Administrative and Academic Strucures: For-Profit and Not-For-Profit
Abstract
In the United States, for-profit institutions of higher learning are typically led by highly-skilled business professionals with limited academic expertise; not-for-profit institutions are usually governed by highly-successful academics who occupy positions of administrative power but have little or no training in strategic management. The former are more effective at managing an institution to meet changing landscapes, but rarely have the educational experience or insights to build and sustain strong academic programs. The latter have greater capacity to build strong academic programs, but often lack the managerial excellence to support institutional foresight and agile responsiveness to change. The authors present a conceptual road-map of hybrid institutional structures better able to meet the changing needs of higher education in the 21st century.
Key takeaways
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- For-profit institutions excel in management but struggle with academic quality; not-for-profits reverse this dynamic.
- The text recommends a hybrid model combining strengths of both institution types to enhance higher education.
- Critical issues include access, financing, accountability, and measuring academic quality across higher education sectors.
- Effective decision support methodologies, including learning analytics, can optimize student outcomes and institutional performance.
- Four key distinctions—organizational structure, incentives, faculty roles, and curricular design—impact strategic management in higher education.
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