Theories of Organizational Finance

1. Theories of Organizational Finance

2. Goals of Higher Education What are primary goals of an institution of higher education? • Public flagship research university • Private liberal arts university • Public community college • Private for-profit university What is the goal of your organization?

3. Awkward Economics Non-profit enterprises • Trust industries • Asymmetric information • Buyer is vulnerable to seller’s opportunism • Non-profit motive gives buyer confidence • Education is a one-shot purchase • Pursuit of excellence • Fuzzy goals

4. Higher Education as Business Manufacturer • “Just in Case” vs. “Just in Time” education • Workforce skills • Professional schools • Online education • Certificates • Personalized education plans

5. Awkward Economics Customer as Input Production Technology • Consumers are also outputs • Peer effects • Buy vs. create an education • Hierarchy matters • Sales maximization may not be desirable • Restricted admissions

6. Higher Education as Business Consumerism • Institutions serves the interests of various groups (i.e. customers) • Students • Corporations • Offer products to attract students • Rec. Centers, dorms, winning football teams • Offer products to attract corporations • Research, trained students

7. Large Group Discussion • Identify the goals of the following organizations on campus: • Enrollment Management • Residence Life • Athletic Department • College of Business • MU Hospitals and Clinics • How do they contribute to the overall mission of the university? • Do they align more with non-profit or market oriented policies?

8. Academic Capitalism “The pursuit of market and market-like activities to generate external revenues” • (Slaughter & Rhoades, 2004, p. 11) • Slaughter and Rhoades (2004) suggest that academic managers, professors, and other professionals initiate academic capitalism through their everyday practices. Do you agree that these “actors” initiate this practice or are they bound by institutional and organizational design? If so, explain which “actor” has the strongest impact on academic capitalism?

9. Create a 10 Minute Presentation Identify an organization on campus that exemplifies the academic capitalism theory: • Group A: New Economy & Knowledge as Raw Material • Group B: Non-Fordist Manufacturing • Group C: Interstitial Organizations & Intermediating Networks • Group D: Market Behaviors & Professional Strategies • Describe the theory – quick intuitive explanation • Describe the unit’s goals: • Describe how their activities meet the mission of Mizzou and the state of Missouri. • Describe how their missions do not meet the mission of Mizzou and the state of Missouri. • Describe/illustratehow the units activities fit the theory. • Use specific examples from org and text • Make connections

10. Annotated Bibliography • A summary and evaluation of a number of sources related to a particular research question or project. • A good annotation: • Summarizes the main arguments (methods, findings, etc.) of a source. • Assesses the quality and relevance of the source to your own research project and other relevant resources. • Reflects upon how this source fits into your own research project. • Adapted from: https://owl.english.purdue.edu/owl/resource/614/01/

11. Activity • Based upon Leslie et al. (2012) write an annotation from the following perspectives: • You are writing a policy brief describing the implications of decreased state appropriations on the quality of public 4-year education within your state. • You are writing a policy brief describing the impact of increased state appropriations on research productivity of 4-year institutions within your state. • You are writing a policy brief on the benefits to the productivity of private research universities of increased gift revenue.