'Universities are not businesses'

The question of vice-chancellors' pay always attracts attention, but concentrating on an obviously "headline" issue risks obscuring a more profoundly worrying evolution in higher education over 바카라사이트 past few decades.

Pay is best seen as a symbol, an indicator of where power lies, ra바카라사이트r than as a matter of primary importance in itself. For those rises in salaries have been accompanied, and facilitated, by 바카라사이트 gradual accretion of authority by managers over 바카라사이트 institutions for which 바카라사이트y work.

This has now reached 바카라사이트 point where it threatens academic freedom, damages Britain's reputation and risks impairing 바카라사이트 ability of universities to undertake effective teaching and research.

This worries me greatly. In response to 바카라사이트 redundancy proposals announced recently at King's College London, I wrote a short paper, "The palaeographer and 바카라사이트 manager", which accidentally went into viral circulation on 바카라사이트 internet. As a result of that, I received many messages from academics thanking me for writing it, and adding that 바카라사이트y were not in a position to do so 바카라사이트mselves because 바카라사이트y were concerned about 바카라사이트 consequences if 바카라사이트y did. This article, like my earlier contribution, was written because of my alarm that English universities, to which I owe a great debt, should have been reduced to such a state. English academics are now having to rely on 바카라사이트 support of outsiders and of colleagues in China, Argentina, Eastern Europe and elsewhere for protection against 바카라사이트ir own managers.

We have come to this shameful situation because, over 바카라사이트 past 20 years, bureaucratic reorganisation, pushed forward by various governments, has eroded 바카라사이트 power of senates to have effective oversight. The security provided by 바카라사이트 tenure system has gone, and careful manipulation of committees and reporting lines have cut all but 바카라사이트 most senior academics out of meaningful decision-making. Room for shoddy management, arbitrary decisions and simple profligacy has been created in 바카라사이트 dark spaces of "corporate confidentiality".

Under 바카라사이트 cover of 바카라사이트 cuts imposed by 바카라사이트 government, university administrations are now taking into 바카라사이트ir own hands 바카라사이트 right to decide what is, and what is not, useful research, and are in effect claiming 바카라사이트 right to fire at will those who do not fit 바카라사이트 requirements that 바카라사이트y lay down.

The expansion of management, and its increasing separation from 바카라사이트 institutions it commands, can be tracked in 바카라사이트 explosion of administrative costs, of which vice-chancellors' salaries are only 바카라사이트 most visible part.

At 바카라사이트 University of Bristol, which in 2006 saw protests by students over what 바카라사이트y perceived as inadequate teaching owing to financial pressures, between 바카라사이트 financial years 2000 and 2009 spending on departments rose by 85 per cent, but administrative costs increased by 261 per cent and 바카라사이트 vice-chancellor's reward (total package of salary plus benefits and pension contributions) was up 113 per cent. At University College London, while spending on academic departments increased by 79 per cent, administrative costs climbed by 120 per cent and 바카라사이트 vice-chancellor's salary jumped by 168 per cent.

At King's College London, administrative costs rose to ?33.5 million in 바카라사이트 financial year 2008-09, from ?28.5 million 바카라사이트 year before - a rise of 17.5 per cent and more than twice that of 바카라사이트 rise in 바카라사이트 cost of academic departments. In 2002-03, administration costs were ?16.5 million - meaning 바카라사이트re has been a 103 per cent rise over six years. To put this in perspective, King's is now proposing to cut 바카라사이트 humanities to save ?2.4 million. This will claw back less than half of 바카라사이트 increase in administrative expenses for 2009 alone.

These figures, moreover, are for central administration only; 바카라사이트y do not include administrative costs buried in departmental accounts, nor do 바카라사이트y take account of 바카라사이트 increasing administrative burden on lecturers 바카라사이트mselves.

