Directory UMM :Data Elmu:jurnal:I:International Journal of Educational Management:Vol14.Issue2.2000:
The organisational determinants of success for
delivering fee-paying graduate courses
Stuart Orr
Senior Lecturer, Department of Management, Monash University, Australia
Keywords
Higher education, Graduates, Management, Fees
Keywords
Abstract
Higher education, Graduates,
Management, Fees
The literature identified fee-paying education as one of the
fastest growth industries in the world ± it is a global industry
from which many industrialised countries, such as Australia,
are well positioned to benefit. At this stage, little conclusive
evidence exists that identifies how such enterprises should
operate, although many universities around the globe have
already made a considerable investment in fee-paying
graduate education and rely heavily on the income it
generates. The literature suggests that few, if any, excel in
the best practices associated with this type of education. The
research also identified a set of best practices that apply
specifically to fee-paying graduate education that can be
grouped in a number of categories.
Abstract
The literature identified fee-paying
education as one of the fastest
growth industries in the world ± it
is a global industry from which
many industrialised countries,
such as Australia, are well positioned to benefit. At this stage,
little conclusive evidence exists
that identifies how such enterprises should operate, although
many universities around the
globe have already made a considerable investment in fee-paying
graduate education and rely heavily on the income it generates. The
literature suggests that few, if
any, excel in the best practices
associated with this type of education. The research also identified a set of best practices that
apply specifically to fee-paying
graduate education that can be
grouped in a number of categories.
The International Journal of
Educational Management
14/2 [2000] 54±61
# MCB University Press
[ISSN 0951-354X]
[ 54 ]
.
.
.
.
.
.
.
.
.
.
.
.
Introduction
This paper presents the findings of the first
stage of a project conducted to identify the
organisational determinants of success in the
provision of fee-paying graduate courses. The
literature identified fee-paying education to
be one of the fastest growth industries in the
world (Ellis, 1996; La Monica, 1996), a global
industry (Anon, 1996) and one from which
many industrialised countries, such as
Australia, are well positioned to benefit
(Alexander and Rival, 1993; Emery, 1987; Birt,
1985). At this stage, little conclusive evidence
exists that identifies how such enterprises
should operate (Swope, 1994); however, many
universities around the globe have already
made a considerable investment in feepaying graduate education and rely heavily
on the income it generates. The literature
suggests that few if any excel in the best
practices associated with this type of
education.
The literature also identified a set of best
practices that apply specifically to fee-paying
graduate education that can be grouped as
follows:
.
facilities;
.
financial management;
The current issue and full text archive of this journal is available at
http://www.emerald-library.com
institutional image and reputation;
marketing;
disciplines offered;
agents and agencies utilised;
community and commercial support and
participation;
management of local legislation;
teaching practices;
administrative coordination;
staff competencies and backgrounds;
administrative flexibility;
student-academic relationships;
accommodation and other services.
Methodology
The question adopted for the research was,
``What are the key determinants that lead to
success in fee-paying accredited graduate
studies for tertiary education institutions?''.
The procedure adopted for the research was
to conduct a detailed analysis of the
literature and compare the findings of this
analysis with seven case studies, prepared
from interviews with fee-paying course
directors in Australia, the UK, the USA,
Germany, Japan, Singapore and the Middle
East. Over 1,000 articles were collected from
the literature that presented opinions, case
studies and the results of statistical surveys
on graduate fee-paying and related
education. The literature was also drawn
from publications designed for three specific
users:
1 Tertiary education and higher learning
services.
2 Commercial training.
3 Small business and education.This latter
group is relevant from both the
perspective that fee-paying graduate
studies are delivered from organisations
or parts of organisations that often
operate as small businesses, as well as the
fact that the majority of businesses in
Australia's catchment are small and that
this area represents a substantial
Stuart Orr
The organisational
determinants of success for
delivering fee-paying graduate
courses
The International Journal of
Educational Management
14/2 [2000] 54±61
opportunity for this service (Ezzeddine
and Holand, 1996; Dudley et al., 1995).
Once the literature was collected it was
reviewed and all relevant extracts identified.
These extracts were then entered into a database and coded using the qualitative data
coding tool, NUD-IST. This software was used
to identify the themes that ran through the
diverse range of literature that was reviewed.
A ``relationship tree'' was established to
structure the coding, which was based on the
best practice categories identified earlier in
this paper. It contained three main levels of
hierarchy, two broadly differentiated groups
of data and 30 main categories. This level of
complexity is to be expected when
considering the determinants of success for a
service that can support an entire
organisation/business activity, which must
serve a highly varied range of customers and
which attracts customers globally.
The key findings of the analysis of the
literature, which included the relationships
between the key activities of the organisation
and the institutional outcomes for graduate
fee-paying courses, were then compared with
the case studies to identify the reasons for the
relationships and solutions to the conflicts
identified in the literature. Ten informal
follow-up interviews were also conducted
with currently enrolled fee-paying graduate
students at the author's institution to verify
the conclusions drawn from this research.
Findings
To structure the presentation of the research
findings, the key activities that a graduate
fee-paying education provider can control
that were identified in the literature analysis
were condensed into five basic groups. Each
group will now be examined in relation to the
comments, findings and observations
provided by the literature reviewed. While
occasional citations of particularly relevant
literature sources have been included in this
discussion, the literature has been utilised as
a primary data source for this research and,
accordingly, the individual literature sources
have not been repeatedly cited so as to
maintain the continuity of the discussion.
Teaching practices, staff competencies
and backgrounds, disciplines offered and
student-academic relationships
Teaching practices, staff competencies and
backgrounds, disciplines offered and studentacademic relationships were the most
frequently identified group of practices
relevant to students with the service
expectations of graduate fee-paying students.
The literature identified the fact that
graduate fee paying students have a
significantly higher level of service
expectations than low or non-fee-paying
students (e.g. Fram and Camp, 1995). To meet
the expectations of graduate fee-paying
students, it is necessary to align these
practises with current education best
practice (Allerton, 1996). The commercial
education literature was the most frequent
source of examples of best practise in this
area, which included the use of leading-edge
technology, selection of teaching staff with a
genuine competency in the area being taught
and an interest in pedagogy and programs
that reflect the functions that the
participants are likely to be involved in at
some stage in their career (Samson and
Weiss, 1995; Macfarlane and Lomas, 1994). All
sources of literature (e.g. Sundman, 1996)
concluded that the adoption of leading-edge
practises such as these is vital for long-term
success in the graduate fee-paying education
industry. From a strategic management
perspective, this finding indicates that
academic performance measures for staff
involved in graduate fee-paying education
must include a significant teaching
performance component to be determined by
the students. A minimum requirement for
these performance measures should be an
analysis of student teaching and course
design feedback for every graduate class. The
interviews indicated that teaching
performance and relevance should be the
first priority for this type of tertiary
education provider if it wishes to maintain
its market share in this competitive global
environment, where flexible delivery modes
overcome all geographical and cultural
barriers.
