Free Essay

Proprietary Education: the Same as Non-Profit and at the Same Time Different from Public Education

In: Social Issues

Submitted By LisaBoice
Words 761
Pages 4
There are several important differences between proprietary degree-granting institutions and traditional institutions. The most fundamental difference is related to the for-profit motive of the proprietary institution; for-profits are in business to realize return on investment for stock holders while traditional institutions hold special status as nonprofits and reinvest profits to the institutions (Hawthorne, 1995; Lee & Merisotis, 1990). The for-profit motive, coupled with a lack of governmental oversight, created a crisis in the 1970s within proprietary education as unscrupulous school owners took advantage of increased tax-supported funding for higher education. Problems increased in the 1980s and early 1990s manifested by rising student loan default, low program completion, and dismal job placement rates (Hittman, 1995; Honick, 1995). Moreover, there were accusations of “questionable business practices, aggressive marketing tactics, misleading advertising, and poorly-constructed educational programs” (Schulz, 2000, p. 17). In response to these scandals, state and federal officials enacted quality review systems “to protect consumers from deceptive and unfair practices, [and to] assure quality education through the establishment of minimum standards” (Foster, 2004, p. 2). For-profit schools must now comply with strict licensing and accreditation requirements; institutional performance is measured in terms of student retention, job placement, loan default rates, and federal funds usage. In spite of these remedies, current attitudes toward proprietary education are still often based on the fraudulent practices of the pre-1992 era (Bailey et al., 2001).
Other important differences between proprietary and traditional education include their governance structure, curriculum design, and faculty qualifications. In proprietary institutions, decision-making rests in the hands of a few hierarchical managers, accountable primarily to shareholders, “who may place financial considerations above the needs of their students” (Foster, 2004, p. 15). For-profit institutions are less likely to have a board of trustees and their faculty have neither tenure nor influence through shared governance (NCES, 1999). Without these powerful restraining influences, organizational efficacy and efficiency allow institutions to be more responsive in meeting the changing demands of the modern workplace (Offerman, 2002; Ruch, 2001; Schulz, 2000). Yet, while the governance structure of for-profit institutions is different from traditional institutions, Millard asserts that it would very difficult to prove “quality was a function of governance and ownership rather than of accomplishing educational objectives” (1991, p. 51).
For-profit degree-granting institutions aggressively market their curriculum as a gateway to employment—especially to individuals who might not qualify for enrollment or find success in traditional institutions (Kelly, 2001). The for-profits’ emphasis on vocational curricula and career orientation characterizes both their programs of studies and their mission of “serving students by preparing them for employment and serving industries by supplying them with trained workers” (Cohen & Brawer, 2003, p. 233). Strong linkages to the local business community guide the development of a curriculum designed to graduate well qualified and productive workers. Accordingly, the for-profit curriculum is: more practical than academic, derived from employer identified job skills, and transmitted by credentialed faculty—as defined by education and experience—who link teaching with the authentic business world. As a result, for-profit institutions have developed a narrowly-tailored curriculum incorporating occupational skills, academic education, and work-based learning. Proprietary institutions also offer a more flexible and convenient class schedule than most traditional institutions of higher education. Consequently, for-profits start new courses regularly, many as often as every month compared to one start per semester in traditional institutions. This convenient, no-frills approach to education appeals to nontraditional students who have unique needs and concerns about college (Rutherford, 2002; Sperling & Tucker, 1997).
Proprietary institutions hire few full-time faculty members. Instead, they rely heavily on part-time instructors—generally people experienced in the field they teach (Bailey et al., 2001). A master’s degree is usually required; however, in certain fields, a bachelor’s degree (plus experience, license, or demonstrable proficiency) will suffice. Bailey et al. (2001, p. 28) found that “Neither training in pedagogy nor experience in teaching was formally required…and applicants who have had industry experience and an appreciation for applied learning” are preferred. In addition to their teaching responsibilities, faculty are also responsible for retention activities and accordingly are encouraged to “develop a relationship with their students” (Foster, 2004, p. 10). For example, instructors often are required to contact students who have missed class in an attempt to bolster motivation for academic success and persistence (Rutherford, 2002). One of the greatest challenges facing most for-profits is attracting a credentialed and highly qualified faculty because salaries are generally lower than those found at traditional institutions (Ruch, 2001).

