ppt gauth ef final presentation
Education in the US
* Education is a State responsibility, not Federal
* $800 billion industry, second largest after healthcare.
*For post-secondary, there are 10,000 institutions with
17 million students (2001), worth $300 billion.
* High school graduates expected to grow by 11%, 1999-08.
* Institutions have vast autonomy, little interference from the state
* The for-profit sector represents 12% of the industry.
* Graduate enrolment is about 2 million in 2001.
* A bachelor degree holder will earn 80% more than a
high school diploma.
The 3-Tier Higher Education System in
the State of California
* Community Colleges
(Santa Monica College etc.)
* State Universities(Teaching)
(California State University, North Ridge etc.)
* Higher Level State Universities(Teaching & Research)
(University of California, Berkeley, LA etc.)
Interesting Features of the US University System
* Large amount of government budget allocation
* Fund raising role, endowments, external contributions
* Great diversity in the system of management
* Freedom from interference by the state
* Strict system of accountability in the state schools
* Wide range of academic standards, accreditation is voluntary
* Wide opportunity for creativity and talent development
and a lot of academic freedom
Importance of Endowment
- Buys faculty, students and state of the art infrastructure
- Measure of alumni loyalty and industry confidence
- Ensures quality of life on campus
- Measure of the wealth of the institution
- Ability to weather lean times
- Financial stability and flexibility to grow and prosper
University’s Endowment(2001)(in millions)
Harvard
Yale
Texas Univ. System
Princeton
Stanford
MIT
$17,951
$10,700
$9,364
$8,359
$8,250
$6,135
In the MIT Case:
In 2001: Value of endowment lost 3.7% of investment value
In 2002: Value expected to shrink a further 8%
Stanford Sources of Funds - 2001/2($1.9b)
36%
25%
15%
8%
6%
10%
Sponsored research
Endowment/Investment income
Student Income
[14,000 students]
Healthcare services income
Expendable gifts
Other income
Expenditures - 2001/2
54%
20%
15%
11%
Salaries and benefits
Maintenance, utilities, libraries, student stipends,
other services
Other operating expenses
Linear Accelerator center
Univ. of California, Berkeley(2000/1)
Income: $1,231 million.
State of California
Student Fees
Auxiliaries and Sales
Endowments
Other Funds
Federal Contracts and Grants
State Contracts
Private Gifts
35.6%
13.3% [33,000 students]
10.8%
4.2%
5.7%
17.9%
2.1%
10.6%
Percentage of Alumni who contribute
to their Alma Mater
Princeton
Yale
Caltech
Stanford
MIT
Harvard
Michigan
UC Berkeley
49%
36%
35%
32%
31%
27%
17%
12%
University Management in US
(Freedom and Divestment of Powers)
Board of Trustee
President - External Relations, Fund Raising
Provost - Chief Academic/Administrator and Bursary
Senate - Chaired by an elected Professor
Reporting to the President:
VP (Development)
CFO
VP (Business Affairs)
CEO/Director of Companies
VP (Communications)
President, Alumni Association
Reporting to the Provost:
Deans of Schools
Dean of Student Affairs
Dean of Admission
Director of Faculty/Staff Housing
Vice Provost - Land & Buildings
Vice Provost - Extended Education
Vice Provost - Research & Graduate Policy
University Librarian
Range of University Academic Standard:
Top Ivory League:
Harvard, MIT, Stanford , Princeton (Private, non-profit)
Most liberal, open system:
University of Phoenix (Private, for profit)
Accreditation:
Accreditation is entirely VOLUNTARY
However students are eligible to get state funding if
institution is accredited.
