A Better Path Forward: How Corporate Culture Threatens the Quality of Higher Education and What We Can Do to Resist its Encroachment on our Campuses - PowerPoint PPT Presentation

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A Better Path Forward: How Corporate Culture Threatens the Quality of Higher Education and What We Can Do to Resist its Encroachment on our Campuses


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Title: A Better Path Forward: How Corporate Culture Threatens the Quality of Higher Education and What We Can Do to Resist its Encroachment on our Campuses

A Better Path Forward How Corporate Culture
Threatens the Quality of Higher Education and
What We Can Do to Resist its Encroachment on our
  • Rudy Fichtenbaum, President

  • Embracing the Corporate Model
  • Consequences
  • How to Fight Back

The Corporate Model
You know you have the corporate model when
  • Administrators politicians talk about faculty
  • Universities colleges care more about bond
    ratings than the quality of education they offer
  • Administrators make unilateral changes in
    curriculum and academic policies

You know you have the corporate model when
  • You have merit pay
  • Promotion and pay for faculty depend on student
  • Students are your customers
  • The market is used to explain why faculty in some
    disciplines earn significantly more than faculty
    in other disciplines.

You know you have the corporate model when
  • The majority of faculty have no job security, few
    benefits, and are largely excluded from the
    decision making process on campus
  • Your administration tries to break your union
  • Your budget system turns each of your colleges
    into profit centers so faculty will be more
  • College presidents and politicians call for the
    creation of enterprise universities to complete
    the privatization of public higher education

You know you have the corporate model when
  • Grades Out, Badges In
  • Grades are broken. Students grub for them, pick
    classes where good ones come easily, and
    otherwise hustle to win the highest scores for
    the least learning. As a result, college grades
    are inflated to the point of meaninglessnessespec
    ially to employers who want to know which
    diploma-holder is best qualified for their jobs.
  • That's a viewpoint driving experiments in
    education badges. Offered mostly by online
    start-ups, the badges are modeled on the
    brightly colored patches on Boy Scout uniforms
    but are inspired primarily by video games

You know you have the corporate model when
  • Professors Compete for Bonuses Based on Student
  • Some faculty members at Texas AM University
    will each be 10,000 richer next month, and they
    will have their students to thank. The university
    system is awarding bonuses ranging from 2,500 to
    10,000 to faculty members who received the
    highest grades on end-of-semester student
  • Oklahoma awards 5,000 to 10,000 to
    participating engineering professors who score
    in the top 5 percent on their semester-end
    student evaluations. Those who score in the next
    15 percent receive half those amounts. Similar
    bonuses are offered for top-rated business

The Corporate Model
  • Recently David Schultz published a noteworthy
    essay in Logos entitled The Rise and Demise of
    Neo-Liberal University The Collapsing Business
    Plan of American Higher Education.
  • Two models of higher education since the end of
    WW II
  • The Dewey model, in which public institutions
    were central, and institutions promoted a
    Jeffersonian view of higher education,
    recognizing an educated citizenry as central to
  • The Corporate University, with top-down authority
    with administrators and corporate-led boards
    displacing traditional faculty governance.
    Decision-making focuses on increased revenue,
    using certain programs as cash cows, while
    designing others to attract private/corporate

The Corporate University
  • Nationwide patterns since 1980 show that the
    context has transformed through universities
    increasing use of a corporate business model that
    goes well beyond Justice Brennans observation in
    Yeshiva that universities have become big
  • Point Park University Amicus Brief for the AAUP

The Corporate Model
  • Expansion of the administrative hierarchy, which
    exercises greater unilateral authority over
    academic affairs.
  • University administrators increasingly are
    making decisions in response to external market
    concerns, rather than consulting with, relying
    on, or following faculty recommendations.
  • Decision-making is increasingly made
    unilaterally by high-level administrators who are
    driven by external market factors in setting and
    implementing policy on such issues as program
    development or discontinuance, student
    admissions, tuition hikes, and university-industry
  • Point Park University Amicus Brief for the

The Corporate Model
  • Faculty have experienced a continually shrinking
    scope of influence over academic mattersFaculty
    loss of influence over programmatic and other
    academic matters reduces faculty influence even
    in their individual academic course content and
  • Point Park University Amicus Brief for the

