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 Campuses

Rudy FichtenbaumProfessor of Economics, Wright State UniversityPresident, AAUP

RoadmapEmbracing the Corporate ModelConsequencesHow to Fight Back

The Corporate ModelYou know you have the corporate model when:Administrators & politicians talk about faculty productivity.Universities & colleges care more about bond ratings than the quality of education they offer studentsAdministrators make unilateral changes in curriculum and academic policies

You know you have the corporate model when:When you have merit payPromotion and pay for faculty depend on student evaluationsWhen students are your customersWhen the market is used to explain why faculty 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.When you administration tries to break your union.When your budget system turns each of your colleges into profit centers so faculty will be more entrepreneurial.When 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 InGrades 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 meaninglessnessespecially 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 gamesYou know you have the corporate model when:Professors Compete for Bonuses Based on Student EvaluationsSome faculty members at Texas A&M 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 evaluations.

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 professors.The Corporate ModelRecently 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 IIDewey model in which public institutions were central, and institutions promoted a Jeffersonian view of higher education recognizing an educated citizenry as central to democracy The Corporate University with top-down authority with administrators and corporate-led boards displacing traditional faculty governanceDecision-making focuses on increased revenue, using certain programs as cash cows, while designing others to attract private/corporate donations.

The Corporate UniversityNationwide 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 business. Point Park University Amicus Brief for the AAUPThe Corporate ModelExpansion 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 relationships.Point Park University Amicus Brief for the AAUP

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

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 affairs. One 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 recommendations. Point Park University Amicus Brief for the AAUP

How Many Administrators Does it Take to Run this Place?The Chronicle of Higher Education Lists 289 types of Senior Executives and Chief Functional OfficersAdministratiumThe 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.AdministratiumAccording 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.

AdministratiumResearch 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 1989

Kent State University

Division of Business and Finance8/10/2012

Responding to the Market: What Do Administrators Get PaidE. Gordon Gee President, Ohio State University, October 2007PresentTotal Compensation (2011) $1,992,221Since 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 expenses hidden among hard-to-get records that the university took nearly a year to release tally 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 gifts all at public expense.Source: Chronicle of Higher Education & Dayton Daily News

Compensation for PresidentsNameTotal CompensationPositionE. Gordon Gee$1,992,221 Ohio State UniversityMichael D. McKinney$1,966,347 (Partial year)Texas A&M University systemGraham B. Spanier$1,068,763 Pennsylvania State University at University ParkLee T. Todd Jr.$972,106 University of KentuckyMary Sue Coleman$845,105 University of Michigan systemKent R. Hance$757,740 Texas Tech University systemFrancisco G. Cigarroa$751,680 University of Texas systemRobert H. Bruininks$747,955 University of Minnesota-Twin CitiesJohn C. Hitt$741,500 University of Central FloridaCharles W. Steger$738,603 Virginia TechSource: Chronicle of Higher EducationSalaries for AdministratorsSenior executives and chief functional officersDoctoralChief 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 AdministratorsSenior executives and chief functional officersDoctoralChief 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 AdministratorsSenior executives and chief functional officersDoctoralChief 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 DisciplinesDiscipline1980-812009-10Fine arts: visual and performing-8.80%-12.40%Education-4.00%-4.30%Foreign language and literature0.90%-4.10%Communications-3.30%-3.20%Philosophy2.30%2.10%Library science-1.50%3.60%Mathematics7.60%7.20%Psychology5.00%8.90%Physical sciences7.70%12.90%Social sciences4.80%16.80%Health professions and related sciences20.30%18.90%Engineering8.10%25.20%Computer and information sciences13.40%28.40%Economics13.90%41.20%Business administration and management11.40%50.90%Law and legal studies33.20%59.50%Source: Chronicle of Higher Education

The Pay Gap Between Public & Private Universities Percentage Gap Public v Private Independent DoctoralPcentage Gap Public v Religiously Affiliated Doctoral1986-872011-121986-872011-12Professor17%34%5%10%Associate9%23%5%9%Assistant7%25%2%8%Instructor16%29%22%34%Lecturer2%21%-7%4%Source: AAUP Salary Survey

