penn state governance analysis

Governance Analysis of The Pennsylvania State University

Liza Anderson Hassan Ansari

David Beltz Melanie Rivera

Christopher Tanzer Wesley Thompson

April 18, 2013

Team 06 Governance Analysis

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Table of Contents

I. Description of Penn States Governing Structure ................................................................. 2 Board of Trustees ............................................................................................................................. 2

Faculty Senate .................................................................................................................................. 3

Old Main Administration ................................................................................................................. 3

Prominent University Officials in Old Main ..................................................................................... 4

Administrative Offices in Old Main .................................................................................................. 5

II. Analysis of Penn State Governing Structure ....................................................................... 8 President of Pennsylvania State University ..................................................................................... 8

Governor of Pennsylvania: A Voting Trustee ................................................................................... 8

Board of Trustees ............................................................................................................................. 8

Quorum ............................................................................................................................................ 9

Faculty Senate .................................................................................................................................. 9

Student Government ..................................................................................................................... 10

III. Recommendations for Improvement .............................................................................. 11 The President ................................................................................................................................. 11

Board of Trustees ........................................................................................................................... 11

Stakeholders .................................................................................................................................. 12

Faculty Senate ................................................................................................................................ 12

Athletic Department ...................................................................................................................... 12

Student Government ..................................................................................................................... 13

References .......................................................................................................................... 15


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I. Description of Penn States Governing Structure

Board of Trustees

The Pennsylvania State University Board of Trustees is responsible for the government

and welfare of the University and the interests of all people within its bounds such as the

students, faculty, staff, and alumni (Role of the Board, 2013). The Board is comprised of 32

members, six of which are automatic members based on their position within the University

and the Commonwealth of Pennsylvania, including the President of the University, the

Governor of the Commonwealth, and the State Secretaries of Agriculture, Education,

Conservation, and Natural Resources. In addition, the Governor appoints six trustees; Penn

State alumni elect nine; state agricultural societies elect six; and the Board of Trustees

representing business and industry endeavors elects six (Membership Selection, 2013).

Following the charter, bylaws, and standing orders, the Board may enact bylaws, ordinances,

and rules when required.

According to the Board of Trustees website (2013), their actions are guided by four

general policies:

1. The Board relies on the President to disclose information regarding the University and is

obligated to require such information in order to maintain its awareness of University

operations. Additionally, the Board advises the President on any all University matters, if

requested.

2. The Board is responsible for selecting the President of the Pennsylvania State University;

determining major University goals and approve of policies and procedures for

implementing such goals; reviewing and approving the operating and capital budget;

and various responsibilities concerning law and governmental directives.

3. The Board must inform citizens of the Commonwealth of Pennsylvania of the

Universitys performance regarding educating the youth of Pennsylvania.

4. The Board shall assist the President in developing relationships with various agencies

throughout the U.S and Pennsylvania that provide assistance and direction to the

University.


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Faculty Senate

The Pennsylvania State University Faculty Senate represents all faculties, including

administration, as well as undergraduate and graduate students spanning every Penn State

campus (see figure 2). The Senates main focus is educational matters and interests including

curriculum, admissions, student policies, and retention/graduation requirements. Additionally,

it serves as an advisory council to the President concerning the fulfillment of educational

objectives (see figure 1) (University Faculty Senate, 2012). Each Penn State college and

campus elects faculty members to serve as senators with a maximum seat size of 200. Through

shared governance the faculty senate seeks ways to improve communication and collaborative

decision making across the University (About the Senate, 2012). Elected senators visit Penn

State campuses every three years to promote communication via faculty forums (Fact Sheet,

2012).

Old Main Administration

Old Main is the main administration building the Penn State University Park campus. It

houses the offices of the President as well as other prominent faculty members (see table 1).

The building also hosts the Presidents Council members offices as well as the offices of all the

administrative entities at the University (see table 2).

