determination of resources required, but they did not directly affect the Management of Resources."21 In 1965 the House Committee on Government Operations expressed displeasure that the federal agencies had not complied with the remaining recommendations of the Hoover Commission which had been incorporated in Public Law 8h-863 in 1956. Essentially, the unfinished task meant devising an accounting system which would be integrated with the program budget classifications and organizational structures. In the summer of 1965 Dr. Robert N. Anthony was named to replace Mr. Hitch, who had resigned. His task would be to merge the budgeting and accounting systems into a closed-loop management information system in which each sub-system'was sustained and supported by the efforts of the others. I The 1’ "——— Johnson 3m governmenta ”ving C105 (737300 9!». In Aug- Department c "Resource 33a the objectiv mmgenent 5 defined in t A. 25 The Introduction of RMS in the DoD.--In May, 1966 President Johnson simultaneously noted the progress which had been made in governmental financial progress and reemphasized the importance of moving closer to the established goals: I want every manager to think of his part of the total Government in terms of everything he owns, everything he owes and the full cost of doing every job in relation to the products resulting from these costs. I want him to think of minimal costs and cost reduction as profit. And I want him to think in terms of his profit as a result of how he uses all the resources entrusted to him. These goals cannot be fully achieved without sound financial management practices.22 In August 1966, the basis for all future developments within the Department of Defense was published; DoD Directive 7000.1 was entitled "Resource Management Systems of the Department of Defense." Providing the objectives and basic policies for the improvement of the DoD resource management systems was its purpose. Resource management systems were defined in this way: A. Resource Management Systems 1. 3. 4. Resource management systems include all procedures for collecting and processing recurring quantitative information that (1) relates to resources and (2) is for the use of management. They also include proce- dures which are closely related to quantitative systems even though the systems may not themselves be primarily quantitative. Resources are men, materials (i.e., real and personal property), services and money. This definition excludes all non-resources (e.g., intelligence, tactical doctrine, military justice), and all non-systems (e.g., one-time collections of controlled data, submission of experimental test reports, exchange of correspondence). Resource management systems are ordinarily described in terms of the flow and processing of information, and the common denominator of this information is often monetary but the information may be nonmonetary. Resource management systems include, but are not limited to, the following: The reader . aefis of REC integration in the next ion? Pro W “3% was 6 these first 5" °°®leted A "Cf‘gt‘essiona ban-ed its 1 for future 1 L ~? the COMM an: i"tIJlici: s' + . memenmg an improved last Minute What w; J. . Anthony 26 (a) Programming and budgeting systems; (b) Accounting Systems: (c) Other systems for management of resources for operating activities: (d) Systems for management of acquisition and disposition of inventory and similar assets; (9) Systems for management of acquisition, use and disposition of capital assets.23 The reader should note the variety of systems incorporated under the aegis of RMS. But this exposition is primarily concerned with the integration of the first three types, which.will be discussed in detail in the next chapter. Project PRIME.--Needless to say, the magnitude of such an under- taking was enormous. Planning was required in order to establish those tasks which should logically be accomplished first. The name given to these first tasks was "Project PRIME." Originally, these tasks were to be completed by 1 July 1967, in preparation for fiscal year 1968: but Congressional disapproval, reflecting a "Too much, too soon!" philosophy barred its implementation on that date. The way was left open, however, for future implementation, provided that the proposed system was approved by the Comptroller General, the Director of the Bureau of the Budget, and implicitly blessed by Congress. The hiatus proved useful, for the intervening time was used to test the system and consequently to develop an improved version. The necessary approvals were secured, and in a last minute decision, the Congress approved implementation of PRIME '69 on 1 July 1968. The system was implemented on that same day! 'What was PRIME? Although PRIME is susceptible to many descriptions, Dr. Anthony, the plan's originator, provided a very succinct definition: ’1 Though PRIY.‘ PM close< an’l budgeti: managerial 1 The emphasi: avoid over—c rather the g as well, wit 1091 of its 935.3513: c at higher he P be pram result was a infigure 2. 27 You have asked me to describe Project PRIME, and this I can do in one sentence: Project PRIME involves the development and installation of expense accounting for activities in the Department of Defense.21+ Though PRIME was essentially an accounting system, it was even more. PRIME closed the systems loop. Along with changes in the programming and budgeting systems it presented the means for integrating the managerial process at all levels within the Department of Defense. The emphasis in financial management was no longer solely on control to avoid over-obligations: nor solely on planning at higher headquarters: rather the purpose of PRIME was to provide information on expenditures as well, with the ultimate goal of charging a unit with as close to 100% of its measurable expenses as possible. PRIME had a twofold emphasis: changes in the overall planning-programming-budgeting cycle at higher headquarters, and clearing the way for financial management to be practiced at the lower-level of organization as well. The net result was a closed-loop of Resource management systems as portrayed in Figure 20 RZPO ACCOZ FAMgen Invests. OPerati AUDIT: 28 The illustration below was developed by Lt. Commander Joseph T. Talbert, Jr. in an article on Naval Financial Management of Resources.25 START NATIONAL OBJECTIVES PLANNING REPORTING FROG G ACCOUNTING BUDGETING Management of Investments and Operating Funds I FORCES AUDITING l, SUPPORT OF THE NATIONAL OBJECTIVES THE FINANCIAL MANAGEMENT PROCESS Figure 2 Re procure cecause fc anticibate Of the def C 09a with . The Current Status of RMS Recently an article in the Government Executive discussing defense procurement opened with this anecdote: One-time Defense Assistant Secretary for Research and Development Eugene Fubini used to say when Pentagon policy- makers issued a change in military management operating procedures, it took one year to get the word out to the people who had to carry it out; another year for them to re-orient their operation to the new ground-rules: and a year after that before the word got back to the Pentagon ivory tower that what they had ordered three years earlier was indeed being done the way they wanted.26 According to this facetious timetable, the current fiscal year should feed back the comforting communication that all's proceeding as planned. Like most satirical humor the anecdote contains a nugget of truth. Two years have been required to install PRIME. But the message being carried back is not the predicted: "Three years, and all's well!" And this honest reportage of the system's defects is good! Good, because for reasons shortly to be discussed, many of the innovations anticipated as a result of PRIME have not yet become reality. Recognition of the defects will enable (in fact, has enabled) action to be taken to cope with reality. Two major researches have analyzed the problems associated with PRIME and RMS: numerous articles have evaluated their progress thus far; and research continues in an effort to remove obstacles and create solutions. Lt. Col. Kline conducted the first of the major research efforts. His doctoral dissertation examined "Implications of Responsibility Centers for Successful Implementation of the Department of Defense Resource Management Systems."27 In his review of the progress after the first year and one-half of operation under PRIME, Lt. Col. Kline forecast one possible fate: 29 What so paper, variable factor a and Educ regardim But t developing 3e “Egeste (03:) which of “Sour-c 393ml Ho‘- in mmeme? 311v 30 Judging by the above chapter analyses, one is forced to characterize FY 70 as a year of limited improvement concerning the PRIME implementation. A real danger may be that the much-heralded PRIME system will "die on the vine" unless more vigorous support is given the program to cause it to live up to its potential. Atrophy could cause PRIME to become an expensive system for collecting cost data and, as a result, the Air Force will have missed another Opportunity to elevate efficiency into proper perspective with effectiveness.28 What solutions were offered? As mentioned in the introduction of this paper, one pervasive factor which appeared not only as a specific variable for analysis, but also cropped up in the other individual factor analyses was the lack of an effective Indoctrination, Training and Education (IT&E) program. The specific recommendations for action regarding IT&E included: (1) Of preeminent importance is the need for centralized planning, direction and control of’ the IT&E program Hq USAF level. (2) The second most important aspect involves the need to recognize how formidable and never ending the IT&E task is and how important it is that appropriate IT&E packages be made available to the field at the earliest possible moment.29 But the major recommendation made by Lt. Col. Kline dealt with developing a means for "getting the financial manager's attention." He suggested the formation of an "Operational Readiness Inspection" (ORI) which.would evaluate the efficiency of an organization's employment of resources: a "Resource Utilization Inspection" (RUI). The Inspector General would conduct an RUI on unannounced basis.30 The progress made in implementing these suggestions will be discussed below. The second major research was conducted at the direction of the Air Force Comptroller, Lt. Gen. Duward L. Crow. A committee of represent— atives from the comptroller staff agencies gathered data at thriteen locations. Their review led to three conclusions: ,7 '0‘ v .39 pro: It. Col. a. 31 That the data base in the PRIME system is the major advance in improving the planning and budgeting process to date. All hopes of flexibility and visibility in Air Force and OSD management depend on this type of system. That the system will not flourish of its own accord. Without further refinement, development, and enforce- ment it will fall short of its potential for serving management and eventually succumb to apathy. That there are several major problems which contribute to the lack of acceptance of PRIME by operating personnel. These problems must be addressed and resolved before efforts given to refining the operating system will be effective.31 The problems which they identified are similar to those isolated by Lt. Col. Kline: 1) 2) 3) 4) The lack of an annual_program seriously impgirs any attempt to manage on a_planned basis. The delays by Congress in appropriating defense funds negated any serious attempt to operate against an annual program. Training in RMS Concepts and PRIME procedures has generally been spasmodic and ineffective. Mest major commands provided orientation programs at the inception of PRIME and some bases held a training session for resource managers and resource advisors during the implementation period but the training effort "ran out of gas" early. As a resultL_many middle management_personnel assigned the additional duty of resource advisor and most of tgp management at base level have little concept of our current system or its goals. Tgp level direction/poligy_guidance has not been expressed officially;to field personnel. . . . "Business as usual" to the extent possible is the order of the day for most commanders, comptrollers, budget and accounting and finance officers . . . Lack of knowledge of the Air Force financial management concept under PRIME is widespread in the Air Staff. When the leaders do not follow the philosophy they profess, what hope is there for the followers? . . . Many of the "old-timers" recall these "accounting gyrations" before and are certain that PRIME too, will pass. Incentive or motivation for managers is the last missing in'redient . . . Without line management interest, PRIME will always be an accountant's exercise.32 T(Underlining added.7 The: status oi been made system, In If its p0 resolved, Anotl who was ur Force for is assesse .51 o m j. t 32 These two major efforts are very much in accord regarding the status of PRIME, and the basic problems. Although real progress has been made in establishing the structural components of the accounting system, much remains to be done in order to put the system to work. If its potential is to be realized, there are major problems to be resolved, beginning at the top. Another articulate analyst of the situation is Mr. Michael Simon, who was until recently the Deputy Assistant Comptroller of the Air Force for Accounting and Finance and the PRIME Monitor for HQ USAF. He assessed PRIME's progress in January 1970: Summary; ‘What have we done so far? First we were able to wrap up a number of accounting improvements that we've been working on for a long time. . . . Second, we have instituted a system of expense budgeting at operating levels that focuses on the costs of resources consumed. General Ryan, the Chief of Staff, has characterized the 1970's as a challenge to Air Force management: . . . In order to judge whether PRIME will be useful in meeting the challenge we need to do two things: 1. Convince commanders that the Air Force is serious about operating efficiently and that commanders will be judged by the efficiency as well as the effectiveness of their operations. 2. Make sure that our financial management practices conform to our management philosophy of delegating authority to commanders commensurate with the responsibilities they have been assigned . . . Once we have done these two things we can give PRIME a fair test as a management system. 'we will then learn whether the consumption of centrally managed resources can be influ- enced significantly at base-level and whether affording the wing commander some flexibility to trade-off resources within his operating budget will result in greater efficiency. ‘23 is too earlygto say whether PRIME is useful or not in the management of operating activities; the fact is we haven't tried it yet.33 (Underlining added.) I believe the analyses just described have effectively diagnosed the current "condition" of PRIME. And they provide worthwhile recommendations for the future directions in which effort ought to be channelled. ease with w gmsued for latex-3'3“ PRIME to t] imreasingf serious ma: such a cou 33 channelled. The Comptroller of the Air Force sagely observed the ease with which "Management systems are devised periodically, installed, pursued for a time, and then permitted to wither away, to be reinvented 1ater."3’4 The professional managers of the Air Force cannot consign PRIME to that fate. The evidence in favor of PRIME's potential, the increasingly stringent demands of the financial environment, and the serious managerial challenge of the seventies all militate against such a course. Fortunately most analysts appear to agree in this regard. The recommendations of the researchers and the probable actions which will be taken are discussed in the next portion of this paper. (The Future of RMS (The Challenge of the Seventies) In looking to the future let us stipulate that all of the forces and factors which contribute to the incredible complexity of our culture will continue to increase at an increasing rate, and then we can concentrate on two specific forces pertinent to this problem. I refer to "The temper of the times" and "Management Philosophy," each of which is affecting the directions chosen for the future. The Temper of the Times Preoccupation with change seems a hallmark of today's society. The reactions to change are as mixed as the times themselves. Yet the inescapable fact is that the changing times do have an immediate impact on the Air Force, and not only in its pocketbook! But for the moment let's look there first. Perhaps the reaction of the Congress may be best summarized by'a quote from Representative George H. Mahon, Chairman of the House Subcommittee on Defense Appropriations. At a hearing session on May 28th, 1969, he said: Apart 2‘: are ten desoript; in the q1 Fin-the). IE Win lei “‘1 what t “km 39mg 3e ”ans, 34 .With a twinkle in my eye, let me say'we will continue our harassment of the Air Force. This is a time of skepticism, a time of reevaluation of our problems in our society. This is certainly not all bad, Congress has had its ups and downs from the standpoint of public favor. The military have had their ups and downs. The Supreme Court has had its ups and down. They have been mostly down in recent years. In the third chapter of Ecclesiastes, it is said that there is a time for everything under the sun, a time to love, a time to hate, a time to plant, a time to reap, and so forth. I think there comes a time for the reevaluation of the procedures and programs of the military. Now is the time. This Committee on Appropriations is highly motivated toward the security of the country . . . There will be a lot of mistakes made, just as there are mistakes made in a housewife's kitchen, or in Congress, or in business. But we want to keep these mistakes to a minimum. Defense contracts have reached such importance in the economy of our country . . . we just have to insist on getting the best for our country.3 Apart from the skeptical reevaluation by Congress, there are other more tangible signs of the temper of the times. For example, the best description of the President's Budget for Fiscal Year 1971 is contained in the quote from his budget message: This anti-inflationary budget begins the necessary process of reordering our national priorities. For the first time in two decades, the Federal Government will spend more money on human resource programs than on national defense.36 Further testimony of the reduction is presented by Secretary of Defense Melvin Laird: . . . The defense budget we are proposing is a rock-bottom budget. It would be a serious mistake to cut our military forces more deeply or more hastily than is planned under the program we have presented to Congress. Our planned reductions cut defense spending to seven percent of the gross national product--the lowest level in 10 years. They cut defense spending of the National Government--also the lowest level in 20 years.37 And what of the Air Force? How did it fare? In his testimony before the Senate Armed Forces Committee, Secretary of the Air Force Robert C. Seamans, Jr., described the Air Force authorization request in this way: . r 7 Al‘ is not 1 Congress identifi VI H o. (3 R then, In short, 30' 0’19 of is by inpr: interned t, f l 01‘ EC hiev C bulges in dimetion (1) 8c 4. 1‘9 bary 35 As is readily apparent, the FY 1971 budget represents continued rapid retrenchment for the Air Force. Measured in actual purchasing power and personnel, Air Force resources will be at the lowest level since the Korean buildup.38 Although the verdict, in the form of the final approved budget, is not yet in, the evidence clearly exhibits the expectations of the Congress: "Do more with less!" This "Challenge of the Seventies" was identified by the Chief of Staff, General John D. Ryan in October 1969: How then, In short, Today we have the best equipped, trained and most experienced Air Force in the world. Vietnam again has shown that airpower is indispensable in conventional war, at any level, just as aerospace power is the key to nuclear deterrence. Few informed people question the competence of the Air Force as a fighting force. It now appears that the focus of_public attention has shifted from operational capability to management,_where it is likeltho remain in the years ahead.39 (Underlining added a) to obtain the resources required to carry on the mission? by demonstrating effective and efficient management! I am confident, however, that the resources needed for continued security will be provided if the people are convinced that their investment in defense of the future still is essential and will be administered with wisdom and without waste. The problem, then, is essentially one of management in the broad sense of the word: establishing goals, planning the wherewithal to reach them, and administering the allocated resources with unimpeachable efficiency.“O So, one of the prime solutions to coping with the temper of the times is by improving our management. Precisely what RMS and PRIME were intended to do: and in fact have begun to do. I submit that the demand for achieving their goals is greater than ever because of the temper of tha times 0 'While the tempo and the temper of the times are significant changes in themselves, another recent event will also vitally affect the direction taken by RMS. Management philosOphy within the Office of the Secretary of Defense has changed radically. V n ~erei’1 4A: ‘__ The ‘ centraliz (9' L) ' (D 3‘ A. m; he: inact of 3 ‘v’ -O'Iian’ UT) \c an ifiiicat 36 Management Philosophy The management system installed in the sixties led to over- centralization of decision-making. A new team of managers in the Office of the Secretary of Defense has wrought a change in managerial philosophy. Secretary of Defense Melvin Laird has been quoted as saying that he had inherited a management system designed for highly centralized decision- making, and that: "Overcentralization of decision-making . . . leads to a kind of paralysis.“+1 To facilitate participation in decision-making broad changes have already been instituted in the Planning-Programming-Budgeting cycle at the higher levels of Defense and the Services. But what will be the impact of the changed philosophy at base level? Lt. General George S. Boylan, Jr., Deputy Chief of Staff Programs and Resources, provides an an indication: Secretary of Defense Melvin R. Laird has focused on certain management fundamentals in articulating a revision of procedures in the management philosophy of the Department of Defense. ‘We expect increased emphasis on decentralizing management authority to the operating level. Not only will such decentralization put the responsibility where the action is,_but it can also free upper levels of management for greater concentration onpolicymatters.“2 (Underlining added.) Both trends portend an even greater emphasis on the base level manager's ability to function effectively and efficiently. Far from de-emphasizing the importance of managerial information systems, the demand for information will grow ever more crucial. Of course, furnish- ing data has never posed a problem. General Meyer, the Vice Chief of Staff, cautions: "we have to guard constantly against drowning in a sea of data while gasping for information necessary for critical decision-making."43 His caution is equally applicable to the design of an educational program f o properly 1‘ the base-l gasping fo The Paths The p‘ Cor-rdttee .- the messag' without the C E E i t' f S One st DST. and n 37 program for financial managers. Unless educational objectives are properly researched and used as the foundation for learning experiences, the base-level manager will himself "drown in a sea of data, while gasping for help." The Paths of Progress The problems identified by Lt. Col. Kline and the PRIME Review Committee are being worked on. For example: Secretary Laird carried the message to Congress about the problem of attempting to manage ‘without the benefit of an annual program: Laird also took Congress to task for its late decision on the Fiscal Year 1970 Defense budget, noting that late appropriations "severely complicate both Defense management and planning" and add to defense costs. He added that "it is extremely difficult to prepare budget requests for January presentation to Congress for the fiscal year to follow when, in the middle of the previous December, we still do not have the current year's budget approved.”iii One step has been taken which will accomplish two objectives; the first and most comprehensive need is that of "gaining the manager's attention," and the second need is for the widespread development of base-level training efforts. Lt. Col. Kline emphatically insisted on the need for gaining the manager's attention. His suggestion included the development of a "Resource Utilization Inspection" (RUI), to be administered by the Inspector General. The PRIME Review Committee agreed that "Without line management interest, PRIME will always be an accountant's exercise." So an interim partial solution has been derived which'will serve until a comprehensive training program becomes available. The Inspector General Brief (TIG Brief) is a publication which "contains items of interest for commanders, inspectors and staff officers: some items point up "soft areas" which may become trouble spots, so that action can be taken before serious difficulties arise: others dot for planni The TIG B: the notice include ar Brief date r t E i 38 others deal with management suggestions or oversights, important topics for planning purposes, timely matters required by law or regulation." The TIG Brief is an effective attention-getter; but even more so is the notice that the Inspector General's upcoming inspections will include an evaluation of RMS training. This item appeared in the TIG Brief dated 5 June 1970: RESOURCE MANAGEMENT SYSTEMS (RMS) During FY 1968 and early FY 1969, there was a genuine effort on the part of Comptroller personnel at command and base level to apprise line personnel of the new resource management concept. As time passed, however, several negative, motivational actions occurred-~and today, the training effort is sporadic, incomplete, or nonexistent. In an effort to reverse this tendency, the Inspector General is being requested to inspect and appraise resource management training course content and effectiveness during the upcoming management inspection of base-level personnel and training systems, commencing in July 1970. Coverage is to include both formal and on—the-job-training. It is hoped that this appraisal will reveal that corrective action has been taken, so that officers and airmen working with the resource management system will understand and appreciate it.“5 Although this activity represents progress, such progress still remains tactical in nature. To be sure, the attention of base level managers has been gained. Certainly, the emphasis on RMS training will resuscitate each base's efforts. But the basic problem still remains, i.e., the lack of a centralized program, so strongly recommended by Lt. Col. Kline. The Comptroller organization must accept that responsibility. The PRIME Review Committee recommended a series of financial management concepts, which if approved and refined will serve as the keystone in the educational program. Additionally, they recommended that certain controversial items whose inclusion in the system had been mu< The reel directic Systems. data exi efficien 39 been much heralded, but not yet achieved, be tested for feasibility. The results of their tests will profoundly influence the design and direction of the Air Force implementation of Resource Management Systems. The means for closing the management loop and generating data exist. Now the system itself must be employed effectively and efficiently. Summary This chapter has examined the evolution of RMS, their current status and projected directions. It reviewed the major analyses of PRIME's implementation within the United States Air Force. The last portion evaluated paths of progress. Forces external to the Department of Defense, e.g., national priorities and the traditional congressional controls will shape future financial management in DoD. But internal forces will play a part as well; the process of decentralization will place as great a premium on information for decision-making as previous philosophies have done, if not more so. The demands for operational effectiveness and economic efficiency will not abate. Neither should the efforts to achieve them. Increasing the emphasis on base-level training in Resource Management Systems constitutes an important stimulus. But the basic problem of heterogenous base-level instructional programs will not be resolved until a centralized educational program is developed. This dissertation will produce the instructional objectives essential to such a development. However, the task still remains that which Brig. General Brown described in 1965. He forecast that the truly monumental task would be to: ---teach resource managers how to use the powerful data then available to them; to influence their attitudes: to motivate them: to broaden their authority so that they can use these data effectively. #0 -—-develop objective standards of economic efficiency; measure performance against those standards; reward the efficient managers: snarl at the inefficient. ---do all these things without, in any way, tarnishing the cardinal goal of maximum combat effectiveness. 1. For much of the early historical analysis, I am indebted to Professor Chauncey Dean of the School of Systems and Logistics (AFIT) at Wright-Patterson AFB. His warm welcome extended beyond merely referencing the many pertinent theses produced by his students. He also graciously provided a draft copy of his unpublished text, "Defense Financial Management," which became a valuable source document. 