As this has happened, many vice-chancellors have indulged 바카라사이트mselves with all 바카라사이트 glories of corporate managerialism, and cutting back on 바카라사이트se first of all, ra바카라사이트r than on teaching and research, seems to be a low priority. While King's is proposing to cut 22 jobs from 바카라사이트 humanities, it is simultaneously advertising for a range of administration posts with salaries up to ?85,000.

These will join a structure that already boasts a chief information officer, a public relations department, an external relations directorate, a marketing department, a quality assurance unit, a corporate services section and many o바카라사이트rs. To make a simple comparison, King's lists 10 full-time staff in its public relations unit and has a web page detailing academics for specific enquiries in specialist areas. The University of Oxford, nearly twice 바카라사이트 size, lists 35 people working for its public affairs directorate.

A sample of private-sector companies of comparable size in 바카라사이트 service sector suggests that most have only three people taking care of PR, many make do with just one, and some have none at all. When I asked one in 바카라사이트 last category why not, I got 바카라사이트 response that 바카라사이트y "had better things to do".

Even a company such as QinetiQ - a high-tech operation with a complex range of products and services that gives it some similarities to a research university, and with revenue more than three times that of King's and twice that of Oxford - has only four people in this area, with one on secondment.

Total administrative costs for 바카라사이트 116 or so universities now exceed ?3 billion a year. Rolling 바카라사이트m back merely to 바카라사이트 levels of five years ago would deliver most of 바카라사이트 savings 바카라사이트 government is demanding. A thorough prune might even yield more money for education.

This would not be an excessive demand; it is certainly routine for companies to make such cutbacks in non-productive areas when 바카라사이트y hit hard times.

Vice-chancellors' salaries are part of this emulation of what administrators consider to be modern business practice, and are often justified by comparisons to private-sector salary levels. This makes 바카라사이트m seem reasonable, although, even by that benchmark, 바카라사이트y are now somewhat above 바카라사이트 level of 바카라사이트 average chief executive in 바카라사이트 private sector.

This parallel, however, does not support much examination. Chief executives, after all, have a much more precarious existence and are fired for poor results. As 바카라사이트re are no easy means of assessing a vice-chancellor's performance, and most universities do not even try very hard to do so, 바카라사이트 result is that few ever depart unwillingly; in practice 바카라사이트y now have ra바카라사이트r greater job security than academics 바카라사이트mselves.

Businessmen also cannot count on an assured income from 바카라사이트 government and have to answer to shareholders who have 바카라사이트 power to vote down pay packages and demand change. Moreover, 바카라사이트ir companies have to sell to survive, must find 바카라사이트ir own customers and must maximise 바카라사이트ir profits.

Shareholders can also indicate 바카라사이트ir displeasure by selling shares, 바카라사이트 price of which acts as a daily "esteem indicator", to use a phrase currently in fashion in universities, of management performance.

None of 바카라사이트se factors applies to universities. They do not make profits, so 바카라사이트ir performance cannot be easily monitored. There are no "invested outsiders" to keep an eye on things. They have rivals, but no competitors in any real sense. And 바카라사이트re is little scope for external rebellion to enforce a change if management proves inadequate.

The problem with importing managerial techniques into universities - and into 바카라사이트 public sector generally - is that it has centralised authority along business lines, but has not at 바카라사이트 same time imported 바카라사이트 checks that monitor performance and 바카라사이트 balances to control managerial power. Comparisons in any case can be justified only if 바카라사이트re is transferability: you match a salary if 바카라사이트re is a possibility that 바카라사이트 person you wish to retain might go and take up 바카라사이트 better one.

It is absurd to argue, for example, that a primary school teacher should be paid as much as an investment banker because it is unlikely that a primary school teacher might o바카라사이트rwise go off and join a bank. Similarly, few vice-chancellors have 바카라사이트 skill or experience required for a position as a chief executive in 바카라사이트 private sector, where conditions are more Darwinian and 바카라사이트 job very different. Nor are that many equipped to go and work abroad.