Similar Documents

Premium Essay

Uop Paper New

...company provides online and on-campus post-secondary education geared primarily towards working adults. Its flagship institution, University of Phoenix, has an alumni network of 700,000 people. Founded in 1973 by John Sperling, it has grown to become the world’s largest private education provider. It offers undergraduate, master’s and doctoral degrees in numerous fields. In 2007, it formed a joint venture with the Carlyle Group to expand its market internationally. The goal was to utilize e-learning to educate the masses in the developing world, where the number of post-secondary institutions is not able to meet demand. The current CEO of the company is Gregory W. Cappelli. Dr. Sperling still serves on the Board as Executive Chairman. Current Issues: 1. Public perception about proprietary education providers and, more specifically, online learning. Due to the inconsistent quality of education provided by different proprietary schools, the overall image and reputation of the industry is not that great. These for-profit institutions are often viewed as diploma mills. Here are some comments I’ve personally heard about them: “They’ll graduate anyone that can afford to pay the tuition” and “the quality of education that you receive is inferior to a traditional university”. Similarly for online programs, regardless of whether they’re from a profit or non-profit institution, many people don’t feel that they provide the same interaction as a brick and mortar school and......

Words: 320 - Pages: 2

Premium Essay

Apollo Group - Uop

...The company provides online and on-campus post-secondary education geared primarily towards working adults. Its flagship institution, University of Phoenix, has an alumni network of 700,000 people. Founded in 1973 by John Sperling, it has grown to become the world’s largest private education provider. It offers undergraduate, master’s and doctoral degrees in numerous fields. In 2007, it formed a joint venture with the Carlyle Group to expand its market internationally. The goal was to utilize e-learning to educate the masses in the developing world, where the number of post-secondary institutions is not able to meet demand. The current CEO of the company is Gregory W. Cappelli. Dr. Sperling still serves on the Board as Executive Chairman. Current Issues: 1. Public perception about proprietary education providers and, more specifically, online learning. Due to the inconsistent quality of education provided by different proprietary schools, the overall image and reputation of the industry is not that great. These for-profit institutions are often viewed as diploma mills. Here are some comments I’ve personally heard about them: “They’ll graduate anyone that can afford to pay the tuition” and “the quality of education that you receive is inferior to a traditional university”. Similarly for online programs, regardless of whether they’re from a profit or non-profit institution, many people don’t feel that they provide the same interaction as a brick and mortar school and......

Words: 1044 - Pages: 5

Free Essay

Fin 370 Week 1 Definitions

...other resources. Cite all resources consistent with APA guidelines. |Term |Definition |Resource you used | |Time value of money |“A dollar received today is worth more than a|Titman, S. Keown, A. J. & . Martin ,J. D. (n.d.). | | |dollar received in the future. Conversely, |Financial Management. Principles and Applications: | | |a dollar received in the future is worth less|Chapter 1: Getting Started: Principles of Finance: 1.4. | | |than a dollar received today. Perhaps the |The Five Basic Principles of Finance. 12th,. ed. | | |most fundamental principle of finance is that|Copyrighted by Pearson Education. (2014). Retrieved from| | |money has a time value. A dollar received |https://newclassroom3.phoenix.edu/Classroom/#/contextid/| | |today is more valuable than a dollar received|OSIRIS:48546409/context/co/view/activityDetails/activity| | |one year from now. That is, we can invest the|/3195cb75-8a75-4bd9-a1c3-0092ba334301/expanded/False | | |dollar we have today to earn interest so that| ......

Words: 2479 - Pages: 10

Premium Essay

Cloud Computing

...Cloud Computing for Education and Learning: Education and Learning as a Service (ELaaS) Mohssen M. Alabbadi Computer Research Institute (CRI) King Abdulaziz City for Science & Technology (KACST) Riyadh, Saudi Arabia Alabbadi@kacst.edu.sa Abstract—Cloud computing, despite its hype, is being widely deployed, with its dynamic scalability and usage of virtualized resources, in many organizations for several applications. It is envisioned that, in the near future, cloud computing will have a significant impact on the educational and learning environment, enabling their own users (i.e., learners, instructors, and administrators) to perform their tasks effectively with less cost by utilizing the available cloud-based applications offered by the cloud service providers. This paper discusses the use of cloud computing in the educational and learning arena, to be called ‟Education and Learning as a Service” (ELaaS), emphasizing its possible benefits and offerings. It is essential for an educational and learning organization, with its budget restrictions and sustainability challenges, to use the cloud formation best suited for a particular IT activity. The Jericho Forum proposes a cloud computing formation model, called the Cloud Cube Model (CCM), which is based on 4 criteria. To preserve the symmetry of the cube, a new cloud computing formation model, called the Complete Cloud Computing Formations (C3F), is proposed. The IT activities in the educational and learning organizations......