The Corporate Model
  • There are embedded structural changes that favor
    top-down decision-making authority by university
    administrators responding to market concerns,
    rather than a collegial process of consultation
    and consensus-building over academic affairsOne
    outcome of this institutional shift is a growing
    conflict between university administrations and
    faculty over unilateral actions taken by
    administrators either without consultation with
    faculty or overriding faculty governance bodies
  • Point Park University Amicus Brief for the

How Many Administrators Does it Take to Run this
  • The Chronicle of Higher Education Lists 289 types
    of Senior Executives and Chief Functional Officers

  • The heaviest element known to science was
    recently discovered by investigators at a major
    U.S. research university. The element,
    tentatively named administratium, has no protons
    or electrons and thus has an atomic number of 0.
    However, it does have one neutron, 125 assistant
    neutrons, 75 vice neutrons and 111 assistant vice
    neutrons, which gives it an atomic mass of 312.
    These 312 particles are held together by a force
    that involves the continuous exchange of
    meson-like particles called morons. Since it has
    no electrons, administratium is inert. However,
    it can be detected chemically as it impedes every
    reaction it comes in contact with.

  • According to the discoverers, a minute amount of
    administratium causes one reaction to take over
    four days to complete when it would have normally
    occurred in less than a second. Administratium
    has a normal half-life of approximately three
    years, at which time it does not decay, but
    instead undergoes a reorganization in which
    assistant neutrons, vice neutrons and assistant
    vice neutrons exchange places. Some studies have
    shown that the atomic mass actually increases
    after each reorganization.

  • Research at other laboratories indicates that
    administratium occurs naturally in the
    atmosphere. It tends to concentrate at certain
    points such as government agencies, large
    corporations, and universities. It can usually be
    found in the newest, best appointed, and best
    maintained buildings.
  • Scientists point out that administratium is
    known to be toxic at any level of concentration
    and can easily destroy any productive reaction
    where it is allowed to accumulate. Attempts are
    being made to determine how administratium can be
    controlled to prevent irreversible damage, but
    results to date are not promising.
  • William DeBuvitz The Physics Teacher January

Kent State University
Division of Business and Finance
(No Transcript)
Responding to the Market What Do Administrators
Get Paid
  • E. Gordon Gee President, Ohio State University,
    October 2007Present
  • Total Compensation (2011) 1,992,221
  • Since returning to Columbus as the universitys
    president in October 2007, the 68-year-old Gee
    has pulled in 8.6 million in salary and
    compensation, making him the highest paid CEO of
    a public university in the country.
  • But his expenseshidden among hard-to-get
    records that the university took nearly a year to
    releasetally nearly as much 7.7 million.
  • Those records show Gee stays in luxury hotels,
    dines at country clubs and swank restaurants,
    throws lavish parties, flies on private jets and
    hands out thousands of giftsall at public
  • Source Chronicle of Higher Education Dayton
    Daily News

