Reflecting on the Roles and Responsibilities of University Faculty and Management
Edited by Roger Sugden, Marcela Valania and James R. Wilson
This chapter analyses the consequences for work motivation, employment and performance when a university is reorganized by the principles of the market, i.e. by marketization. In the context of public sector and nonprofit organizations, marketization means attempts to improve economic performance through the alleged superiority of private sector practices (Lynch, 2006). Marketization is for example believed to strengthen customer orientation and cost awareness (Jongbloed, 2003). Few organizations offer a more striking contrast between old and new principles than the university. There is a rich descriptive literature on university reforms, but few studies have seriously questioned their advantages by applying microeconomics. Our purpose is therefore to analyse how such dimensions of marketization as economic rewards and punishments, more powerful managers and eroded employment protection might affect the performance of a university in its core tasks, the work efforts of its employees and the size of its staff.
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