2. Chauncey Dean, "Defense Financial Management" unpublished draft of a text. School of Systems and Logistics, Air Force Institute of Technology, Air University, p. 5-1. 3. Ibid., p. “-1. u. Ibid. 5. E. G. Bulluck and Gilbert D. Rye, "An Analysis of the Army/Navy Conventional and Project PRIME Financial Management Systems at Installation Level," unpublished Master's thesis, School of Systems and Logistics, Air Force Institute of Technology, Wright-Patterson AFB, Ohio, 1968, p. 2. 6. Ibid., p. 3. 7. Herbert Hoover, The Hoover Commission Report (N. Y.: McGraw_Hill Book Company, 19u9), p. 12-17. Quoted in Bulluck and Rye, op. cit., p. h. 8. Air Officer's Guide. (Harrisburg, Pa.: The Stackpole Company, 19707: p. #38. 9. Dean, op. cit., p. 9-7. 10. Bulluck and Rye, op. cit., p. 5. 11. Dean, op. cit., p. 11-1. 12. William Shakespeare, "Julius Caesar." Act IV, Sc. 3, Line 217, Bartlett's Familiar Quotations. 13. Dean, op. cit., p. 11-1. 1“. D. V. Schnurr, "Military Programming and Budgeting Practices," The Air University Review, Jan-Feb 70, p. 22. 15. walter G. Vornbrock, Jr., Col., USAF, "DoD Resource Management," Air Universitngeview, July-Aug 1969 (Maxwell AFB, Alabama), p. 76. 16. Schnurr, op. cit., p. 10. 17. Charla University 90th Congre M (v. Adapts S: :‘f , Corr: Yamgenent 21. A Prim R; 2? H‘ C). o C Lie. 3?, PO. Sifi'fposiun, . 45° .alber 7% 5'». C. it]. E \0 u. Ibid.’ “‘~ Tom. is 43?. Michac‘ 1770 ‘* ’ p. 1f" A | m: J‘ n'ar: 7: J.“ , 3e 0’2“ M1 17. Charles J. Hitch, Decision Making for Defense. Los Angeles: University of California Press, 1966. 18. Dean, op. cit., p. 11-12. 19. Charles J. Hitch, "Decision Making in Large Organizations," PlanningyProgrammingrBudgeting. Selected Comment. U. 8., Congress, Senate, Subcommittee on National Security and International Operation, 90th Congress, 1st Session, 1967, p. 10. 20. Adapted from an illustration by Joseph T. Talbert, Jr., U. S. Navy, Staff, Commander Submarine Force, U. S. Pacific Fleet. "Navy Financial Management of Resources," U. S. Naval Institute Proceedings. 21. A Primer on Project PRIME, p. 1. 22. Ibid., frontspiece, p. 1. 23. Dept. of Defense Directive 7000.1, pp. 1-2. 2h. Dr. Robert N. Anthony, Speech before a Federal Government Accountants Symposium, June 1967. 25. Talbert, op. cit., p. 118. 26. C. W. Borklund, "Defense Procurement: Trends and Myths," Government Executive. Jan 1970, p. 62. 27. Kline, op. cit. 28. Ibid., p. 2N6. 29. Ibid., p. 252. 30. Ibid., p. 258. 31. Conclusions of the PRIME Review Committee, pp. 1-2. 32. Ibid., p. 2. 33. Michael E. Simon, A Staff Paper, "PRIME and the Air Force," 22 Jan 1970. p. 10. 3h. Duward L. Crow, Lt. General, USAF, "Air Force Management," The Air Universitngeview, Jan-Feb 70, p. 13. 35. George H. Mahon, U. S. Representative, Chairman of the House Subcommittee on Defense Appropriations. Quoted in Claude Witze, "Defense Cutback - What it Means to Industry," Air ForceZSpace Digest, Jan 1970, p. #7. 36. The 1 The Honor: in an :3de Chapter), in Nation: 37. l-ielvi April 197C 3‘3. Ro‘oer Ccmittee , :n ,1. Jonn ‘I J tallerge b3. Ibid. 41.. "Mana- April, 197: 42' George Lem: gill“. Jar. . "Nana; “5' The In J. 36‘ 3Tie. ' anagement’! #2 36. The President's Budget Message to Congress for FY 1971. Quoted by The Honorable Robert C. Moot, Assistant Secretary of Defense (Comptroller) in an address to the American Society of Military Comptrollers (washington Chapter), "The Department of Defense Budget for Fiscal Year 1971: A Shift in National Priorities," Feb 25, 1970, p. 3. 37. Melvin C. Laird, Secretary of Defense, Jackson, Mississippi, 7 April 1970. 38. Robert C. Seamans, Jr., Statement to the Senate Armed Services Committee, 10 March 1970. 39. John D. Ryan, General, USAF, Chief of Staff, "The 1970's - A Challenge to Management," The Air Force Comptroller, Oct 69. #0. Ibid. #1. "Management--Promises and Problems," Armed Forces Management, April, 1970, p. #4. #2. George S. Boylan, Jr., Lt. General, USAF, "Programs and Resources," The Air University Review, May-June 1970, p. 3. #3. John C. Meyer, General, USAF, "The Air Staff," The Air University Review, Jaoneb 1970, p. 8. ##. "Management--Promises and Problems," op. cit., p. #5. #5. The Inspector General Brief, 5 June 1970, p. 2. #6. Brig. Gen. George E. Brown, "Financial Information for Resource Management," The Armed Forces Comptroller, January, 1966, p. 1. .4 Che the Gove: Since th: manager, previous level. 5 stmctUre problems trade in t The I we Sing. a set of ‘ these EOa ”than: CHAPTER III FINANCIAL MANAGEMENT AT THE OPERATIONAL LEVEL Introduction Chapter II discussed the evolution of Financial Management within the Government generally, and also within the Department of Defense. Since this thesis primarily concerns the needs of the base-level manager, some means must be found to shift from the macro-focus of the previous chapter to a micro-view specifically focusing on the base- level. So this chapter will progress downward through the organizational structure in order to discuss the role and responsibilities, the problems and needs of the base-level manager. The transition will be made in two ways: (1) by an organizational analysis which will illustrate the role of the base in the overall organizational structure. The analysis will include a portrayal of a typical base organization. (Readers familiar with the subject may find it profitable to proceed directly to the following section.) (2) by'a functional analysis of the financial management process, which.will examine the functions to be pursued at base-level. The Air Force Mission and Organization Structure1 The USAF Mission Since the purpose of an organizational activity is to accomplish a set of objectives, any organizational analysis must initially examine these goals. One broad statement of Air Force responsibility and composition is: The primary mission of the Air Force is to provide aerospace forces capable of supporting the Nation's objectives in peace and war. The Air Force does this by providing: -- Strategic aircraft and missile forces necessary to prevent or fight a general war: -- Land-based tactical air forces needed to establish air superiority over ground battle areas and air support to ground forces in combat: #3 The l authority AL” Force Resident oAeration. prepaTBd n1 uh -- The primary aerospace forces for the defense of the United States against air and missile attack: and -- The primary airlift capability for use by all the Nation's Military Services. The Air Force also provides the major space research and development support for the Department of Defense and assists the National Aeronautics and Space Administration (NASA) in conducting our Nation's space program. Teamed 'with the Army, Navy, and Marine Corps, the U. S. Air Force is prepared to fight and win any war if deterrence fails.2 The Secretary of the Air Force (SAF) The Department of the Air Force (DAF) functions under the direction, authority and control of the Secretary of Defense. The Secretary of the Air Force, who is the civilian head of the service, is appointed by the President. The Secretary directs all its affairs, including training, operations, administration, logistical support and maintenance, welfare, preparedness, overall effectiveness, research and development and such other activities as may be directed by the President or the Secretary of Defense. The Secretary is assisted by a staff consisting of an under secretary, three deputy undersecretaries, and four assistant secretaries, each specializing in a functional area. The Chief of Staff and HQ_USAF The Air Force Chief of Staff is responsible for transmitting Air Staff plans and recommendations to the Secretary of the Air Force. After their approval, he acts as the agent for the Secretary in carrying out the plans. The Chief of Staff is responsible to the Secretary for the efficiency of the Air Force and the preparation of its forces for military operations. Headquarters USAF (the Air Staff) is responsible for the preparation of plans and policies concerning the entire Air Force mission. To do so, the Air Staff includes a coordinating Staff and a special Staff. The Comptroller of the Air Force, and the Deputy Chiefs < Operatic the Coo: Staff cc 1] ‘0 38101 0f three r “Sig-mtg: 45 Chiefs of Staff for Personnel, Prgorams and Requirements, Plans and Operations, Research and Development, and Systems and Logistics comprise the Coordinating Staff for mission-oriented functions. The Special Staff consists of the: Chief Scientist of the Air Force; Chief Master Sergeant of the Air Force; Chief, Office of Air Force History; Director, Air Force Board Structure; Director of Administration of the Air Force; Secretary of the Air Staff of the Air Force; Chairman, USAF Scientific Advisory Board; Chief, Operations Analysis of the Air Force; Chief of Air Force Chaplains; The The Inspector General of the Air Force; Judge Advocate General of the Air Force; Surgeon General of the Air Force; Assistant Chief of Staff, Intelligence, of the Air Force; Assistant Chief of Staff, Studies and Analysis of the Air Force; Chief of Air Force Reserve; Chief, National Guard Bureau of the Air Force. Major Commands and Separate Operating Agencies Below Hq USAF the functional organization of the Air Force consists of three major organizational subdivisions; the first two of which are designated Major Commands (MAJCOMS): (1) (2) (3) Operational Commands--composed in whole, or in part, of strategic, tactical, or defense forces, or flying forces directly in support of such forces. The Operational Commands are: Air Defense Command (ADC), Alaskan Air Command (AAC), USAF Southern Command (USAFSO), Military Airlift Command (MAC), Pacific Air Forces (PACAF), Strategic Air Forces (SAC), Tactical Air Command (TAC), and US Air Forces in Europe (USAFE). Support Commands--Any command which is not an operational command. It consists of such activities as providing supplies, weapons systems, equipment, maintenance, training and communications to the Air Force and other supported organizations. The Support Commands are: Air Force Communications Service (AFCS), Air Force Logistics Command (AFLC), Air Force Systems Command (AFSC), Air Training Command (ATC), Air University (AU), Headquarters Command (HEDCOM), and USAF Security Services (USAFSS). Separate Operating Agencies--A subdivision (other than an Operational or Support Command), directly subordinate to Hq USAF which is assigned a specialized mission that The relation H6 is restricted in scope, and which does not logically fit into the mission of any Major Command. The Separate Operating Agencies are: Aeronautical Chart and Information Center (ACIC), Air Force Accounting and Finance Center (AFAFC), Air Force Reserve (AFR), United States Air Force Academy (USAFA), Air Reserve Personnel Center (ARPC), and.Air Force Systems Design Center (AFSDC). The relationships discussed above are graphically portrayed in Figure 3. )' ‘Asst 5 Reseat DeveIO] 1»? OFFICE OF THE SECRETARY OF THE AIR FORCE SECRETARY of the ‘ AIR_ FQRCE. _ - SPECIAL J" Manse ETARY STAFF D Y UNDERSECRETARIES Asst Sec'y Asst Sec'y AsstSec'y AsstVSec'y Research Installation Financial Manpower 8: a. Management Development Logistics AIR STAFF _ C_HI§F __9f__ST_A_FF__ ‘ SPECIAL VICEOCHIEF STAFF STAFF 1 1 1 1 L 1 Comp— Dcsi DCS/ DCS/ DCS/ Dcs/ troller Personnel Progr Pleas Regs ch Systems of the and “I.” Devfilop. and Air Forc Resourc 1; one ment logistics SEPARATE OPERA TING AGENCIES L4 :3 wérfir}; :5 I .“I __J. in |____Jl I ._J_ L__J| L__, UNITED STATES AIR FGICE ORGANIZATION CHART FIGURE 3 1:5 J Staniard Belt the organ (1) #8 Standard Organizational Elements Below MAJCOM Level Below the Major Air Commands and the Separate Operating Agencies the organization structure is constructed of the following elements: (1) An Air Force--An intermediate echelon of command directly under the headquarters of a large operational command. It consists of significant numbers of Wings, Squadrons and Air Divisions as required. (2) Numbered Air or Aerospace Divisions--an intermediate level of command within an operational command. It may be assigned to either an Air Force or directly to a MAJCOM. It is usually composed of three or more operational wings. (3) Wing--may be either operational, i.e., it has two or more assigned mission squadrons with a combat, flying training, airlift or troop-carrier assignment; or it may be an Air Base Wing, i.e., one which has the support mission of maintaining and operating an air base. (U) Groups--may be: (a) Operational, i.e., it has a mission squadron in an area of combat, airlift or troop-carrier; it also has support squadrons assigned. (b) Combat Support or Air Base Group has a mission of operating and maintaining an air base. (c) Support Group, assigned to a support command; it may or may not be charged with operating an air base. (5) Squadrons--are the basic organized units of the Air Force. The term is used to designate the basic tactical units in operational commands. It is also used as the basic unit for functional entities. Figure 4 illustrates the organization for an Air Force Base (AFB) with only one Wing stationed thereon. While the wing commander is the senior commander on the base, the authority and responsibility for running the base functions is vested in the support group commander. “9 Wing Commander Vice Commander X (:Information/r _v— C S“??? 7 W J Deputy*Commander ' for Operations Commun a Deputy Commander for Materiel Intelligence }‘ '8tardardization}_ _ and Evaluation fl lOperations }" i ations 1e 98 Operations A Plans 4 1 t Mission l Squadrons I [ Logistical Plans Hospital Hi Support Group (See Fig. 6) WING ORGANIZATION STRUCTURE (Single Wing Base) FIGURE h w" CiVi nginee 50 Support Group Commander (Base Commander) (:é vici¥38€:) <::Chaplainr::> 6min Serving Gersonnel D (Comptroller )éocurement) l I 1 f Base k. Civil1 Operationsi Transportaa Security a Base ng eer & tion Law Training Enforcemenfl Services SUPPORT GROUP ORGANIZATION STRUCTURE FIGURE 5 Summary This analysis presented a brief abstraction of the organizational levels of the United States Air Force. While such an abbreviated treatment superficially portrays the magnitude and complexity of the USAF mission and organization, it should adequately illustrate the organizational channels of authority and communication that extend from the Secretary of the Air Force and HQ USAF, down to the base-level managers. Having completed the organizational analysis the next step provides a functional analysis of financial management. mnegem system the hig Just as from th« analysi: REPC 51 A.Functional Analysis of Financial Management Chapter II detailed the evolution of governmental financial management from a simple instrument of control to an integrated system for resource management. Project PRIME aimed changes at both the highest planning levels and also the lowest operational levels. Just as the organizational analysis of the preceding section proceded from the highest organizational level to the lowest, so too this analysis will proceed from a macro-view of RMS to an evaluation of the role and problems of the operational level resource manager. Figure 6 repeats the previous illustration of the total RMS, serving as a reference for the concepts and definitions presented in the next section: START NATIONAL BJECTIVES PLANNING REPORTING PROGRAMMING AC OUNTING BUDGETING Managemzithf ‘ Investments and‘~<;;\‘-.h—~__» FUNDING Operating Funds I ———"””’ FORCES AUDITING SUPPORT OF THE NATIONAL OBJECTIVES THE FINANCIAL MANAGEMENT PROCESS FIGURE 6 1' Concepts ar In 0rd digress bri the process Planning: Programmi mg 5301‘ Force 1 1 I I I E I F P P Prep-am Elem 52 Concepts and Definitions In order to have a proper understanding of the process, let's digress briefly to examine the concepts and definitions inherent in the process.“ Planning: consists of interpreting National Objectives into the force structures necessary to accomplish these objectives. Programming: consists of providing the detailed statements of resource requirements including time, physical, and financial resources which will be required to realize the force structures specified by the plans. These programs are gathered into the FYDP as Major Force Programs (MFP'S). Major Force Programs: The programs of the Five-Year Defense Program (FYDP) are organized to distinguish force-oriented and support programs. The MFP's include: Program 1--Strategic Forces Program 2--General Purpose Forces Program 3--Intelligence and Communications Program h—-Airlift and Sealift Program 5--Guard and Reserve Forces Program 6--Research and Development Program 7--Centra1 Supply and Maintenance Program 8--Training and Medical Program 9--Administration Program 10-Support of Other Nations Program 11-Support of Other Programs Program Elements: provide a more detailed description of the MFP's. They provide the description of the basic program and are the principal framework for budgeting and measuring costs attributable to a specific program. They represent a combination of resources which taken together constitute an identifiable military capability or support activity, e.g., 8-52 Squadron, Base Operations, etc. Functional Categories: The first level of subordinated detail below the program element level. They are prescribed by DoD and are designed to collect cost information. There are thirteen Functional Categories currently prescribed: A--Mission Operations G-Personnel Support B--Supply Operations H-—Base Services C--Maintenance of Material I--Operation of Utilities D--Property Disposal J--Maint of Real Property E--Medical Operations K-Minor Construction F--O/S Dependent Education L--Other Engineering Support ME-Administration Budgeting 3 Operating E Earning: T Accounting; Elements of “Fins-JA- Responsibilj L—J- teens and immense. 53 Budgeting: The formal estimating of future revenues, obligations to be incurred, and expenditures to be made in a specific period of time. This process by DoD requests funds from Congress based upon the FYDP projections. In essence, pricing out the programs and requesting funds. Operating Budget: An approved operating plan in financial terms which is the basis of authorization and financial control of expenses and changes in working capital and capital investment for the execution of a program or programs financed by the Operations and Maintenance or Military Personnel appropriations. Funding: The process by which Congress appropriates monies for Defense; which monies are in turn distributed by the Departments for approved purposes. Accounting: In this usage, the rendition of a report by an operating executive showing economic data evidencing his performance in discharging his assigned responsibilities. Elements of Expense: an account subordinate to both program element and functional category which specifies the types of resources being consumed. It enables collection of expense data which is essential at all levels in planning require- ments, and is used also in special reports for the Bureau of the Budget and Department of Defense. Responsibility Center: An organizational entity headed by a single individual to whom financial management responsibility and accountability are assigned and who is assumed to exercise a significant degree of control over resources acquired and consumed. Cost Center: a subordinate entity or unit of activity of an organization used for purposes of cost accumulation and distribution. Resource Advisor: An individual designated to participate in financial management of the responsibility or cost center. He is responsible for the preparation and revision of operating budgets; he may also serve as the primary point of contact for budget, accounting and other resource managers on matters pertaining to the execution of the operating budget for his specific function. The Nature of Managerial Informational Needs Professor Gerald E. Nichols developed "A set of criteria to facilitate both the generation and use of business information."5 The systems for generating information have been effectively designed and implemented. The basic problem then is the effective and efficient use Of the But '-’ 335 struct‘ examine PI" clues. F01 tte amount the amount relative pc oriented to by the rela this means proceeds up level manage because of t Conversely, Planningmi gTap-Hie portJ “d Tanager]: 54 use of the information generated. Professor Nichols proposes that: The general functions of information systems are to determine user needs, to select pertinent data from the infinite variety available from an organization's environments (internal and external), to create information by applying the appropriate tools to the data selected, and to communicate the generated information to the user.6 (Underlining added.) But what are the user needs and how are they fulfilled by the RMS structure? Before answering that specific question, let's examine Professor Nichol's article because he provides some interesting clues. For example, certain principles have been developed regarding the amount and kind of information to be supplied, e.g., (1) generally the amount of information supplied is a function of the manager's relative position in the hierarchy, (2) the type of information (whether oriented to the internal or external environment) is also affected by the relative position in the managerial hierarchy. Simply stated this means that more and more data are summarized as the presentation proceeds up the chain of command; and it means also that the lower level manager primarily needs information about the internal environment because of his preoccupation with the control function of management. Conversely, the higher levels of management requirements are more planning-oriented. Figure 7 is a reproduction of Professor Nichols graphic portrayal of the relationships of the managerial hierarchy, and managerial information needs.7 A. Relatic ' Relatio WASTE: 55 A. Relation of Managerial Position Time Spent in Planning & Control Middle Lower Managerial Hierarchy Control — JO moat Time Spent in planning and control B. Relation of Managerial Position to Summarization of Information Middle Lower Managerial Hierarchy Information about the external environment Informatio about the internal environment 0 Degree of summarization of information MANAGEMENT LEVELS RELATED TO PLANNING CONTROL AND INFORMATION FIGURE 7 . J’ Profes familiar, b‘ micro level for plannin planning ta relative re categories relabeled H. destroying ' levels the 1 Force PTOgr; and control iEPOI‘taMCe a 3? the imesfigatic °Tganization the OrgaTIlZa relative nee about the 01‘ been done in the Cost Cen A aata o But W: the inform? is Used fOr baSiQ nah”, t . h, tan. or a“ (2) [é 56 Professor Nichols' research relates to this investigation at two familiar, but distinct levels of abstraction: i.e., the macro and the micro level. At the higher or macro—level of organization the needs for planning information are greatest because the bulk of the long-range planning takes place at that level. So we,mayrassume safely that the relative requirements for planning data are such that Professor Nichols' categories for the managerial hierarchy (tep, middle, lower) could be relabeled Headquarters USAF, Major Command and Base Level without destroying the validity of his propositions. So, too, at these higher levels the need is greatest for summarized data pertaining to the Major Force Programs of the Five Year Defense Program. Certainly execution and control data are required, but these latter are of more immediate importance at the lower levels. By the same taken, and perhaps with more relevance to the investigation at hand, the same propositions could be related to the organization structure at the base level. For example, by re-labeling the organizational levels listed in Figure 7, we can indicate the relative needs at base level for summarized data, and information about the organization's internal operation. Such re-labeling has been done in Figure 8, illustrating the fact that at the lowest level the cost center manager has the greatest need for specific control—type data. But two cautions should be observed: (1) Do not forget that all the information is drawn from the same data base; the fact that it is used for planning purposes or control purposes does not alter the basic nature or source of the information. Instead the key element is the type of categorization and summarization which the data undergo, and (2) all managers at every level perform the basic functions of planning and of the relati' their positic 3" RElation D ' RGIatio l} p 57 planning and controlling. The extent to which they do so is a function of the relative scope of their organization's responsibilities, and their position in the managerial hierarchy. PLANNING RC L 6 CONTROL (COST CENTER) BASE LEVEL " - _’ - niu , MANAGERIAL Time Spent in Plan ng HIERARCHY and Control A. Relation of Managerial Position Time Spent in Planning and Control INFORMATION ABOUT THE EXTERNAL ENVIRONMENT RC LEVELS 3-5 RC INFORMATION LEVEL 6 ABOUT THE wwrwmm) ImmML ENVIRONMENT BASE LEVEL 0 106% MANAGERIAL HIERARCHY B. Relation of Managerial Position to Summarization of Information MANAGEMENT LEVELS RELATED TO PLANNING CONTROL AND INFORMATION FIGURE 8 Resource and process? ml which “0‘ 395011?“ Wagons: Syst: Project would culnin effected cha consistent w. ard definitil moatgerial f: acquisition < conmption. managers prox lorger was t} needs of big System as we: blended with Because let‘s look a 58 Resource Management Systems and the Data Base Resource Management Systems encompass Ell procedures for collecting and processing quantitative information which related to resources, and‘which.would be used by managers. Resources = Men, Materiel, Services, Money. Management ' Planning, budgeting, acquisition, use, consumption, storage and disposition of resources. System Planning, reporting and feedback. Project PRIME designated certain priority management efforts which would culminate in an integrated resource management system. PRIME effected changes in the budgeting and accounting systems, making them consistent with each other, and also aligning them with the structure and definitions of the Five Year Defense Plan. Through PRIME the managerial focus was expanded from the traditional concern with acquisition of resources to include an equivalent emphasis on resource consumption. Generating financial information for the use of all. managers proved one of the very significant facets of the system; no longer was the information gathered primarily for the planning and control needs of higher levels: the base-level manager was drawn into the system as well, And so through PRIME the management process was blended with a managerial accounting system. Because of this paper's special interest in operating activities let's look at the policies specified for them: C. Systems for management of resources of Operating activities will: 1. Focus on outputs and on resources used, i.e., expenses. 2. Focus on managers who are responsible for effective and efficient utilization of resources. operating in terms < Force Frog control he system is processing and its er. and budgeti employed in 59 3. Focus on actual performance in relation to planned performance. U. Use operating budgets and accounting as a primary aid in management control at each organizational level. 5. Use working capital to hold resources in suspense in both time and place between the acquisition of resources and their consumption.8 The resultant system uses a single data base to support planning in terms of programs and the management of organizations in terms of operating expenses. The higher level planning needs are formulated in terms of the Five Year Defense Program (FYDP), i.e. the Major Force Programs and Program Elements. The lower level or operational control needs are expressed in terms of the elements of expense. The system is designed to provide for both needs by means of computer processing which translates data reflecting the organizational structure and its expenses into the formats and accounts required for planning and budgeting. Figure 9 illustrates the categories and combinations employed in this process.9 60 Major Force Programs . . . Component programs of the FYDP Strategic Forces General Purpose Forces etc. Program Elements .-. . WHO is consuming the resources? Fa Squadrons Base Operations etc. Functional Categories . . . WHY are the resources being consumed? Operation of Utilities Medical Operations etc. Expense Elements . . . WHAT kinds of resources are being consumed? Military Personnel Civilian Personnel DoD . . etc. USAF . . TAC . . CATEGORIES OF EXPENSES AND THEIR USES FIGURE 9 Menagerie Mans the noose mi eff ic tenets of responsib organizat the resul analysis < PHD-E management system upo Six leVels lowest levl fOl'm a PBS} degree Of c cents}. Nana WOCQSS' al In eSsence, mmé‘er. Respom Six-digit af Using the s- as a 5aSis A .ave been a. 61 Magggerial Accounting and Expense Accumulation Managerial accounting is defined as the process of providing the necessary information to enable the manager to function effectively and efficiently. "Responsibility Accounting" is one of the principal tenets of managerial accounting and cost control. Simply stated, responsibility accounting means that areas of responsibility within the organization must be identified, and costs accumulated according to the resultant organization structure. Such activity then permits the analysis of variances from planned operations or costs. PRIME effected the blending of the management process and the management information process by superimposing a managerial accounting system upon the organizational structure. For each Air Force Base, six levels of responsibility centers were identified; the sixth, or lowest level represents a cost center. Combinations of cost centers form a responsibility center whose manager generally has a significant degree of control over the resources assigned to him. The responsibility center manager should participate actively in the financial management process, although he may delegate his authority to a Resource Adviser. In essence, every commander and operational manager became a resource manager. Responsibility centers and cost centers are identified through a six-digit alpha-numeric code which is used to identify both the cost center and successive levels of responsibility within the organization. Using the Support Group organizational chart presented in Figure 5 as a basis for an example, the responsibility center codes and levels have been added to create Figure 10. __I: Deput; Commanc for Nateri ,__2L u-a—._ “‘4 -—. _ . ‘0-.