All of the fundamental authoritative figures at Penn State have offices located within

Old Main. Hence, the role of the administration in Old Main is the overall management of the

University system. These tasks include managing admissions, finances, student records, career

services, human resources, athletics, academic affairs, and other broad issues at the University.

Administration at the Old Main focuses on the comprehensive management of the University's

operational affairs.


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Table 1 Prominent University officials based out of Old Main

Prominent University Officials in Old Main

Rodney A. Erickson University President

Paula R. Ammerman, Director, Office of the Board of Trustees

Susan M. Basso Associate Vice President for Human Resources

Blannie E. Bowen Vice Provost for Academic Affairs

Michael J. DiRaimo Special Assistant to the President for Governmental Affairs

Stephen S. Dunham Vice President and General Counsel

Henry C. Foley Vice President for Research and Dean of the Graduate School

Yvonne M. Gaudelius Assistant Vice President and Associate Dean for Undergraduate Education

David J. Gray Senior Vice President for Finance and Business/Treasurer

Cynthia B. Hall Interim Chief Marketing and Communications Officer

Madlyn L. Hanes Vice President for Commonwealth Campuses

W. Terrell Jones Vice Provost for Educational Equity

David M. Joyner Director of Intercollegiate Athletics

Rodney P. Kirsch Senior Vice President for Development and Alumni Relations

Robert N. Pangborn Interim Executive Vice President and Provost

Harold L. Paz

Chief Executive Officer, Milton S. Hershey Medical Center;

Senior Vice President for Health Affairs, and

Dean, Penn State College of Medicine

Thomas G. Poole Vice President for Administration

Damon Sims Vice President for Student Affairs

Craig D. Weidemann Vice President for Outreach


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Table 2 Administrative offices in Old Main

Administrative Offices in Old Main

Office of the President Affirmative Action Commonwealth Campuses

Educational Equity Finance and Business Government Affairs

Human Resources Research and Graduate School Undergraduate Education

Physical Plant Vice President for Administration

Alumni Relations

Athletics Development Executive Vice President

General Counsel Health Affairs and Medicine Outreach and Extension

Student Affairs University Relations Planning and Assessment


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Figure 1 Executive Vice President and Provost. 2012. Chart. Office of the Executive Vice President and Provost, University Park. Web. 21 Apr 2013. .


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Figure 2 Penn State organizational chart


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II. Analysis of Penn State Governing Structure

President of Pennsylvania State University

Unlike the presidents of most universities in the United States, the President of

Pennsylvania State University does not serve within a single all-encompassing role. Instead, the

President holds the roles of President of the University, member of the Board of Trustees, an

executive office, and Secretary of the Board of Trustees (Wagner, 2012). These roles

complicate the governing process because the President serves on almost every board

committee, subcommittee, and special committee. The President has the power to influence

and impact capability to influence on the work of these groups (Wagner, 2012). Wagner points

out that this the Presidents vote counts more than once, since he is given a vote in his other

board and committee chairs (Wagner, 2012).

Governor of Pennsylvania: A Voting Trustee

The Governor of Commonwealth of Pennsylvania makes decision on capital

expenditures, approves grants and recommends annual appropriations to the General

Assembly (Wagner, 2012). Critical decisions that affect the operations of public institutions are

made by the Governor and this becomes very significant as it applies to Penn State (Wagner,

2012).

Since the Governor is a trustee, as well as the Governor of Commonwealth of

Pennsylvania, he or she can cast votes on expenditures that he or she approves as governor and

not necessarily as a trustee of the University. This predicament gives very credible concerns

pertaining to conflict-of-interests between the two positions (Wagner, 2012).

Board of Trustees

Penn States Board consists of 32 voting members; 11-12 voting members is the average

number of voting members at the other Big Ten Conference Universities (Early, 2012). The

Board is responsible for making key decisions regarding university affairs.


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The Board conducts meetings in rooms with little seating, making affairs less accessible

to the public. Communication among members is also kept confidential. The large size of the

Board makes processes slower. The Board is heavily influenced by the President.

