Political Science · Public Administration
UGC NET January 2017 Political Science
Who among the following is the creator of Zero-Based Budgeting?
AHoover Commission
BPeter A. Pyhrr ✓ Correct
CHerbert Simon
DGuy Peters
Correct answer: (B) Peter A. Pyhrr — Peter A. Pyhrr created Zero-Based Budgeting, so the answer is Peter A. Pyhrr.
Explanation
★Peter A. Pyhrr created Zero-Based Budgeting, so the answer is Peter A. Pyhrr.
★He developed the technique around 1970 while working at Texas Instruments.
★Zero-based budgeting requires every expense to be justified afresh in each budget cycle.
★Each activity starts from a zero base, with no claim on funds based on past budgets.
★Managers must show the need and cost of each function before money is allocated.
★The Hoover Commission dealt with reorganising the United States executive, not this technique.
★Herbert Simon worked on decision-making and Guy Peters on governance, so neither created it.
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