‘ . \ Spt Sp 7 r Se 221010 2 Judge 221020 Cha In? 231050 62 WING COMMANDER LEVEL 1 2 Deputy Deputy Hosp Comgander‘ Com?ander - 3——~<—-—-\ or or / ‘ Materiel era— \ LEVEL 2 1 t ns —" -— r‘ 3 28 2n [ Civil LEVEL 3 Engineer 22b LEVEL h i J l i Spt Gp Admin Base Compt- Base Base ‘ Cmdr ervices Prgggged roller Trans' Services 2210 2211 2212 2215 22h2 2246 I'm D----_ I—I—OJLI_I—I_I—._rl- O-I-I-FI-I-l—I_l— LEVEL 5 r-"—._I-h-I—I‘I-I—Q—I-I-J-I—l_-._-l-_.l---..-.... Spt Gp Admin Base Ccmpt— Base Service Cmdr Services Procmflt roller Trans'n 221010 221100 221250 221500 224200 224600 ' V hi Judge Acct g gp'gi R&M “mute 221,110 22oz 0 224610 221020 5 1 t Traffi C oth— Chap- 4M3 Sa lain 25 ty; “St nIes 152 224220 221050 22h620 Budget Vehicle gonna Maint wgggry 221530 zzuzuo 224631 AData Service Eomm. u m. ssar at n Station Storey 2215h0 22u25o 22u632 RESPONSIBILITY CENTERS AND COST CENTERS FIGURE 10 Usin rerging t Base Budg Responsib Wing Responsib: Air Responsib: Comp‘ Cost Cents 3Udge In this fa centers an and DOD m3 FOP . The accomplish. the format: appI‘OPI‘iatj But 15}. associMed He does not directly co accomPlish» to help hir The hi of the has: I'll? Peres-j. 63 Using Figure 10 we can trace through the methodology used in merging the two systems. For example, the six digit code for the Base Budget Shop is 221530. It is derived in this way: 2 2 15 30 Responsibility Center Level 1 - .' Wing Commander Responsibility Center Level 2 — J Air Base Group Commander Responsibility Center Level u - J Comptroller Cost Center Level 6 - J Budget In this fashion expense data are accumulated and reported by cost centers and responsibility centers. But the Major Commands, USAF and DoD manage by the Major Force Programs and Program Elements of the FYDP. The conversion to program element and functional category is accomplished by computer processing which translates the data into the formats and account structures required for planning, budget and appropriation purposes. But the concerns of the base-level manager are primarily those associated with the effective management of his area of responsibility. He does not determine national objectives, nor in most cases is he directly concerned with the FYDP. His is a dayato-day chore of mission accomplishment. The purpose of providing him financial information is to help him perform that task more effectively and efficiently. The Base-Level Resource Manager The highly complex organizational structure precludes any analysis of the base-level resource manager's tasks in terms of a specific Air Force-wide mission. But common functions do exist! Any description of the role context of concentratf ization, t] of these ca increases c In orc the Air F01 x‘L‘LLiGE-EN mamEerial CilVldes “16 I e H A DLXe 4 \Cllt'd 6b of the role and responsibility of the ROM must take place in the context of the management process and its functions. Even though concentrating now on the base-level, i.e., the lowest level of organ- ization, the fact remains that the value of resources entrusted in any of these capacities is extremely high; and that value obviously increases commensurate with the level of command. In order to assist Air Force managers in carrying out their duties, the Air Force has delineated the philosophy and framework of the "USAF MANAGEMENT PROCESS" in Air Force Manual (AFM) 25-1.11 As it develops managerial concepts derived from Air Force operations, the manual divides the management process into two phases, each phase consisting of specific managerial functions: ORGANIZING PLANNING ARDINAT ING Pre-Execution MISSION ‘\\\ \\\fCCOMPLISHMENT//[ Execution Phase CON OLING DIRECT THE USAF MANAGEMENT PROCESS FIGURE 11 A operat infere Indeed change improv 65 Although the management process before PRIME concentrated on operational effectiveness as a measure of mission accomplishment, any inference that efficiency was totally ignored would be misleading. Indeed the need to achieve even greater efficiency stimulated the changes to the existing systems. The specific changes intended to improve resource management at operating levels included: 1. Expanding the cost coverage to provide better cost visibility of their operations. (Previously, not all costs were collected, e.g., personnel costs were only charged at the highest organizational level.) 2. Decentralizing financial management to users of resources. This is accomplished by the managerial accounting system and operating budget described above. The operating level organizations which actually use the resources are incor- porated in the financial planning for the acquisition, and controlling their usage through knowledge of costs. 3. Relating cost to output wherever it can be measured validly. Validated standards will facilitate the appraisal of accomplishment. The Pre-execution Phase The role of the Comptroller at base-level evolved from direct responsibility for all budgetary and accounting functions to include the broadened function of financial management consultant. This service was to be provided to all responsibility center managers, as a concomitant of their inclusion in the decentralized management process. The functional responsibilities for administering fiscal activities remain vested in the Comptroller, but the operational manager is now an active participant in the budgetary process through the vehicle of the Budget Advisory Committee (BAC) and the Budget Working Group (ENG). The Budget Advisory Committee is composed of all major staff officers; it is chaired by the Wing Commander or his Vice Commander; its responsibilities include the establishment of general operating policies program: Th1 }brking bility b the "1 It insu program organize to targs the ope: it final approval targets : 66 policies for financial planning, programming and monitoring approved programs. The BAC reviews and approves the recommendations of the Budget working Group. The Budget werking Group includes all major Responsi- bility Center Resource Managers and Resource Advisors, and is chaired by the Base Budget Officer. The BUG recommends, but does not approve. It insures that the operating budget requirements reflect approved programs; it monitors the management of resources for all base organizations; reviews the relation or resource consumption relative to targets, makes recommendations to the BAC as necessary; it evaluates the operating budget's justifications for accuracy and completeness: it finalizes the operating budget to be forwarded to the BAC for approval: and it recommends to the BAC the distribution of expense targets for the responsibility centers. The Execution Phase The Accounting system records costs along responsibility center organizational lines, and the reporting system provides the means by which the managers can trace variations from their planned position. Additionally the information can be used to provide better justifica- tion for future operating budgets. In financial management matters, each manager has the technical assistance of the Comptroller and his staff, and the cumulative operational experience of the BAC and BWG members. The net result is a merging of the management process and the financial management process as illustrated on the following page: 67 ‘ PROGRAMMING ll>>ZVORGANIZIN / PLANNING /////COO DINATING EFFECTIVENESS I“ AJD \\\\¥EFFICIENCY' kg] ROLLING DIRECTING REPORTING l /\ COI é THE MERGED MANAGEMENT AND FINANCIAL MANAGEMENT PROCESS FIGURE 12 Problem: —-———— The include: toward F be lit Fear lat; whose ef‘j have repc it should solved. E 68 Problems of the Base-Level Resource Manager The Resource Manager's Handbook published in March of 1969 includes this caveat for managers as they formed their attitude toward RMS: The system is in the primitive stage of Operation and development for management use. Its principal advantage over the prior system is in management of resources through the operating budget. It has inherent limitations at this time in measuring output and relating costs to output. The effort and attention devoted by managers to the system should be kept in balance with the benefits anticipated considering present system limitations.12 The limitations of the system are still prevalent even more than a year later. It is interesting to note, however, that those managers whose efforts and attention have been enthusiastic and unstinting have reported significant management improvements. Conversely, it should not be surprising that the PRIME Review Committee and Lt. Col. Kline both noted that the degree of success and satisfaction with the use of financial data was directly correlated to the under- standing and interest displayed by the top-level managers. Fortunately, attention, interest and understanding are being stimulated more than ever before. But this does not mean that significant problems do not remain for the base-level manager. The "Current Status" portion of the last chapter pointed out many of the problems remaining to be solved. But a quick review, emphasizing the base-level impact, seems in order. Some deficiencies are external to the Resource Management System, e.g. the inability to plan ahead efficiently due to the non-receipt of approved funding on time from the Congress which reduces the management process to "putting-out fires." Other deficiencies are internal: e.g., the traditionally secondary importance of financial Ma nagers US re Sponsih bl ma Scribe V t k, 3? ,a . 1!313 I 69 factors compared to the inherent imperative of operational effective- ness; the "squeaking-wheel" syndrome which diverts attention from financial considerations until the third or fourth quarter of the fiscal year; the relatively widespread opinion that certain resources are beyond one's control and therefore the knowledge of such costs is academic at best, and useless in general. Problems associated with the reporting system are also widespread, since many reports contain a surfeit of useless data, others contain erroneous data, and many more are received after their information has become obsolete. These problems are well-known, and are being tackled. Some may be proven to be insurmountable and the requirement eliminated; others may be correctible, but require an extended period of time to do so. Still others may be purely motivational and require generous applications of both the carrot and the stick. But in the meantime, the operational managers are expected to carry on, many of whom have neither the necessary tools nor motivation to do the job. The turnover of responsibility center managers is rapid; many receive little more than a fifteen minute briefing before being immersed in the system. Others have the duty of Resource Advisor as an additional duty, yet are hard pressed to perform their primary tasks. Education is not a panacea for all these problems. It will provide a partial solution if it can convincingly demonstrate the systems benefits to managers. The derivation of instructional objectives is one of the prerequisites which must be completed before even a partial cure is attempted. Summary One model for developing a curriculum using systems techniques prescribes three types of analytical activity: (1) an organizational analysis, (2) an operational analysis, and (3) a "man" analysis. This 01"" the dept especial analysis of the b and oper the "man approach Organizat V111 Prov: 70 This chapter has developed the organizational analysis illustrating the depth, breadth and complexity of the Air Force organization, especially at the lowest levels. The functional, or operational analysis described the overall system of resource management; the role of the base-level resource manager; and the blending of the financial and operational management processes. The remaining requirement, i.e., the "man" analysis focuses on the individual, rather than the job; determining the skills to be developed, the knowledge to be acquired, and the attitudes to be reinforced in any attempt to improve the individual's job performance. Accordingly, the man analysis was included in the research design, and will be covered in Chapter Five. The next chapter will be devoted to an exploration of the systems approach to education and models which systematically analyze the organization, the operation, and the man. The resulting synthesis will provide the input for the objectives deriving process. 1. The Air Force Mission and Organization Structure was extracted from a variety of official and unofficial sources. 2. Air Officer's Guide. (Harrisburg, Pa.: The Stackpole Co., 1970), p. 362. 3. Joseph T. Talbert, Jr., U. S. Navy, Staff, Commander Submarine Force, U. S. Pacific Fleet. "Navy Financial Management of Resources," U. S. Naval Institute Proceedings, p. 117. 4. The Concepts and Definitions have been drawn from an eclectic variety of sources. 5. Professor Gerald E. Nichols, "On the Nature of Management Information," Management Accountigg, April 1969, pp. 9-13, 6. Ibid., p. 9. 7. Ibid., p. 12. 8. Department of Defense Directive 7000.1, "Resource Management Systems of the Department of Defense," August 1966, p. 2. 71 9. United States Air Force Tactical Air Command, "Financial Management Gude," 1 P131. 70. p. 8-250 10. Adapted from Reese Air Force Base, RMS Handbook, 3500 PTWRP178—2, OCt 68, NO. 10 11. Department of the Air Force, AFM 25-1, "USAF Management Process," 15 Oct 64. 12. Department of the Air Force, AFM 178—6, "Resource Manager's Handbook," 31 Mar 69, p. 6-1. 'nierarc 0?! 'SVs+. t4 CHAPTER IV THE SYSTEMS APPROACH TO EDUCATION AND THE DERIVATION OF INSTRUCTIONAL OBJECTIVES Introduction The intended outcome of this research consists of a set of hierarchically arranged instructional objectives which could be used in constructing an educational program for base-level responsibility center managers. The function of this chapter is to provide answers to three basic questions: (1) Why do we need instructional objectives? (2) What are they? (3) HOW are they derived? To do so the chapter has been divided into three sections, each specifically addressing one of the questions above. Following the pattern of the previous chapters, this one also proceeds from the general to the particular. So the first section covers the meaning of "systems" as applied to education and demonstrates the integral role of instructional objectives in the total educational system. The second section transitions from the macro-focus of the first by defining instructional objectives, describing their characteristics, displaying schemes for their classification, and discussing pertinent concepts prior to a closer look at the objectives-deriving process. The third section answers the question of how instructional objectives are derived, laying the foundation for the exposition of the Haines, ward and Hollingsworth model in the next chapter. The Systems Approach to Education Despite the arcane aura which seemingly surrounds "systems" or "systems techniques"--these concepts and tools really only reflect 72 u mial‘ i H- vid is sized 73 man's latest attempts to order his universe. Their current popularity stems from recent improvements in technology, particularly the computer‘s unrivalled ability to manipulate data for man. But any problem may be approached "systematically," for to do so simply requires thinking before acting. Planning, action, and evaluation are the three basic functions of any simple systems approach. Systematic thinking usually consists of an analytical process in which the "whole" is divided into meaningful and manipulable parts, which are then synthe- sized back into an improved "whole." And so a system is usually defined as a set of interrelated parts or interrelated functions. A cybernetic system generally consists of inputs, processing, and outputs; but it also has a control mechanism called feedback which communicates the need for corrective action. Odiorne pictures a cybernetic system of training in his book, Training by Objectives, as illustrated below:1 Training Needs ‘r—SH Training Effort '-€5> Evaluation Feedback A CYBERNETIC SYSTEM OF TRAINING FIGURE 13 71» Yet even an efficient closed-loop training cycle may be ineffective in accomplishing the desired changes in behavior or skills of a trainee if the training needs are defined and acted upon. without regard to the real-world or environment that surrounds the system. To avoid such sterile activity the system's inputs must be drawn from life, i.e. from the performance expected of the person on the job. And the systematic approach to curriculum development attempts to do precisely that! In the HumRRO Report (an extremely useful study of the derivation, analysis, and classification of instructional objectives sponsored by the Department of Defense) Ammerman and Melching indicate that the current emphasis on stating instructional objectives in behavioral form derives from three sources, originally distinct, but which are now tending to merge. (1) The first source which dates back some thirty years is the pioneering effort of Tyler and his followers. They attempted to specify meaningful goals of educa- tion in a form useful for classroom teachers. Tyler's "Curricular Rationale" attempted to systematically develop curricula; it specified analyses of the society, the student, and the subject, from which tentative general objectives might be drawn. Application of the tenets of Educational philosophy (values) and educational psychology (feasibility) were then employed to produce more specific objectives. (2) The second source involved the research relating to the procedures for describing and analyzing job tasks in detail. Miller, et. a1., pursued this research in order to prepare men to operate and maintain large, complex military systems. (3) The third, and most recent source of emphasis stems from the use of programmed instruction as a pedagogical device. Programming requires extremely explicit state- ments of instructional objectives so that writers of programs may successfully employ the techniques.2 As we shall see, these sources as represented by statements of broad policy questions, task and skill analyses, and the objectives- deriving methodologies have tended to merge since they all contribute signlf‘lc Because instruct be emplo requires Examples The approach The ‘ ievelooe' 75 significantly to constructing an effective objectives-deriving model. Because incisive educators have recognized the importance of meaningful instructional objectives, regardless of the pedagogical technique to be employed, virtually every systems model dealing with education requires the specification of objectives early in the planning cycle. Examples of the SystemsgApproach The following paragraphs provide examples of various systems approaches to education. The Project Aristotle Symposium.--Task Group VI of the Symposium developed eight basic steps of a systems approach to education: (1) State the real NEED you are trying to satisfy. (2) Define the educational OBJECTIVES which will contribute to satisfying the real need. (3) Define those real world limiting CONSTRAINTS which any proposed system must satisfy. (h) Generate many different ALTERNATIVE systems. (5) SELECT the best alternative(s) by careful analysis. (6) IMPLEMENT the selected alternative(s) for testing. (7) Perform a thorough EVALUATION of the experimental system. (8) Based on experimental and real world results FEEDBACK the required MODIFICATIONS and continue the cycle until the objectives have been attained.3 Instructional Systems Development in the Air Force.—-The Air Force actively employs the systems approach in its educational programs, both for curriculum development in general, and in the development of programmed instruction particularly. The model used in Instructional System Development by the Air Training Command is reproduced as Figure 14:"L /_\ \- e 6 I'll" PC HFU< IMF. 2H C? < vent <~._Qm. E l. rm lei. \ .— FEEDBACK AND INTERACTION 76 Analyze System Requirements Define Job Perfor- mance Requirement Determine Training ibde Derive Learning Objectives Determine Content, Media, & Sequence Determine Support Resources Prepare and Conduct Course Evaluate and Improve Course A MODEL FOR INSTRUCTIONAL SYSTEM DEVELOPMENT USED RY AIR TRAINING COMMAND FIGURE 1h \ \ \ \ \ .. _ _ .. .. PLAN / / / \ \ \ \ \ -. \‘ ' \ \ \ \ DEVELOP \ AND ‘ I " IMPLEI-SENT / x / F / , / / . / F/ F _ _ _ _ CONTROL 4. 5.835, is I‘d- V‘~ .l i V “v 77 Note the three major functions: Planning, Development and Implementation, and Control, each further subdivided into specific steps, including the specification of objectives. The Mager and Beach Model for Developing Vocational Instruction.-- bager and Beach have cast the major functions into a typical closed- loop model as they demonstrate their strategy for systematically developing instructionz5 PREPARATION PHASE $DEVELOPMENT PHASE ”'9‘ IIvTPROV-EMENT PHASE i A CLOSED LOOP SYSTEM OF INSTRUCTIONAL DEVELOPMENT Figure 15 Each phase is further systematically analyzed in terms of the inherent activities: (1) Preparation Phase: Deriving and describing the object- ives in meaningful form. (2) Development Phase: Developing lessons and materials designed to meet these objectives and trying out the course, and (3) Improvement Phase: Determining how well the objectives were achieved, and improving the course to improve the results. Summary.--Each of these illustrations of the systems approach to education includes the typical phases of planning, implementing and evaluating; each also illustrates the importance placed on deriving objectives in the planning phase. The models described thus far may I! L, be consid- or a macr will focu ‘echnique Their "no _ . ; ' 1 nd 5 carries C cormrica 9 LC‘F 3.“. ed p 3* CODLer 78 be considered strategic in the sense that they present the big—picture or a macro-focus on the learning process as a whole. The next section will focus more selectively on the specific application of systematic techniques for deriving instructional objectives. Instructional Objectives Their Meaning and Importance Understanding precisely the meaning of instructional objectives carries great importance. Eager defines an objective as "an intent communicated by a statement describing a prOposed change in a learner-- a statement of what the learner is to be like when he has successfully completed a learning experience."7 One of the more important criteria for an educational objective is that it be stated, not as a description of content, but rather in specific behavioral terms. AFN 50-1 provides a comparative example of an objective: An objective stated in general terms: "To familiarize the student with the selection of hand tools." An objective stated in behavioral terms: WVhen given a list of hand tools commonly used by jet- engine mechanics, the student will be able to select the tools from a kit and state the purpose of each tool."8 The behavioral objective clearly tells the behavior which may be regarded by an instructor as proof that the student is indeed "familiar" with hand tools. But the objective stated in general terms is clearly open to ambiguous interpretation. So an instructional objective is a "statement that describes an intended outcome of instructions."9 Instructional objectives describe a pattern of behavior which we want the learner to demonstrate upon completion of instruction. Despite some common misconceptions, instructional objectives are not a course summry. I Profe developmer then in be Obiectives the one w} of the in: three com} 79 summary, nor an outline, nor an imprecise goal casually described. Professor Robert F. Mager has been an effective advocate for the development of instructional objectives and the necessity for stating them in behavioral terms. In his book Preparing Ipstructional Objectives he describes the most useful statement of objectives as the one which meaningfully communicates the writer's intended outcome of the instruction. To accomplish this an objective is composed of three components or activities: (1) The Action Statement - describing and naming what the learner will be doing when he demonstrates his achievement; i.e., a description of the terminal behavior expected of-the learner. (2) The Performance Conditions - describing the conditions (givens, or restrictions) necessary to exclude acts that will not be acceptable as evidence of achievement. (3) The Performance Standards - stating standards of performance; i.e. how the learner will be evaluated.10 Another important source of material is Ammerman and Melching's HumRRO Report which examined the "troublesome issues involved in obtaining meaningful and useful performance objectives."11 The authors indicated that although Mager's book dealt forthrightly with the £23m.in which instructional objectives should be stated, he did not deal with pgocedures by which one could derive objectives.12 (Mager later overcame this deficiency with a later publication, Develqping_Vbcational Instructign.)13 Concepts and Definitions Instructional Objectives.--The term is often used interchangeably with Training Objectives or Educational Objectives. Ammerman and Melching indicate that Training and Education represent the two ends of an instructional continuum. Trainipg Objectives are derived from 80 highly specific work situations, whereas Educational Objectives would refer to a more generalized work context requiring broader skills and behaviors.11+ The Haines, Ward and Bellingsworth model used the term Instructional Objectives to denote objectives which could be used in teaching and in the design of formal instructional systems--in contrast with objective statements useful primarily for testing or for stating general principles of education. Furthermore "Instructional Objectives" was meant to denote a specific focus to the extent that a knowledgeable practitioner could see implicitly one or more instructional procedures which could be designed and evaluated in terms of pupil learning.15 Because the latter intent is applicable to this research and because the specificity of RCM performance requirements may vary greatly, the term instructional objective will be used in this paper. Categories of Objectives.--Ammerman and Melching performed a significant service by virtue of their classification of objectives into categories based on the nature of the behavior expected of the student and the specificity with which they have been stated. Their categories include: (1) General objectives - consist of statements of intent, course purpose, course concept, training plan, etc. (2) Terminal objectives - statements referring to actions that occur on the job, and such actions have job value in and of themselves. Includes a statement of perform- ance capability to be attained. (3) Enabling objectives - refer to actions which serve only to facilitate the student's attainment of the desired job performance.1 Taxonomically Classified Instructional Objectives.--Another method of classifying instructional objectives within the broad categories of the three major learning domains was developed by Bloom and 81 Krathwoh1.17 The domains represent a means of classifying the behavioral tasks of a learner during his involvement in a given instructional process: (1) The Affective Domain - encompasses the attitudinal, emotional valuing behaviors of learners, reflected by their interests, appreciations, etc. (2) The Cognitive Domain - encompasses the objectives concerned with the intellectual processes of the learner. This would include all the objectives involving the recall or recognition of knowledge: higher order cognitive activities requiring analysis, synthesis and evaluation. This domain contains the clearest definitions of objectives, and represents the area in which most of the currently employed educational objectives are to be found. (3) The Psychomotor Domain - includes the objectives associated with specific skills. There are fewer psychomotor objectives in most subject fields: whereas they would predominate in some areas of vocational training, and the performing arts, etc. Each of the domains has been subdivided and arranged into levels representing increasingly complex behavior patterns. The components of the cognitive domain are presented here because of their usefulness in the model: The Cogpitive Domain (1) Knowledge - the lowest level involves primarily rote recall. (2) Comprehension - some degree of understanding, though not complete. (3) Application - using abstractions in concrete situations. (h) Analysis - subdividing into components to understand relationships. (5) Synthesis - recombining components to form a new entity. (6) Evaluation - making value judgments or critiques.18 The Gagne LearninggSystem.--represents a learning hierarchy which is arranged according to the "factors which determine learning, derived insofar as possible from available evidence in controlled education."19 82 Gagne's hierarchical design enables the arrangement of learning tasks according to eight types of learning.20 The system was employed by Dr. Petro in the construction of flow charts which established the interrelationships among the various learning tasks associated with each accounting activity. Gagne's eight categories include: THE LEARNING OF Problem—Solving_and StrategyaUsing require the pre—learning of: Principles which require the pre-learning of: Concepts which require the pre-learning of: Associations which require the pre-learning of: gears which require the pre-learning of: Identifications which require the pre-learning of: Respgnse521 The USAF Categories of Learning.