For example, Ali and Camp (1995)
determined that, while the Arab world has
witnessed quantitative growth in a number
of higher education institutions, an
examination of the curricula of eight
universities operating there determined that
there was a lack of locally relevant subject
material. The potential rate of growth of feepaying education there can only be
harnessed when the course material becomes
relevant to the needs of the participants
(Macfarlane and Lomas, 1994). Given the total
number of institutions offering fee-paying
graduate education in this area (the author
identified over 50 such education providers
in the Middle East in 1993), this is a
significant lesson.
[ 55 ]
Stuart Orr
The organisational
determinants of success for
delivering fee-paying graduate
courses
The International Journal of
Educational Management
14/2 [2000] 54±61
Facilities, accommodation and other
services
The literature analysis identified the fact
that the standard of the facilities,
accommodation and other services offered,
are of particular significance to fee-paying
graduate students. Interestingly, the
literature analysis also identified the fact
that facilities, etc., were not considered
highly important by non-fee-paying course
focused tertiary education institutions and
the attitude toward facilities, etc., of graduate
fee-paying education providers in the case
studies and literature analysed seemed to
vary considerably. The case studies did
indicate that the student's expectations
developed in the workplace from
participation in commercial training
programs (even if they were non-accredited)
and that the standard of facilities that the
student, had come to except as part of their
normal work-life, would lead students to
judge the quality of the course on the basis of
the amenities, technology and aids to
learning provided. The interviewees in the
follow-up case studies also noted that the
perception of the quality of the course is
influenced by the student's level of
participation and satisfaction with the
course.
In the special case of residential
students, such executive program
participants, or students who have
temporarily moved from another country
to study full-time, the literature noted that
they would have a very high level of
expectation of the facilities provided. This
was found, in part, to be owing to the
substantial time and financial commitment
made by these students. Consequently,
their perceptions of the quality of the
course and consequently their level of
participation would, therefore, be
influenced by the suitability and standard
of accommodation and faculties provided.
Institutional image and reputation,
marketing, agents and agencies utilised
Both the literature analysed and the case
studies confirmed the fact that institutional
image and reputation are important success
factors for all segments of tertiary education,
including graduate fee-paying education. One
of the more interesting findings to result
from the analysis of the literature was that,
for graduate fee-paying education, the image
of the institution was not necessarily
determined by its research outputs. The case
studies identified the relationship of the
institution with the key industry agencies in
the countries in which it operated as being
more important in determining the image of
[ 56 ]
the education provider for specific customer
groups. The literature suggested that there
were a number of types of agencies that were
generally important for creating and
maintaining institutional image, irrespective
of the country from which the institution was
drawing students. These agencies included
professional institutions (particularly in the
case of business education), relevant
government authorities (in the case of law or
political science) or other institutions (such
as art galleries in the case of fine arts
education). In addition, the literature noted
that institutional reputation in graduate feepaying was often conveyed through informal
networks and related personal experiences
(word of mouth) (e.g. Fram and Camp, 1995).
Consequently, the reputation of the
education provider perceived by potential
and existing clients may bear little
association to the institution's perception of
its image.
The literature analysed provided a
particularly apposite example: according to
Kahan (1997), the University of Texas
developed its Franchise Management
Certificate Program in conjunction with the
largest regional independent accounting
firm. This program has gained considerable
credibility because of its connection with this
external agency and was consequently highly
successful in terms of income generated and
student numbers. From the quality
perspective, the subject material also proved
to be highly relevant and have lasting future
application in a rapidly changing
professional arena.
Another key factor in determining the
reputation of an education provider
identified by the analysis of the literature
was the standard of teaching and other
services provided by the institution (e.g.
Duffy, 1996). The literature identified the fact
that most graduate fee-paying education
providers relied on internal resources for
local marketing and advertising and external
agencies present in the regions from which
they hoped to attract students for
international marketing. The literature
repeatedly identified the fact that the
standard and approach of the marketing
agency chosen to represent the institution
internationally, directly affected the quality
of the service the participant received during
the initial contact. It also affected the
reputation of the education provider in that
market (e.g. Shank et al., 1995; Golden, 1991).
The case studies also confirmed the
observation that success or failure in
international market, in which the
institution had limited experience was often
highly dependent on the choice of a local
Stuart Orr
The organisational
determinants of success for
delivering fee-paying graduate
courses
The International Journal of
Educational Management
14/2 [2000] 54±61
representative. For example, the interviews
conducted in the Middle East indicated that
potential students and potential customers
(particularly large commercial clients) were
all much more positively disposed towards a
locally, even if occasionally, represented feepaying education provider. The interviewees
also noted that their government's
international marketing services could
provide some assistance; however, this
service was usually not adequate for all
graduate fee-paying education provider's
representation needs. In addition, such
services were noted to be on the downturn in
terms of range of services in many countries
which further reduced their benefit.
Management of local legislation,
community and commercial support and
participation
The literature that reviewed the success of
fee-paying graduate education providers
found that the ability of the education
provider to manage the regulatory
conditions, while maintaining sufficient
flexibility to enable them to meet the specific
needs of the paying graduate students, is very
important. Both the interviews and the
literature found that failure to influence local
or government legislation when it
significantly interfered with the education
provider's activities or the services provided,
caused otherwise successful commercial
graduate fee-paying educators in countries,
including Australia, the UK and the USA, to
fail (e.g. Swope, 1994).
From a more positive perspective, the
literature identified the fact that support
from the local or professional community in
which the education provider operates could
provide significant assistance with cash-flow
and capital expenditure, as well as
significantly contributing to the reputation
of the provider in the community and
professional environment. In fact, the
interviews pointed out that cash-flow was an
important issue for graduate fee-paying
education providers. Unless underpinned by
a reliable income from, for example, a
government source, the sporadic nature of
income generated from graduate fee-paying
students can seriously interfere with access
to adequate cash necessary to provide a
consistent level of service. In fact, many of
the case-study interviewees pointed out that
some of their facilities were entirely
constructed or acquired with the assistance
of cash that was not directly generated from
their students.
Administrative coordination,
administrative flexibility and financial
management
The analysed literature determined that,
irrespective of the country in which the data
was collected or the general opinions
expressed, administrative coordination and
flexibility was one of the major weaknesses of
most graduate fee-paying education
providers that were operating from within a
larger, host tertiary institution. The
literature repeatedly pointed out that the
pressure on the host institution to meet
legislative and budgetary requirements
resulted in low levels of flexibility and poor
administrative coordination. The literature
indicated that a lack of flexibility in
accommodating their needs, slow responses
to reasonable requests and the
administrative error rates typical of large
education providers were not acceptable to
graduate fee-paying participants (e.g. Anon,
1997; Dudley, 1995; Swope, 1994). The case
studies and literature pointed out that the
expectations of these students were higher
than the standard of administration that
most large general institutions could
generally offer. These expectations were
found to be owing to the experiences of these
students gained in the commercial at-work
education environment or from commercial
training programs where there was more
focus on administration (e.g. Soutar et al.,
1996). The small business literature
suggested that a commercial business
structure and administration system was the
most suitable approach to the provision of
education for graduate fee-paying students.