Words: 5560 - Pages: 23

Free Essay

Financial Management

...Financial Management Analysis and Trends: For-Profit Schools 06/13/2012 ED 7837 TABLE OF CONTENTS Introduction……………………………………………..………………………………………..……………………………………..3 Abstract………..…………………………………………..…………….………………………………………………………………..3 Where the money comes from: Revenue sources……………………………..….……..……………………………5 Pricing and discounting practices within institutions..…………………………...………………………………….6 Where the money goes: Standard expense categories……………………….….……..…………………………7 What is tuition discounting…………………………………………………………………...………………………………...8 Tuition discounting is attractive to higher education institutions..……………………………….………….9 Negative consequences to tuition discounting………………………………….……………..……………….…..10 For-Profit and Distance Learning Schools.……….……………………………….…………………………………...12 Trends in revenue and funding………………………………………………………….…...……………………….…….11 Gainful employment.……………………………………………………………………………….…………………………….13 Solutions……………….…………………………………………………………………………..……….………………………….14 Conclusion………………………………………………………………………………………….……….…………………………15 References…………………………………………………………………………………………………………………………….16 Introduction The most important investment that someone will make in life is education. It sets the foundation for one’s professional life and career. Education needs to be accessible to everyone who chooses to pursue it. This means that education should be accessible both in a classroom, online, digital, for both non-traditional and traditional students. Having...

Words: 4420 - Pages: 18

Premium Essay

Sustainable Competitive Advantage for Market Leadership Amongst the Private Higher Education Institutes in Malaysia

...2 INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 ICBER 2011) PROCEEDING nd nd SUSTAINABLE COMPETITIVE ADVANTAGE FOR MARKET LEADERSHIP AMONGST THE PRIVATE HIGHER EDUCATION INSTITUTES IN MALAYSIA Loh Teck Hua KDU University College Business School Section 13 Campus, 76, Jalan Universiti, 46200, Petaling Jaya, Selangor DE ABSTRACT One of Malaysia’s economic goals is to become an education hub for the region. To achieve this, the Malaysian government had liberalised government policies resulting in the proliferation of Private Higher Education Institutions (PHEIs) including private Universities and University Colleges. As competition intensifies it becomes increasingly pertinent to ask “What sustainable competitive advantage should the Private Higher Education Institutions (PHEIs) have to achieve market leadership in the Malaysian education industry?” For the smaller PHEIs, it is a question of survival itself. This paper aims to provide a theoretical study of some of the key strategic activities of the leading PHEIs to answer this question. The literature review covering both foreign and local sources indicates three key factors of sustainable competitive advantage, i.e. branding and image, the physical aspects of higher education including location and facilities, and the mode of delivery. The paper will seek to identify these factors amongst the market leaders to ascertain the validity of the secondary data via critical analysis of their activities.......

Words: 11731 - Pages: 47

Premium Essay

Dbms

...Systems A database is a collection of related files that are usually integrated, linked or cross-referenced to one another. The advantage of a database is that data and records contained in different files can be easily organized and retrieved using specialized database management software called a database management system (DBMS) or database manager. DBMS Fundamentals A database management system is a set of software programs that allows users to create, edit and update data in database files, and store and retrieve data from those database files. Data in a database can be added, deleted, changed, sorted or searched all using a DBMS. If you were an employee in a large organization, the information about you would likely be stored in different files that are linked together. One file about you would pertain to your skills and abilities, another file to your income tax status, another to your home and office address and telephone number, and another to your annual performance ratings. By cross-referencing these files, someone could change a person's address in one file and it would automatically be reflected in all the other files. DBMSs are commonly used to manage: * Membership and subscription mailing lists * Accounting and bookkeeping information * The data obtained from scientific research * Customer information * Inventory information * Personal records * Library information DBMSs and File Management Systems Computerized file......

Words: 5712 - Pages: 23

Free Essay

Business Plan - Online Versity Education

... 21 1. EXECUTIVE SUMMARY: Vision inc. (VI) is the largest online educational provider. Its rich market niche, characterized by corporate clients with large budgets, significant training needs and receptiveness to new technology, Academic institutions, Multilevel Network Industries. VI delivers its unique BBA and LLB degree via Internet-based courses on CEGA University™, its full-service, centrally hosted, scalable remote proprietary virtual campus. Founder’s themselves collectively have over 54 years experience in creating courses and books for the two courses. Modern technology has made possible to gather and present this information economically and efficiently and VI is leading the effort to marry technology and information dissemination through three strategic technology alliances which allow to register, enroll, teach, test, grade and certify distance learners in a Seamless fashion. VI is focusing its resources in the BBA and LLB e-learning business. E-learning is in fact the fastest growing and most promising market in the education industry. By continuously developing and expanding its courses database, VI is relentlessly streamlining the process of delivering content and widening the range and variety of its e-learning educational products, VI intends to maintain and strengthen its leadership position in this lucrative market niche while creating significant B2B and e-commerce opportunities. Exploiting the latter to their fullest potential is a natural......

