Colleges vs. Businesses: Differences in Management

The introduction: the principal difference between the colleges/universities and business organizations

First of all, I would like to point out that such educational organizations as universities and colleges are recognized to be seemingly absurd or self-contradictory. I would like to disclose several viewpoints concerning the question. Thus, these educational organizations form the largest industries of the countries. Another viewpoint is related to the fact that the institutions of higher education “maintain a most favorable balance of trade by enrolling large numbers of students from other countries” (Birnbaum, 1991, p. 3). However, the most interesting point I would like to highlight is the success of the system of education. For instance, the institutions of higher education seem to be paradoxical, as they are managed in an inappropriate way. This is really strange, as most of us know that various organizations are successful because they are based on effective management policy. So, it is governance, which is considered to be the keystone of the contradictions between educational organizations and other ones.

The thesis statement

The success of the system of higher education can be explained by its poor management policy. Of course, the question is considered to be really ambiguous, but while speaking about the colleges and universities, one is to draw his or her attention to the structure of educational institutions.

The body: the fundamentals of educational institutions policy

The purposes and missions of the system of higher education are not easy to define; although an organizational mission is recognized to be one of the fundamentals of educational institutions. Various business enterprises set goals and achieve them easily, but universities and colleges have another structure. For instance, as far as they are mostly related to other social systems and considered to be more specialized organizations, one can make a conclusion that the missions may cause certain conflicts. Generally, “the problem is not that institutions cannot identify

their goals but rather that they simultaneously embrace a large number of conflicting goals” (Birnbaum, 1991, p. 11). Of course, there are many institutional missions the universities and colleges are to achieve; however, the key aspect which is to be considered is that the primary missions, namely teaching, research, and service are based on different structures.

If one compares a business organization and an educational one, it becomes obvious that the universities and colleges represent “less specialization of work activities, but a greater specialization by expertise” (Birnbaum, 1991, p. 21). Moreover, such educational institutions have a more important hierarchy, lower interdependence of the sides, low accountability, and minimized role performance.

“Many of the university’s stakeholders assume different roles within the university system depending on the organizational position they occupy, which in turn affects their decision making ability” (Gassol, n.d., p. 16). The relation between the university and business organization is mostly associated with FUNINDES. Although educational institutions and business organizations have different approaches to leadership, binding contacts can be created through strategic alliances.

The conclusion: management roles

Another important issue I want to highlight is the so-called leadership theory. The issue of leadership in relation to universities and colleges is not easy to disclose. For instance, management roles in universities and colleges are different. Moreover, every college or university has its own management; for this reason, one can state that principal accountabilities are also different. The most important roles include policy formulation and implementation, academic planning, governing the institution’s activities, and controlling the academic community.

Shared governance means “shared responsibilities of shared responsibility and joint effort involving all important constituencies of the academic community” (Birnbaum, 1991, p. 8). The responsibility is related to “the fundamental areas of curriculum, instruction, faculty status, and the academic aspects of student life” (Birnbaum, 1991, p. 1).

References

Birnbaum, R. (1991). How colleges work: The cybernetics of academic organization and leadership. San Francisco: Jossey-Bass.

Gassol, J. (n.d.). The Effect of University Culture and Stakeholders’ Perceptions on University-business Linking Activities. Web.

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StudyCorgi. 2021. "Colleges vs. Businesses: Differences in Management." March 20, 2021. https://studycorgi.com/educational-institutions-governance-and-policies/.

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