The literature also pointed out that financial
management in large educational
institutions (e.g. fees and accounts) tended to
be driven by political and regulatory
requirements, rather than customer service
priorities. If the opinions expressed in the
small business literature regarding graduate
fee-paying program administration can be
extended to their financial management,
then a successful graduate fee-paying
education provider would need to adopt
commercial financial management
techniques for the same reasons.
Conclusion
The analysis of the literature and case
studies provided several important
conclusions about the operational
characteristics of a graduate fee-paying
education provider with a good level of
performance and sustainable position in the
market. First, the institution must appreciate
[ 57 ]
Stuart Orr
The organisational
determinants of success for
delivering fee-paying graduate
courses
The International Journal of
Educational Management
14/2 [2000] 54±61
that it operates as a system and that every
action it takes will result in some outcome,
whether it be desired or not. Consequently,
the specific services provided by a graduate
fee-paying education provider are not as
important as the way in which they are
integrated. For further details of the theory
of organisational dynamics, see Flood and
Jackson (1995). One of the best ways of
viewing a system is representing the major
activities and the relationships in a
structured model. The findings of this
research, both the points previously
discussed and other points for which there
was inadequate space for discussion, have
been represented in the model shown in
Figure 1.
The findings of the research are presented
in Figure 1 in three main categories:
1 internally-focused activities;
2 externally-focused activities; and
3 desired institutional outcomes.
The model this figure presents is based on the
proposition that the internally and
externally, focused activities of a graduate
fee-paying education provider will influence
its institutional outcomes. The contents of
the internally and externally-focused
activities are presented in the groups that the
literature and interviews have shown are
related. The groups are also listed in order of
importance, those groups located near the top
of the category were found to be more
important from both the students' and
institution's perspective. The same applies
for the category of desired institutional
outcomes. The shaded arrows in Figure 1
show the level of contribution to institutional
outcomes of the internally and externallyfocused activities that the analysed literature
indicated could be expected. This
contribution factor, when compared to the
importance attributed to the key activities
represents a major issue for most graduate
fee paying education providers. While both
the institutions surveyed and interviewed
and their perception of their student's needs
indicated that certain internally-focused
activity groupings were more important,
those activities which were considered to be
the least important, such as fees, were also
found to contribute the most to the desired
institutional outcomes. This suggests that
these organisations are operating under the
influence of internal and possibly external
motivators, such as the desire to generate
income, that are not consistent with the
expressed objectives of the institution or the
expectations of their students. This is an
issue which graduate fee-paying education
providers must address.
The apparent confusion identified between
the importance of key activities and the
desired outcomes of the institution would
result in sub-optimal customer service and
Figure 1
Key activities and institutional outcomes for graduate fee-paying education providers
[ 58 ]
Stuart Orr
The organisational
determinants of success for
delivering fee-paying graduate
courses
The International Journal of
Educational Management
14/2 [2000] 54±61
failure to meet organisational objectives. To
address this issue, the fee-paying graduate
education provider should establish a
separate business unit, which is focussed on
satisfying the needs of the target market. The
literature analysed indicted that the general
profile of this type of student is very constant
± a professional person with undergraduate
qualifications and low to medium levels of
work experience. Occasional variations that
were identified included students with postgraduate qualifications or a very experienced
professional with no undergraduate
qualifications. Institutions that demonstrate
the successful use of this formula can be
found in most countries. Examples of
institutions displaying leading practice in
this regard identified by the literature
analysis included the Harvard and Cranfield
Graduate Schools of Management. Not
surprisingly, these institutions are also very
successful at meeting their performance
objectives and are highly regarded by the
target student population.
The objective of such a graduate fee-paying
education provider should be to offer a
superior service and value for money in the
key activity areas identified in this research.
Informal interviews conducted with feepaying graduate students at the author's
institution indicated that the student wanted
more that just a qualification in the majority
of cases. They confirmed that they expected a
high level of quality in teaching, high calibre
teaching staff, a high level of customer focus,
flexibility in all organisational areas and a
contemporary program and subject structure
designed to meet their current and future
needs. In addition, because education is a
personal experience (e.g. Macfarlane and
Lomas, 1994), high ratios of staff to
participants, staff mentors and lower overall
participant numbers relative to
undergraduate programs in most
international universities, create a
rewarding and personally developing
educational experience (e.g. Ali and Camp,
1995; Cross, 1983).
The analysis of the literature, case studies
and follow-up interviews suggested that, to
overcome the possible confusion between key
activity areas and institutional outcomes
identified, to appeal to student needs and
expectations and to be a successful
competitor in the industry, a fee-paying
graduate education provider needs to have
the following characteristics.
Teaching staff
The teaching staff should be leading edge
researchers or practitioners in their field
(preferably active in both research and
practice) and have an international profile.
All teaching staff should have teaching
qualifications and participate in an annual
teaching improvement program. This is a
significant departure from normal
institutional practice, but is becoming
increasingly important as international
graduate fee-paying education competition
increases.
Curriculum
A curriculum based on the English
university model is, according to the
literature analysed and the follow-up
interviews, the preferred model for students
in most countries around the world. To offer
recognised degrees, the curriculum needs to
be officially accredited in the institution's
home country. This, however, is only
sufficient to qualify the education provider to
offer its programs. To be competitive, the
curriculum must also be accredited by other
organisations which are considered rigorous
by international standards and are broadly
recognised by other institutions throughout
the world, such as professional associations.
For example, Anon (1997) suggested that an
MBA program in the UK should be accredited
by the Association of MBAs to make it more
competitive in that country.
The program must be both flexible and
customer focused. The subjects and their
content have to be developed for
contemporary needs. It is not adequate to
offer adaptations of subjects that were
developed 20 or more years prior for different
students and a different commercial
environment. If the graduate fee-paying
education provider operates as a separate
commercial entity, it can adopt a commercial
structure and management approach. This
would enable curriculum development to
take place in an environment which is
focused on developments in that particular
area and future student needs, rather than
the accreditation process and broader
university priorities.
The graduate fee-paying education
provider needs to maintain links with
international eduction networks and local
and international industry to ensure that the
curriculum is always focused on
contemporary needs. Individual staff should
be allocated responsibilities for establishing
and maintaining specific networks and
managing the involvement of major
commercial and external organisations in
the programs and with the alumni. This will
ensure that these important external agents
and sources of information receive personal
attention and that teaching staff maintain
[ 59 ]
Stuart Orr
The organisational
determinants of success for
delivering fee-paying graduate
courses
contact with the environment from which the
students are drawn.
The International Journal of
Educational Management
14/2 [2000] 54±61
Another important feature of a graduate feepaying education provider identified during
the follow-up interviews was the need to offer
the full range of services normally associated
with a tertiary institution, even if it was
operating with a commercial business
structure. The facilities identified by the
interviewees as important for graduate feepaying education included a substantial
library system, recreational facilities and a
housing assistance service for full-time
students. All of these facilities were
considered to be particularly important for
full-time students; however, even distance
education or part-time students attending
classes in the evenings still required access
to facilities such as libraries, computer
laboratories and meeting rooms.