Words: 4390 - Pages: 18

Premium Essay

Ratio Analysis Fmcg

...shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Some FMCGs – such as meat, fruits and vegetables, dairy products and baked goods – are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks and cleaning products have high turnover rates. An excellent example is a newspaper- every day's newspaper carries different content, making one useless just one day later, necessitating a new purchase every day. The following are the main characteristics of FMCGs:[1] • From the consumers' perspective: • Frequent purchase • Low involvement (little or no effort to choose the item – products with strong Brand loyalty are exceptions to this rule) • Low price • From the marketers' angle: • High volumes • Low contribution margins • Extensive distribution networks • High stock turnover Examples include non-durable goods such as soft drinks, toilees, and grocery items.[1][2] Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be substantial. Fast-moving consumer electronics are a type of FMCG and are typically low priced generic or easily substitutable consumer electronics, including lower end mobile phones, MP3 players, game players, and digital cameras, which have a short usage life, typically a year or less, and as such are disposable. FMCG sector in India The fast-moving consumer......

Words: 5311 - Pages: 22

Free Essay

Employee Privacy Report

...neither has anyone else. I confirm that I have cited all sources from which I used language, ideas, and information, whether quoted verbatim or paraphrased. Any assistance I received while producing this paper has been acknowledged in the Reference section. I have obtained written permission from the copyright holder for any trademarked material, logos, images from the Internet, or other sources. I further agree that my name typed on the line below is intended to have, and shall have, the same validity as my hand written signature. Students’ signature (name(s) typed here is equivalent to a signature): Your Name Here Employee Privacy Report The Texas Department of Criminal Justice (TDCJ) is a not-for-profit organization comprised of nine non-salaried members who are appointed by the Governor of Texas for staggered six year terms known as the Texas Board of Criminal Justice. The board is charged with governing the TDCJ, implementing policies which guide operations. There are different divisions of TDCJ and amongst those divisions is the Correctional Institutions Division of which I am employed and am tasked with the confinement and supervision of convicted felons. Email, use within the agency includes communicating with other employees within the agency, other agencies and departments. Email is a method of communicating and documenting the communication at the same time. Clear communication is an essential function to ensure the......

Words: 1081 - Pages: 5

Premium Essay

Rosetta Stone: Pricing the 2009 Ipo

...month average) Current market cap(M) Current Price Valuation (per share) DCF Analysis Comparables Analysis Current Price Target Price Summary Financials 2009A ($M) Revenue Net Income Operating Cash Flow $252 $13.4 $41.1 $16.06- 32.97 RST / NYSE .65 19.9 287,505 $569 $26.25 $31.88 (50% weight) $37.10 (50%) $26.25 $34.49 CORPORATE SUMMARY Rosetta Stone Inc. (RST) joined the public markets in the spring of 2009. As of the end of their fiscal year 2009 they reported $252 million in sales, while also growing profits at 54 percent year over year. The company’s goal is to create a program that surrounds their customers directly with the language, without translation. Their proprietary teaching method called Dynamic Immersion has been the key driver for the company’s recent growth. They offer courses in 31 languages to a large customer base, ranging from government officials to armed forces. RST has offices in Virginia, London, Tokyo, Colorado and other various locations around the world. The focus point going forward is to keep up with growing international demand whiling continuing to enhance their proprietary curriculum. Covering Analyst: Matthew Hollands Email: Mhollan1@uoegon.edu The University of Oregon Investment Group (UOIG) is a student run organization whose purpose is strictly educational. Member students are not certified or licensed to give investment advice or analyze securities, nor do they purport to be. Members of UOIG may have clerked, interned or held......