The Board also consist of additional alumni members that have been granted all of the

privileges of the Board for life (Novak, 2013). However, these members cannot vote.

Some Board members have been part of the Board for several years. There are currently

no limitations on how long members can stay or get re-elected. Although this keeps the Board

fairly stable, it also reduces diverse influences on decision-making. Board members with

seniority are highly influential (Novak, 2013).

Quorum

Out of the 32 members who make up the full Board of Trustees, only 13 members are

required in order to establish a quorum (Wagner, 2012). This means that only about 40 percent

of the members are required in order to transact but not vote on official business. The 32-

member board was brought about by decrees from the courts of Centre County that derived

from Penn States requests (Wagner, 2012). The 13-member quorum was created by bylaws of

the Board.

When it was established in 1855, seven of the thirteen members votes were needed

establish a quorum, representing a majority of the Board. In its current state the quorum does

not reflect this same majority requirement. Penn State is the only university in the Big Ten

Conference and top 20 highest enrollment public university that does have a less-than-majority

quorum.

Faculty Senate

The faculty senate is made up of 200 bodies which are elected from the nearly 5,600

faculty members who make up each college and campus at Penn State. This organization

primarily focuses on educational matters such as curriculum, admissions, and retention and


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graduation requirements. However, it also has influences over other portions of governance at

the University; such as its current position as an advisory council to the University President.

Student Government

The student government organizational hierarchy is extremely complex and diluted.

Current student governmental bodies include the Graduate Student Association, University

Park Undergraduate Association, Association of Residence Hall Students, Council of

Commonwealth Student Governments, as well as a separate student government body for each

college within the University. With so many different governing bodies, and a lack of oversight

and hierarchical structure for the entire student body, resolutions and recommendations

passed at each are unable to make significant change at the highest levels.


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III. Recommendations for Improvement

The President

The Pennsylvania State University can improve its governance through reorganization of

structure and formation of new policies. First, the President of the university must be removed

as a member of the Board of Trustees. The current structure deems the role of the Board

useless as the President is able to heavily influence the Board and therefore, bypass a system of

checks and balances. Ultimately, the Board should be the governing body, rather than the CEO

or President; the current structure yields far too much power to the President by allowing him

to be a voting member of the Board, the Board secretary, and a part of every committee.

Board of Trustees

The Board currently not only consists of the 32 official members, but also 12 retired

trustees with emeritus status. The Universitys Board is already one of the largest in the nation,

and this doesnt include these 12 additional members. The granting of such a status must be

eliminated in order to have a leaner board with less influence from longstanding members.

The general consensus is that in order to have a good committee structure that a board

should be kept between 12 and 15 members. Boards larger than this ideal size many times are

less involved in important issues that are brought before the board and have a tendency to

defer to their executive committees. The size of a board should be so that meaningful dialogue

can be had among the trustees. A board that is the size of the one at Penn State does not allow

for trustees to handle key issues in an efficient and intense manner (Early, 2012). It is also

thought that a large board suffers from the lack of preparation as well as a lack of overall

attendance.

Currently, certain Board members are given different term limits than others, under the

new term limits proposed in 2003. All members of the Board should be treated equally, and

have three-year terms. Board members must also have a limitation on serving a maximum of

two consecutive terms, and no more than three terms. This will allow the university to gain

fresh perspective and prevent overwhelming influence from senior Board members.


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Stakeholders

Penn State prevents stakeholders from reviewing the communication among Board

members. As the local taxpayers ultimately help fund the university, the university must show

transparency in its operations by providing public records of all issues being discussed by the

Board. We recommend that all meeting schedules be posted publicly online with agendas for

those meetings. After a meeting is conducted, meeting minutes should be posted online to

show what conclusions were made about the topics on the agenda. Everything should be dated

accurately so that such documents can provide historical records of the Boards discussions and

decisions for the public to review. Due to the size of the state, Board meetings should be aired

online, so that anyone can join the conversation without having to travel to the physical site of

the meeting. At least 30 minutes must be allocated after a meeting to allow the public to ask

questions and give input, via the web and in person.