The small business education literature
analysed, indicated that a commercial
education provider attached to a larger
tertiary education institution may be able to
utilise the facilities of a larger tertiary
education institution for its students. On the
other hand, the tertiary education literature
indicated that, while this was possible, it was
not always cost-effective. The use of such
facilities attracted substantial ``internal
taxes'' and the facilities did not always match
the rest of the commercial education
provider's offerings. As a result, many
graduate fee-paying education providers
offered key facilities such as computer
equipment, teaching and meeting rooms and
core library materials to their students
independently of the larger tertiary
institution to which they were attached, even
if it replicated existing facilities.
Facilities
Location
Significant proportions of most graduate feepaying education providers' students come
from locations significantly distant from the
education provider or study via distance
education. In either case, it would be
necessary for the student to occasionally
travel to the institution which, in turn,
requires good access. For regional
institutions this translates to location near a
major city which offers suitable
entertainment and recreation facilities and a
major international airport. In the case of
city-based institutions, access to public
transport and parking may be significant
considerations. Although these issues may
seem fairly minor, one of the major
categories of the quality of graduate student
service offerings identified in the literature
[ 60 ]
was ease of access. The follow-up interviews
indicated that this was particularly
important for part-time students that studied
in the evening, as traffic and parking
represented significant barriers to
attendance and, ultimately, satisfaction with
the course.
The literature analysed in this research
identified graduate fee-paying education as
one of the largest growth rate industries in
the world. It was found to be a global
industry, from which many tertiary
education institutions and other providers
could benefit and expand their operations to
a multi-country level. Multi-country
operations are desirable for fee-paying
education providers because a downturn in
one region is often then balanced by an
increase in demand from another, resulting
in a more consistent number of students
passing through courses and a more
predictable environment for planning and
administration. The literature and
interviews conducted during this research
provided a consistent picture of the
capabilities of a successful fee-paying
graduate education provider. It also
identified a significant gap between the
``typical'' practises of many graduate feepaying education providers and leading-edge
practises and capabilities for this industry.
The graduate fee-paying education industry
is a ``developing industry''. Consequently, it
is very likely that the measures of capability
identified in this research will vary with
time. The effective management of such
institutions needs to incorporate constant
``environmental scanning''. In the graduate
fee-paying education environment,
environmental scanning could be conducted
using a method similar to that adopted for
the research presented in this paper. The
purpose of the environmental scan is to
ensure that the education provider meets the
current needs of students and is aware of the
key activity areas on which it must focus for
its current environment.
A fee-paying graduate education provider
is likely to seek to enter new markets as it
grows in size and scope. When this occurs,
the education provider should also conduct
an environmental scan to identify the needs
and expectations of the new target market. It
is important for such education providers to
understand that, for example, while graduate
education conducted in English is becoming
increasingly popular, this does not mean that
students from different countries and
backgrounds will all have the same needs
and expectations. In fact, a popular theme in
the literature analysed in this research was
that students from different backgrounds had
Stuart Orr
The organisational
determinants of success for
delivering fee-paying graduate
courses
The International Journal of
Educational Management
14/2 [2000] 54±61
surprisingly different needs and
expectations. While standardisation appears
to be an important underlying philosophy
and objective in tertiary education,
education providers offering services outside
their home environment must also
appreciate the diversity of needs they will
encounter. Understanding and responding to
this diversity will be the future key for
success in what is becoming an increasingly
globally competitive education market.
References
Alexander, D. and Rival, F. (1993), ``Education,
markets and the contradictions of AsiaAustralian relations'', Australian
Universities' Review, Vol. 36 No. 2, pp. 16-20.
Ali, A.J. and Camp, R.C. (1995), ``Teaching
management education in the Arab world:
confronting illusions'', International Journal
of Educational Management, Vol. 9 No. 2,
pp. 10-7.
Allerton, H. (1996), ``Apollo 65'', Training and
Development, Vol. 50 No. 1, p. 17.
Anon (1996), ``The training scene'', China Business
Review, Vol. 23 No. 2, pp. 26-7.
Anon (1997), ``Getting smart about learning'',
Director, Vol. 50 No. 12, p. 77.
Birt, M. (1985), ``The organisation of tertiary
education in Australia: the need for rearrangement'', Journal of Tertiary Education
Administration, Vol. 7 No. 1, pp. 21-34.
Cross, K.P. (1983), ``Cooperation and competition
in the learning society'', New Technologies
and Lifelong Learning, Conference
Proceedings, Orlando, FL.
Dudley, S. et al. (1995), ``New directions of the
business curriculum'', Journal of Education
for Business, Vol. 70 No. 5, pp. 305-10.
Duffy, T. (1996), ``Finding the multifaceted
trainer'', Computerworld, Vol. 30 No. 6, p. 91.
Ellis, J. (1996), ``Potential 48% gain posts
education stocks at head of class'', Money,
Vol. 25 No. 1, pp. 25-6.
Emery, J.S. (1987), ``Education and enterprise'',
Unicorn, Vol. 13 No. 2, pp. 83-8.
Ezzeddine, A. and Holand, K. (1996), ``How we
developed our professional development
programs: two models and why they work'',
Small Business Forum, Vol. 14 No. 2, pp. 40-53.
Flood, R. and Jackson H. (1995), Systems
Thinking, Irwin, London.
Fram, E.H. and Camp, R.C. (1995), ``Finding and
implementing best practices in higher
education'', Quality Progress, Vol. 28 No. 2,
pp. 69-73
Golden, S. (1991), ``Sweat the small stuff and
you'll come out ahead'', Community,
Technical and Junior College Journal, Vol. 61
No. 4, pp. 36-41.
Kahan, S. (1997), ``Franchising bridges academia
and business'', The Practical Accountant,
Vol. 30 No. 2, pp. 63-4.
La Monica, N. (1996), ``School plays'', Financial
World, Vol. 165 No. 11, pp. 62-70.
Macfarlane, B. and Lomas, L. (1994),
``Competence-based management education
and the needs of the learning organisation'',
Education and Training, Vol. 36 No. 1, pp. 2932.
Samson, S.E. and Weiss, E.N. (1995), ``Increasing
the service levels in conference and
educational scheduling: a heuristic
approach'', Management Science, Vol. 41
No. 11, pp. 1816-25.
Shank, M.D., Walker, M. and Hayes, T. (1995),
``Understanding professional services
marketing'', Journal of Professional Services
Marketing, Vol. 13 No. 1, pp. 71-89.
Soutar, G.N et al. (1996), ``Service quality in
educational institutions: a foreign student
view'', Journal of Marketing for Higher
Education, Vol. 7 No. 2, pp. 85-94.
Sundman, H. (1996), ``Crash course'', Business
Mexico, Vol. 6 No. 8, pp. 46-7.
Swope, H. (1994), ``The approaching value added
education'', Education Record, Vol. 75 No. 3,
pp. 17-8.