Source: The Common Fund & Authors CalculationsDelta Cost Project, NCES & Authors CalculationsSource: National Center for Education StatisticsNational Report on Administrative Costs in Higher Education: Goldwater Institute and Administrative BloatSource: No. 239 I August 17, 2010: Administrative Bloat at American Universities: The Real Reason for High Costs in Higher Education. http://www.goldwaterinstitute.org/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 service.National Report on Administrative Costs in Higher Education: Delta Cots ProjectSource: Trends in College Spending, 1998-2008. Released July 8, 2010. http://www.deltacostproject.org/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.

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

YearTotal RevenuesTotal ExpensesChange in Net AssetsMargin2002 $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 authors calculationsWhat 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 BriefHow Decision Are MadeAt 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 DiscontinuanceState 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 campusesIn 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 DiscontinuanceAuburn U. Trustees Eliminate 6 ProgramsAuburn 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 keep.The 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 recommendation.

Program DiscontinuanceMore Than 70 U. of Northern Iowa Programs Face Elimination or OverhaulAmong the programs being considered for elimination, all of which have produced an average offewer thanseven graduates over the past five years, are several degree programs in the languages, chemistry, computer science, and the earth sciences, according to an administrativedocument that the newspaper obtained. The universitys faculty members havebeen protesting their lack of involvement in the budget-cutting process and last week voted no confidence in the institutions president and provost.Chronicle of Higher Education

Program DiscontinuanceA University Plans to Promote Languages by Killing Its Languages DepartmentLast 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

SearchesAAUP Criticizes Michigan State U. for Not Listening to Faculty; Student-Affairs Job Goes to Wife of Bowling Green's PresidentRegents Broaden Presidential Search at Texas A&M Without Faculty Input, Drawing CriticismChronicle of Higher Education

Curricular ChangesCUNYs Pathway to WhateverAs 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 GovernanceNew President and Faculty Tangle at U. of the District of ColumbiaJust 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 SenatesUnion In, Governance OutFaculty governance at Akron, some say now, was gutted, and without a word of debate. Chronicle of Higher Education

Dumping Faculty GovernanceTennessee State U. Disregards Faculty Senate's Vote to Retain Its LeaderTennessee 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 GradesKevin 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 PresidentsNew 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 action.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 EdAffordability Gap

The College Board & Bureau of CensusCrushing Debt for Students

The College BoardGrants and Loans Millions $ 2010=100

The College BoardAverage Aid per Full-Time Equivalent Studentconstant 2010 $

The College BoardPercent of Need Based Aid

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 EducationHigher 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 emerged. Education as a Force for the Common GoodOthers (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 EducationDuring 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 U.S. with little prospect for employment, and left-led unions of the CIO were pushing a social agenda, so the GI bill was enacted. Expanding Access & the Dewey ModelThe big expansion of access to college, however, came in the 1960s increased funding for public higher educationurban universities community colleges. Greater access to higher education was a component of the reform era that began in the 1950sthe civil rights the womens rights antiwar movements. The Social Upheavals of the 1960sThe social upheavals of this era Greater access to college Medicare and MedicaidClean Air and Clean Water Acts and the EPAOSHAGreater income equalityThe Dewey model was a facet of the of mass movements for social justice and equality.

The Death of the Reform Era & CorporatizationThe 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 BackChanges in higher education do not occur in a vacuum. 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 BackStrengthen Existing Chapters on CampusHave a membership drive on campus at least once a yearMake office visits to get faculty to joint AAUPEvery chapter should have a website and the national AAUP should provide a template for the website.Have a presence on social media i.e., Facebook and TwitterUse the website to communicate with faculty with an online newsletter and links to other AAUP chapters.Fighting BackUse the AAUP salary data to create a comparison with your peer institutionsPut IPEDS data on your site to show how much your institution is spending on instruction.Fighting BackBuild 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 CFHEFighting BackGet involved in politicsSee if it makes more sense for your chapter or state conference to be a 501c(6).Conduct voter registration drives on campus each year.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 initiatives.