Three Essays on Performance Management in Public Higher Education

Demands for greater public sector accountability and changing economic circumstances are creating big changes for public higher education institutions in the United States (Alexander 2000). Increasingly, citizens and policymakers are treating public higher education less as a social institution, and more as an industry essential to innovation and economic growth (Gumport 2000). Consequently, public higher education institutions are losing the relative autonomy they once enjoyed, as they face pressures from multiple constituencies to improve access, affordability, and quality. Declining state appropriations, the proliferation of performance accountability policies, and significant organizational change are important emerging issues characterizing the new policy context for public higher education. This dissertation explores these issues in three essays addressing questions relating to the use of performance management in public higher education. Chapter 2 focuses on the factors associated with state adoption of performance funding policies, while Chapter 3 explores its effects on graduation rates and degree production, as well how differences in institutional mission and capacity condition those effects. Chapter 4 examines how performance funding affects college affordability. Overall, the findings suggest that performance funding policies may improve performance for a certain subset of institutions, but may also harm access and affordability. This dissertation explores these issues in three essay’s addressing questions relating to the use of performance management in public higher education. Chapter 2 focuses on the factors associated with state adoption of performance funding policies, while Chapter 3 explores its effects on graduation rates and degree production, as well how differences in institutional mission and capacity condition those effects. Chapter 4 examines how performance funding affects college affordability. Overall, the findings suggest that performance funding policies may improve performance for a certain subset of institutions, but may also harm access and affordability.