[ 61 ]
delivering fee-paying graduate courses
Stuart Orr
Senior Lecturer, Department of Management, Monash University, Australia
Keywords
Higher education, Graduates, Management, Fees
Keywords
Abstract
Higher education, Graduates,
Management, Fees
The literature identified fee-paying education as one of the
fastest growth industries in the world ± it is a global industry
from which many industrialised countries, such as Australia,
are well positioned to benefit. At this stage, little conclusive
evidence exists that identifies how such enterprises should
operate, although many universities around the globe have
already made a considerable investment in fee-paying
graduate education and rely heavily on the income it
generates. The literature suggests that few, if any, excel in
the best practices associated with this type of education. The
research also identified a set of best practices that apply
specifically to fee-paying graduate education that can be
grouped in a number of categories.
Abstract
The literature identified fee-paying
education as one of the fastest
growth industries in the world ± it
is a global industry from which
many industrialised countries,
such as Australia, are well positioned to benefit. At this stage,
little conclusive evidence exists
that identifies how such enterprises should operate, although
many universities around the
globe have already made a considerable investment in fee-paying
graduate education and rely heavily on the income it generates. The
literature suggests that few, if
any, excel in the best practices
associated with this type of education. The research also identified a set of best practices that
apply specifically to fee-paying
graduate education that can be
grouped in a number of categories.
The International Journal of
Educational Management
14/2 [2000] 54±61
# MCB University Press
[ISSN 0951-354X]
[ 54 ]
.
.
.
.
.
.
.
.
.
.
.
.
Introduction
This paper presents the findings of the first
stage of a project conducted to identify the
organisational determinants of success in the
provision of fee-paying graduate courses. The
literature identified fee-paying education to
be one of the fastest growth industries in the
world (Ellis, 1996; La Monica, 1996), a global
industry (Anon, 1996) and one from which
many industrialised countries, such as
Australia, are well positioned to benefit
(Alexander and Rival, 1993; Emery, 1987; Birt,
1985). At this stage, little conclusive evidence
exists that identifies how such enterprises
should operate (Swope, 1994); however, many
universities around the globe have already
made a considerable investment in feepaying graduate education and rely heavily
on the income it generates. The literature
suggests that few if any excel in the best
practices associated with this type of
education.
The literature also identified a set of best
practices that apply specifically to fee-paying
graduate education that can be grouped as
follows:
.
facilities;
.
financial management;
The current issue and full text archive of this journal is available at
http://www.emerald-library.com
institutional image and reputation;
marketing;
disciplines offered;
agents and agencies utilised;
community and commercial support and
participation;
management of local legislation;
teaching practices;
administrative coordination;
staff competencies and backgrounds;
administrative flexibility;
student-academic relationships;
accommodation and other services.
Methodology
The question adopted for the research was,
``What are the key determinants that lead to
success in fee-paying accredited graduate
studies for tertiary education institutions?''.
The procedure adopted for the research was
to conduct a detailed analysis of the
literature and compare the findings of this
analysis with seven case studies, prepared
from interviews with fee-paying course
directors in Australia, the UK, the USA,
Germany, Japan, Singapore and the Middle
East. Over 1,000 articles were collected from
the literature that presented opinions, case
studies and the results of statistical surveys
on graduate fee-paying and related
education. The literature was also drawn
from publications designed for three specific
users:
1 Tertiary education and higher learning
services.
2 Commercial training.
3 Small business and education.This latter
group is relevant from both the
perspective that fee-paying graduate
studies are delivered from organisations
or parts of organisations that often
operate as small businesses, as well as the
fact that the majority of businesses in
Australia's catchment are small and that
this area represents a substantial
Stuart Orr
The organisational
determinants of success for
delivering fee-paying graduate
courses
The International Journal of
Educational Management
14/2 [2000] 54±61
opportunity for this service (Ezzeddine
and Holand, 1996; Dudley et al., 1995).
Once the literature was collected it was
reviewed and all relevant extracts identified.
These extracts were then entered into a database and coded using the qualitative data
coding tool, NUD-IST. This software was used
to identify the themes that ran through the
diverse range of literature that was reviewed.
A ``relationship tree'' was established to
structure the coding, which was based on the
best practice categories identified earlier in
this paper. It contained three main levels of
hierarchy, two broadly differentiated groups
of data and 30 main categories. This level of
complexity is to be expected when
considering the determinants of success for a
service that can support an entire
organisation/business activity, which must
serve a highly varied range of customers and
which attracts customers globally.
The key findings of the analysis of the
literature, which included the relationships
between the key activities of the organisation
and the institutional outcomes for graduate
fee-paying courses, were then compared with
the case studies to identify the reasons for the
relationships and solutions to the conflicts
identified in the literature. Ten informal
follow-up interviews were also conducted
with currently enrolled fee-paying graduate
students at the author's institution to verify
the conclusions drawn from this research.
Findings
To structure the presentation of the research
findings, the key activities that a graduate
fee-paying education provider can control
that were identified in the literature analysis
were condensed into five basic groups. Each
group will now be examined in relation to the
comments, findings and observations
provided by the literature reviewed. While
occasional citations of particularly relevant
literature sources have been included in this
discussion, the literature has been utilised as
a primary data source for this research and,
accordingly, the individual literature sources
have not been repeatedly cited so as to
maintain the continuity of the discussion.
Teaching practices, staff competencies
and backgrounds, disciplines offered and
student-academic relationships
Teaching practices, staff competencies and
backgrounds, disciplines offered and studentacademic relationships were the most
frequently identified group of practices
relevant to students with the service
expectations of graduate fee-paying students.
The literature identified the fact that
graduate fee paying students have a
significantly higher level of service
expectations than low or non-fee-paying
students (e.g. Fram and Camp, 1995). To meet
the expectations of graduate fee-paying
students, it is necessary to align these
practises with current education best
practice (Allerton, 1996). The commercial
education literature was the most frequent
source of examples of best practise in this
area, which included the use of leading-edge
technology, selection of teaching staff with a
genuine competency in the area being taught
and an interest in pedagogy and programs
that reflect the functions that the
participants are likely to be involved in at
some stage in their career (Samson and
Weiss, 1995; Macfarlane and Lomas, 1994). All
sources of literature (e.g. Sundman, 1996)
concluded that the adoption of leading-edge
practises such as these is vital for long-term
success in the graduate fee-paying education
industry. From a strategic management
perspective, this finding indicates that
academic performance measures for staff
involved in graduate fee-paying education
must include a significant teaching
performance component to be determined by
the students. A minimum requirement for
these performance measures should be an
analysis of student teaching and course
design feedback for every graduate class. The
interviews indicated that teaching
performance and relevance should be the
first priority for this type of tertiary
education provider if it wishes to maintain
its market share in this competitive global
environment, where flexible delivery modes
overcome all geographical and cultural
barriers.