Compensation for Presidents
Name Total Compensation Position
E. Gordon Gee 1,992,221 Ohio State University
Michael D. McKinney 1,966,347 (Partial year) Texas AM University system
Graham B. Spanier 1,068,763 Pennsylvania State University at University Park
Lee T. Todd Jr. 972,106 University of Kentucky
Mary Sue Coleman 845,105 University of Michigan system
Kent R. Hance 757,740 Texas Tech University system
Francisco G. Cigarroa 751,680 University of Texas system
Robert H. Bruininks 747,955 University of Minnesota-Twin Cities
John C. Hitt 741,500 University of Central Florida
Charles W. Steger 738,603 Virginia Tech
Source Chronicle of Higher Education
Salaries for Administrators
Senior executives and chief functional officers Doctoral
Chief executive of system/district 480,000
Executive assistant/chief of staff for chief executive of system/district 154,800
Chief executive of single institution 392,150
Executive assistant to chief executive of single institution 130,391
Executive vice president/vice chancellor 302,500
Secretary of institution 168,830
Chief academic-affairs officer and provost 281,162
Chief research officer 234,600
Chief technology-transfer officer 165,600
Chief business officer 236,022
Chief administration officer 210,810
Chief financial officer 210,250
Chief investment officer 218,000
Source Chronicle of Higher Education
More Salaries for Administrators
Senior executives and chief functional officers Doctoral
Chief planning officer 154,898
Chief budget officer 131,064
Chief planning and budget officer 173,102
Chief legal-affairs officer 198,005
Chief human-resources officer 154,067
Chief information officer 200,000
Chief physical-plant/facilities officer 155,000
Chief accounting officer/comptroller 139,966
Chief health-professions officer 541,419
Chief administrator, hospital/medical center 566,733
Chief student-affairs/life officer 194,056
Chief admissions officer 112,217
Chief enrollment-management officer 160,750
Source Chronicle of Higher Education
Even More Salaries for Administrators
Senior executives and chief functional officers Doctoral
Chief external-affairs officer 210,000
Chief development officer 239,120
Chief public-relations officer 162,400
Chief development and public-relations officer 239,798
Chief audit officer 121,056
Chief diversity officer 149,524
Median Salary 196,031
Source Chronicle of Higher Education and
authors calculation
Growing Inequality Between Disciplines
Discipline 1980-81 2009-10
Fine arts visual and performing -8.80 -12.40
Education -4.00 -4.30
Foreign language and literature 0.90 -4.10
Communications -3.30 -3.20
Philosophy 2.30 2.10
Library science -1.50 3.60
Mathematics 7.60 7.20
Psychology 5.00 8.90
Physical sciences 7.70 12.90
Social sciences 4.80 16.80
Health professions and related sciences 20.30 18.90
Engineering 8.10 25.20
Computer and information sciences 13.40 28.40
Economics 13.90 41.20
Business administration and management 11.40 50.90
Law and legal studies 33.20 59.50
Source Chronicle of Higher Education
The Pay Gap Between Public Private Universities
Percentage Gap Public v Private Independent Doctoral Percentage Gap Public v Private Independent Doctoral Pcentage Gap Public v Religiously Affiliated Doctoral Pcentage Gap Public v Religiously Affiliated Doctoral
1986-87 2011-12 1986-87 2011-12
Professor 17 34 5 10
Associate 9 23 5 9
Assistant 7 25 2 8
Instructor 16 29 22 34
Lecturer 2 21 -7 4
Source AAUP Salary Survey

Source The Common Fund Authors Calculations
  • Delta Cost Project, NCES Authors Calculations

  • Source National Center for Education Statistics

National Report on Administrative Costs in Higher
Education Goldwater Institute and Administrative
  • But unlike almost every other growing industry,
    higher education has not become more efficient.
    Instead, universities now have more
    administrative employees and spend more on
    administration to educate each student.
  • In short, universities are suffering from
    administrative bloat, expanding the resources
    devoted to administration significantly faster
    than spending on instruction, research and
  • Source No. 239 I August 17, 2010 Administrative
    Bloat at American Universities The Real Reason
    for High Costs in Higher Education.

National Report on Administrative Costs in Higher
Education Delta Cots Project
  • The share of spending going to pay for
    instruction has consistently declined when
    revenues decline, relative to growth in spending
    in academic and student support and
    administration. This erosion persists even when
    revenues rebound, meaning that over time there
    has been a gradual shift of resources away from
    instruction and towards general administrative
    and academic infrastructure.
  • Source Trends in College Spending, 1998-2008.
    Released July 8, 2010. http//www.deltacostproject

Revenues, Expenses Change in Net Assets at
Public Four-Year Universities

Year Total Revenues Total Expenses Change in Net Assets Margin
2002 278,400,000 295,500,000 (17,100,000) -6.1
2003 296,500,000 295,000,000 1,500,000 0.5
2004 317,600,000 308,800,000 8,800,000 2.8
2005 333,100,000 323,100,000 10,000,000 3.0
2006 352,900,000 341,700,000 11,200,000 3.2
2007 382,900,000 362,800,000 20,100,000 5.2
2008 394,500,000 396,400,000 (1,900,000) -0.5
2009 386,200,000 412,600,000 (26,400,000) -6.8
2010 447,100,000 428,700,000 18,400,000 4.1
Delta Cost Data and authors calculations
What are the Consequences?
How Decision Are Made
  • A Cornell University faculty senate committee
    report in 2007 recounts a series of
    administration decisions made without adequate
    consultation with the faculty senate, including
    the creation of a new faculty of computing and
    information science, the reorganization of the
    division of biological sciences, and the creation
    of a for-profit distance learning corporation.
  • Point Park University Amicus Brief

How Decision Are Made
  • At Rensselaer Polytechnic Institute, in 2006,
    the Board of Trustees ordered the Faculty Senate
    to revoke its amendment to expand Senate
    membership to include clinical faculty.
    Following the Rensselaer Presidents rejection of
    the Senates request to convene a joint committee
    to resolve the issue, the Provost unilaterally
    suspended the Faculty Senate for failing to
    comply with the Board of Trustees order.
  • Point Park University Amicus Brief

Program Discontinuance
  • State universities in Louisiana will eliminate
    109 programs and consolidate 189 others into new
    programs or concentrations within existing
    majors, the state Board of Regents announced on
    Wednesday as it decided the fate of 456
    low-completer programs it had flagged for
    review. The cuts include foreign-language majors
    on a number of campuses
  • In 2010, Southeastern Louisiana University
    eliminated its undergraduate French major,
    dismissing its three tenured professors with a
    year's noticeand then offering one of them a
    temporary instructorship.