--have been described in detail in Air Force Manual 50-9. These definitions and descriptions will be employed in the determination of categories of learning tasks and standardized nomenclature to be applied to the action verbs describing those tasks. The specific levels of learning delineated are: (1) Application--defined as: a. For mental application: use of facts, principles, ideas, or concepts for interpreting situations and solving prdblems. 83 b. For physical application: physical ability to perform an integrated sequence of related actions. The mental functions employed in achieving this level of learning include: generalizations, transfer of learning, creativity, rational perception, analysis and synthesis, gain insights. solve problems. Structuring of thought systems. (2) Understanding--defined as: comprehension of concepts and ideas--1earn the basis for, and the background of, the concept or idea. The mental functions employed in achieving this level of learning include: comparison and contrast, develop— ment of a concept, comprehension of implications of concepts, insight. (3) Knowledge--defined as: acquisition of factual informa- tion_-simple recall of verbal or symbolic material. The mental functions employed in achieving this level of learning include: simple recall, association of material with previously learned facts. (a) Familiaritya-defined as: initial acquaintance with verbal or symbolic material. The mental functions employed in achieving this level of learning include: awareness of, or initial link with, material.22 Job Analysis.--A detailed listing of duties, operations and skills necessary to perform a clearly defined, specific job, organized into a logical sequence which may be used for teaching employment, or classification purposes.23 An associated document in use in the Air Force is a Job Training Standard which is defined as: "Training guides in outline form.which identify the elements of an Air Force Specialty in which the trainee must be trained. They also specify the specific levels of achievement which the trainee must attain in each element."2u These specifications are important in order to relate the instructional process to the task demands of the real-life job. 8b Objectives-Deriving_Mbdels.-—are systematic procedures for determining the terminal objectives for an instructional program. The purpose of derivation models is to resolve two basic questions: 1. What is relevant to the intended performance situation? (What are the skills and knowledges that are likely to be useful in the anticipated work performance situation?) 2. ‘What is critical for instruction? (What are the skills and knowledges that are most likely to be needed and for which instruction in the program is most necessary?)25 Summary This section has presented background on instructional objectives, their definitions, delimitations, classifications, components and contributions. The next section will specifically describe an objectives deriving sequence and a means for evaluating such processes. Deriving Educational Objectives The HnmRRO Report #66-h This study by Ammerman and Melching included four important products, each of which will be discussed below: (1) An explicit rationale underlying the need for student perfOrmance objectives. (2) An examination and clarification of terminology. (3) A.model for illustrating the sequence of the development of instruction. (b) An analysis of the factors comprising performance objectives, and a means of evaluating any objectives-deriving model. The Rationale.--The importance of the underlying rationale stems from: (1) its perspective which stipulates the importance of relevant input in the form of task and skills analysis, and (2) its justification of the effort involved in deriving perfbrmance oriented objectives: (1) The derivation of job performance requirements must be accomplished prior to the preparation of statements of objectives. 85 (2) The preparation of formal statements of objectives, incorporating the desired performance requirements, is necessary for effective communication. (3) The use of these statements of objectives in the design and preparation of instruction, as well as in its management, must occur to insure that the énstruction is consistent with the stated objectives.2 Therefore the formal statements of objectives derived from job performance requirements fulfill the prerequisite mentioned earlier that a training system's inputs must reflect the real world. Furthermore, providing effective communication of intent and the evaluation of performance are the functions facilitated by formal statements of instructional objectives. They are indispensable ingredients of the systems approach to education. Terminologyt--The classification of objectives in terms of general, terminal and enabling objectives was discussed in the preceding section. Nevertheless, the HumRRO classification and clarification of terminology associated with the subject contributed significantly to the study of educational objectives. Therefore mention of that valuable contribution seems appropriate at this point. The Instructional Sequence.--Although disclaiming any intent to provide a handbook for objectives-deriving procedures, Ammerman and Melching did produce an "Instructional Sequence" which depicted the functional steps leading to the design of appropriate learning experiences. They indicated their primary concern was placed on the nature of the results or products to be obtained, rather than on how the procedures were to be applied. Given this broad orientation, the sequence perhaps might be categorized more as a macro-model of the "systems approach" to education of the type covered earlier. Neverthe- less, the accompanying analysis and criteria for evaluating objectives- 86 deriving procedures place it in a rather transitional position—- somewhat of a macro-model but with definitive criteria for analysis of micro-activities. The sequence effectively contrasts the generalized method of designing the learning experience by means of a topical outline-as opposed to the systematic analysis of relevant work performance situations, terminal student performance objectives, and further specification of enabling objectives. The sequence is reproduced as Figure 16. Steps in which Objectives are 8? Developed Instructional STEP 1 Aim and Scope Relevant werk Performance Situations of Interest STEP 2 Generalized Specific Action Action Situations Situations ] T Terminal VStudent y Performance Ml MeaningfulogglggIXISWOrk or Life Performance Topical Outline of STFP 3 _ Course Content ‘— Specific Generalized Generalized ' Task Skills Rehaviors l l V V W h Enabling Objectives jTEP u (Immediate Achievement Learning Goals) Test ‘ v Design of the Learning Experience What the What the Report of Instruction. Instructor Student What the al Materials will do: will do: Course will and Teach. Lesson Learning Coverage ing Aids Plans Actions and value THE AP’HIERMAN AND MELCHING INSTRUCTIONAL SEQUENCE FIGURE 16 88 The Haines, ward, Hollingsworth Model The specific model for deriving instructional objectives employed in this research is the Haines, ward, Hollingsworth Model. It was originally developed in the form of a research proposal at Michigan State University in 1968 by staff members of the Research and Development Program in vocational Education and of the Learning Systems Institute of the College of Education. The purpose of the model was that of deriving instructional objectives for selected areas of office and distributive education. The original model consisted of ten steps, which combined the best features of a variety of different approaches to deriving educational objectives. These included the Mager Medel, the Bloom.and Krathwohl taxonomies of learning objectives, and Gagne's Learning System. The model will be discussed in detail in the next chapter. Dr. Petra modified the original model somewhat for his dissertation in 1969-27 His research derived learning hierarchies and instructional objectives for accounting technicians. One of his modifications limited input data to a specific set of performance task descriptions for technical accountants which had been previously established by Ozzello.28 Since no such set of specific performance task descriptions exists at the present time for responsibility center managers, the first step of the present research will revert back to the eclectic procedures specified in the original Haines, ward and Hollingsworth proposal. Summary This chapter has examined the systematic approach to education, and instruction systems based on the identification of needs, the performance of tasks, and the evaluation of results. Various 89 educational movements, concepts and techniques for deriving instructional objectives have also been discussed. Finally, a brief introduction to the specific model to be employed in this research was presented. The model will be discussed in detail in the next chapter. 1. George S. Odiorne. Training by Objectives (New York: The Macmillan Company, 1970) p. 75. 2. Harry L. Ammerman and William H. Melching, The Derivation, Anal sis and Classification of Instructional Objectives (HumRRO —1—s Technica Report #66;h Task INGO, May, 1966), p. 3. 3. Henry Lehmann, "Task Group VI: Systems Approach to Education," Project Aristotle Sympggium. Published Proceedings (6—7 December 19 77:7 (Washington, D. C.: National Security Industrial Association, n.d.), pp. 179-189. Quoted in "A Systems Approach to the Development of Selected Portions of a Graduate Logistics Research Principles and Techniques Course in a Media-Assisted Instructional Mode." A Student Thesis by Major Edward W. Clark, Captain Albert W. Long, Jr. and Captain Leonard A. Noack, (SLSR17-69) School of Systems and Logistics, AFIT, wright-Patterson AFB, Ohio, p. 22. h. 5. Clark, Long, and Noack, op. cit., p. 37. Robert F. Mager and Kenneth M. Beach, Jr. Developing Vocational Instruction (Palo Alto, Calif.: Fearon Publishers, 1967). P. 3. 6. 7. Ibid . Robert F. Mager. Preparing_Instructional Objectives (Palo Alto, Calif.: Fearon Publishers, 1967), p. 3. 8. Department of the Air Force, Air Force Manual 50-1, "Programmed Loarning," pa 130 9. 10. 11. 12. 13. 1h. Mager, op. cit., p. #3. Mager and Beach, op. cit., p. 2. Ammerman and Melching, op. cit., p. 2. Ibid., p. u. Mager and Beach, op. cit. Ammerman and Melching, op. cit., p. 19. 9O 15. Peter G. Haines, Ted ward and Jeanne Bellingsworth, "The Development of a Model for VOcational Objectives Derivation Based upon Occupational Demand" (Research Project, College of Education, Michigan State University, E. Lansing, 1968), p. 13. 16. Ammerman and Melching, op. cit., p. 1“. 17. Benjamin 8. Bloom (ed.). Taxonomy of Educational Objectives, The Classification of Educational Goals, Handbook I, Cognitive Domain (New York: David McKay Co., Inc., 1936). 18. W. James Popham and Eva L. Baker. Establishing Instructional Goals (Englewood Cliffs, N. J.: Prentice-Hall, Inc., 1970), pp. 52-53. 19. Peter K. Petro, "The Derivation of Learning Hierarchies and Instructional Objectives with Implications for Post-High School Technical Accounting Programs," (Unpublished Ph. D. Dissertation, Michigan State University, E. Lansing, 1969), p. 3h. 20. David R. Krathwohl, "Stating Objectives Appropriately for Program, for Curriculum, and for Instructional Materials Development," The Journal of Teacher Education, March, 1965, p. #5. Quoted in Petro, Op. Cite, p. 330 21. Ibid. 22. Department of the Air Force, Air Force, Air Force Manual 50-9. "Principles and Techniques of Instruction," Table 1, "Relationship of Levels of Learning to Teaching Situation," p. 77. 23. Petro, op. cit., p. 6. 24. Department of the Air Force, Air Force Manual 11-1, vol. I, "US Air Force Glossary of Standardized Terms," p. 127. 25. Ammerman and Melching, op. cit., p. 30. 260 Ibid., pa “'0 27. Petro, op. cit. 28. Lawrence M. Ozzello, "An Analysis of Accounting-Type Activities Performed by Technical Accountants in Firms Manufacturing Durable Goods with Implications for Evaluation of Post-High School Terminal Accounting Programs" (Unpublished Ph. D. dissertation, Michigan State University, E. Lansing, 196?). CHAPTER V RESEARCH PROCEDURES Introduction This chapter describes the specific procedures employed in this research. Provided herein are an exposition of the Haines, ward and Bellingsworth model for deriving instructional objectives: the modifications effected by Dr. Petro in his doctoral research: the modifications employed in this research and an indication of some of the products derived from this research. Evaluative Criteria Before describing the models in detail, some assistance in forming judgments about the effectiveness of these models might prove worth. while. Therefore the seven evaluative criteria delineated by Ammerman and Melching are listed below. The reader may keep them in mind as he peruses the intricacies of the models and evaluates their application to the problem at hand: 1. Is the procedure applied systematically and consistently? 2. Does the procedure collect performance information for individual meaningful units of activity? 3. Is performance information actively sought from sources in the work performance situation? 4. Is perfOrmance information recorded? 5. Is performance information used systematically and consistently to identify critical instructional needs? 6. Does the procedure provide complete coverage of all likely aspects or occurrences of the desired work performance situation? 7. Does the procedure fester the derivation of performance actions, conditional and standards that are relevant to those of the work situation?1 91 92 The Haines, ward and Hellingsworth Model The foundation of the present effort derives from the Haines, ward and Hollingsworth model (which will be referred to henceforth as "the model").2 The model stems from a research proposal developed in 1968 by staff members of the Michigan State University Research and Development Program in Vocational Education and the Learning Systems Institute of the College of Education. That proposal was intended to derive instructional objectives for selected areas of office and distributive education. The basic model consisted of ten steps, sequentially arranged, each dependent upon the successful accomplishment of the prior steps. Such systematic procedures were designed to reduce the broad gap between the occupational demand data and the instructional objectives between the input and output of the model-—in systems parlance. The model called for a team approach, i.e.. the operational steps were to be performed by a writer, an analyst and a group of clinical teachers, buttressed by the services of a manager who would have had professional and teaching experience within the specific area under study. The first four steps involve refinement of the input data. The fifth step adds qualifiers which include learner-related variables. There is a sort into the appropriate learning domain--affective, cognitive, or psychomotor. Then the statement is classified according to its position in the Gagne learning hierarchy. Finally, these statements are rewritten as instructional objectives, which are sorted according to their place in the hierarchy and according to their specificity. Before examining the schematic diagram of the model, a look at the specific procedural steps involved might prove useful. 93 The Procedural Steps 1. The model is Collect input data. (Staff: writers) Sort, in terms of level of specificity of each of the demand statements. (Staff: analysts) Analyze demands data items to fractionate into components implied: identify operations and skills involved. (Staff: analysts) Rewrite to put in most specific terms consistent with the essence of each statement. (Staff: writers) Add qualifiers which take into account learner-related constraints--e.g. developmental and environmental variables. (Staff: clinical teachers and project analysts) Sort in terms of gross taxonomic distinctions. (Staff: analysts) Describe each statement in terms of its implicit learning tasks. (Gagne) (Staff: analysts) Rewrite each learning task in the form of an instructional objective. (Staff: writers) Classify each task in hierarchical terms. Sort in terms of more or less specific statements. Criterion: meets Mager's three criteria? Yes/No (Staff: analysts)3 presented on the next page. 9’+ DATA FILE SORT A V Allusions to General Statements D Spegific , escr p ions \\ Needs \\5 of Demands // of Demands Analyze Analyze Analyze and and and fractionate fractionate fractionate l Re-write to raise level of specificity Re-write to raise level of specificity 1 I Add qualifiers Add qualifiers [ Add qualifiers (DESCRIBE ) CCLASSIFY D (:fRE-WRITE ) (:ICLASSIFY:> e\ (:DESCRIBEJ) (:RE-HRITE:) (:CLASSIFY_:) SORT General Specific . te- at e- ments ments \I ‘v’ AFFECTIVE DOMAIN | _/ \ l a _ has: \ Sea?" Email a: 3:10 ments ments ment ts ments l/ \. \vf—I \v’ COGNITIVE DOMAIN PS YC HOI'IOT OR DOMAIN THE HAINES, WARD AND ROLLINGSWORTH MODEL FTHRE17 95 Petro's Modifications to the Model Dr. Petro, in the course of his research, effected certain modifications to the basic model.“ These included changes to the input data handling: to the team approach: and to the sort by gross taxonomic distinction. Input Data The basic model called for a wide range of input data drawn from sociological, psychological and industrial sources. Dr. Petro's study employed the specific performance task descriptions previously derived by Dr. Ozzello for accounting technicians.5 Unfortunately, no such specific list of input tasks exists for responsibility center managers, so this research will depend upon an analysis of a broad spectrum of inputs. Team Approach Specified by the Model The Haines, et al, model envisioned a team approach. But Dr. Petro concluded that a single researcher could act in the variety of roles if he had the required experience. Moreover the importance of this conclusion stems from the fact that once demonstrated, the model could be effectively used by individual teachers for their specific course preparation. Dr. Petro's credentials encompassed seventeen years of experience in accounting: including experience as an accounting teacher and administrator of a large business education division in a community college: In his dissertation he ably demonstrated the feasibility of the "single researcher" proposition. And that successful example, plus a similar level of experience in the present researcher contributed to the decision to proceed. The inventory of qualifying factors includes: (1) sixteen years of experience in the Air Force, over 96 fifteen of which were spent in the comptroller career field: (2) performance as an accounting officer, a management analysis officer, an electronic data processing officer, and as a systems analyst: (3) previous experience in teaching management and accounting at the collegiate level: and (h) the military courses and civilian educational pursuits which culminated in this doctoral program have provided the theoretical knowledge which could be combined with that practical experience. Sorting by Gross Taxonomic Distinction Although the original model specified a sort into the affective, cognitive and psychomotor domains, the nature of Dr. Petro's input eliminated the need for this sort. The input statements derived by Dr. Ozzello were all judged to reside in the cognitive domain. In contrast, many of the inputs derived for the present research will involve all the domains, necessitating such a sort, because objectives are to be derived only for the cognitive domain. Dr. Petro's Modified Medel The result of the modifications mentioned above produced the model shown below: Procedural Research Steps Activity 1. Developed by job Identify Specific and task analysis Descriptions of data, or from Job Demands general descriptive literature and research 2. Analyze job demands Analyze and into their component Fractionate concepts, skills, and operations 97 Procedural Research Steps Activity 3. Establish hierarchical Design Flow sequences of concepts, Diagrams principles, higher-order principles within the context of Gagne's learning tasks h. Rewrite each learning task Rewrite in the in the form of an instructional Form of objective utilizing Mager's Instructional 3 criteria Objectives 5. Develop what-- Design of the (a) the instructor will do, Learning (b) the student will do, Experiences (c) the course will do, and the instructional materials, teaching aids.6 THE PETRO MDDEL.OF INSTRUCTIONAL OBJECTIVES DERIVATION Figure 18 Dr. Petro's dissertation produced the instructional objectives for accounting technicians by proceding through step four. He did not design the learning experience. Nor shall this research! The main purpose of this dissertation is to demonstrate the feasibility of deriving instructional objectives for the responsibility center manager. The actual learning experiences implementing the objectives ought to be produced as part of an integrated education program by professional Air Force educators. Research Procedures The procedures of this research were conducted in three phases: Phase I. Collecting inputs for the model, i.e. job demand data. Phase II. Deriving and classifying instructional objectives based upon the job activities performed by responsibility center managers. Phase III. Verifying the usefulness of the derived instructional objectives and associated materials by a jury panel of knowledgeable Air Force professional managers. .r ,r‘ 98 Phase I. Securing Inputs for the Model Although no list of specific and integrated job activities existed, much had been written on the tepic of resource management systems and the functions of resource managers. Definitions also implicitly described the broad functions of the resource manager. And a Resource Manager's Handbook had been produced by Management Analysis at Hq USAF.7 But no specific job descriptions and task demand data of the Ozello-type O existed. Job descriptions, study reference guides, etc. which would normally be found in any other job in the Air Force were not only nonexistent, but the all-encompassing nature of the resource manager's job actually inhibited the production of such materials. Fortunately the model in its original form was designed for an eclectic assortment of inputs: Sources for input data will range widely from socio- logical, psychological, and related observations on the world of work and the worker to perfOrmance task descriptions of specific jobs. There will be no attempt to limit the input data and the only demands made on the data will be that they reflect present or predicted conditions in the world of work or demands upon the worker that should be considered as influences on the instructional system. Data from many sources which give information about conditions in the job world, demands of employees, work performance expectations, and worker condition expectations will be considered very useful.8 Sources of Input.--During the problem formulation process three sources of input were considered essential, although other sources would not be ruled out. The three primary sources of input are portrayed in the illustration on the following page: 99 Res nsibility Cen eznganagers Comptroller Educational Resource Personnel Resources Advisors Job A lysis Interyiews Content Analysis Inputs to the Model SOURCES OF INPUTS TO THE MODEL Figure 19 The methods of input derivation included: 1. Interviews of comptroller personnel at Hq USAF, at major command and at base level: including the professional comptroller educators assigned to Air University and Air Training Command. 2. Content analysis of materials pertaining to resource management and the role of responsibility center managers and resource advisors. 3. Job analyses of the responsibility center managers and resource advisors. These would be primarily conducted by means of on—the—job interviews and observations. This tripartite analysis was selected in order to insure full coverage of the subject. Previous research pointed up the vast discrepancy between the normative philosophy and the empirical reality of current.day financial management. So, the interviews with the comptroller personnel provided coverage of a normative type, describing what "ought" to be 100 accomplished: and the job analyses and interviews with incumbents provided the descriptive empirical coverage, representing what actually existed in the field. Gleaning appropriate inputs from manuals, training guides from comptroller training courses, and other sources rounded out the coverage of the inputs. . Obtainipg the Inppts.--The structure of the research called for a judgmental sample to be drawn from among thevarious major commands, a variety of bases and a variety of levels and functions at those locations. A number of factors entered into the selection: (1) Lt. Col. Kline's previous research enabled him to recommend certain locations as fruitful. (2) Accessibility by military air travel, although not essential was a contributory factor. (3) Potential for diverse inputs, e.g., San Antonio, Texas included Randolph AFB, Head- quarters of the Air Training Command: it also is the location of Lack- land AFB. Brooks AFB, and Kelly AFB, each with a different mission and a variety of organizational levels. After considering all these factors a time-phased research proposal with an itinerary was presented to the University and to the Air Force. Given approval, a series of trips was made and data gathered. A list of trips, locations and selected interviews is included as Appendix B. In addition to performing interviews, a wide-ranging collection of Air Force Manuals, Regulations, Training Projects and diverse examples of documents developed by the practitioners was accumulated. Organizingfithe Inputs.--The original model called for a broad spectrum of input to be processed by a team of analysts and writers. And Dr. Petro's modifications illustrated that one researcher could 101 process a definitive set of inputs. However in the present case some additional means of sifting and organizing the voluminous eclectic input became imperative. Fortunately, a repetitive pattern became manifest during the process of interviewing. For example, broad classes of knowledge, e.g., "Budget, Supply and Reports" were immediately and almost inevitably offered as the most important items for a resource manager to know. Although interviewees might phrase it somewhat differentlya-"Know'where the money comes from, what you can spend it on, and how to get more!"-—the basic responses almost all reflected a pattern corresponding to the functions of a financial manager. From these responses supplemented by other references, the broad functions of a resource manager were derived. And because these functions corresponded to the statements of broad general learning objectives which ought to be achieved by students, they formed a logical frame- work in which to cast inputs preparatory to fractionating. The four general functions performed by resource managers which were identified are: (1) Developing an operating budget. (2) Coordinating the operating budget. (3) Executing the mission. (4) Controlling the operation. Developing a Job Description for Base-Level Regponsibility_9enter Managers.--Because of the broad nature of the responsibility center manager's tasks developing some form of job description was deemed essential. Mager and Beach's model for deriving vocational instruction explicitly list the development of a job description as the first step in the preparation phase of their model.9 Similarly, though not as explicitly, other models call for job and 102 task description.1o Practical considerations entered into the decision to develop the job description, too. Repeatedly, the need to refer to some basic statement reasserted itself. And so one of the first byaproducts of the research was developed. A job description for a base-level responsibility center manager is included in the next chapter. An Organizational Functional Matrix.--Given the generalized functions performed by the responsibility center manager and the requirement to isolate specific tasks performed at various organiza- tional levels, a matrix format was selected as the vehicle for analysis. The format of this matrix is illustrated below. The completed matrix will be illustrated in the next chapter. Operating Higher Review Base Comp. Responsi- Cost Budget Head- Committees troller bility Center quarters Center Managers Managers Develop- ment Coordi- nation Execution Control THE MATRIX FORMAT Figure 20 The matrix facilitated the delineation of responsibilities for financial managerial tasks as outlined in the Air Force Budget Manual 172.111 and other manuals: thus enabling a tracing of the financial managerial process from inception to completion. 103 Functional Fractionization.--Next. relevant statements were extracted from the interview notes and transcribed on cards. Then the statements were coded according to the functional categories listed above and sorted to provide a summary of interviewee statements related to a specific function. Most of the written reference materials employed were also easily categorized by function as well. Employing the matrix, a flow chart of specific tasks was developed. The resultant diagram.indicated the primary tasks to be accomplished in the financial management sequence. and the levels of the responsibility center managers primarily involved in the sequence. But one further step was required to insure complete coverage. Organizing the Knowledge_Requirements.