Private organizations respond to internal economic forces by limiting expenses due to the fact that limited funds and controllable expenditures are the most easily manipulated items in any budget. Many organizations feel that salaries are the greatest controllable cost for the organization. However, "Colleges are faced with 3 types of costs: 1. uncontrollable costs, which include utilities, books, supplies, and equipment, 2. controllable costs, which include wages, salaries, and contracted services, and 3. mixed costs, which include employee benefits and employment taxes." (Bernard & Beaven, 1985, 78) The University of Phoenix feels that reducing staff and therefore reducing salaries is counterproductive. Reducing staff levels inhibits the universities ability to service students and lessens the likelihood that students will complete the educational goals and graduate with the degree they desired. The University of Phoenix and the parent company The Apollo Group approach the subject of economic forces as opportunities. By increasing staffing and visibility in the markets and providing options for education, the University of Phoenix feels that they are able to increase their market share and reduce the effect of both internal and external forces. The system seems to be working for the university; it has grown to be "the nation's largest accredited university; with over 17,000 highly qualified instructors, 170 campuses, and Internet delivery worldwide students"(University of Phoenix, 2005) and continues to grow at a rapid rate.
There is one aspect of life that is difficult to accept and that is change. Whether it is change of job, change of residence, or change of relationships, ultimately the process is stressful.
Recently, my administrator resigned to take another position in our sister-facility. For the most part, the management team was ecstatic. She had exhibited weak management skills and was not a good leader. With this change came the hiring of a new administrator. Everyone was pleased and hopeful that he would be able to make some necessary changes that had been requested for the past four years.
After his 2nd week on the job, the new administrator (I will call him Mr. Jones), began to make some changes by restructuring the mission and goals of the entire facility. To address the internal forces he let the management team know that the facility was financially weak and that the team needed to become creative and innovative about how we could pull together and begin to make a profit.
Recognizing that we were going backwards rather than forwards, Mr. Jones set about to map out a...