Words: 5281 - Pages: 22

Premium Essay

Rosetta Stone

...month average) Current market cap(M) Current Price Valuation (per share) DCF Analysis Comparables Analysis Current Price Target Price $16.06- 32.97 RST / NYSE .65 19.9 287,505 $569 $26.25 $31.88 (50% weight) $37.10 (50%) $26.25 $34.49 Summary Financials 2009A ($M) Revenue Net Income Operating Cash Flow $252 $13.4 $41.1 CORPORATE SUMMARY Rosetta Stone Inc. (RST) joined the public markets in the spring of 2009. As of the end of their fiscal year 2009 they reported $252 million in sales, while also growing profits at 54 percent year over year. The company’s goal is to create a program that surrounds their customers directly with the language, without translation. Their proprietary teaching method called Dynamic Immersion has been the key driver for the company’s recent growth. They offer courses in 31 languages to a large customer base, ranging from government officials to armed forces. RST has offices in Virginia, London, Tokyo, Colorado and other various locations around the world. The focus point going forward is to keep up with growing international demand whiling continuing to enhance their proprietary curriculum. Covering Analyst: Matthew Hollands Email: Mhollan1@uoegon.edu The University of Oregon Investment Group (UOIG) is a student run organization whose purpose is strictly educational. Member students are not certified or licensed to give investment advice or analyze securities, nor do they purport to be. Members of UOIG may have clerked, interned or held various......

Words: 5281 - Pages: 22

Premium Essay

Siemens - Business Ethics

...holds leading positions in its Industry, Energy and Healthcare Sectors. Siemens IT Solutions and Services operates across all three Sectors. Siemens is the country’s Number One supplier of high-voltage grid stations, switchgear products and systems, power distribution and power transformers, and network consultancy. The company has also built a new 220-kV power transformer factory, and is poised to meet the demand in this sector nationally and in the region. Siemens' overall involvement in the region dates back almost 140 years. The company's name first became known through the construction of the Indo-European telegraph line from London to Calcutta in 1870. Siemens' first office in what is now Pakistan opened in 1922. The Siemens Pakistan Engineering Company Ltd. was founded in 1953 as a private company, and in 1963 the company was reorganized as a public limited company. Introduction and purpose: This Code of conduct (Ethics) of Siemens Pakistan Engineering Co. Ltd. ("the Company") helps in maintaining and following the standards of business conduct of the Company. The purpose of the Code is to deter wrong-doing, promote ethical conduct in the Company and ensure compliance with the legal requirements, the matters covered in this Code are of the utmost importance to the Company, its stakeholders and business partners. Further, these are essential so that the Company can conduct its business in accordance with its stated values and its legitimate......

Words: 7790 - Pages: 32

Premium Essay

Miss

...Module 1 Introduction to CGA The business environment Company’s objectives: Achieving growing profits. Company stakeholders: P 1.04 Customers Suppliers Regulators Competitors Employees Government Interest Groups Owners Lenders Types of Company Company’s Characteristics: P 1.05 Separate legal entity Limited liability Perpetual succession Under Corporations Act 2001 “Upon registration, a company becomes a separate and distinct entity from its members / shareholders, directors and officers. A company can sue and be sued in its own name. The property of the company does not belong to its members, but to the company alone. A company exists in perpetuity until it is deregistered. Type A: Limited Liability Company Companies limited by Shares P 1.06 Characteristics: Most common type Liability is limited to the amount outstanding to the company when the share were issued; Any amount that is owed by the shareholder is available only to the liquidator upon the winding up of the company to pay the company’s creditors e.g. if a share issued at $1.00 is paid to only $0.25, the shareholder would owe the......

Words: 3291 - Pages: 14

Free Essay

Role of Nonprofit Enterprise

...jure inability of nonprofits to distribute profits to shareholders and/or management must affect incentives within the nonprofit firm in ways that are compatible with trustworthiness (Aincentive compatibility challenge@), (2) nonprofit behavior must not be adulterated by individuals taking advantage of the perceived trustworthiness (Aadulteration challenge@), and (3) nonprofit status must be treated as a reliable predictor of organizational behavior by consumers, when the reputation of individual firms is not seen as reliable (Areputational ubiquity challenge@). We propose that the trust hypothesis stands on shaky ground. It can be sustained only under particular conditions that have been neither carefully described in theory nor subject to empirical assessment. The available evidence, patchy and inadequate as it is, seems to suggest that there are ownership-related differences in the organizational behavior of non-profits and for-profits. However, there is little evidence that these differences can be connected to trust per se or provide a rationale for the existence of nonprofit ownership. * Center of Economic Research and Graduate Education at Charles University and Economics Institute of the Academy of Sciences of the Czech Republic. E-mail: andreas.ortmann@cerge-ei.cz or aortmann@yahoo.com ** School of Medicine, Yale University. E-mail: mjs4@email.med.yale.edu Note: A shorter version of this paper has been published under the same title in Voluntas, 8:2, 1997, 97 - 119.......

Words: 17197 - Pages: 69