For example, Ali and Camp (1995)
determined that, while the Arab world has
witnessed quantitative growth in a number
of higher education institutions, an
examination of the curricula of eight
universities operating there determined that
there was a lack of locally relevant subject
material. The potential rate of growth of feepaying education there can only be
harnessed when the course material becomes
relevant to the needs of the participants
(Macfarlane and Lomas, 1994). Given the total
number of institutions offering fee-paying
graduate education in this area (the author
identified over 50 such education providers
in the Middle East in 1993), this is a
significant lesson.
[ 55 ]
Stuart Orr
The organisational
determinants of success for
delivering fee-paying graduate
courses
The International Journal of
Educational Management
14/2 [2000] 54±61
Facilities, accommodation and other
services
The literature analysis identified the fact
that the standard of the facilities,
accommodation and other services offered,
are of particular significance to fee-paying
graduate students. Interestingly, the
literature analysis also identified the fact
that facilities, etc., were not considered
highly important by non-fee-paying course
focused tertiary education institutions and
the attitude toward facilities, etc., of graduate
fee-paying education providers in the case
studies and literature analysed seemed to
vary considerably. The case studies did
indicate that the student's expectations
developed in the workplace from
participation in commercial training
programs (even if they were non-accredited)
and that the standard of facilities that the
student, had come to except as part of their
normal work-life, would lead students to
judge the quality of the course on the basis of
the amenities, technology and aids to
learning provided. The interviewees in the
follow-up case studies also noted that the
perception of the quality of the course is
influenced by the student's level of
participation and satisfaction with the
course.
In the special case of residential
students, such executive program
participants, or students who have
temporarily moved from another country
to study full-time, the literature noted that
they would have a very high level of
expectation of the facilities provided. This
was found, in part, to be owing to the
substantial time and financial commitment
made by these students. Consequently,
their perceptions of the quality of the
course and consequently their level of
participation would, therefore, be
influenced by the suitability and standard
of accommodation and faculties provided.
Institutional image and reputation,
marketing, agents and agencies utilised
Both the literature analysed and the case
studies confirmed the fact that institutional
image and reputation are important success
factors for all segments of tertiary education,
including graduate fee-paying education. One
of the more interesting findings to result
from the analysis of the literature was that,
for graduate fee-paying education, the image
of the institution was not necessarily
determined by its research outputs. The case
studies identified the relationship of the
institution with the key industry agencies in
the countries in which it operated as being
more important in determining the image of
[ 56 ]
the education provider for specific customer
groups. The literature suggested that there
were a number of types of agencies that were
generally important for creating and
maintaining institutional image, irrespective
of the country from which the institution was
drawing students. These agencies included
professional institutions (particularly in the
case of business education), relevant
government authorities (in the case of law or
political science) or other institutions (such
as art galleries in the case of fine arts
education). In addition, the literature noted
that institutional reputation in graduate feepaying was often conveyed through informal
networks and related personal experiences
(word of mouth) (e.g. Fram and Camp, 1995).
Consequently, the reputation of the
education provider perceived by potential
and existing clients may bear little
association to the institution's perception of
its image.
The literature analysed provided a
particularly apposite example: according to
Kahan (1997), the University of Texas
developed its Franchise Management
Certificate Program in conjunction with the
largest regional independent accounting
firm. This program has gained considerable
credibility because of its connection with this
external agency and was consequently highly
successful in terms of income generated and
student numbers. From the quality
perspective, the subject material also proved
to be highly relevant and have lasting future
application in a rapidly changing
professional arena.
Another key factor in determining the
reputation of an education provider
identified by the analysis of the literature
was the standard of teaching and other
services provided by the institution (e.g.
Duffy, 1996). The literature identified the fact
that most graduate fee-paying education
providers relied on internal resources for
local marketing and advertising and external
agencies present in the regions from which
they hoped to attract students for
international marketing. The literature
repeatedly identified the fact that the
standard and approach of the marketing
agency chosen to represent the institution
internationally, directly affected the quality
of the service the participant received during
the initial contact. It also affected the
reputation of the education provider in that
market (e.g. Shank et al., 1995; Golden, 1991).
The case studies also confirmed the
observation that success or failure in
international market, in which the
institution had limited experience was often
highly dependent on the choice of a local
Stuart Orr
The organisational
determinants of success for
delivering fee-paying graduate
courses
The International Journal of
Educational Management
14/2 [2000] 54±61
representative. For example, the interviews
conducted in the Middle East indicated that
potential students and potential customers
(particularly large commercial clients) were
all much more positively disposed towards a
locally, even if occasionally, represented feepaying education provider. The interviewees
also noted that their government's
international marketing services could
provide some assistance; however, this
service was usually not adequate for all
graduate fee-paying education provider's
representation needs. In addition, such
services were noted to be on the downturn in
terms of range of services in many countries
which further reduced their benefit.
Management of local legislation,
community and commercial support and
participation
The literature that reviewed the success of
fee-paying graduate education providers
found that the ability of the education
provider to manage the regulatory
conditions, while maintaining sufficient
flexibility to enable them to meet the specific
needs of the paying graduate students, is very
important. Both the interviews and the
literature found that failure to influence local
or government legislation when it
significantly interfered with the education
provider's activities or the services provided,
caused otherwise successful commercial
graduate fee-paying educators in countries,
including Australia, the UK and the USA, to
fail (e.g. Swope, 1994).
From a more positive perspective, the
literature identified the fact that support
from the local or professional community in
which the education provider operates could
provide significant assistance with cash-flow
and capital expenditure, as well as
significantly contributing to the reputation
of the provider in the community and
professional environment. In fact, the
interviews pointed out that cash-flow was an
important issue for graduate fee-paying
education providers. Unless underpinned by
a reliable income from, for example, a
government source, the sporadic nature of
income generated from graduate fee-paying
students can seriously interfere with access
to adequate cash necessary to provide a
consistent level of service. In fact, many of
the case-study interviewees pointed out that
some of their facilities were entirely
constructed or acquired with the assistance
of cash that was not directly generated from
their students.
Administrative coordination,
administrative flexibility and financial
management
The analysed literature determined that,
irrespective of the country in which the data
was collected or the general opinions
expressed, administrative coordination and
flexibility was one of the major weaknesses of
most graduate fee-paying education
providers that were operating from within a
larger, host tertiary institution. The
literature repeatedly pointed out that the
pressure on the host institution to meet
legislative and budgetary requirements
resulted in low levels of flexibility and poor
administrative coordination. The literature
indicated that a lack of flexibility in
accommodating their needs, slow responses
to reasonable requests and the
administrative error rates typical of large
education providers were not acceptable to
graduate fee-paying participants (e.g. Anon,
1997; Dudley, 1995; Swope, 1994). The case
studies and literature pointed out that the
expectations of these students were higher
than the standard of administration that
most large general institutions could
generally offer. These expectations were
found to be owing to the experiences of these
students gained in the commercial at-work
education environment or from commercial
training programs where there was more
focus on administration (e.g. Soutar et al.,
1996). The small business literature
suggested that a commercial business
structure and administration system was the
most suitable approach to the provision of
education for graduate fee-paying students.