Program Discontinuance
  • Auburn U. Trustees Eliminate 6 Programs
  • Auburn University's Board of Trustees voted this
    month to cut six degree-granting programs,
    including a doctorate in economics that the
    university's president and a faculty review
    committee wanted to keepThe 7-to-3 vote in favor
    of cutting the economics program infuriated many
    professors and one trustee, who argued that the
    board should have abided by the president's

Program Discontinuance
  • More Than 70 U. of Northern Iowa Programs Face
    Elimination or Overhaul
  • Among the programs being considered for
    elimination, all of which have produced an
    average of fewer than seven graduates over the
    past five years, are several degree programs in
    the languages, chemistry, computer science, and
    the earth sciences, according to an
    administrative document that the newspaper
    obtained. The universitys faculty members
    have been protesting their lack of involvement in
    the budget-cutting process and last week voted no
    confidence in the institutions president and
  • Chronicle of Higher Education

Program Discontinuance
  • A University Plans to Promote Languages by
    Killing Its Languages Department
  • Last month, a year and a half after Mr. Maxwell
    took over the presidency of the Des Moines
    institution, the Board of Trustees voted to get
    rid of Drake's foreign-language program and the
    eight tenured and tenure-track professors and
    seven part-timers who teach in it.
  • Chronicle of Higher Education

  • AAUP Criticizes Michigan State U. for Not
    Listening to Faculty
  • Student-Affairs Job Goes to Wife of Bowling
    Green's President
  • Regents Broaden Presidential Search at Texas AM
    Without Faculty Input, Drawing Criticism
  • Chronicle of Higher Education

Curricular Changes
  • CUNYs Pathway to Whatever
  • As chair of the University Faculty Senate a
    body chartered by the Trustees to deal with
    cross campus curricula issues, I can state
    clearly that the process by which this core was
    developed did not reflect any campus or
    university wide elections and involvement of
    faculty with experience in general education. 
  • Chronicle of Higher Education

Dumping Faculty Governance
  • New President and Faculty Tangle at U. of the
    District of Columbia
  • Just a month after becoming president of the
    University of the District of Columbia, Allen L.
    Sessoms is locked in a battle with the
    institution's faculty senate, which he wants to
    shut down and replace with a new forum of
    students and faculty and staff members.
  • After Professors Unionize, Miami-Dade Community
    College Abolishes Faculty Senates
  • Union In, Governance Out
  • Faculty governance at Akron, some say now, was
    gutted, and without a word of debate.
  • Chronicle of Higher Education

Dumping Faculty Governance
  • Tennessee State U. Disregards Faculty Senate's
    Vote to Retain Its Leader
  • Tennessee State University's administration is
    disregarding a Thursday vote by the Faculty
    Senate to retain its chairwoman, whom the
    university's president had previously declared
    removed from the job.
  • A Professor at Louisiana State Is Flunked Because
    of Her Grades
  • Kevin R. Carman, dean of science at Louisiana
    State University at Baton Rouge, decided to pull
    a senior professor, Dominique G. Homberger, from
    an introductory biology course this semester
    because many of her students were failing.
  • Chronicle of Higher Education

Dumping Presidents
  • New Statements on Ouster of Virginia President
  • The Council of Chairs and Directors released a
    letter blasting the way events have transpired.
    The letter said that these academic leaders were
    "very pleased" with Sullivan's "superb"
    leadership, and that they were stunned by her
    ouster, and frustrated by the lack of faculty
    knowledge of the reasons behind the board's
  • State Higher Ed Board Votes to Dismiss U. of
    Oregon President
  • Oregon's Board of Higher Education voted
    unanimously to cut short the presidency of
    Richard Lariviere at the University of Oregon,
    despite impassioned pleas from faculty and staff
    members and students at a highly contentious
    board meeting Monday.
  • Inside Higher Ed

