Tomorrow's Professor Msg.#106 WHY PROFESSORS HAVE TENURE AND BUSINESS
PEOPLE DON'T
Folks:
If your experience is anything like mine, almost everyday someone, usually
a colleague in industry, askes why faculty still have tenure when this
is not the case for anyone in corporate America.
The posting below addresses this issue from an economic perspective.
It is by Richard McKenzie, a tenured professor in the Graduate School
of Management at the University of California, Irvine. The posting is
drawn from a more extensive article on the subject by McKenzie that can
be found at:(http://www.gsm.uci.edu/~mckenzie/tenure.html).
Regards,
Rick Reis
UP NEXT: Learning From Teaching
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WHY PROFESSORS HAVE TENURE AND BUSINESS PEOPLE DON'T
Richard B. McKenzie
UC Irvine
Critics of higher education are fervent in their denouncements of the
academic tenure professors receive after only a few years on the job.
Critics charge that tenure is the cause of much professorial incompetence,
given that tenure supposedly affords professors life-time job security.
They stress that professors are no more deserving of tenure than their
counterparts in business. Doing away with tenure would be a be an unmitigated
blessing for students, or so the argument goes.
South Carolina has recently done away with tenure for new faculty hires
in that state's universities. Many state legislators in many other states
puff away about the virtues of following South Carolina's lead. On the
other hand, declaring themselves to be "special," professors typically
defend academic tenure on the grounds that they need to be protected from
external political forces that would, in the absence of tenure, throttle
free thought and speech in the nation's classrooms.
Frankly, both tenure's critics and defenders don't fully appreciate the
economic foundations of tenure. Tenure has very little to do with protecting
professors from external political force; it has a great deal to do with
protecting them from internal political forces. Professors have tenure
(which, in reality, is only a limited form of job protection) and business
people don't simply because professors have good reason to buy it; business
people don't.
To understand tenure, critics must realize that tenure is nothing more
than an untaxed fringe benefit, much like health insurance, that is voluntarily
sold by most public and private colleges and universities to their faculty
members at the price of reduced wages. Tenure is bought by professors
at a price that is less than its assessed value.
Admittedly, tenure creates some widely recognized problems for colleges
and universities (inattentive faculty members, for example), but so does
health insurance (excessive purchases of health care). Tenure is provided
by universities for much the same economic reason health insurance is:
the acclaimed costs of tenure to universities are less than the unacclaimed
lower wage bill (a fact that explains why students have reason to appreciate
tenure, given that their tuition payments are lowered by it). If tenure
were eliminated, universities' total wage bills would no doubt rise, which
is one reason why so many colleges and universities continue to offer
it in spite of the attendant problems.
Why is it that professors buy tenure while business people generally
don't? Admittedly, the reasons are several, but one of the more important
but widely unacknowledged reasons is that tenure is simply not very valuable
to business people, and for good reason: The goal of business-profit-is
clear, well established, and not subject to radical change by the whim
of the people doing business. People in business have a pretty good idea
that their long-run well-being in their companies will hinge on just how
much they can contribute to profit.
Universities, on the other hand, are worker managed, governed extensively
not by profits, but by politics-which can be guided by serious deliberations
but also by changing whims. ("Political correctness" is only the latest
guiding set of whims for democratic orders in some academies.) People
taking positions in universities that are extensively labor managed understand
that their future well-beings-promotions and pay raises- will be determined
partially by secret votes of their colleagues. In such an environment,
employment contracts have limited usefulness. The people doing the voting
need not consider why a person is employed or what employment agreement
the person had, and the voters (professors) can change the basis for their
votes at will (and never let anyone know what they have done). Moreover,
the cast of voters is constantly changing with resignations, retirements,
and new hires, which means that a person can be hired by one group of
voters, using one standard, and judged later by a radically different
group using a substantially different criteria.
Few professors would give up much in the way of wages for protection
against external political forces-because most professors never say anything
controversial in class and precious few ever go public with their views.
However, even professors who remain cloistered in their labs or in library
corridors seek tenure, and voluntarily give up good money for it. Why?
The answer should be transparent: They want to guard against the vagaries
of academic democracy. Such a governing system can be, and often is, tame;
but it can, and often does, become petty, vicious, and unstable, fraught
with changing coalitions of voters.
Business people don't need the same form of protection because of the
governing role of profits (and the forces of competitive markets that
keep managers and workers' attention focused on company profitability
and suppress, but does not eliminate, the role of politics). They aren't
willing to forgo enough wages to cover the costs the firm would incur
from tenure.
Not all colleges and universities are or need to be worker managed; the
goals of some colleges and universities-for example, those heavily weighted
toward teaching well-established disciplines-are relatively straightforward
and stable. They can be administratively managed, as is common in business,
given that administrators can judge what the faculty do. However, some
universities-for example, those with a heavy emphasis on creating new,
difficult-to-judge knowledge-must rely on delegated decision making, because
administrators have little competence to judge faculty output.
Put another way, the more democratic the workplace-whether in business
or academe-the more likely that the workers will demand tenure, and the
more likely the employers will provide it-at a price, of course. Critics
of tenure should realize that if they get their way, the cost of higher
education will likely rise, and so will tuition (although tenure couldn't
be worth more than a few hundred dollars to any professor worth his or
her salt). The critics had better be prepared to accept changes in academic
governance systems and their driving goals.
At the same time, the elimination of academic tenure will not be the
panacea for the troubles of academia that many critics envision. There
are already a hundred and one ways (from pay cuts to lousy teaching schedules)
that colleges and universities can use to rid themselves of unwanted faculty
members. All they have to do is use them.
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