The literature also pointed out that financial
management in large educational
institutions (e.g. fees and accounts) tended to
be driven by political and regulatory
requirements, rather than customer service
priorities. If the opinions expressed in the
small business literature regarding graduate
fee-paying program administration can be
extended to their financial management,
then a successful graduate fee-paying
education provider would need to adopt
commercial financial management
techniques for the same reasons.
Conclusion
The analysis of the literature and case
studies provided several important
conclusions about the operational
characteristics of a graduate fee-paying
education provider with a good level of
performance and sustainable position in the
market. First, the institution must appreciate
[ 57 ]
Stuart Orr
The organisational
determinants of success for
delivering fee-paying graduate
courses
The International Journal of
Educational Management
14/2 [2000] 54±61
that it operates as a system and that every
action it takes will result in some outcome,
whether it be desired or not. Consequently,
the specific services provided by a graduate
fee-paying education provider are not as
important as the way in which they are
integrated. For further details of the theory
of organisational dynamics, see Flood and
Jackson (1995). One of the best ways of
viewing a system is representing the major
activities and the relationships in a
structured model. The findings of this
research, both the points previously
discussed and other points for which there
was inadequate space for discussion, have
been represented in the model shown in
Figure 1.
The findings of the research are presented
in Figure 1 in three main categories:
1 internally-focused activities;
2 externally-focused activities; and
3 desired institutional outcomes.
The model this figure presents is based on the
proposition that the internally and
externally, focused activities of a graduate
fee-paying education provider will influence
its institutional outcomes. The contents of
the internally and externally-focused
activities are presented in the groups that the
literature and interviews have shown are
related. The groups are also listed in order of
importance, those groups located near the top
of the category were found to be more
important from both the students' and
institution's perspective. The same applies
for the category of desired institutional
outcomes. The shaded arrows in Figure 1
show the level of contribution to institutional
outcomes of the internally and externallyfocused activities that the analysed literature
indicated could be expected. This
contribution factor, when compared to the
importance attributed to the key activities
represents a major issue for most graduate
fee paying education providers. While both
the institutions surveyed and interviewed
and their perception of their student's needs
indicated that certain internally-focused
activity groupings were more important,
those activities which were considered to be
the least important, such as fees, were also
found to contribute the most to the desired
institutional outcomes. This suggests that
these organisations are operating under the
influence of internal and possibly external
motivators, such as the desire to generate
income, that are not consistent with the
expressed objectives of the institution or the
expectations of their students. This is an
issue which graduate fee-paying education
providers must address.
The apparent confusion identified between
the importance of key activities and the
desired outcomes of the institution would
result in sub-optimal customer service and
Figure 1
Key activities and institutional outcomes for graduate fee-paying education providers
[ 58 ]
Stuart Orr
The organisational
determinants of success for
delivering fee-paying graduate
courses
The International Journal of
Educational Management
14/2 [2000] 54±61
failure to meet organisational objectives. To
address this issue, the fee-paying graduate
education provider should establish a
separate business unit, which is focussed on
satisfying the needs of the target market. The
literature analysed indicted that the general
profile of this type of student is very constant
± a professional person with undergraduate
qualifications and low to medium levels of
work experience. Occasional variations that
were identified included students with postgraduate qualifications or a very experienced
professional with no undergraduate
qualifications. Institutions that demonstrate
the successful use of this formula can be
found in most countries. Examples of
institutions displaying leading practice in
this regard identified by the literature
analysis included the Harvard and Cranfield
Graduate Schools of Management. Not
surprisingly, these institutions are also very
successful at meeting their performance
objectives and are highly regarded by the
target student population.
The objective of such a graduate fee-paying
education provider should be to offer a
superior service and value for money in the
key activity areas identified in this research.
Informal interviews conducted with feepaying graduate students at the author's
institution indicated that the student wanted
more that just a qualification in the majority
of cases. They confirmed that they expected a
high level of quality in teaching, high calibre
teaching staff, a high level of customer focus,
flexibility in all organisational areas and a
contemporary program and subject structure
designed to meet their current and future
needs. In addition, because education is a
personal experience (e.g. Macfarlane and
Lomas, 1994), high ratios of staff to
participants, staff mentors and lower overall
participant numbers relative to
undergraduate programs in most
international universities, create a
rewarding and personally developing
educational experience (e.g. Ali and Camp,
1995; Cross, 1983).
The analysis of the literature, case studies
and follow-up interviews suggested that, to
overcome the possible confusion between key
activity areas and institutional outcomes
identified, to appeal to student needs and
expectations and to be a successful
competitor in the industry, a fee-paying
graduate education provider needs to have
the following characteristics.
Teaching staff
The teaching staff should be leading edge
researchers or practitioners in their field
(preferably active in both research and
practice) and have an international profile.
All teaching staff should have teaching
qualifications and participate in an annual
teaching improvement program. This is a
significant departure from normal
institutional practice, but is becoming
increasingly important as international
graduate fee-paying education competition
increases.
Curriculum
A curriculum based on the English
university model is, according to the
literature analysed and the follow-up
interviews, the preferred model for students
in most countries around the world. To offer
recognised degrees, the curriculum needs to
be officially accredited in the institution's
home country. This, however, is only
sufficient to qualify the education provider to
offer its programs. To be competitive, the
curriculum must also be accredited by other
organisations which are considered rigorous
by international standards and are broadly
recognised by other institutions throughout
the world, such as professional associations.
For example, Anon (1997) suggested that an
MBA program in the UK should be accredited
by the Association of MBAs to make it more
competitive in that country.
The program must be both flexible and
customer focused. The subjects and their
content have to be developed for
contemporary needs. It is not adequate to
offer adaptations of subjects that were
developed 20 or more years prior for different
students and a different commercial
environment. If the graduate fee-paying
education provider operates as a separate
commercial entity, it can adopt a commercial
structure and management approach. This
would enable curriculum development to
take place in an environment which is
focused on developments in that particular
area and future student needs, rather than
the accreditation process and broader
university priorities.
The graduate fee-paying education
provider needs to maintain links with
international eduction networks and local
and international industry to ensure that the
curriculum is always focused on
contemporary needs. Individual staff should
be allocated responsibilities for establishing
and maintaining specific networks and
managing the involvement of major
commercial and external organisations in
the programs and with the alumni. This will
ensure that these important external agents
and sources of information receive personal
attention and that teaching staff maintain
[ 59 ]
Stuart Orr
The organisational
determinants of success for
delivering fee-paying graduate
courses
contact with the environment from which the
students are drawn.
The International Journal of
Educational Management
14/2 [2000] 54±61
Another important feature of a graduate feepaying education provider identified during
the follow-up interviews was the need to offer
the full range of services normally associated
with a tertiary institution, even if it was
operating with a commercial business
structure. The facilities identified by the
interviewees as important for graduate feepaying education included a substantial
library system, recreational facilities and a
housing assistance service for full-time
students. All of these facilities were
considered to be particularly important for
full-time students; however, even distance
education or part-time students attending
classes in the evenings still required access
to facilities such as libraries, computer
laboratories and meeting rooms.