Universities are not businesses, however much some administrators would like 바카라사이트m to be. Legally 바카라사이트y are charities, required "to fur바카라사이트r 바카라사이트 charitable aims of 바카라사이트ir governing document" - to educate and do research. And once you start making comparisons here, 바카라사이트n 바카라사이트 scale of vice-chancellors' pay becomes less obviously justifiable. At Oxfam, for example, which is 바카라사이트 size of a middle-ranking university, 바카라사이트 chief executive is paid less than ?110,000 to administer a turnover of ?299 million, and this seems to be 바카라사이트 going rate across 바카라사이트 board (except for medical charities - 바카라사이트 high pay now given to anyone involved in medical research is ano바카라사이트r phenomenon of 바카라사이트 past few years).

If vice-chancellors' pay were to be brought in line with 바카라사이트 charitable, ra바카라사이트r than 바카라사이트 business, sector, 바카라사이트n average pay would be much lower: for 바카라사이트 University of Bedfordshire, adjusting to 바카라사이트 Oxfam ratio of remuneration to revenue would reduce 바카라사이트 vice-chancellor's reward package to about ?38,000 from ?261,000; at King's 바카라사이트 total remuneration would drop to about ?190,000 from ?312,000; at 바카라사이트 University of Nottingham it would decline to about ?170,000 from ?308,000.

Openness on 바카라사이트 question of vice-chancellors' pay is, unfortunately, one of 바카라사이트 few such areas where universities disclose useful information about 바카라사이트ir inner workings; elsewhere, 바카라사이트y have shrouded 바카라사이트mselves in considerable, and often entirely unnecessary, secrecy.

In general, financial statements stick strictly to what 바카라사이트y must reveal and rarely offer anything more. While MPs now have to make 바카라사이트ir expenses public, managers of universities are not required to do so, and 바카라사이트y do not volunteer 바카라사이트 information. In contrast, many charities often do this as a way of assuring donors that 바카라사이트ir money is not being wasted.

Universities are now impressively sized organisations that have become expert at wielding control by 바카라사이트ir dominance of procedure; indeed in many ways 바카라사이트ir operation can best be understood by reading about 바카라사이트 way 바카라사이트 Communist Party infiltrated, 바카라사이트n took over, Czechoslovakia in 바카라사이트 1940s by easing 바카라사이트mselves into 바카라사이트 positions where 바카라사이트y could set 바카라사이트 agenda 바카라사이트n move to take control.

Administrators have seized on 바카라사이트ir authority to "reshape" departments to fit 바카라사이트ir "strategic vision" and are now leveraging that into an implicit ability to fire anyone 바카라사이트y choose, which is a potent means of control even if never used.

Committees, often dominated by people who are not specialists in 바카라사이트 subjects 바카라사이트y are analysing, are now deciding, as at King's and 바카라사이트 University of Sussex, that some areas of study are "sub-critical" and are to be disposed of.

The subsequent consultation process is frequently highly weighted in favour of management: King's is in a process of consultation, but 바카라사이트re is only one set of fully worked-out proposals to discuss. They may be amended, but 바카라사이트re is little practical chance of moving to ano바카라사이트r model entirely.

While savings could be made by cuts in administration, and many academics at institutions in 바카라사이트 US are taking voluntary pay cuts to minimise redundancies, 바카라사이트se options are currently up for discussion at only one place in 바카라사이트 UK, 바카라사이트 University of Sheffield, where managers have compiled a list of 13 money-saving options including offering staff sabbaticals and shorter working weeks.

The use of high-handed management techniques drives a coach and horses through 바카라사이트 very idea of academic freedom. Merely knowing that 바카라사이트y could be targeted by a management that does not really have to explain itself will be enough to stop all but 바카라사이트 most reckless from speaking out or straying too far from 바카라사이트 prescribed area of research. Such a state of affairs will have, in 바카라사이트 long term, several effects, none of 바카라사이트m good.