--Many of the inputs, rather than providing specific task demand statements were originally expressed in terms of knowledge required. e.g. "You’ve got to know budget, supply and the reports" or "Every base-level manager should know that the RMS program has its foundation in public laws, a Presidential.Executive Order. and numerous administrative directives from higher authority."12 Ammerman and Melching's Pbdel of an instruc- tional sequence alluded to the creation of a topical outline of course content as the typical means of bridging the gap between Step 1 (Instructional Aim and Scope) and the final step, i.e. the Design of the Learning Experience.13 (Refer back to Figure 16 for the graphic portrayal of their sequence.) Developing such a topical outline of course content generated two pragmatic benefits. First of all. developing an outline of required knowledge provided a cross.check to insure that the inventory of knowledge required to do the job was complete. And in the second place, the dissemination of an approved 104 course outline by Hq USAF would provide an interim tool, contributing to the first attempts at standardization. So at this point the input had been organized; specific task demand statements had been identified; and the next phase could begin. Phase II. Implementing the Model This phase consisted of three steps: (1) Fractionating, (2) Developing flow diagrams, and (3) writing the instructional objectives. Fractionating Dr. Petro recommended the use of a worksheet for the fractionating of the input. The worksheet assisted in analyzing the demand state- ments into these specific components: Concepts Stated or Implied 1. Definitions of terms 2. Relationships to purposes and uses 3. Associations in terms of sources of information Skills Involved or Required 1. Physical-psychomotor skills 2. Computational and foundation skills in mathematics 3. Interpersonal skills Operations Implied to Demonstrate the Activity 1. Physical manipulation requirements 2. Procedural, paradigmatic sequences.“ The most important question which was a continual referrent in the fractionating step was: "What are the inherent concepts, skills, and operations for the demonstration of the behavior described and implied by the demand statement2"15 DevelopingpFlew'Diagrams Each component of the task demand statement was analyzed to determine the exact nature of the learning task, and to place the 105 task within the four levels of learning delineated in Air Force manual 50.9: (1) Application (2) Understanding (3) Knowledge and (u) Familiar- ity.16 Each of the individual task demand statements was considered to involve the highest level: i.e., Application. Following Dr. Petro's example, each of the task demand statements was flow charted in order to portray the interrelationships prevailing among the learning tasks associated with each of the task activities. Through this process the learning sequences were placed in order, and the prerequisite definitions and concepts were made manifest. The diagrams also efficiently communicated any prerequisite behavior to be achieved prior to eliciting the behavior of some subsequent instructional objective. Finally, the diagrams provided the skeletal data which served as the guides for the writing of objectives. writigg Instructional Objectives The component concepts, skills and operations identified in the fractionating step were rewritten as instructional objectives. The framework established by Mager:17 the guidelines contained in the HumRRO Report by Ammerman and Melching;18 and the techniques discussed by Popham.and Baker were the primary references used in this portion of the research.19 Phase III. Verificgtion of the Usefulness of the Instructional Objectives In order to insure the usefulness of the final product, a group of expert individuals was asked to serve as a jury-panel.20 The group consisted of professional USAF comptrollers and comptroller staff officers: experienced resource managers: and a professional accounting educator. Their evaluations took place during the model implementation as well as at the end of the process. 106 Anticipated Products 'While the major outcomes of this research will consist of the hierarchies of learning tasks and the instructional objectives, other interim products should provide an immediate pragmatic benefit. Such products include the job description for the resource manager, and the course outline previously mentioned. These could provide the nucleus for a standardized training program established at each base, directed by no USAF but developed and presented locally. Ultimately the completion of the instructional sequence, i.e., the design of the learning experience, should flow from the derived learning objectives to be developed and directed by the comptroller organization. 1. Barry L. Ammerman and William R. Melching. The Derivation, Analysis, and Classification of Instructional Objectives (HumRRO Technical Report 133:1; Task INGO: May, 1966f, p. 3. 2. Peter G. Haines, Ted ward and Jeanne Bellingsworth, "The Development of a model for vocational Objectives Derivation Based Upon Occupational Demand" (Research.Project, College of Education, Michigan State University, E. Lansing, 1968). 3. Ibid.. p. 15. h. Peter K. Petro, "The Derivation of Learning Hierarchies and Instructional Objectives with Implications for Post-High School Technical Accounting Programs" (Unpublished Ph. D. dissertation, Michigan State University, E. Lansing, 1969). 5. Lawrence H; Ozzello, "An Analysis of Accounting-Type Activities Performed by Technical Accountants in Firms Manufacturing Durable Goods with Implications for Evaluation of Post High—School Terminal Accounting Programs" (Unpublished Ph. D. dissertation, Michigan State University, E. Lansing, 196?). 6. Petro, op. cit., p. 120. 7. Department of the Air Force, AFN 178-6, "Resource Manager's Handbook," 31 Mhr 69. P. 6-1. 8e mines. at. de. P. 16a 9. Robert F. Mager and Kenneth M. Beach, Jr. Developing vocational Instruction (Palo Alto, Calif.: Fearon Publishers, 1967), p. 7. 107 10. Ammerman and Melching, op. cit., p. 1b. 11. Department of the Air Force, AFM 172-1, Vol. III, "USAF Budget Manual," 7 May 69. 12. Department of the Air Force, AFN 178.6, "Resource Manager's Handbook," 31 Mar 69, p. 1-1. 13. Ammerman and Melching, op. cit., p. 12. 1t}. Petro, op. cit., p. ’43. 15. Ibid. 16. Departmnt of the Air Force, AFM 50-9, "Principles and Techniques of Instruction," Table 1, "Relationship of Levels of Learning to Teaching Situation," p. 77. 17. Robert F. Hagar. Preparing Instructional Objectives (Palo Alto, Calif.: Fearon Publishers, 19677. 18. Ammerman and Melching, op. cit. 19. W. James Pepham and Eva L. Baker. Establishigg Instructional Goals (Englewood Cliffs, N. J.: Prentice-Hall Inc., 1970). 20. See Appendix C for a list of Jury/Panel members. PART II. THE FINDINGS Chapter Page VI. LEARNING TASK HIERARCI-[IES FOR SELECTED ACTIVITIES PERFORMED BY BASE—LEVEL RESPONSIBILITY CENTER MANAGERS . . . . . . . . . . . . . 109 VII. INSTRUCTIONAL OBJECTIVES FOR SELECTED ACTIVITIES PERFORMED BY BASE-LEVEL RESPONSIBILITY CENTER MANAGERS . . . . . . . . . . . . . 136 VIII. SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS . . . . . . . 173 Part I of this study defined the problem; provided background material on the evolution of the problem: evaluated some models for attempting a systematic solution to the problem; and described the methodology pursued in this research. Part II provides the logical extension of that exposition. Herein are described the fruits of the research: a series of learning task hierarchies: the instructional objectives derived therefrom; and of course the conclusions developed from the research effort. 108 CHAPTER VI LEARNING TASK HIERARCHIES FOR SELECTED ACTIVITIES PERFORMED BY BASE LEVEL RESPONSIBILITY CENTER MANAGERS Introduction This chapter presents the first of the products derived from the research. These products include: (1) a "Job Description" for responsibility center managers; (2) a systems flow chart based on the organizational/functional matrix described earlier: (3) a proposed interim course outline; and, (h) the learning-task hierarchies. Perhaps the first three items could be considered pragmatic byeproducts of the process, while the learning task hierarchies are the first true "product" of the research. Nevertheless each had its own peculiar function to perform, providing ample rationale for the effort expended in its development. A Job Description for Responsibility Center Managers The job description evolved from early attempts to define the parameters of the responsibility center manager's job. Although definitions of responsibility centers and cost centers existed, they were expressed in terms descriptive of organizational units. Such materials did not enumerate, but merely implied the specific tasks performed by resource managers. By the same token, the definition of a resource advisor was quite limited. Therefore a merger of these definitions and other data was effected to produce the following job description: 109 110 JOB DESCRIPTION The base-level responsibility center manager has charge of a specific organizational subdivision of an operating activity. He must accomplish predetermined objectives by managing his resources effectively and efficiently. Resources consist of men, money, materiel and services. Resource management includes planning, budgeting, acquisition, use, consumption, storage and disposition of resources. Full participation in the financial management process facilitates managerial effectiveness and efficiency. This duty includes developing and executing an operating budget; comparing actual versus planned expenditures; evaluating the organization's output in relation to its cost; and directing an active resources conservation program. He serves as the organization's primary contact for financial matters pertaining to his center, coordinating with other responsibility center managers and comptroller personnel. He may assign some or all of these duties to a resource advisor. The manager or his resource advisor may be a member of the base budget working group or the budget advisory board. In that capacity he reviews the base budget submission: assesses priorities in order to optimize resource distribution: justifies fund requests: sets expense targets: compares the overall progress of base financial expenditures against the financial plan: and recommends corrective actions. Additionally each responsibility center manager has functional authority over subordinate RC/CC managers. This duty includes training them in financial management, motivating them toward effectiveness and efficiency in their operations, and also assessing their performance. RESPONSIBILITY CENTER MANAGER'S JOB DESCRIPTION Figure 21 111 Developing a Topical Outline of Course Content Ammerman and Melching's model indicates that developing a topical course outline is the traditional method of designing an instructional program.1 (Refer to Figure 17 for their model.) ‘But in this research the topical outline represented purely an intermediate step. Nevertheless developing the outline did serve two important purposes, and fulfilled two very important needs. First of all, developing the outline provided an essential analytical framework for content-oriented inputs. Secondly, that framework could also be used as an interim tool by base-level trainers until a standardized USAF program can be derived from the behavioral instructional objectives. Each of these purposes is discussed below. Organizing the Content-Oriented Input Systematic models seek to produce instructional objectives expressed in behavioral terms. Their inputs are supposed to be drawn from.apecific action situations extracted from the job environ- ment. That type of input was gathered and organized using the organizational/functional framework described below. But in this research much of the empirical expression from interviewees was couched in terms of content, or knowledge, e.g., "Ybu've got to know the reports!" Therefore some means of organizing the content-oriented inputs was required also. Then a comparative analysis of the two forms of input would identify any items omitted due to using a purely action-oriented analysis. A Proposed Interim Course Outline The topical course outline was originally set up as an organizing device. But the comptroller could prescribe its use as an interim 112 base-level course outline. Thus the outline could begin to fill the current void by establishing a standardized framework of knowledge required by base-level managers. This action would be a purely interim device until the educational sequence begun by this research is completed by the professional Air Force educators. The proposed outline is incorporated as Appendix D. Its content was evaluated by members of the juryepanel and declared representative of the topics required for a complete financial management education of responsibility center managers. The Organizational1Functional Matrix A system analysis of tasks performed by base-level responsibility center managers resulted in the matrix illustrated in Figure 22. The matrix was designed to illustrate the tasks performed at various organizational levels in the financial management process; it follows through on the previous discussions of the USAF management process and of financial management by illustrating the responsibility center manager's performance as he plans, coordinates, executes and controls. The basic tasks which he performs both in his responsibility center and as a member of the budget review committees formed the tasks demand statements which were fractionated to produce the learning task hierarchies. The reader should note that the demands of depicting such a complex.process at a highly abstracted level necessitated the omission of many intricacies of communication and distribution. For example, budgeting communications from higher headquarters actually flow to the comptroller and the budget officer. The BAB does not establish policy directly without the intervening receipt and interpretation by the comptroller. NN MESH—rm mmmoomm “has; 30212“: mus 5.5 Ewan-aka 5 UOIFKO-J 113 UOOKQHI‘PHOI annual-v.0: wep- gg mm! “makes.— 3: rugbm w-OEHEO Fran-bu WECLBH! mi EOE Bug m§§ E4 858: B a 5.5.5.55! m5 E .flmg . El .muk434>n E .mwflgmu a B 9118»; g 11h Tasks Selected for Fractionization Since this research aims primarily at the middle manager, the tasks selected for analysis were those listed under the headings "Budget WOrking Group" and "Responsibility Center Manager" in Figure 22. Essentially the middle manager performs the active and direct tasks comprising the full range of financial managerial activities. He supervises the activities of cost centers; and conversely his own activities in turn are reviewed and approved by the higher levels of management. The specific tasks selected for fractionating will be discussed in connection with each of the related flow diagrams. Task Demand Statement Flow Diagrams Flow diagrams depict graphically the sequential ordering process. Sequencing is essential for the systematic organization of learning tasks along with their component principles, concepts and operations. Thus the task demand statements order their components. In addition the statements themselves are presented in a logical sequence, with their interrelationships displayed. This arrangement facilitates the design of the learning process because the related elements can be coherently and cohesively incorporated into the instructional sequence. DiSplays of the related elements and their prerequisites enable instructors to make improved judgments about how to teach, i.e. by selecting combinations of learning activities which will best accomplish the objective. That selection process is the next step in curriculum development: the one which will be left to professional Air Force educators. 115 Correlating the Flow Diagrams and the Financial Management Process The organizational/functional matrix depicted in Figure 22 presents both organizational levels and sequential managerial functions. In order to correlate this matrix of task demand statements with the flow diagrams the functional groupings of specific tasks will be discussed separately and the related flow diagram figure references will be provided. In that way the reader will progress through the financial process in sequential order with a brief explanation of the tasks preceding the diagrams. Developing_an Operating Budget The middle manager functions at two organizational levels while developing the operating budget. In the first instance he participates in the deliberations of the Base Budget WCrking Group. In the second instance he develops an RMS organization, and his unit operating budget. Reviewigg Instructions; Fixing Repponsibilipy.--At this time the manager's primary task is to interpret the instructions sent down from higher headquarters, and to identify the units responsible for budgeting specific elements of base expense. Once identified, the specific requirements, formats, etc., are sent to the individual units. A definite return date for their inputs to the operating budget is set. Since this theoretically is the manager's first contact with the budget process, some preliminary definitions, principles and ground rules are introduced to insure his knowledgeable participation. Figure 23 "Interpreting the Budget Instructions" portrays the flow of the learning tasks. 116 Developipg an RMS Organization.--Before the concepts of Operational budgeting and responsibility accounting can become reality, an explicit resource management organization must be developed. Therefore the manager's operational unit and his mission must be defined. Given the structure and the objectives to be attained, a resource management structure can be designed which will contribute to mission accomplishment. Furthermore this newly designed RMS organization must be staffed. Staffing includes recruitment, selection, familiarization, training, directing and controlling--a managerial microcosm in itself. These tasks are encompassed by Figures 24, 25 and 26. Developing the Unit Budget.--The responsibility center manager now carries out the instructions which he helped disseminate in his role as a budget working group member. Within his operating activity he must interpret the budget instructions; assign responsibilities for submitting various inputs: evaluate these inputs, and then consolidate and/or compute the unit requirements; develop justifications; conduct an internal review committee, if appropriate: and obtain the commander's approval of the statement of budgetary requirements. The final step is to forward these requirements to the budget officer for inclusion in the base budget. This activity is depicted in Figure 27. 117 Queue. Banach: Seneca-nicest mzoEDEzH “89m Huh EH {Sentences-3.3.; mm 953a Egan 205.358 HE. 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In this sense coordination differs from merely coordinating information, rather it promotes the smooth functioning of the components of an operational system. In this context then, the middle manager convenes with the other responsibility center managers of the base; he represents his own unit, but is also a representative of the base commander. In this latter role he must promote the optimization of resource distribution for the larger organization. He does this in two ways: (1) by integrating the base budget and (2) by distributing the approved base operating budget. lgtggratingthe Base Budget.--In this process the manager, while representing the base commander, evaluates the requirements stated for each budget account. These requirements are the composite of the inputs from the units. Given the need to reduce these to an extent specified by the projected amounts available, the group establishes priorities and attempts to optimize the resource requirements. The final product is forwarded to the budget advisory board for review and approval. The approved requirements are then forwarded to the major command for inclusion in the overall command requirements. This task is portrayed in Figure 28. 123 Distributing the Approved Base Operating Budget.--The major command forwards the approved base Operating budget, along with specific guidance, and specific amounts allocated to given elements of expense. Normally these amounts are less than requested, necessitating another session of the budget working group to adjust programs and fund distribution where possible. The redistribution results in the specification of "targets" or goals. These goals represent the programmed amounts of expense which may not be exceeded. The budget working group will also normally establish various control procedures to insure that targets are not exceeded. 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INF Erna BE «5. 23 _ z u BEBE unifies _ ”snag H - 08.3.6 18 283.33. uuuuu am “Else .1 53.83. EEEEH 32...: She .83.. a: :omeLomH F l/ .65: 8.5 53313 34.55.: us... 1:: ..:rata 2E rel-bot Erma E 38$: 88!. 83:: i 126 Executing the Operating Budget In performing this function the manager's tasks are performed primarily at,the unit level. His first task is to distribute the unit's approved operating budget among his subordinate responsibility and/or cost centers. In the second task he directs an aggressive resources conservation program. Distributipg the Approved Unit Operating Budget.--Distributing the budget at unit level follows the same pattern as the budget working group. except that the manager is now directing the distribution. This position requires a new set of interpersonal skills such as the ability to develop a cohesive group working toward a common goal. This activity is portrayed in Figure 30. Directing an Aggressive Resources Conservation Program.--At least two means of generating purchasing power can occur. The first consists of justifying one's resource requirements effectively. The second consists of finding more efficient ways of operating an activity. The resources thus saved can then be reprogrammed to other essential needs. The heart of resource management consists of programs to encourage effective and efficient operations. Directing an aggressive resources conservation program (RECON) promotes efficiency and generates purchasing power. The responsibility center manager must be able to accomplish both budgeting and resource conservation. The "RECON" program is depicted in Figure 31. on 0.5»: $85.... "Iago ED EOE nus aha—EH: 127 95 ED yam-JR- s... I... 8 i See any; :8: . gm “Ir—Hg E ”a. He>o§< you '0‘ En“ H. 5...... an§_fl_ E En E9328 E Era:— in a ng .8555 h , 03098 no a 3 a 83 .825 _ 0:2 \ a: 15m 3 1.8.2 as - 2.3:: one; an... amp veg. 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Itrequires active intervention to bring the operation into line with the established goals. Such active control constitutes the hallmark of a closed-loop system. Active control cannot exist without adequate information for decision making. RMS reports furnish such data. But only a knowledgeable manager can use these data effectively. The next four flow diagrams portray the control function as practiced by the middle-managers. In this functional area he analyzes the reports; evaluates his unit's performance; monitors funds status; and reviews the progress of the base as a whole. Obtaining Reports and Extracting Data.--While the mission is being executed and resources consumed, the results of operations are recorded and processed. Specific reports are generated for the budget officer, the responsibility center manager and the cost center managers. Some are distributed automatically, others must be requested. Decisions cannot be made knowledgeably without the appropriate reports. Furthermore, accuracy is essential. Therefore the data must be audited and then extracted to serve the needs of the manager. This task is depicted in Figure 32. {Establishingga Performance Measurement System.--Performance measurement is the key to control. In fact unless performance measurement takes place the entire complex of financial management 130 subsystems becomes merely a facade. A gygtgm of performance measure- ment is required. Given today's ability to generate data. the manager can be inundated with voluminous flows of information. But a systematic analysis enables the isolation of variances from planned goals, the identification of causes, and the selection of remedial alternatives. The tasks involved in establishing a performance measurement system are depicted in Figure 33. Establishing a Funds Analysis System.--The treatment of funds analysis as a separate task should not be construed as favoring a separation of funding analysis and performance analysis. The separate treatment herein is for purely pedagogical purposes. In reality, funds analysis should be an integral part of the overall performance evaluation. Budgets are, after all. merely the expression of plans and programs in dollar terms. And funding status, since it is quantified in meaningful dollar amounts, is one of the more highly visible indicators which can be employed by the manager. The systematic analysis of funds status is one of the prime responsibilities of the responsibility center manager. The process is depicted in Figure 3“. Evaluatinngase Progress.--Over and above evaluating his own unit‘s progress, the responsibility center manager participates in the review of the base's progress. as may evaluate the progress on a monthly basis and made minor adjustments; he may participate in a quarterly review which is forwarded to the budget advisory board for approval: or he may prepare a full-scale revision to the operating budget as directed by higher headquarters. 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Bang 3 u a». .3... ova-luau a 0:10 I958.— E com-E .1: 5.32.. .8.— .BEEE 559.5 IE ..IIII. any?! $2.3 $2.9 , _ \/ H .H_& :5 .30» v5 v3.3a cod-Em 33>:— .§_ F Incl E Ea E! .0323...— codaod on as.» F _ 355%. made H 5313.....— «:5. :35. alumna: a. no .6 3 acct—G .333” $32. was»; EEG mania Ea: _ _ 03.15 .1304 nuclear-z ouch-D 322.5 3!... hot! 5328 .55 2.3.. .8.- ans» 135 Summarz This chapter has presented the tasks performed by the responsibility center manager as he performs the functions inherent in resource management. These tasks were organized within an organizational/runetional matrix. The learning task hierarchies associated with each of the task demand statements were presented in Figures 22 through.35. These flow diagrams formed the framework for the design of the instructional objectives contained in the next chapter. Two additional bysproducts were developed as inputs to the model, but have pragmatic value in themselves. These were the job description and the interim course outline. CHAPTER VII INSTRUCTIONAL OBJECTIVES FOR SELECTED ACTIVITIES PERFORMED BY BASE-LEVEL RESPONSIBILITY CENTER MANAGERS Introduction This chapter presents a series of specific instructional objectives which were developed from the flow diagrams contained in the previous chapter. Although these instructional objectives represent the final product of the objectives-deriving model, they must be recognized also as representing inputs to the remainder of the educational process. Now the necessary learning experiences must be designed around these objectives and teaching must take place, before the research can produce pragmatic benefits. In a sense these objectives are analogous to the data produced by the resource manage- ment systems themselves; for unless that information is analyzed and used as input for decisive action, it too will produce no benefit, only cost. The Instructional Objectives Following Dr. Petro's construct, the selected activities performed by resource managers are listed in the same sequence as they were presented in the previous chapter. These basic activities are ordered according to their functional categories of planning. coordinating, directing and controlling. Each activity in turn is composed of hierarchically sequenced tasks. These tasks demand statements have been rewritten as instructional objectives and retain the flows established earlier. The correspondence of flow charts and instruc- tional objectives enables the educator to approach the learning experience with not only a strategic viewpoint of the instructional program development but also with a tactical definition of specific 136 137 objectives. Similarly a sequence according to the levels of learning is implicit throughout the presentation, since definition and description precede the higher levels of prdblem-solving and applica- tion. Mager's comprehensive study of instructional objectives sets forth a number of guidelines which describe the qualities, character- istics and components of such objectives. For example, the instruc- tional objective ought to be expressed in terms of the intended outcome of instruction rather than in terms of course content. Expressing the objective in terms of desired behavior enables the determination of successful accomplishment of the task. Furthermore, the components of an instructional objective should include: (a) an expression identifying and naming the operational behavior act, (b) a definition of the conditions under which the behavior is to occur and (c) a statement defining the criterion of acceptable performance. The instructional objectives presented herein are designed in accordance with Mager's guidelines. So the majority begin with the "givens" or conditions; proceed to the named action (which is underlined); and finally include some criterion test by which the successful accomplishment may be recognized. The criterion test may in some cases be implicit, but in most cases an explicit test is included. The instructional objectives which follow were analyzed by the jury panel and adjudged in terms of the Mager guide- lines; those found wanting were rewritten. The inventory of instruc- tional objectives derived from this research appears on the following pages. TASK DEMAND STATEMENT In order for the students to demonstrate this terminal behavior-- 138 INSTRUCTIONAL OBJECTIVES --the following instructional objectives must be achieved. INTERPRET THE BUDGET INSTRUCTIONS. (mm TO FIGURE 23) 1. Given the abbreviation "PPBS," the student is able to identifiy the meaning of the initials and define the terms Planning, Programming and Budgeting §zstems. 