Affordability Gap
  • The College Board Bureau of Census

(No Transcript)
Crushing Debt for Students
Grants and Loans Millions 2010100
The College Board
Average Aid per Full-Time Equivalent
Studentconstant 2010
The College Board
Percent of Need Based Aid
The College Board
Are We Doomed?
  • Returning to the Schultz article, he concludes
    the corporate model has now collapsed
  • Predicts rather pessimistically that the next
    business model will negate the democratic
    function of higher education that existed since
    World War II
  • De-emphasizing liberal arts in favor of
    professional education

Are We Doomed ?
  • The pessimistic view in the Schultz article
    misses the fact that contradictory forces have
    always existed in American higher education.
  • Ruling elite in our society
  • The working class majority

Contradictory Nature of Higher Education
  • Higher education was central in defending both
    religious and secular values central to the
    preservation of capitalism
  • Somewhat later, as science and technology became
    more important, the idea of higher education as
    vehicle for providing practical training also

Education as a Force for the Common Good
  • Others (e.g., Thomas Jefferson) have seen higher
    education as the great equalizer, a vehicle for
    educating citizens and the common good.

The Era of Expanding Access to Higher Education
  • During the period leading up to World War II,
    most scientific research and the innovation that
    drove American industrial might occurred in
    private research labs
  • Bell Labs, Dayton Engineering Laboratories Co.
    (DELCO), Battelle Memorial Institute).
  • Only after WWII, with the onset of the Cold War,
    did universities became centers for research.
  • The GI bill first opened college admissions to
    the unwashed masses.
  • The elite universities all opposed the bill they
    thought that helping ordinary people who had been
    drafted go to college would dilute the pool of
    college students with mediocre students.
  • However, hundreds of thousands of veterans were
    returning to the US with little prospect for
    employment, and left-led unions of the CIO were
    pushing a social agenda, so the GI bill was

Expanding Access the Dewey Model
  • The big expansion of access to college, however,
    came in the 1960s
  • Increased funding for public higher education
  • Urban universities
  • Community colleges
  • Greater access to higher education was a
    component of the reform era that began in the
  • Civil rights
  • Womens rights
  • Antiwar movements

The Social Upheavals of the 1960s
  • The social upheavals of this era
  • Greater access to college
  • Medicare and Medicaid
  • Clean Air and Clean Water Acts and the EPA
  • OSHA
  • Greater income equality
  • The Dewey model was a facet of the of mass
    movements for social justice and equality

The Death of the Reform Era Corporatization
  • The death of the reform era by the late 1970s and
    rise of the corporate university
  • Part-time faculty have replaced tenure line
    faculty, undermining both academic freedom and
    shared governance
  • These changes must be seen as part of the broader
    neo-liberal attack on organized labor and the
    achievements of the 1950s-1970s reform area

Fighting Back
  • Changes in higher education do not occur in a
  • If there is any hope of reversing the deleterious
    effects of corporatization on higher education,
    it is in faculty and academic professionals
    aligning ourselves with the labor movement and
    the broader movement for social justice

Fighting Back
  • Strengthen Existing Chapters on Campus
  • Have a membership drive on campus at least once a
  • Make office visits to get faculty to joint AAUP
  • Every chapter should have a website and the
    national AAUP should provide a template for the
  • Have a presence on social media i.e., Facebook
    and Twitter
  • Use the website to communicate with faculty with
    an online newsletter and links to other AAUP

Fighting Back
  • Use the AAUP salary data to create a comparison
    with your peer institutions
  • Put IPEDS data on your site to show how much your
    institution is spending on instruction

Fighting Back
  • Build alliances on campus with students, parents
    and unions on campus
  • Think about contacting alumni who have a stake in
    the institutions reputation
  • Build alliances with community organizations
    including K-12 teachers
  • Work to make your state conference more effective
  • Build linkages with other higher education unions
    by participating in CFHE

Fighting Back
  • Get involved in politics
  • See if it makes more sense for your chapter or
    state conference to be a 501c(6)
  • Conduct voter registration drives on campus each
  • Your chapter or conference may want to endorse
    candidates, particularly for state offices, based
    on where they stand on issues that relate to
    higher education
  • Mobilize members to work on legislative

Presented at the 2012 Governance Conference
  • www.aaup.org
  • Rudy Fichtenbaum
  • Department of Economics
  • Wright State University
  • Dayton, OH 45435
  • Rudy.fichtenbaum_at_wright.edu
  • 937-775-3085
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