Page 107 - Crisis in Higher Education

Understanding the Root Causes • 79

It seems reasonable for universities to tap tenured faculty from busi-
ness colleges or other fields of study that teach and research in lead-
ership, planning, and management, but this is rare. Business faculty
members are substantially underrepresented in leadership positions in
higher education. According to ACE, the typical president has a doc-
torate in education. The most common career path to the presidency
is Chief Academic Officer (CAO), sometimes called the provost or vice
president for academic affairs. Most presidents have spent their entire
life in higher education, and 70% have been tenured faculty at some
point. The primary duties of most presidents are fundraising, budget-
ing, community relations, and strategic planning. Most academic issues
such as program development, hiring faculty, and managing the educa-
tional and research aspects of universities are overseen by the CAO, who
reports directly to the president. The vast majority of CAOs have been
tenured faculty members. 19
The following bullet points examine the impact of root cause 3, “Rise of
the Ruling Class—Administration,” on the underlying problems listed in
Table 4.3.

• Problem 1. Cost increases: The evidence is clear that growth in
the number of administrative positions and the rate of increase
in salaries of administrators have increased the costs of higher
education to the point where spending on administration exceeds
spending on faculty. From 1978 to 2014, administrative positions
have increased by 369%, while tenured faculty positions have
increased by only 23%. 11
• Problem 2. Quality decreases: When more money is spent on admin-
istration, there are fewer resources to invest in enhancing educa-
tional and research quality.
• Problem 3. Access decreases: As spending on administration
increases, access declines.
• Problem 4. Graduation rate decreases: As spending on administra-
tion increases, graduation rate decreases.
• Problem 5. Completion time increases: As spending on administra-
tion increases, completion time increases.
• Problem 6. Job placement decreases: With more spending on admin-
istration, there are fewer resources to invest in working with organi-
zations so students have better job opportunities.