2. Given the abbreviation "FYDP," the student is able to identify the meaning of the initials: to define the Five Year Defense Plan as the long-range plan which is the heart of the DoD PPBS: and to describe the relationship of the FYDP to the Budget. 3. Given the abbreviation "RMS," the student is able to identify the meaning of the initials: to define the terms Resource Management Systems as found in DoD Directive 7000.1: to list four types of RMS found in the Air Force including Budgeting, Systems, Accounting Systems and Other Systems for Management of Operating Activities: and list the five policies prescribed for the management of resources by operating activities. a. Given the acronym "PRIME," the student will be able to identigy the meaning of the initials: and to define PRIME as a series of concerted management actions implemented on 1 July 1968 to install a closed-loop system of responsibility accounting in the DODe 5. Given an unlabelled illustration of the governmental financial management system, the student is able to identify and label the components and sub-systems, e.g., national objectives, planning, programming, budgeting, funding, FYDP, accounting, audit- ing reporting and mission accomplishment: and to use the labelled illustration to describe how the component sub-systems form a closed-loop system of management. 139 6. Given the term."USAF Management Process," the student is able to draw an illustration of the process: to label the pro-execution phase, the execution phase, and the functions of planning, organizing, coordinating, directing and controlling: and to describe the activities which take place in each function. 7. Given the term "Budget," the student is able to define a budget as a quantified expression of a plan and as an aid to coordination and control; to describe specifically the budget as a device for communicating the goals, means and drives of an organization. 8. Given the requirement to participate in the financial management process, the student is able to demonstrate his understanding of the motivational aspects of budgeting by listing at least four common negative reactions to budgets, analyzing the causes and possible cures for each instance; by listing four positive attitudes toward budgets and describing means of developing these attitudes in subordinates. 9. Given the illustration of the USAF Management Process developed above, and the term "Operating budget," the student is able to define an operating budget: and to describe its relationship to the managerial functions. 10. Given the term "budget cycle," the student is able to identify three phases; to describe the tasks and timing involved in each phase; to distinguish between "budget estimates," an "operating budget," and a "financial plan;" and to list the tasks and timing involved in the initial submission and the revisions of the operating budget. 11. The student is able to list and define at least three principles of budgeting, including "credibility," "honesty" and "balances" and to write a short paragraph on the essentiality of each to the budget prOCOSSe 140 12. Given his assignment to the Base Budget working Group, the student is able to recoggize the dual roles involved, i.e.. as a representative of his unit and as the commander's representative, with the latter role predominant. The criterion for evaluating this recognition will be based on an evaluation of performance in a simulated Base Budget Working Group. 13. Given a series of twenty statements describing the duties of the Budget Advisory Board, the Budget working Group, the Base Budget Officer, and Resource Managers, the student is able to identigx each statement with one of the above, with no more than three errors. 1“. Given the "call" for the operating budget, the student is able to identify and list the major appropriation accounts covered by the Operations Budget. 15. Given the "call" the student is able to list its components. 16. In preparation for interpreting budget instructions the student is able to identify the initials; define the following terms, gizigg three examples of each: and describe the relationships among them: MFP (Major ‘ Force Programs), PE (Program Elements), FC (Functional Categories), EEIC's (Elements of Expense and Investment Codes). 17. Given a selection of ten examples of MFP's, PE's, FC's and EEIC's and a list of appropriate manuals and references the student is able to identify the category to which the example belongs and match it with the appropriate reference manual in which the category is described. For example, given the words "Strategic Forces" the student would indicate Major Force Program and list an appropriate reference: AFM 172.1. 18. Given a "call" for the operating budget the student is able to identify the components by indicating paragraph or attachments wherein the technical guidance, program guidance, special justification formats, lists of required exhibits are IOC‘ted e 141 19. The student is able to list four kinds of budgetary responsibility: to define each: and given a list of 20 elements of expense applicable to the base to identigz the agencies having primary, and or concurrent budget responsibility for each EEIC shown. 20. Given a "call" with a suspensed return date from higher headquarters the student is able to project a schedule of activities required and the time involved and develop a Gantt progress chart with specific dates for accomplishment. TASK DEMAND STATEMENT In order for the students to demonstrate this terminal‘behavior-- DEFINE THE OPERATIONAL UNIT AND ITS MISSION. (REFER TO FIGURE 21.) 142 INSTRUCTIONAL OBJECTIVES --the following instructional objectives must be achieved. 1. Given a random listing of the standard elements of Air Force organization, the student is able to lace them in sequential descending order, 11 ustrating the chain of command from Hq USAF down to squadron level. 2. Given a blank organizational chart, i.e. with blocks but not labels, the student is able identify his operational unit, and the other major operational units on the base through squadron level, and trace the chain of command from the base commander down through his own unit. 3. Given the mission statement of the parent command, and a series of unit objectives, the student is able to write a mission statement for his own unit: the mission statement should be concise and communicate clearly the objectives to be attained. h. The student is able to define line authority, staff authority, and functional authority: illustrating each with an example from the base organization chart. 5. Using examples drawn from his experience, the student is able to differentiate between formal organization and informal organization, and to list three benefits and three dangers characteristic of each type. 6. Given a case problem containing ten examples of poor communications the student is able to identify at least eight barriers to good communications and to recommend three alternatives for eliminating each. 7. Given several examples of operational unit organization charts, the student is able to analyze the lines of authority and the channels of communication inherent in each example, identifying any examples wherein the organization structure contributes to confusion. 143 8. Given the understanding of the role of goals and objectives in the management process, the student is able to list three reasons for requiring written mission statements and organization charts from subunits. TASK DEMAND STATEMENT In order for the students to demonstrate this terminal behavior.. 144 INSTRUCTIONAL OBJECTIVES ..the following instructional objectives must be achieved. DESIGN A RESOURCE MMNAGEMENT ORGANIZATION (REFER TO FIGURE 25) 1. Given a list of pertinent acronyms, abbreviations, and financial management terms the student is able to write out the meaning of such terms as: RMS, PRIME, RC, CC, Resource Advisor, Operating Budget, Element of Expense and Investment Code (EEIC), Fiscal Year (FY) Budget Working Group (BWG), Budget Advisory Council (BAC). 2. After completing the definitions listed above, the student will be able to demonstrate his understanding of the importance of familiarity with financial management jargon by listing three instances in which the ability to interpret codes, acronyms and abbreviations will be useful to him in his assignment. 3. Given the blank diagram of the components of a cybernetic system, the student is able to rtrav the resource management system by labeIling the inputs (resources), processing (mission perforance), outputs (mission objectives attained), and the feedback mechanism. 4. Given the terms "effectiveness" and "efficiency" the student is able to define each, distinguishing each in terms of mission performance, and relate each to resource management. 5. Given the requirement to identify RMS reports, the student is able to list the Management Reports, and the Materiel Manage- ment Reports, indicating the organizational levels for which each is intended. 6. Given a six digit RC/CC code, the student is able to egplain the meaning of the significant digits or groups of digits. 7. Given an unfamiliar RC/CC code the student is able to identify the organization involved, by using the appropriate manuals, including the Publications Index. if necessary. 145 8. Given the Wing/Base Management Report the student is able to identigy the codes for the responsibility centers on the base, and to indicate the subordinate responsibility centers and cost centers in the format of an organization chart for RMB account. 9. The student is able to depict the Base RMS organization starting with the commander including the review committees, the comptroller organization, responsibility centers, and cost centers. 10. Given examples of elements of expense applicflble to the base, the student is able to identify the types of financial or budgeting responsibility involved: he should define the various types: (a) command (b) primary (c) collateral (d) concurrent. 11. Given a list of the organizational elements fo the base RMS organization the student is able to list the functions, responsibilities and duties of each. 12. Given the RMS objectives listed in Attachment 1 of AFR 172-1, the student is able to develop similar objectives for his own responsibility center. These would be examined by the class for validity: and the completed objectives will be cast in a mission statement format. 13. Given the base RMS organizational chart, the operational unit organization chart, and the listing of RC/CC's the student is able to design an RMS organization for his responsibility center. This will be portrayed in an organization/function chart, including internal review committees if required. 14. The student is able to list at least two valid reasons for requiring written updates of any changes in responsibility center managers, cost center managers or resource advisors. 15. Given the prerequisite inputs, the student is able to develop a mission statement, organizational chart and unit directives required for an effective unit program of financial management. TASK DEMAND STATEMENT In order for the students to demonstrate this terminal behaviore- 146 INSTRUCTIONAL OBJECTIVES e-the following instructional objectives must be achieved. STAFF THE RESOURCE MANAGEMENT ORGANIZATION. (REFER TO FIGURE 26) 1. Given the responsibility for staffing an RMS organization the student is able to describe the staffing function by identifya ing and defining the tasks involved: selection, orientation, training, develop— ment and motivation. 2. Given the requirement to identify factors contributing to financial managerial proficiency, the student is able to define at least six characteristics, which he would desire in his subordinates, including: (a) interest in effective and efficient management, (b) motivation to perform, (c) stability of assignment, (d) operational experience in the career area, (e) completion of training in management or supervision, and (f) extra education in accounting or other areas of resource management. 3. Given a list of desirable factors contributing to effective and efficient management, the student is able to identify at least four ways to create or develop these attributes in subordinates, and at least four ways to inhibit such development. 4. Given an existing RMS organization staffed with incumbents of varying proficiency the student is able to analyze their current proficiency levels by developing a proficiency check list of desirable characteristics, capabilities and standards of performance: evaluatigg personnel records: obtaining expert evaluation from their RMS contacts: and by conducti personal inter- views. The completed anaIysis should reflect an inventory of skills and weaknesses within the RMS organization, indicating the degree and amount of subordinate development required. 147 5. The student is able to egplain the importance of command emphasis as a primary means of motivation: and to describe at least three means of participation in the program by the commander which will indicate his support. The means should include a monthly briefing given by the commander to all newly assigned personnel, coverage of plans vs. programs at weekly staff meeting, and unit policy letters. 6. Given the inventory of skills and weaknesses of the RMS incumbents the student is able to systematically develop an educational program for his subordinates. He will be able to identify sources of assistance in developing the educational aspects: e.g. list appropriate manuals concerning the development and techniques of instruction, identify the assistance available from the Base Education Office, customer courses at Base Supply and Comp- troller resources for subject matter assistance. He will be able to identify any specific administrative procedures, which will require coverage in a unit directive, e.g. requiring all RMS personnel to attend the course, specifying frequency' of scheduled offerings, etc. 7. Given the Air Force Manuals on Terminology, Comptrollership, Management, Supply, and Operations. The student is able to develop a glossary of RMS terminology, required for an understanding of the RC manager's job. The entries will be evaluated by the class on the basis of relevance, clarity, and simplicity. 8. Given an hypothetical Operational RMS organization the student is able to gpecify alternatives for continuing motivation and development of the incumbents. As a minimum these should include: (1) a continuing command emphasis on the importance of RMS: (2) a continuing review of progress and interest by the RC manager of his subordinates: (3) formal recognition of RMS duties and accomplishments in effectiveness reports: (4) formal recognition of accomplishments of RMS incumbents by the commander where warranted: (5) a continual program of cross- feed and feedback at staff meetings on RMS tips: (6) positive encouragement of qualified and interested individuals to pursue educational opportunities in RMS areas. TASK DEMAND STATEMENT In order for the students to demonstrate this terminal behaviore- 148 INSTRUCTIONAL OBJECTIVES --the following instructional objectives must be achieved. DEVELOP THE UNIT BUDGET (REFER TO FIGURE 27) 1. Given a sample set of instructions passed by the budget office for developing the initial operating budget for a fiscal year, the student is able to: (1) Determine if this is an initial operating budget or a revision: (2) Describe when formal revisions are usually required: (3) Identify special justification formats: (4) Identify any technical guidance if provided: (5) Identify program guidance if provided: (6) Define the funding levels provided for each element of expense: (7) §pecify the return (suspense) date to bUdgete 2. Given a set of budget instructions, an historical file of past budget submissions and inputs, and the requirement to complete a budget submission the student is able to identify the actions necessary to obtain the unit program applicable to each budget account. These steps include: defining the basic budget formula (Program, Quantity, Price): analypipg past budgets to determine types and quantities of resources required for previous levels of program activity: determinigg current plans and programs by inspecting program guidance in the call: and determining what support is rendered by (and to) other agencies. The end result of the analysis should include a resume of each of the activities outlined above, with a letter to each affected agency requesting inputs to the budget by EEIC with specific formats for the inputs and a suspense date for the submission. 3. Given an incomplete set of inputs, the student is able to identify the missing data and sppcify alternative steps to obtain the data. 149 4. Given a complete set of inputs and a calculating machine, the student is able to add, subtract,_multiply and divide using the calculator. He is able to check the inputs for accuracy and make the necessary computations, and consolidations, ultimately double-checking his figures and producing a numerically error-free sub- mission. 5. Given a series of inputs by element of expense, the student is able to identify at least three methods for phasing the annual requirements into quarterly targets, listipg at least two appropriate reasons for using each method. 6. Given the requirement to develop the unit budget, a set of inputs from a variety of sources, and a set of targets which are 25% below the resources requested the student is able to develop a rationale for an internal budget working group review, consisting of: (1) reviewing the budget principles of fairness, honesty, credibility and "balance" (2) defining categories of priorities based on mission essentiality or fixed costs (3) applying the priorities to unit programs (4) reducing requirements to fit the available funds (5) examining for balance 7. Given the requirement to chair an internal budget working group the student is able to develop a checklist of pre- requisites which will include: reserving adequate physical facilities: notifying the participants: sending advance data on the problems to be covered: developing charts for oral presentation: double checking the facilities beforehand. 8. Given the requirement to chair the internal budget working group: and the requirement to reduce resources requested, the student is able to specify the importance of a cohesive and coordinated program by describing at least five ways to foster these qualities. 150 9. Given the opportunity to chair an internal budget working group as it attempts- to revise resource requirements to fit available funds the student is able to direct the completion of the task by applying the rationale developed above. An evaluation of the success of the task will include not only the ability to match resources requested and available, but also whether the process is judged equitable by the majority of participants. 10. Given the requirement to write the justification for the budget input, the student is able to describe the essentials of the justification process: the descrip- tion should include an explanation of the computation and its components: the need to explain the need in precise, vivid, and compelling terminology: an explanation of the variables, i.e. changes in programs, consumption, prices: and an explanation of the impact if funds are not received. 11. The student is able to produce a set of minutes for the simulated ENG which are objective, concise and clearly written. 12. Given the successful review data, the student is able to list three reasons for the importance of maintaining a list of the unfunded requests. 13. The student is able to develop a coherent, cohesive and persuasive briefing for the commander gxplaining the funding levels, the resources required, the priorities established and the unfunded needs. TASK DEMAND STATEMENT In order for the students to demonstrate this terminal behavior-— 151 INSTRUCTIONAL OBJECTIVES --the following instructional objectives must be achieved. INTEGRATE THE BASE OPERATING BUDGET (REFER TO FIGURE 28) 1. Given the requirement to participate in the base budget working group (BWG) the student is able to list the functions and responsibilities of the BWG. The list should include: (a) Reviewing higher headquarters instruc- tions for preparing operating budgets and revisions. (b) Insuring that operating budgets represent approved programs, that resource requirements are stated on a priority basis, yet represent a balanced program. (c) Insuring that computations and justifications are accurate and complete. (d) Developing the operating budget for approval by the Budget Advisory Board. (e) Monitor the execution and management of resources for all organizations supported by the base operating budget. (f) Reviewing policies, regulations and mission changes which have an impact on funds requirements. (g) Reviewing the financial position in comparison to targets and recommending revisions, and/or solutions. 2. The student is able to demonstrate his preparedness to evaluate the operating budget presentation by listing criteria to be employed in checking each budget account. The list should include (a) checking for completeness of input, (b) checking for validity of program data, (c) checking for reasonableness of data such as price, quantity, and proposed quarterly phasing (d) checking accuracy of computations. 3. Given the task of assigning priorities to resource requirements the student is able to define the meaning of priorities: and to list various categories into which priorities might be divided. One such rationale would include a categorization according to (a) direct support of the operational mission (b) contributing 152 support to the operational mission (c) support to the assigned mission, but not directly related to operational capability. Another rationale might include an analysis of fixed and variable COStSe 4. Given an agreed upon set of categories for assigning priorities and a set of sample resource requirement inputs the student is able to assign a priority to each requirement. The consensus of the class will be used as a criterion for determining the appropriateness of the categories and differences will be resolved by negotiation, simulating an actual BWG session. 5. Given a set of resource requirements listed by element of expense, by priority and given a target authorization consider- ably lower than the amount requested the student is able to develop a list of approved requirements which will meet the authorization target: is able to demonstrate his understanding of the principle of "balance" by his choices of approved requests and selection of a reduction technique. For example, a straight percentage cut "across-the-board" would not reflect a balanced program. 6. Given the list of unfunded require- ments the student is able to list three reasons for retaining the requirements: the list would include such reasons as (1) required by regulation, (2) possibility of increased funds availability (3) the list represents tasks recognized but incapable of accomplishment because of funds limitations . 7. Given a set of specific resource requirements approved by the ENG, the student is able to demonstrate his ability to write the justification for such requests. The justifications written by the student should be precise, concise, vivid and compelling. The justification should include an explanation of the computations and their components: the previous requirements and any changes in program, consumption or prices: and the adverse impact if funds are not received 153 for this item. The same criteria will be applied to examples of written reclama. 8. Given the requirement to defend his budget request before the Budget Advisory Board (BAB) the student is able to develop a briefing, using "flip" charts or other appropriate graphic techniques: to develop a justification according to the criteria outlined above: and to present this briefing before a group. His presentation should be scored on the basis of clarity, conciseness, logic, and capacity to convince. 9. The student is able to list three reasons for maintaining a unit file of minutes of the BWG and BAB. TASK DEMAND STATEMENT In order for the students to demonstrate this terminal behavior-- 154 INSTRUCTIONAL OBJECTIVES --the following instructional objectives must be achieved. DISTRIBUTE THE APPROVED BASE OPERATING BUDGET (REFER TO FIGURE 29) 1. In order to participate knowledgeably in the BWG distribution of the approved base operating budget the student must be able to distinguish several concepts and actions. Therefore the student is able to define the terms "approved Operating budget," and "operating budget authority." He is able to list and to define the three categories of constraints applicable to administrative controls as (a) targets (b) administrative limitations and (c) legal limitations and, given a series of situations portraying violations of these constraints the student is able to identify which type of control was violated and to identify the corrective action required. 2. Given the terms "obligations," "undelivered orders outstanding," and "expense," the student is able to define each term. And given a series of twenty typical transactions, the student is able to identify the point at which an obligation has been incurred, an undelivered order outstanding recorded, or an expense accrued, with no more than five errors. 3. Given the Operating budget which was forwarded by the BAB to major command, and given the approved operating budgets sent down from major command the student is able to analyze the differences in financial authority requested versus that received: to identify the hard core or fixed expenses and the variable expenses at Operating budget account number (OBAN) level: to inteppret the narrative command guidance: and to evaluate the actions recommended by the budget Officer by reviewing each element of expense and its associated program levels afforded, identifying shortages by priority. 4. Given the requirement to realign programs and resources, the student is able to identify at least four potential courses of action, including realigning priorities, reducing mission support, reprogramming 155 funds, or taking no action. 5. Given the opportunity to evaluate an approved operating budget, the student is able to recommend alternative courses of action which will result in a balanced program. His recommendations will be examined for their legality, validity, optimizing of resource allocation, and acceptability to the remainder of the group O 6. Given the Opportunity to employ targets in the management process, the student is able to identify four reasons for using targets: to ezplain the nature of goals and the importance of measuring progress against relatively stable goals: and to identify at least three hazards of arbitrary and frequent changes in targets. 7. In order to understand the derivation of targets, the student must be able to define the terms "Total Direct Expense Authority,"-"Total Direct Operating Budget," and "Total Operating Budget:" and to indicate the calculations involved in each figure. 8. Given the limited resources available, the student is able to list two types of general controls, i.e. the competent review of proposed expenditures, and the pro-certification of fund availability. Given a listing of the major elements of expense the student is able to list at least three specific ideas for controlling each: and to identi§y_four methods or sources of ideas for implementing effective controls. 9. Given the limited resources available, the student is able to list four or more positive actions appropriate to effective and efficient resource management. These could include developing (1) an effective information and education program for all base personnel, (2) indoctrination programs for resource conservation for all newly assigned personnel, (3) a highly visible program of command emphasis on financial management with status reports and frequent progress reviews, and (4) a communications 156 program of cross-feed and feed-back throughout the command. 10. Given the inability to live within the funding levels established, the student is able to determine whether or not a reclama is appropriate. If so, the student is able to develop an effective rationale and write a justification for a specific element of expense. The criteria for judging the effectiveness of the effort will include the precision, conciseness, logic and conviction of his presentation. TASK DEMAND STATEMENT In order for the students to demonstrate this terminal behavior-- 157 INSTRUCTIONAL OBJECTIVES --the following instructional objectives must be achieved. DISTRIBUTE THE UNIT APPROVED OPERATING BUDGET (REFER TO FIGURE 30) 1. Given the assignment as single point of contact for RMS, the student is able to identify at least six sources of assistance in performing his managerial functions effectively and efficiently. 