The small business education literature
analysed, indicated that a commercial
education provider attached to a larger
tertiary education institution may be able to
utilise the facilities of a larger tertiary
education institution for its students. On the
other hand, the tertiary education literature
indicated that, while this was possible, it was
not always cost-effective. The use of such
facilities attracted substantial ``internal
taxes'' and the facilities did not always match
the rest of the commercial education
provider's offerings. As a result, many
graduate fee-paying education providers
offered key facilities such as computer
equipment, teaching and meeting rooms and
core library materials to their students
independently of the larger tertiary
institution to which they were attached, even
if it replicated existing facilities.
Facilities
Location
Significant proportions of most graduate feepaying education providers' students come
from locations significantly distant from the
education provider or study via distance
education. In either case, it would be
necessary for the student to occasionally
travel to the institution which, in turn,
requires good access. For regional
institutions this translates to location near a
major city which offers suitable
entertainment and recreation facilities and a
major international airport. In the case of
city-based institutions, access to public
transport and parking may be significant
considerations. Although these issues may
seem fairly minor, one of the major
categories of the quality of graduate student
service offerings identified in the literature
[ 60 ]
was ease of access. The follow-up interviews
indicated that this was particularly
important for part-time students that studied
in the evening, as traffic and parking
represented significant barriers to
attendance and, ultimately, satisfaction with
the course.
The literature analysed in this research
identified graduate fee-paying education as
one of the largest growth rate industries in
the world. It was found to be a global
industry, from which many tertiary
education institutions and other providers
could benefit and expand their operations to
a multi-country level. Multi-country
operations are desirable for fee-paying
education providers because a downturn in
one region is often then balanced by an
increase in demand from another, resulting
in a more consistent number of students
passing through courses and a more
predictable environment for planning and
administration. The literature and
interviews conducted during this research
provided a consistent picture of the
capabilities of a successful fee-paying
graduate education provider. It also
identified a significant gap between the
``typical'' practises of many graduate feepaying education providers and leading-edge
practises and capabilities for this industry.
The graduate fee-paying education industry
is a ``developing industry''. Consequently, it
is very likely that the measures of capability
identified in this research will vary with
time. The effective management of such
institutions needs to incorporate constant
``environmental scanning''. In the graduate
fee-paying education environment,
environmental scanning could be conducted
using a method similar to that adopted for
the research presented in this paper. The
purpose of the environmental scan is to
ensure that the education provider meets the
current needs of students and is aware of the
key activity areas on which it must focus for
its current environment.
A fee-paying graduate education provider
is likely to seek to enter new markets as it
grows in size and scope. When this occurs,
the education provider should also conduct
an environmental scan to identify the needs
and expectations of the new target market. It
is important for such education providers to
understand that, for example, while graduate
education conducted in English is becoming
increasingly popular, this does not mean that
students from different countries and
backgrounds will all have the same needs
and expectations. In fact, a popular theme in
the literature analysed in this research was
that students from different backgrounds had
Stuart Orr
The organisational
determinants of success for
delivering fee-paying graduate
courses
The International Journal of
Educational Management
14/2 [2000] 54±61
surprisingly different needs and
expectations. While standardisation appears
to be an important underlying philosophy
and objective in tertiary education,
education providers offering services outside
their home environment must also
appreciate the diversity of needs they will
encounter. Understanding and responding to
this diversity will be the future key for
success in what is becoming an increasingly
globally competitive education market.
References
Alexander, D. and Rival, F. (1993), ``Education,
markets and the contradictions of AsiaAustralian relations'', Australian
Universities' Review, Vol. 36 No. 2, pp. 16-20.
Ali, A.J. and Camp, R.C. (1995), ``Teaching
management education in the Arab world:
confronting illusions'', International Journal
of Educational Management, Vol. 9 No. 2,
pp. 10-7.
Allerton, H. (1996), ``Apollo 65'', Training and
Development, Vol. 50 No. 1, p. 17.
Anon (1996), ``The training scene'', China Business
Review, Vol. 23 No. 2, pp. 26-7.
Anon (1997), ``Getting smart about learning'',
Director, Vol. 50 No. 12, p. 77.
Birt, M. (1985), ``The organisation of tertiary
education in Australia: the need for rearrangement'', Journal of Tertiary Education
Administration, Vol. 7 No. 1, pp. 21-34.
Cross, K.P. (1983), ``Cooperation and competition
in the learning society'', New Technologies
and Lifelong Learning, Conference
Proceedings, Orlando, FL.
Dudley, S. et al. (1995), ``New directions of the
business curriculum'', Journal of Education
for Business, Vol. 70 No. 5, pp. 305-10.
Duffy, T. (1996), ``Finding the multifaceted
trainer'', Computerworld, Vol. 30 No. 6, p. 91.
Ellis, J. (1996), ``Potential 48% gain posts
education stocks at head of class'', Money,
Vol. 25 No. 1, pp. 25-6.
Emery, J.S. (1987), ``Education and enterprise'',
Unicorn, Vol. 13 No. 2, pp. 83-8.
Ezzeddine, A. and Holand, K. (1996), ``How we
developed our professional development
programs: two models and why they work'',
Small Business Forum, Vol. 14 No. 2, pp. 40-53.
Flood, R. and Jackson H. (1995), Systems
Thinking, Irwin, London.
Fram, E.H. and Camp, R.C. (1995), ``Finding and
implementing best practices in higher
education'', Quality Progress, Vol. 28 No. 2,
pp. 69-73
Golden, S. (1991), ``Sweat the small stuff and
you'll come out ahead'', Community,
Technical and Junior College Journal, Vol. 61
No. 4, pp. 36-41.
Kahan, S. (1997), ``Franchising bridges academia
and business'', The Practical Accountant,
Vol. 30 No. 2, pp. 63-4.
La Monica, N. (1996), ``School plays'', Financial
World, Vol. 165 No. 11, pp. 62-70.
Macfarlane, B. and Lomas, L. (1994),
``Competence-based management education
and the needs of the learning organisation'',
Education and Training, Vol. 36 No. 1, pp. 2932.
Samson, S.E. and Weiss, E.N. (1995), ``Increasing
the service levels in conference and
educational scheduling: a heuristic
approach'', Management Science, Vol. 41
No. 11, pp. 1816-25.
Shank, M.D., Walker, M. and Hayes, T. (1995),
``Understanding professional services
marketing'', Journal of Professional Services
Marketing, Vol. 13 No. 1, pp. 71-89.
Soutar, G.N et al. (1996), ``Service quality in
educational institutions: a foreign student
view'', Journal of Marketing for Higher
Education, Vol. 7 No. 2, pp. 85-94.
Sundman, H. (1996), ``Crash course'', Business
Mexico, Vol. 6 No. 8, pp. 46-7.
Swope, H. (1994), ``The approaching value added
education'', Education Record, Vol. 75 No. 3,
pp. 17-8.
[ 61 ]