Only the institution is accredited, not courses
Effect of Economic Downturn:
- State institutions: State grants for state institutions cut
- Private Institution: left to management but
generally has to impose cuts
- Endowment value, external contributions
have reduced
Effect:
- Increase of tuition fees (MIT - 4.7% in 2002/3)
- Lower salary increases
- Less financial aid
- Staff Lay-off
- Postponement of faculty hiring and labs
Entrepreneurship Development
- Silicon Valley best example
- Most universities have Incubator Centers, Technology
Licensing & Patenting Office
- Entrepreneurship sabbatical(Stanford University)
Stanford Research Park
- Home to 140 companies
- Employs 25,000 workers
Secret of Success of Silicon Valley
* Long tradition of entrepreneurial spirit in the West coast
* Conducive climate of the West coast
* Abundant venture capital
* Many companies operate in the area
* Stanford alumni are ingrained with entrepreneurship and
the concept of entrepreneurship sabbatical
* Availability of expertise
Issues in Malaysian Higher Education:
- Racial composition
- Distribution of Economic Wealth/New Economic Policy
- Socio-Political Scenario
- National Policies on Education - Primary, Secondary, Post-Second
- History of Higher Education
- The Current Language Debate
- Racial Composition and University Entrance
- Accreditation of courses
Governing Acts on Higher Education
in Malaysia:
University and University Colleges Act:
Private Higher Educational Institution Act:
University and University Colleges Act:
- Chancellor appointed by the King
- Vice Chancellor appointed by the Minister of Education
- Members of BOD appointed by the MOE
- BOD meets every month
- VC is Chief Academic and Chief Executive Officer
- Almost 85% of budget provided by the government
- New courses need to be approved by MOE
- Student Tuition is Minimal
Private Higher Educational Institution Act:
- University is private, for profit
- Chancellor appointed by MOE upon recommendation by BOD
- President appointed by MOE upon recommendation by BOD
- Setting up of university only by invitation of the MOE
- Government does not provide any funding
- Evaluation by LAN and approval by MOE compulsory before
starting course
- BOD meets quarterly
- President is CEO and entirely responsible for profitability
- President is Chief Academic and Chief Executive Officer
- Tuition Fee is Higher than Government Universities
Challenges Ahead In Managing MMU
* The expected changes in the country’s political scenario
* The ever changing educational policies and scenarios
* University’s role in the MSC
* Needs of the parent company
* To sustain university’s leadership position and
company’s profitability
* To expand the endowment collection
Prospective Areas For Malaysian Universities:
* Fund raising effort
* Accreditation of programs - Differing agencies
* Program approval by MOE
* Academic promotion standards
* Greater empowerment of university officers
* Percentage of graduate students
Comparison between US and Malaysian universities:
- Cost of operation of US universities many times higher
- Philantrophic spirit is significant in US
- Entrepreneurial spirit far higher in the US
- Greater autonomy in US
- Larger fund availability in US
Strength of US Sytem
- Availability of vast amounts of funds
- Freedom encourages entrepreneurship, innovation and creativity
- Fertile ground for realizing ones potential and ability
- Nation of immigrants invokes spirit of ‘must work hard to succeed’
- Equal opportunities for all races and sexes
- No apparent racial problems or serious racial divide
University Expenditure in Malaysia
University of Malaya (UM) : $75 million [23,000 students]
MMU
: $25 million [14,000 students]
Magnitude of scale UC,B:UM is 16 times.
Source of fund:
University of Malaya
MMU
: 80% from the government
: 70% student fees
* Education is a State responsibility, not Federal
* $800 billion industry, second largest after healthcare.
*For post-secondary, there are 10,000 institutions with
17 million students (2001), worth $300 billion.
* High school graduates expected to grow by 11%, 1999-08.
* Institutions have vast autonomy, little interference from the state
* The for-profit sector represents 12% of the industry.
* Graduate enrolment is about 2 million in 2001.
* A bachelor degree holder will earn 80% more than a
high school diploma.
The 3-Tier Higher Education System in
the State of California
* Community Colleges
(Santa Monica College etc.)
* State Universities(Teaching)
(California State University, North Ridge etc.)
* Higher Level State Universities(Teaching & Research)
(University of California, Berkeley, LA etc.)
Interesting Features of the US University System
* Large amount of government budget allocation
* Fund raising role, endowments, external contributions
* Great diversity in the system of management
* Freedom from interference by the state
* Strict system of accountability in the state schools
* Wide range of academic standards, accreditation is voluntary
* Wide opportunity for creativity and talent development
and a lot of academic freedom
Importance of Endowment
- Buys faculty, students and state of the art infrastructure
- Measure of alumni loyalty and industry confidence
- Ensures quality of life on campus
- Measure of the wealth of the institution
- Ability to weather lean times
- Financial stability and flexibility to grow and prosper
University’s Endowment(2001)(in millions)
Harvard
Yale
Texas Univ. System
Princeton
Stanford
MIT
$17,951
$10,700
$9,364
$8,359
$8,250
$6,135
In the MIT Case:
In 2001: Value of endowment lost 3.7% of investment value
In 2002: Value expected to shrink a further 8%
Stanford Sources of Funds - 2001/2($1.9b)
36%
25%
15%
8%
6%
10%
Sponsored research
Endowment/Investment income
Student Income
[14,000 students]
Healthcare services income
Expendable gifts
Other income
Expenditures - 2001/2
54%
20%
15%
11%
Salaries and benefits
Maintenance, utilities, libraries, student stipends,
other services
Other operating expenses
Linear Accelerator center
Univ. of California, Berkeley(2000/1)
Income: $1,231 million.
