Annual Report 1993-94

7 benefit from uniform policies and operating procedures. As it has been proven repeatedly that large organizations are stronger, more flexible and innovative in a decentralized mode, and weaker, less agile and effective when centrally operated, we believe decentralization w i l l serve the needs of the University better at this stage of its development. Much effort was thus channelled this year towards decentralizing more decision-making from the central administration to the faculties and departments, refining the accompanying budgetary arrangements, and introducing the necessary checks and balances. We reviewed the University's academic structure, redefined the functions and responsibilities of the 'department', made it the basic academic unit, and allowed more decision-making in resource deployment to be delegated further from the faculty deans to the department chairmen. We also introduced new internal audit mechanisms to ensure adequate internal control and quality service-delivery. A completely new modus operandi w i ll be set into motion in 1994-95. Alongside such efforts was our attempt to restructure the University's internal resource allocation methodology so that it not only is conducive to decentralization but can also provide greater incentive for staff members to improve their performance. A working group was appointed in November 1993 to undertake this task and much groundwork was laid in the four months that followed, resulting in a first report in March 1994. Extensive consultations have since been carried out and the original proposal is being amended to accommodate new suggestions w i th regard to financial flexibility and accountability. The University w i ll also continue to explore how best to conduct internal teaching and research assessment and to incorporate performance factors into the funding formula. By the time the new funding methodology finally comes into effect in 1995-96, I believe the whole University w i ll have been fully prepared to aim even higher, perform even better, and to achieve greater eminence. In the year 1993-94, we summed up and reviewed our past experience — our growth and achievements in 30 years. During the 30th anniversary celebrations, we shared this self-reflection w i th the public. We believe that w i th its solid foundation and available resources, the University has the potential to expand and improve in all directions and consequently to contribute more to society. To prepare the University for greater tasks ahead, we have started to overhaul its infrastructure to enable it to operate w i th better efficiency and quality. As the year 1993-94 ends, a broad and promising future for the University unfolds. Charles K. Kao Vice-Chancellor July 1994