2. Given the requirement to direct an internal BWG, the student is able to define the objectives and responsibilities involved in distributing the approved unit Operating budget: to ezplain the Operating budget and its associated concepts to the members so that all members are equally knowledgeable: and to motivate the members to participate actively and earnestly in the process. The student will develop a briefing and a handout to accomplish these objectives. He will present the briefing orally in a role—playing session, specifying the objectives and responsibilities of the group, defining pertinent terms, and concluding with a presentation designed to convince the BWG members of the importance and relevance of the task at hand. The handout will be evaluated on its completeness and conciseness: important concepts which must be explained are: (a) an approved operating budget (b) types of constraints (legal, administrative and targets) (c) Obligations (d) expenses (e) undelivered orders outstanding (f) reimbursements to appropriations. 3. Given the requirement to present the revised Operating budget to the unit BWG, the student is able to devglgp a briefing of the appropriate elements of expense, comparing amounts requested to amounts received and quarterly targets illustrating those programs from the initial request which will be covered and those which will remain unfunded if no changes are made. 4. Given the requirement to reprogram funds, the student is able to lead the BWG through the process, suggesting 158 alternatives and eliciting response from members. He is able to recognize that there is no set formula for insuring participation: but is able to identif? and list at least four psychological conditions associated with individuals which constitute prerequisites (not guarantees) to effective participation: (a) the subordinate must be capable of becoming psychologically involved in the participational activities (b) he must favor the activity (c) he must see the relevance to his personal life pattern of the thing being considered and (d) he must be able to express himself to his own satisfaction. He is further able to identif and list six nonpersonal factors a time availability to reach a decision (b) rational economics (c) subordinate security in regard to status or role (d) manager-subordinate stability, i.e. the process must not lead to undermining formal authority of the leader (e) communication channels must be open and available (f) participants must be knowledgeable and capable. 5. Given the requirement to examine the reprogrammed budget the student is able to ezplain "balance" in the sense of optimizing the mission accomplishment and mission support obtained by the resources experfled e 6. Given the term "targets," the student is able to e lain targets as goals, with three emphases: a) the importance of not exceeding targets, since they constitute a constraint (b) the importance of not expending resources simply to meet a target and (c) the importance of not changing targets simply to validate actual rates of expenditure. 7. Given the requirement to establish controls over resource expenditures, the student is able to define a minimum of four types of controls: (a) setting categories of dollar expenditures and approval authority (b) requiring competent review of types of supplies etc., which are purchased, turned in, or expended (c) prescribing precertification of available funds before Obligation (d) requiring 159 timely scheduled reviews of status by the unit BWG. 8. Given the responsibility of directing a fullscale financial management program, the student is able to develop a comprehensive outline of such a program including proced- ures for status reporting: an information and education program for comunicating the progress within each subordinate echelon: positive rewards for managers who innovate to conserve funds: and means of developing an aggressive and positive attitude toward financial management. 9. Given the necessity of obtaining the unit commander's approval of the recommended reprogramming and alternative actions, the student is able to develop a briefing portraying the requested funds, the funds received and the recommended reprogramming actions. The presentation should be complete, concise and compelling. 10. Given the inability to live within the targets established for a specific EEIC the student is able to write an effective one page justification for requesting additional funds. The criteria for judging the effectiveness of this effort will include the precision, conciseness, logic and conviction of his presentation. TASK DEMAND STATEMENT In order for the students to demonstrate this terminal behavior- 160 INSTRUCTIONAL OBJECTIVES --the following instructional objectives must be achieved. DIRECT AN AGGRESSIVE RESOURCES CONSERVATION (RECON) PROGRAM (REFER TO FIGURE 31) 1. Given the task of describing the Air Force Resources Conservation (RECON) program as contained in.AFM 400-12 the student is able to define the acronym "RECON": to list two overall program Objectives: (a) the improvement of management and operating practices at all levels of the Department of the Air Force, and (b) to stimulate positive management improvement actions that will insure efficient operational accomplishment: and to list at least three imperative actions required Of all Air Force Personnel including: (a) Re-examine critically and unsentiment- ally the missions, programs and tasks in which they are engaged, and elimina- ting or modifying them as required. (b) Attempting to meet new workload requirements by adjusting existing methods. (c) Attempting to meet new workload requirements by discovering better mathOdSO 2. Given the task of defining a RECON action, the student is able to list the three characteristics of a RECON action as: (a) representing new, improved or intensified management as related to an individual, item, job, operation or function, or represents an increase in productivity (b) being initiated by DoD personnel (c) producing a supportable benefit which can be quantified in dollars, or results in an increase in funds deposited in the Us Se Treamye 3. Given a list of forty alleged RECON actions and AFM 400-12 the student is able to determine the validity of the claim by locati the appropriate section of the manual (Chapter 3) and identifying_a pertinent reason why the action is or is not to be reported. The student should identify thirtyasix of the forty actions correctly. 161 4. Given AFMI400-12 and the list of thirty RECON actions identified above as valid RECON actions the student is able to identify and list the appropriate RECON reporting areas for at least twentya five of the actions. 5. Given the responsibility to develop an effective RECON organization the student is able to list the steps to be taken in such a program, including an evaluation of the incumbents through an analysis of past activities and by personal interviews: by identifying the responsibilities of RECON program managers and administrators: by recruiting individuals to serve who are highly motivated: by developing opportunities for growth: and by establishing meaningful recognition of RECON service as an integral part of the program. 6. Given the requirement to direct an aggressive RECON program the student is able to describe at least three courses of potentially fruitful action including (a) the establishment of goals among the various subordinate program managers (b) the coordination of RMS and RECON programs since there is a common interest and cause, and (c) the development of formal programs of innovation and communication. The requirement would be stated in the form of a staff study to analyze the actions required in developing a unit RECON program. The full staff study format as prescribed in AFP 10-1 would be applicable and the recommended procedures should be included as annexes. 7. Given the requirement to direct a RECON program, the student is able to indicate his understanding of the importance of recognizing accomplishment not only for participants, but also for program managers and program administrators: thus he will develop written procedures requiring at least three methods of providing recognition for each type of individual, including: (a) entries on effectiveness reports (b) appropriate awards and ceremonies, fOrwarding reports promptly to promote eligibility for higher awards, and (c) a continuing campaign of publicity. TASK DEMAND STATEMENT In order for the students to demonstrate this terminal behavior- 162 INSTRUCTIONAL OBJECTIVES --the following instructional objectives must be achieved. OBTAIN REPORTS AND AUDIT DATA (REFER TO FIGURE 32) 1. Given the assignment to manage a responsibility center, the student is able to spgcify at least four means of identifying the elements of expense applicable to his responsibility center. These would include: (a) seeking the advice of the next higher responsibility center manager (b) asking the base budget officer (c) accumulating the information from his subordinate responsibility centers (d) analyzing the files of his predecessor, and (e) the Resource Manager's Handbook. 2. Given the requirement to identify the types of reports available, the student is able to identify (a) management reports (b) materiel management reports and (c) other operational reports. 3. Given an example of the Wing/Base Management Report, The Responsibility Center Report and the Cost Center Reports the student is able to identify each: and to describe the primary purpose of each. For example (a) the cost center report is the basic management expense report in the series: it is designed so that the cost center manager can relate actual expenses to the approved program by expense element. (b) The Responsibility Center Report is an aggregation of the data by expense elements with a cost center array showing the actual and programmed expense data. The RC manager is able to examine the arrays to identify potential problem areas. (c) The Wing/Base Management Report is an optional top-level report limited to the Responsibility Centers reporting directly to the commander. It depicts the overall resource status of the major organizational components of the wing, the total expenses and reimbursements earned for the wing, related to the End of Quarter (EOQ) and Annual Authorizations. 163 4. Given the requirement to manage materiel expenditures, the student is able to list the two classifications of materiel as investment or expense materiel: to further classify expense materiel as consisting of nonreparable spares, reparable but not centrally recoverable items, and other expendable supplies that are consumed in use: and to define investment materiel in accordance with AFM 178-6. 5. Given the Expendability, Reparability, Recoverability Codes (ERRC), XDI, KCZ, XFZ, XF3, XB, NDZ, NFZ, the student able to classify the associated materiel as "Investment" or "Expense" and to indicate whether or not the item is chargeable to the operating expense budget. 6. The student is able to list the cost center level materiel management reports and write a brief description of the contents and uses of each. 7. The student is able to list the responsibility center level materiel management reports and write a brief description of the contents and uses of each. 8. Given a complete list of the RC/CC reports and the organization structure data relevant to his responsibility center, the student is able to construct a written checklist indicating (a) the report's origin, (b) its distribution source, (c) its frequency of distribution, (d) and the recipient's requirement for filing, and disposition. 9. Given the completed list constructed above, the student is able to obtain information from the recipients Of the reports which will enable him to analyze the necessity of generating the number of OOpies and to analyze the effectiveness of the use by the recipient. 10. Given the requirement to analyze the use of management reports, the student is able to specify the rules for manage- ment action to correct significant variances: (a) if the reports indicate a variance, analyze the problem associated 164 with the variance and determine whether management action is required, and (b) determine the action, if any, which is required to bring performance into balance with the plan, either by modifying performance or the plan. 11. Given the following acronyms and abbreviations the student is able to define each and indicate their relevance to his activity: (a) ERRC (b) FIA (c) TRIC, (d) PFMR code, (e) due out cancellations, D/O with D/I. 12. Given a set of cost center materiel management reports, the student is able to develop a check list of specific require- ments for daily analysis by cost center managers which will insure the validity and accuracy of the inputs to the system. These procedures will include: (a) check for proper RC/CC or PFMR code (b) check to see if the items are appropriate to the organization, e.g., is aviation fuel being charged to motor pool? (c) check for proper quantity (d) check for proper unit price and total price (e) check to see if the item should be charged to expense (ERRC) (f) check to see that creditable turn-ins actually received credit (g) check transaction indicator code (TRIC) (h) check for availability of funds (1) check for due out cancellations (j) cross-check report of stock-funded supplies D/O with D/I against Daily Organization CC update list (k) cross-check report of stock-funded supplies D/O without D/I against DO/CC update list. TASK DEMAND STATEMENT In order for the students to demonstrate this terminal behavior-- 165 INSTRUCTIONAL OBJECTIVES --the following instructional Objectives must be achieved. ESTABLISH A FUNDS ANALYSIS SYSTEM (REFER TO FIGURE 33) 1. Given the requirement to extract data for analysis the student is able to define the importance of analysis, describing three important implications of the analyt- ical process: (a) given the goal of the system, i.e. effective and efficient mission accomplishment--the system will only begin to function as intended when the manager begins to use the additional expense data for critical comparison with the planned cost of operation, and exercises his basic ingenuity in striving for improved results because of this comparison. (b) In the competition for resources, the decision favors those who can best relate resources to assigned mission. The historical expense data contained in the system enables the knowledgeable manager to better justify his budget. (c) The management reports aid in the administration of operating budgets and targets. They show the manager how his consumption of resources (actual expenses) compare with his plan (budgeted expenses). They do p23 show’what has been accomplished with the resources consumed, nor do they provide a.measure- ment of performance. That task is a function of analysis. 2. Given the requirement to analyze fund status, the student is able to identify at least four sources of assistance including: (a) specific manuals (b) the budget officer (c) the next-level RC manager (d) the management analysis officer. 3. Given a complete set of RC/CC reports, an RMS organization structure, and having developed a comprehensive list of the applicable elements of expense and associated targets, the student is able to identify at least two simple types of analyses which could be useful in identifying problems: comparative analysis and trend analysis: to identify at least two analyt- ical tools: the trend chart and the Gantt chart: to establish a basic funds analysis 166 requirement by specifying which data must be extracted, collected, summarized and interpreted on a recurring basis. 4. Given a complete set of RC/CC reports and a series of input documents, the student is able to select the appropriate report and to verify the accuracy of inputs. The student also is able to list at least three reasons for spot verification of subordinate RC/CC reports. 5. Given a set of RC reports and the requirement to perform a fUnds analysis the student is able to identify the initial step in fUnds analysis i.e. to compare the actual expense to the programmed expense: to list at least six variables which have a bearing on any decision regarding the significance of the observed variance: (a) specific expense element inrolved (b) dollar amount of variation (c) logic of the expense program phasing (d) logical surges or lags (e) cost center involved, and (f) time period covered. 6. Given the expense program fer a fiscal quarter and series of RC/CC reports the student is able to construct a graph portraying the expense target on the vertical axis and to project the programmed expense along the diagonal: using the reports the student is able to extract the actual expenses and to plot them in relation to the program: given an apparent variance the student is able to n§g_the reports to analyze significance or non- significance according to the variables outlined above: and to ppoject the end of quarter expenses if continued at the current rate. 7. Given the significant variance outlined above, the student is able to identify the significant variables which are causing the variance: to determine if the variance is controllable or non-controllable at the local level: to identify at least four alternative actions including (a) take no action (b) realign targets (c) adjust program.requirements (d) tighten controls: to select the appropriate alternative, and to identigy the affected elements of the organization with whom coordination 167 will be required before implementing the corrective action. The student will perform a written analysis covering the specific tasks listed above and synthesize the data into an oral briefing, with appropriate graphic aids, and simulate a command presentation of recommendations. The criteria for evaluating the effort will include: the accuracy of analysis: the creativity and initiative displayed by the quantity and quality of the alter- natives generated: the logic employed in selecting the corrective action(s) and the clarity, conciseness and conviction demonstrated in the briefing of recommenda- tion! 0 TASK DEMAND STATEMENT In order for the students to demonstrate this terminal behavior-— 168 INSTRUCTIONAL OBJECTIVES --the following instructional objectives must be achieved. ESTABLISH A PERFORMANCE MEASUREMENT SYSTEMC (new: TO FIGURE 3n) 1. Given an illustration of a cybernetic system the student is able to write at least a one page essay succinctly- correllat. ing the concepts of "control," "feedback" and "performance measurement," emphasising the absence of a closed-loop without the performance measurement and correction of variations. 2. Given the requirement to define "management by objectives" the student is able to demonstrate his understanding of the process by listing six examples of what "management by objectives” is, and six examples of what it is not: and to relate "management by objectives" to resource management. 3. Given the term."0utput Measures" the student is able to define the term: to identify the overall Air Force "Output Measures Program" by citi the appropriate USAF, major command, and ocal directives encompassing the program: and to relate output measures to mission accomplishment. h. Given the requirement to outline the process of analysis, the student is able to list the three steps of the analysis process and their associated tasks: (a) Study the situation: (1) define the objective of the analysis (2) specify the questions which must be answered and the means of deriving those answers (3) define the problem by limiting its parameters and relating it to the basic objectives (b) Perform research: (1) isolate the significant factors (2) arrange the factors in some logical order, portraying their interrelationships (3) determine possible alternatives and evaluate their acceptability in light of established criteria (c) present the analysis. 169 5. Given the term "scientific method" of problem solving the student is able to list the seven steps: and to write a paragraph describing each step: (a) define the problem (b) collect data (c) list possible solutions (d) test possible solutions (e) select possible solution (f) apply the solution (g) evaluate the action taken. 6. Given the term "strategic" or "limiting" factors and a series of five short case studies, the student is able to define the term: and to isolate the strategic factor in each case, ppplzipg the steps of the of the research process: and to recommend actions in a written summary. 7. Given a simulated responsibility center assignment and the participation of the unit budget working group, the student is able to develop a proposed program of output measurement which will include: (a) specification of mission objectives and access to period and project plans, (b) iden— tification of specific tasks performed in each RC/CC (c) spgcification of progranmed resources and rates of consumption (d) identification of strategic factors in mission accomplishment process (e) iden- tification of selection criteria (f) creation of a data base to test proposed measures. 8. Given the assignment to establish criteria for performance standards, the student is able to list at least seven criteria against which the proposed measurement should be performed, including ' five of these: (a) availability of data (b) economy of obtaining data (c) reason— ableness and attainability of the standards (d) objectivity of the standards (e) validity and reliability of the standards (f) flexibility of the standards (g) contribution of the standards to a balanced operation. 9. Given a proposed set of performance standards some of which meet the criteria and some which do not meet the criteria, the student is able to ppply the criteria: to select favorable standards and to reject inappropriate standards: and to list the pertinent reasons supporting his action. 170 10. Given a set of validated performance standards, the student is able to list three reasons for the coordination of the proposed standards with the responsibile manager(s) before presentation to the commander. 11. Given a set of validated and approved performance measurement standards and a set of test data the student is able to analyze the data: to identify variances from standard: to isolate causes of the variance: to identify alternatives for corrective actions, to forecast the impact of each recommended action: and to ppesent the analysis for the commander's decision. 12. Given the completed analysis, the student is able to emphasize the importance of follow up by the manager or commander for cases in which the planned output met or exceeded the standard, as well as in tightening the controls on significant variations. The student is able to relate the importance of following up to motivation and the management process. TASK DEMAND STATEMENT In order for the students to demonstrate this terminal behavior- 171 INSTRUCTIONAL OBJECTIVES ..the following instructional objectives must be achieved. EVALUATE BASE PROGRESS (REFER TO FIGURE 35) 1. Given the requirement to evaluate base progress the student is able to distinguish between review and revision: to describe the review cycle as an internal base- level evaluation which takes place monthly at which time progress is evaluated and adjustments made locally: to describe the revision cycle as occurring at the direction of higher headquarters, usually once a year but perhaps more often, and generally prepared in October by the field and returned in February: and to describe the types of revision instructions to be implemented. 2. Given a sample set of monthly data for the base, and a format representative of the type prepared by the base budget officer, the student is able to compare programmed versus actual expenses: to evaluate the current rates of expenditure: to forecast the fund status at the end of the quarter and end of the fiscal year: and evaluate known program changes. These activities will result in a written analysis of areas requiring some corrective action. The analysis will be judged on its identification of valid problem areas: the logic used in adjudging problems: and clarity of presentation. 3, Given a set of valid problem areas requiring corrective action, the student is able to identify at least four potential courses of action, including (a) take no action (b) adjust the operation program (c) reprogram funds (d) realign priorities and (e) tighten controls on expenditure rates: and to recommend corrective action(s). The recommendation should be judged on its creativity and initiative, its probability of solving the problem, its logic, and its clarity of presentation. 172 h, Given the requirement to revise the operating budget, and the recommended actions listed above, the student is able to adjust programs and resources: to examine for "balance": to list unfunded requirements: and to write_ the required justification and/or FSEIERE. The effective- ness of the solution will be judged by his fellow students at a simulated presentation of the recommended budget advisory board, based on ingenuity, logic, balance and potential ability to solve the problem. 5. Given the requirement to revise the unit Operating budget in accordance with the solution derived above, the student is able to convene the unit BWG and direct the revision process. CHAPTER VIII SUMMARY, CONCLUSIONS AND RECOMMENDATIONS Introduction This study investigated the feasibility of solving an operational problem of the United States Air Force by employing a model for deriving instructional objectives. The study specifically evaluated three basic propositions: 1. That there is a pronounced need for IT&E at base-level in the concepts, skills and operations of financial management if RMS, PRIME and the Base Operations Accounting Systems are to succeed. 2. That these concepts, skills and operations can be identified and learning experiences specified for them. 3. That the implied learning tasks can be rewritten as instruc- tional objectives. The Need for this Study Numerous research projects undertaken independently of each other established the need for this study. Among the most notable of these were: (1) Lt. Col. Kline's doctoral dissertation,1 (2) the investiga- tions of the PRIME Review Committee,2 (3) the special study performed by the management analysts at Fairchild AFB,3 and (U) the special study undertaken by the analysts at Reese AFB.u Each project explicitly documented the need for a comprehensive program of Indoctrination, Training and Education (IT&E) at the base- level. Perhaps the most succinct expression of the educational void was contained in The Inspector General Brief, dated 5 June 1970: During FY 1968 and early FY 1969, there was a genuine effort on the part of comptroller personnel at command and base level to apprise line personnel of the new resource management concept. As time passed, however, several negative, motivational actions occurred-~and today the training effort is sporadic, incomplete, or nonexistent.5 173 174 Lt. Col. Kline's study in particular emphasized the lack of a standardized program of IT&E. He identified one of the strategic or limiting factors detracting from full implementation of PRIME as the lack of any centrally directed program of IT&E for the base-level responsibility center manager. He forecast the results in these terms: . . . This chapter establishes that the sorely needed benefits of an effective IT&E program are not generally available to the financial managers. However, most of the "ingredients" are available: the biggest missing link is centralized direction and control. Without centralized direction and attendant control IT&E will probably remain fragmented, top manager's attention will probably not be attracted sufficiently, and not surprisingly, the IT&E program will retain such a low priority that the pressure of daywto-day activities will prevent it from being effectively achieved. But before a centralized program of IT&E can be established the instructional objectives to be attained must be identified. And that was the purpose of this research. The Methodology Employed in this Study Educators have been working at deriving instructional objectives for many years. various movements and deve10pments have centered around the importance of using objectives as goals to be attained by both student and teacher. Now modern systems concepts have been applied to the problem and models have been developed which will enable the systematic derivation of educational objectives. This study used such a model. Instructional objectives which are behaviorally expressed should clearly indicate what activity a student is expected to be able to perform by the completion of the learning sequence. The model used in this study stems from a number of related researches investigating the derivation of such objectives in vocational education courses. The 175 model's design employed an eclectic approach which extracted and built upon concepts developed in other such models, combining their best features. The Importance of Systematic Models The concept of a cybernetic system is being increasingly applied to a wide range of modern problems. A cybernetic system operates under a closed—loop cycle to produce outputs at optimal efficiency. Its distinctive feedback mechanism continually measures the output insuring that it remains within the designated control tolerances. Thus in a systematic instructional sequence the design of the learning experience is continually tested for effectiveness and efficiency. In this context instructional objectives are the goals which are set; and in a sense they also constitute the criteria against which output is measured. Criteria for Evaluating the Methodology Ammerman and Helohing's study of Objectives Derivation for the Human Resources Research Organization was sponsored by the DoD. The authors provided seven criteria to be used in evaluating an objectives- deriving model. (These criteria were listed in the Introduction to Chapter V of this research.)7 The model employed in this research satisfactorily measured up to the requirements of each of the dimensions specified. In addition to those criteria, Ammerman and Melching also concluded that: The prime criteria for deriving terminal student perform- ance objectives are "relevance" and "criticalness for instruc- tion." Feasibility considerations should not be introduced until after the terminal objectives have been identified and stated.8 176 Since feasibility was not originally a criterion for screening the inputs, the reaction of some of the members of the panel to the topical . course outline was not surprising. Some indicated that any comprehensive educational program based on such an extensive list of topics would prove impractical at base-level. And admittedly the joining of the task—oriented data to the content-oriented data did not reduce the scope of the instructional program. But two important points must be made: (1) the task-oriented data are based on the jobs which the middle managers are now expected to perform. Therefore, omitting certain objectives solely in order to achieve brevity, or to make the educational workload more palatable, would only result in imbalance, imperfection and incompleteness. But every set of alternatives requires some trade- off: and realism may require a broader analysis of relevance and feasibility. A comprehensive set of objectives has been provided, recognizing that revision and reduction are more easily accomplished than derivation. (2) the design of the learning experience must be based on a complete set of objectives. Hewever, the mode and efficiency of the learning experience thus designed will have a great impact upon the resources required. No attempt was made to specify the mode of learning, although some recommendations will be made shortly. Conclusions Because this study has been equally concerned with both the operational problem and the methodology for resolving that problem, conclusions related to each will be included. 