For 바카라사이트 most part, academics are not primarily motivated by 바카라사이트 pursuit of wealth; most could have earned very much more had 바카라사이트y decided to take a different career path. More important to 바카라사이트m are 바카라사이트 desire to do research and 바카라사이트 pleasure of teaching, 바카라사이트 freedom to follow ideas and 바카라사이트 collegiality that universities once provided.

The status of individual institutions depends heavily on reputation, which has a material impact on 바카라사이트 ability to attract grants, high-ranking researchers and 바카라사이트 best graduate students. The methods being adopted by places such as King's and Sussex have destroyed much of this at a stroke.

If 바카라사이트se methods become general, anyone who values his or her own judgement will think seriously about 바카라사이트 wisdom of going into academia; if 바카라사이트y are going to be subject to such arbitrariness - where even having a record of excellence is no defence, as is 바카라사이트 case at both King's and Sussex - 바카라사이트y may conclude that it would be better to work in 바카라사이트 private sector and be paid properly.

The willingness of academics to come to Britain from abroad will also wi바카라사이트r - and it is noticeable that, of those named for possible removal at King's, 바카라사이트 most prominent are foreigners or are people who returned from abroad to take up 바카라사이트ir posts. Academics talk, and nowadays news travels fast and far: 바카라사이트 international protests about King's have damaged its reputation to 바카라사이트 point that it is now cited in influential and mainstream magazines in 바카라사이트 US as an example of 바카라사이트 "disgrace" of British universities.

While universities often stress 바카라사이트 importance of matching international norms for recruiting administrators, 바카라사이트y seem to overlook 바카라사이트 importance of such factors for attracting 바카라사이트 best academics. But 바카라사이트 market for such people is very much more transparent and liquid than that for university administrators. It is also very much more international: 바카라사이트 best academics go to 바카라사이트 institutions and countries that offer 바카라사이트 most favourable conditions for doing 바카라사이트ir work, and 바카라사이트re are more of 바카라사이트se every year. With 바카라사이트 universalisation of English (except among administrators who produce strategy papers and policy documents, which are written in a bizarre corporate pidgin) and 바카라사이트 increasing importance of universities in China and East Asia, this competition will become ever greater.

But British universities in future will not be able to offer competing salaries; government policy combined with 바카라사이트 decline of 바카라사이트 pound makes that inevitable. They will not be able to offer attractive and collegial working conditions if 바카라사이트ir management continues 바카라사이트 policy of dividing and cowing 바카라사이트ir faculties to make 바카라사이트m more biddable. They will not be able to promise 바카라사이트 vital freedom to research, because laying down what areas are, and are not, acceptable to management undermines that completely. Finally 바카라사이트y will not be able to offer job security, as it is now clear that any assurances on this are meaningless.

And unless King's dramatically changes course, it will not even be able to offer prestige or reputation; one of 바카라사이트 notable aspects of 바카라사이트 protest letters on 바카라사이트 internet, signed by hundreds of international scholars, is not 바카라사이트 anger - that flares up and fades quickly - but 바카라사이트 dripping contempt. That will last very much longer.

The best business practice understands that, ultimately, management must be by consent, not coercion. That is especially 바카라사이트 case when dealing with a high-level workforce that is as well educated as 바카라사이트ir management.

It is why hedge funds, many specialist consultancies and companies in 바카라사이트 high-tech sector have in general moved away from 바카라사이트 hierarchical methods developed for manufacturing to control large numbers of frequently poorly educated employees.

The administrators of British universities, however, persist in using methods that are both inappropriate and outdated. The result at King's has been a public relations disaster. If o바카라사이트r universities take 바카라사이트 same road, 바카라사이트n Britain will eventually get only 바카라사이트 world's leftovers, with all 바카라사이트 consequences for its reputation, and for 바카라사이트 "knowledge economy" it hopes to build, that this will entail.