Faculty Senate

Our recommendation to absolve the President of the University from his responsibilities

on the Board of Trustees will take away the current influences the faculty senate has over the

board. The faculty senate should be given more influence over the Universitys policy making

decisions, not have it taken away. To better provide a system of checks and balances, which are

currently almost non-existent, any decisions made by the board of trustees must also pass

through a majority vote at the faculty senate before they are made official University policy.

Athletic Department

The universitys athletics and arts programs must keep records of all underage kids

attending them. These records must include the names of the kids, the time they came to the

university premises, the time they left, and the reason for their visit. It must also include the

names of the supervisors on duty that are in charge of safety. In addition, all complaints must

be made to university police using an official form in order to prevent an agency problem.


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Currently, if an issue is reported directly to the Board, a conflict of interest arises as the Board

does not benefit from publicly announcing infractions that occur within the organization.

Instead, crime prevention shall be headed by the university police.

The universitys football program has proven to be extremely lucrative, but does nothing

to improve the academics of the school. In 2011, the program turned a profit of $43.8 million

(2011, NCAA). We propose that 10% of all profits from the football program, the most

profitable athletic program at Penn State, be used for academic purposes. This would amount

to $4.38 million towards academia from Penn State footballs 2011 profits. This will help Penn

State move up in academic rankings and become a more prestigious institution. In turn, more

applicants will apply to Penn State, increasing revenue.

Student Government

There are too many student government organizations within the University with no

real power to influence actual policy at the University. We propose a hierarchical structure

which encompasses all these governing bodies and gives them a single voice to pass

recommendations and resolutions onto the faculty senate and Board of Trustees. A member

from each of these student government will be elected by the others to represent them on a

formal regulatory council whose responsibility it is to meet and formulate plans of action and

policies to pass on to the senate and board. This organization will be widespread throughout

the Universitys diverse geological structure and as such will meet through technological means

on at least a per semester basis.

Conclusion

The governance structure of The Pennsylvania State University is complex and serves a

large set of responsibilities. Therefore, in order to improve the structure, many aspects of

governance must be targeted. Please refer to figure 3 for a visual representation of our

proposed structural changes.


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Figure 3 Proposed administrative organizational chart


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References About the senate. (2012). Retrieved March 19, 2013, from

http://www.senate.psu.edu/senate.html Fact sheet. (2012). Retrieved March 19, 2013, from http://www.senate.psu.edu/factsheet.pdf Membership selection. (2013). Retrieved March 28, 2013, from

http://www.psu.edu/trustees/selection.html Novak, B. (2013, April 3). Whats Up with the Board? Understanding Todays Penn State Board

of Trustees. Ben Novak. Retrieved April 12, 2013, from http://www.bennovak.net/2013/04/whats-up-with-the-board/

Role of the board of trustees in university governance. (2013). Retrieved March 19, 2013, from

http://www.psu.edu/trustees/governance.html University faculty senate. (2012). Retrieved March 19, 2013, from http://www.senate.psu.edu/ Wagner, J. (2012). Recommendations for governance reform at the Pennsylvania state university after the child sex abuse scandal. Retrieved from http://www.auditorgen.state.pa.us/reports/PennStateSpecialReport.pdf Early, W. (2012, March 21). Penn state board of trustees needs reform starting with a small size. Retrieved from http://www.pennlive.com/editorials/index.ssf/2012/03/penn_state_board _of_trustees_n.htm l Freeh, L. (2012, July 12). Report of the Special Investigative Counsel Regarding the Actions of The Pennsylvania State University Related to the Child Sexual Abuse Committed by Gerald A. Sandusky. Retrieved from http://progress.psu.edu/assets/content/REPORT_FINAL_071212.pdf

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