Maintaining effectiveness amid downsizing and decline in institutions of higher education

The amount of cutback, downsizing, and decline in U.S. higher education is at unprecedented levels and equals the prevalence of downsizing in the corporate sector. Because the consequence of downsizing in the private sector is often negative, the question arises: Does financial decline and downsizing in higher education also lead to organizational ineffectiveness? This study of 334 colleges and universities found that institutions with declining resources are as effective as institutions with abundant resources. Institutions that develop attributes labeled "the dirty dozen," however, perform less effectively. Implications for managing under conditions of fiscal stress are discussed.