State of California
Student Fees
Auxiliaries and Sales
Endowments
Other Funds
Federal Contracts and Grants
State Contracts
Private Gifts
35.6%
13.3% [33,000 students]
10.8%
4.2%
5.7%
17.9%
2.1%
10.6%
Percentage of Alumni who contribute
to their Alma Mater
Princeton
Yale
Caltech
Stanford
MIT
Harvard
Michigan
UC Berkeley
49%
36%
35%
32%
31%
27%
17%
12%
University Management in US
(Freedom and Divestment of Powers)
Board of Trustee
President - External Relations, Fund Raising
Provost - Chief Academic/Administrator and Bursary
Senate - Chaired by an elected Professor
Reporting to the President:
VP (Development)
CFO
VP (Business Affairs)
CEO/Director of Companies
VP (Communications)
President, Alumni Association
Reporting to the Provost:
Deans of Schools
Dean of Student Affairs
Dean of Admission
Director of Faculty/Staff Housing
Vice Provost - Land & Buildings
Vice Provost - Extended Education
Vice Provost - Research & Graduate Policy
University Librarian
Range of University Academic Standard:
Top Ivory League:
Harvard, MIT, Stanford , Princeton (Private, non-profit)
Most liberal, open system:
University of Phoenix (Private, for profit)
Accreditation:
Accreditation is entirely VOLUNTARY
However students are eligible to get state funding if
institution is accredited.
Only the institution is accredited, not courses
Effect of Economic Downturn:
- State institutions: State grants for state institutions cut
- Private Institution: left to management but
generally has to impose cuts
- Endowment value, external contributions
have reduced
Effect:
- Increase of tuition fees (MIT - 4.7% in 2002/3)
- Lower salary increases
- Less financial aid
- Staff Lay-off
- Postponement of faculty hiring and labs
Entrepreneurship Development
- Silicon Valley best example
- Most universities have Incubator Centers, Technology
Licensing & Patenting Office
- Entrepreneurship sabbatical(Stanford University)
Stanford Research Park
- Home to 140 companies
- Employs 25,000 workers
Secret of Success of Silicon Valley
* Long tradition of entrepreneurial spirit in the West coast
* Conducive climate of the West coast
* Abundant venture capital
* Many companies operate in the area
* Stanford alumni are ingrained with entrepreneurship and
the concept of entrepreneurship sabbatical
* Availability of expertise
Issues in Malaysian Higher Education:
- Racial composition
- Distribution of Economic Wealth/New Economic Policy
- Socio-Political Scenario
- National Policies on Education - Primary, Secondary, Post-Second
- History of Higher Education
- The Current Language Debate
- Racial Composition and University Entrance
- Accreditation of courses
Governing Acts on Higher Education
in Malaysia:
University and University Colleges Act:
Private Higher Educational Institution Act:
University and University Colleges Act:
- Chancellor appointed by the King
- Vice Chancellor appointed by the Minister of Education
- Members of BOD appointed by the MOE
- BOD meets every month
- VC is Chief Academic and Chief Executive Officer
- Almost 85% of budget provided by the government
- New courses need to be approved by MOE
- Student Tuition is Minimal
Private Higher Educational Institution Act:
- University is private, for profit
- Chancellor appointed by MOE upon recommendation by BOD
- President appointed by MOE upon recommendation by BOD
- Setting up of university only by invitation of the MOE
- Government does not provide any funding
- Evaluation by LAN and approval by MOE compulsory before
starting course
- BOD meets quarterly
- President is CEO and entirely responsible for profitability
- President is Chief Academic and Chief Executive Officer
- Tuition Fee is Higher than Government Universities
Challenges Ahead In Managing MMU
* The expected changes in the country’s political scenario
* The ever changing educational policies and scenarios
* University’s role in the MSC
* Needs of the parent company
* To sustain university’s leadership position and
company’s profitability
* To expand the endowment collection
Prospective Areas For Malaysian Universities:
* Fund raising effort
* Accreditation of programs - Differing agencies
* Program approval by MOE
* Academic promotion standards
* Greater empowerment of university officers
* Percentage of graduate students
Comparison between US and Malaysian universities:
- Cost of operation of US universities many times higher
- Philantrophic spirit is significant in US
- Entrepreneurial spirit far higher in the US
- Greater autonomy in US
- Larger fund availability in US
Strength of US Sytem
- Availability of vast amounts of funds
- Freedom encourages entrepreneurship, innovation and creativity
- Fertile ground for realizing ones potential and ability
- Nation of immigrants invokes spirit of ‘must work hard to succeed’
- Equal opportunities for all races and sexes
- No apparent racial problems or serious racial divide
University Expenditure in Malaysia
University of Malaya (UM) : $75 million [23,000 students]
MMU
: $25 million [14,000 students]
Magnitude of scale UC,B:UM is 16 times.
Source of fund:
University of Malaya
MMU
: 80% from the government
: 70% student fees