.. Colleges; *Resource Allocation IDENTIFIERS

'relation to the allocation of general funds,to 38 academic. departments'. Using Simon's theory of bounded rationality and.an organizational leNiel of.inalysis; the Stanford decision process was tested for'its rationality through triangulation, mixing qualitative and quantitative methods. The elements that must be present for rational decision making required that the provost-who directed,Stanfdild's budget process must have.had a consistent set of budget agocation priorities throughout the decade; that he considered a wide range of expenditure alternatives simultanedusly rather thad sequentially; that he made budget decisions himselI, with information 'about the likely effect rand posts of each request; and that hii choices were consistentlkith Nis prior goalvtIt is Suggested that the provost cdnsidered the folAoringfour priorities to guide.his decisions about allocating general funds in'the operating tudgets: academic importance,'student interest, possibility for excellence in the,program,'and funding potential. The number (4 alternative expenditure requests considered by the provost is documented; and the