MAINTAINING EFFECTIVENESS AMID DOWNSIZING AND DECLINE IN INSTITUTIONSOF HIGHER-EDUCATION

The amount of cutback, downsizing, and decline in U.S. higher educatio n is at unprecedented levels and equals the prevalence of downsizing i n the corporate sector. Because the consequence of downsizing in the p rivate sector is often negative, the question arises: Does financial d ecline and downsizing in higher education also lead to organizational ineffectiveness? This study of 334 colleges and universities found tha t institutions with declining resources are as effective as institutio ns with abundant resources. Institutions that develop attributes label ed ''the dirty dozen,'' however, perform less effectively. Implication s for managing under conditions of fiscal stress are discussed.