Modern universities represent large economic operations fueled by fund
s that are increasingly derived from student tuition as government sub
sidies shrink. Student recruitment and retention are now mainly driven
by the need for the dollars that students pay into the system. Policy
that is responsive to these pressing economic realities, promulgated
at all institutional levels, promotes professional behavior that encou
rages student retention while allowing this to occur through subtle sa
crifice of the traditional essence of the university. A multiphase ana
lysis relates the institution's economically driven policies on retent
ion to their classroom implications and to other effects on the behavi
or of the teaching faculty.