17? Conclusions Pertainingto the Problem Perhaps the first and most important conclusion is that the research has validated the three basic propositions listed above. The Need for IT&E.--Throughout the initial chapters diverse testimony consistently established the need for IT&E. Furthermore the empirical investigation continually demonstrated that with few exceptions training of new resource managers consisted of a few minutes with the budget officer, followed by a frustrating period of "sink or swim." .Interviewees consistently stressed the importance of selecting experienced individuals: whereas in practice the assignment is generally treated as an additional duty. Traditionally additional duties have been assigned to the newest and least experienced member of the organization: and the pattern has not changed in assigning resource advisors. If that practice continues, the need for IT&E will be greater than ever. The section of Chapter II which projected future directions for RMS contained ample evidence that current trends in the social, political and economic environment will intensify the need for ever-increasing efficiency in resources management. And one mainstay of accomplishing ‘that task will consist of increasing the effectiveness of the resource managers through the educational process. The Specification of Learning Tasks.--The interrelated hierarchies of learning tasks are portrayed in the flow diagrams. These provide the evidence that specification of learning task hierarchies can.be accomplished. I The Derivation of Instructional Objectives.--The evidence that instructional Objectives for base-level responsibility center managers can be derived is contained in Chapter VII. 178 The Resources Required.--Legitimately some harried managers may question the need fer such detailed instruction. Others will inquire as to the source of the time and energy required in support of this large-scale program. But they must realize that resources management is not a simple process, nor can the development of financial managerial proficiency be long postponed. One interviewee illustrated this fact by replying to the question, "How's the system going"? with this answer-~"The system's going O.K., but it would go a hell of a lot better if I knew what I was doing!" The intent is not to make a professional comptroller out of every manager. Rather the intent is to develop professional managers capable of using all the data available as they make their operational decisions. Any system can process only the inputs furnished to it. Unless adequate resources are provided in terms of students and instructors the educational output will continue to consist of patchwork attempts at best. The current "education by osmosis" so aptly described by Lt. Col. Kline, and so universally deplored, will continue. Conclusions Pertaining to the Solution At least two conclusions may be drawn from this research relating to methodology: (1) that Dr. Petro's "single researcher" proposition has been reinforced. (2) that the model need not be confined to a job which is highly organized and psychomotor oriented. This research.has demonstrated the model's applicability to a functional process which can be further delineated into specific task demands statements. 179 The "Single Researcher" Proposition Dr. Petro's dissertation contained a section on "Educational Implications," in which he noted the versatility of the model. He related that versatility to the fact that a single researcher could employ the model: The question may be asked, therefore, "is it not possible for an individual educator, or a small group of educators, to derive valid and useful instructional objectives for their particular instructional environment?" It is the contention of this researcher that the research procedure demonstrated in this study has just such an applicability.9 And this researcher contends that Dr. Petro's conclusion has been reinforced by the present research. Demonstrating this proposition has important implications for Air Force educators. since the Air Force encourages the development of effective programmed learning techniques and materials.10 The Air Force model of programming procedures specifies the development of behavioral objectives as the first operational step after determining the feasibility of the proposed tepic for a programmed learning sequence. Any model which can more effectively derive behavioral instructional objectives could therefore provide widespread benefits. The Model's Applicability_to a Generalized Task Environment Another equally important dimension of the model's versatility stems from its potential application to a relatively unstructured job. Unstructured, in the sense that the job of responsibility center manager or resource advisor is quite far removed from the narrowly'defined, physical task-oriented job with which many people associate programmed instruction. Nevertheless, the model's effective definition of tasks demand statements through an analysis of eclectic input results in versatility and value. 180 Recommendations (1) That given the recognition of the need for centralized direction of an educational program for base-level managers and resource advisors, the topical course outline be developed as an interim framework for course development at base-level. The topics represent a minimal package of educational requirements which ought to be formally developed by the base comptroller staff with the assistance of the other staff members. (2) That the instructional objectives derived herein be forwarded to the Department of Comptroller Training at Sheppard AFB, along with requirements to evaluate the objectives and to complete the learning sequence. The resulting package could be in the form of a programmed learning document to be issued to each responsibility center manager upon his assignment to that job. Or it could conceivably take the form of a training program, centrally designed but presented at specific intervals by base comptroller personnel. (3) The instructional objectives specifically oriented to the needs of the cost center manager be developed. The importance of accuracy and followaup at that level are essential. Knowledgeable middle management can accomplish much through effective supervision, but an effective training program would assist greatly. (h) That further research be undertaken to derive instructional objectives in the affective domain. Although the present research was necessarily limited to the cognitive domain, the hope was that education in the cognitive domain would conceivably carry over positive benefits to the affective. For example the confidence which accompanies competence could reduce the resistance to using financial 181 data in decision making. But in many instances one of the primary stumbling blocks lies in the persistent belief that grudging compliance will suffice until the system passes away. Specific educational efforts are required to transform resistance into positive promotion. (5) That the job of resource advisor be reevaluated and the "additional duty" syndrome surrounding the job be replaced with a positive program of recognition and motivation. Summary Financial management systems of the government and DoD in particular have evolved significantly since the turn of the century. And the pace of change has quickened significantly, too! The problems of resource management have become so important that the Chief of Staff, USAF labelled management as the challenge of the seventies.11 Certainly all facets of the environment, whether social, political, or economic, reflect ever-increasing demands for effectiveness and efficiency. But even though the tools are available, and sophisticated systems are operating, a gap still exists. One of the most important locations at which to concentrate remedial effort is at base—level, for that is where the mission is accomplished. One of the solutions recommended has been a centrally directed education program in resource management for base-level responsibility center manager. This research has developed one of the prerequisites for such a program, i.e. the instruc- tional objectives around which the program can be designed. But instructional objectives are primarily inputs for the remainder of the educational process. In order to produce benefit they will have to be used, 182 1. Adrian L. Kline, "Implications of Responsibility Centers for Successful Implementation of the Department of Defense Resource Management Systems" (Unpublished Ph. D. dissertation, Michigan State University, East Lansing, 1970). 2. Conclusions of the PRIME Review Committee. 3. Special Study, BCRM, 92nd Strategic Aerospace Wing, Fairchild AFB,‘Wash. U. Resources Management System, RMS Handbook, prepared by: Management Analysis, Reese AFB, Tex. 3500 PTWRP 178—2, Oct 68, No. 1. 5- The Inspector General Brief, #7, 1969. "USAF Comptroller Functions," p. 1. 6. Ibid., p. 153. 7. Harry L. Ammerman and William H. Melching. The DerivationL_Analysis and Classification of Instructional Objectives (HumRRO Technical Report ¥66;E Task INGO; may, 1966), p. 34. 8. Ibid., p. 38. 9. Peter K. Petro, "The Derivation of Learning Hierarchies and Instructional Objectives with Implications for Post-High School Technical Accounting Programs" (Unpublished Ph. D. dissertation, Michigan State University, East Lansing, 1969), p.119. 10. AFM 50-1 Programmed Learning, p. 1. 11. John D. Ryan, Gen., USAF, Chief of Staff, "The 1970's--A Challenge to Mlnagement," The Air Force Comptroller (Oct 69). GIDSSARY O O O O O O O O ITINERARY O O O O O O O JURYePANEL MEMBERS . . . PROPOSED COURSE OUTLINE APPENDICES Page 183 186 188 189 APPENDIX A Glossary AF--Air Force AFB—-Air Force Base AFMe-Air Force Manual BAB--Budget Advisory Board BAC--Budget Advisory Council BRP--Budget Review Panel BWG-—Budget working Group CC--Cost Center EEIC--Element of Expense/Investment Code ERRC--Expendability, Repairability, Recoverability Code FC--Functional Category FY—-Fiscal Year FYDP--Five Year Defense Program HQ—-Headquarters IT&E--Indoctrination, Training and Education JCS--Joint Chiefs of Staff MAJCOMe-Major Command MFR--Major Force Programs PE--Program Elements PL--Public Law PPBS--Planning, Programming and Budgeting PRIME-efgiority‘Management‘Effort 183 184 RAp-Resource Advisor RC--Responsibility Center RCM--Responsibility Center Manager RECON-—Resources Conservation Program RMS--Resource Management Systems TRIO—-Transaction Indicator Code UOO--Undelivered Orders Outstanding USAF--United States Air Force Definitions Instructional Objectives (The term.is often used interchangeably with Training Objectives or Educational Objectives.) Refers to statements that describe intended outcomes of instruction. Furthermore, such statements communicate the instructional intent in that they describe what the learner will be doing when demonstrating his achievement, and how those in charge of the instructional program will know that the learner is demonstrating the intended behavior. QperatingfiBudget A budget, currently revised, at any level, such as a military department, operating agency, an intermediate operating agency, an installation, or an activity which, when approved at the next higher level, is the basis of funding and financial control of obligations, costs, and expenditures. Operating budgets must be within higher level authorizations and limitations. Resource management Systems Resource management systems include all procedures for collecting and processing recurring quantitative information that (1) relates to resources and (2) is for the use of management. They also include procedures which are closely related to quantitative systems even though the systems may not themselves be primarily quantitative. Resources are men, materials (i.e., real and personal property), services and money. Responsibility Accounting A system of accounting which recognizes various responsibility centers throughout the organization and which reflects the plans 185 and actions of each of these centers by allocating particular revenues and costs to the one having the pertinent responsibility. Also called profitability accounting and activity accounting. Responsibility Center An organizational entity headed by a single individual to whom financial management responsibility and accountability are assigned and who is assumed to exercise a significant degree of control over resources acquired and consumed. The USAF management Process Commanders are directly responsible for using all Air Force resources effectively and judiciously to successfully complete assigned missions, and so contribute to the progressive achievement of over-all Air Force objectives. The concept and discharge of this responsibility is the USAF management process. APPENDIX B Itinerary A series of four research trips permitted interviews at a variety of locations, commands and organizational levels. Mere than eleven bases were visited including: Hanscom Field, Mass.: Lackland AFB, Tex.: Langley AFB, va.; Maxwell AFB, Ala.; Otis AFB, Mass.: Pease AFB, N. H.: Pope AFB, N. C.: Randolph AFB, Tex.: Sheppard AFB, Tex.;‘Wright- Patterson AFB, Ohio: and‘Wurtsmith AFB, Mich. Interviews were conducted at all organizational levels ranging from Headquarters USAF down to cost center level. Major command headquarters personnel interviewed included members of Hq Air Force Logistics Command, Hq Air Training Command, and Air University. Commands covered in base-level interviews included those listed above and also Strategic Air Command and Air Defense Command. At each base, interviews were conducted initially with the budget officer, the management analysis officer, and the base comptroller. Then other responsibility center managers and resource advisors were interviewed. Some typical resource advisors interviewed included: (1) the director of materiel of a bomb-wing (2) the business administrator of a hospital (3) civil engineering's resource advisor (h) the maintenance and supply group's resource advisor (5) the director of material's resource advisor and subordinate resource advisors in supply and transportation. More than one hundred interviews were conducted during the period January through June 1970. Additional written materials were 186 187 gathered including textbooks from professional comptroller education courses, samples of special studies, base-level training materials, and USAF directives. APPENDIX C J ury-Panel Members Inputs to the model, i.e., (1) the job description, (2) the organizational/functional matrix, and (3) the course outline, were evaluated by the following members of the panel: Lt. Col. Adrian L. Kline, Ph. D., CPA, currently Base Comptroller, U-Tapao Airfield, Thailand. Louis C. Jacoby, currently a Ph. D. candidate at MBU, formerly Professor of Accounting, St. Olaf's College, Minnesota. Major Gene A. Miller, MBA, currently Base Comptroller, Wurtsmith AFB , Michigan. Major Bernard L. Kelley, MBA, currently Base Comptroller, Pease AFB, New Hampshire. Captain Richard E. Nold, MBA, currently Base Budget Officer, Pope AFB, North Carolina. Captain.William T. Gladis, currently an MBA candidate at MSU. Lt. Elsa weustermann, currently an MBA candidate at MSU. Output to the model, i.e., (1) the flow diagrams, and (2) the instructional objectives derived therefrom were evaluated by the following members of the panel: Professor Jacoby Captain.G1adis Lt. Weustermann Captain Nelson L. Harborth, currently an MBA candidate at MSU. 188 APPENDIX D Proposed Course Outline COURSE TITLE: Principles of Resource Management for Base-Level Managers Need for the Course All Department of Defense managers have become "Resource Managers" by virtue of the adoption of the Resource Management §ystems (RMS) concepts contained in DoD Directive 7000.1, dated August, 1966. The Air Force Budget and Accounting System for Operations was implemented on 1 July 1968. It included a system of responsibility accounting which aligned the financial managerial process and organization structures with those of operational management. The managerial focus was shifted from a sole concentration on obligations and appropriations to a shared focus on expenses and resource consumption. This shift was accomplished by converting to an operating budget and installing responsibility accounting. Managers were able to relate actual performance to planned performance, and actual expenses to planned expenses. Base-level resource managers, especially those who hold positions as responsibility or cost center managers now participate more fully in the financial management process: and they now have more financial information available to assist their operational management efforts. Because base-level organizations are characterized particularly by the diversity of their missions, by highly differentiated organization structures, by a rapid turnover of personnel, and by limited resources, 189 190 the need to train all managers in the new tools and techniques is particularly acute. In response to a number of research projects the USAF Inspector General in June 1970 summed up the need: During FY 1968 and early FY 1969. there was a genuine effort on the part of Comptroller personnel at connxand and base level to apprise line personnel of the new'manage- ment resource concept. As time passed, however, several negative, motivational actions occurred--and today, the training effort is sporadic, incomplete or nonexistent. This recognition of the problem by the Inspector General, and his notification that inspection and appraisal of resource management training programs would be included in future inspections provided only a partial solution to the problem. Although definitely improving the situation described above such actions will not provide a carefully developed standardized instruction program. The course outlined below focuses on financial managers at the base—level. It aims specifically at the needs of the mid-level responsibility center manager and/or his resource advisor, for that is the level requiring the greatest financial management expertise. An effective group of mid-level managers can produce and execute the operating budget, and in the process develop the required cadre of trained cost center managers. Pugpose of the Course The purpose of the course is to produce operational managers who are familiar with, and can apply the principles, processes and products of financial management to their organization. Objectives of the Course 1. To make the managers aware of the scape, complexity and usefulness of the resource management systems in which he participates. 2. To enable the manager to develop an operating budget which is soundly conceived and justified. 191 3. To enable the manager to participate knowledgeably and effectively on the various review panels. h. To enable the manager to execute an operational budget effectively. 5. To enable the manager to use the products of the BASO. 6. To develop an awareness of the role and functions of the comptroller and his staff: and the professional assistance available. 7. To enable the manager to apply the techniques of analysis and problem-solving to his own unit. Who Shall Take the Course All base-level responsibility center managers and their resource advisors should take this course. The course assumes no previous background in mathematics or accounting. It is designed as a refresher for experienced resource managers: as an introduction to basic skills for others; and as a compendium of references, terminology, and ideas for those who wish to delve more deeply into analytical techniques. 'Who would Offer the Course The course would be offered at each base by a team of instructors drawn from budget, supply, and management analysis. The base comptroller would be responsible for developing the program, organizing the materials and scheduling the course. The course would be offered at least once a quarter. Every individual assigned as a responsibility center manager or as a resource advisor would be required to attend the next course offered after his assignment. 192 PRINCIPLES OF RESOURCE MANAGEMENT FOR BASE-LEVEL MANAGERS A. Introduction to Resource Management Systems 1. 3. 4. Definition of RMS contained in DoD Directive 7000.1 "RMS and the Department of Defense," 22 Aug 66. (a) Resources (b) Management (c) Systems Evolution of RMS (a) Early financial management singularly devoted to control (b) Planning vs. Budgeting (c) Planning, Programming and Budgeting Systems (PPBS) (d) Resource Management Systems established by (1) Public Law (2) Presidential Directive (3) DoD Instructions Objectives of RMS (a) To provide managers at all levels within the Department of Defense with information that will help them assure that resources are obtained and used effectively and efficiently in the accomplishment of Department of Defense objectives. (b) To provide information that is useful in the formulation of objectives and plans. (c) To provide data to support program proposals and requests for funds. (d) To provide a means of assuring that statutes, agreements with Congressional committees, and other requirements emanating from outside the Department of Defense relating to resources, are complied with. Types of Systems for Resource Management (a) Programming and budgeting systems (b) Accounting systems 193 (c) Other systems for management of resources for operating activities (d) Systems for management of acquisition and disposition of inventory and similar assets (e) Systems for management of acquisition, use and disposition of capital assets B. Air Force Financial Management 1. Evolution of Current Air Force Financial Management (a) Project FIRM (b) Project PRIME (0) Budget and Accounting System for Operations 2. Principles and Philosophy (a) Responsibility for Financial Management (1) Commander's (2) Primary (3) Concurrent (4) Collateral (b) Principles for Financial Planning (1) Preplanning is a prerequisite to achieving economical and effective resource utilization (2) Capital costs should be separated from operating expenses (3) Specific expense authorizations and allotments are required when feasible (h) Responsibility for financial planning follows the chain of command (5) Funds available to the Air Force are to be programmed in their entirety 3. Functions of Management (a) The USAF Management Process (1) The Pre-execution Phase 1914 (a) Planning (b) Organizing (c) Coordinating (2) The Execution Phase (a) Directing (b) Controlling (b) Functions of Financial Management (1) Budgeting - Definition (a) The Federal Budget Process (1) Formulation Phase (2) Review and Enactment Phase (3) Execution Phase (b) Revisions (b) Budgets may be used for: (1) Planning (2) Operations (3) Control (2) Programming - Definition (3) Accounting — Definition (a) Types of Accounting (1) Financial (2) Managerial (3) Responsibility (a) Management Analysis (a) Financial Analysis (b) Output Analysis U. The Budget and Accounting System for Operations (a) Basic Directives 195 (1) AFR 170-1 Resource Management Systems (2) AFR 170-5 (3) AFM 172-1 (h) AFM 176-8 (5) AFM 67-7 (6) AFM BOO-4 (b) Organization Structure (1) Composition (a) Cost Center (b) Responsibility Center (c) Responsibility Center Manager (d) Resource Advisor (e) Comptroller Staff (f) Budget working Group (g) Budget Advisory Board (h) Commander (2) Functions (a) Cost Center - accumulates costs (b) Responsibility Center (1) Develops an Operating Budget for Unit (2) Coordinates Operating Budget (3) Executes Approved Operating Budget (h) Controls the Operation (c) Budget Wbrking Group (1) Review higher headquarters instructions for preparing or revising operating budgets (2) Insure that operating budget requirements represent approved programs: that fund estimates are based on a priority system for inclusion, yet represent a balanced program 196 (3) Insure computations and justifications are factual, accurate, and complete. (A) Review final operating budget to be submitted to the budget advisory board (5) Monitor the execution and management of resources for all organizations supported by the base budget.. (6) Evaluate policies, regulations, and mission changes which have a fund impact (7) Review the financial position as compared to the established targets for approval by the budget advisory board (d) Budget Advisory Board (1) Approves all operating budgets and revisions thereto (2) Distributes the approved operating budget and revisions thereto (3) Prescribes policies with regard to priorities, targets, etc. (9) Comptroller Staff (1) Budget (2) Accounting and Finance (3) Data Automation (H) Management Analysis (c) Operating Budget Data Elements and Codes (1) Five Year Defense Plan (a) Major Force Programs (b) Program Elements (c) Functional Categories (2) Structure of Accounting Codes (a) Operating Agency Code (b) Operating Budget Account Numbers 197 (c) RC/CC Account Codes (d) Elements of Expense/Investment (3) Types of Limitations (d) Materiel Management (1) Define Stock Fund (2) Distinguish Expenses vs Investments (3) Discuss Stock Fund Policies (a) Turn-in credit policyesupplies (b) Turn-in credit policyeequipment (h) Discuss Basic 1050 II Records (a) Project Funds Management Record (PFMR) (b) Organization/Cost Center Record (OCCR) (c) Stock Fund Sales and Return Analysis Record C. Functions of Base-Level Resource Managers 1. Develop an Operating Budget (a) Develop the Resource Management Organization (1) Define responsibilities (2) Staff the organization (3) Prescribe operating procedures (h) Followup (b) Determine organizational funding responsibilities (c) Specify formats, data and suspense dates for input to initial or revised operating budget (d) Compute fund requirements (e) Conduct internal review (f) Justify requirements (g) Apply priorities (h) Obtain approval of unit commander 2. 3. 198 Coordinating the Operating Budget (a) Definition of Coordination — AFM 25-1 (b) Reviewing Base Operations Budget requirements: (1) Insure completeness, accuracy and balance of input (2) writing Justification (a) Purpose of narrative justification (b) Use of standard formats (c) Distributing Approved Base Operations Budgets (1) Distribution based on availability of funds, priorities established (2) Set Quarterly Targets (a) Purpose of targets (b) Quarterly phasing (3) Establishing Priorities Executing the Operating Budget (a) Establish procedures to insure goods and services obtained according to priorities (b) Establish procedures to insure targets are attained and limitations not exceeded (c) Obtain required reports (1) Management Reports (Base-Level) (a) Wing—Base Management Report (b) Responsibility Center Reports (0) Cost Center Report (2) Materiel Expense Management Reports (1050 II System) (a) Responsibility Center Reports (1) Project Audit List (2) Project Funds Management Report (3) Organization/Project Funds Management Record Reconciliation 199 (h) Project Open Item Listing (b) Cost Center Reports (1) Daily Document Control Register (2) Daily Organization/Cost Center Update (3) Organization Record List (4) A&F Due-Out List/In—Use Dollar value (5) Stock Fund Sales and Returns Analysis (c) Fund Status Reports - Content and Uses (d) Establish Effective Resources Conservation (RECON) u. Controlling the Operation (a) Define the Control Function (1) Developing Performance Standards (2) Measuring Results (3) Taking Corrective Action (4) Rewards/Sanction (b) Functions of Management Accounting Systems (1) Attention-getting (2) Score-keeping (3 ) Problem.- solving (c) Types of Analyses (1) Financial Evaluation (2) Performance Evaluation (d) The Analytical Process (1) Study (2) Research (3) Presentation 200 (e) The Scientific Method of Problem—Solving (1) Defining the problem (2) Collecting data (3) Listing of possible solutions (a) Testing possible solutions (5) Selecting best solution (6) Applying the solution (7) Evaluating the action taken (f) Tools of Analysis (1) Comparison (2) Percentage (3) Gantt Progress Chart (4) variance Analysis (PXQ) (5) PERT (g) Importance of Forecasting BIBLIOGRAPHY Books The Air Officer's Guide (1970—71 edition). Harrisburg, Pa.: The Stackpole Company, 1970. Bartlett's Familiar Quotations. William Shakespeare, Julius Caesar. 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