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Education Finance and Economics

 

Education is a very essential aspect and should be provided to all students in a country equally. In this respect governments should take initiatives of financing education in order to allow students from poor background to be able to access  education. For instance, in the United States of America education is primarily under the responsibility of state and local government. This topic is of great importance as it analyzes the historical and theoretical foundations of funding education. Evaluation of sources of revenues and their influence on educational results is also addressed in this study. Some light shed to educational institutions, local, and state government in matters  relating to education in a global perspective. More light is shed on the determination of capital and general expenditures of educational institutions and an analysis of the role of ethics in the process of making the financial decisions for educational institutions.

Additionally, the aspect of how government and educational institutions make budget and manage it in order to help in adequately financing education is of great importance. Finances for supporting education come from different avenues which include grants and other financial aids from different sources (Xuedong, 2008, p. 52). In this case, this study will address these sources and indicate how they impact the aspect of education. In the current world and economy, expenditures of parents towards their children is reported to increase drastically as a result of the increasing cost of education. Because of economic conditions of different countries all over the world, it has become very difficult for parents and students to finance their children’s or their education respectively (Alan, 2010, p. 52). This calls for economic policies that are implemented by governments in ensuring that all citizens are equally provided with education. Economic policies ensure that there is a portion of the governments spending on public that is allocated for education financing.

A number of changes have occurred in the education systems of many countries in the whole world, as indicated by Alan Haskvitz (2010), particularly in matters relating to financing education (p.58). Most striking aspect has been the sharp drop in the public share of funding higher education and the recent interest in financing based on institutional performance. This has resulted in educational institutions particularly higher education to raise their tuition fees, cut costs by outsourcing services to external providers, and aggressively seek private finances. This has impacted the way these educational institutions provide equality of opportunities when  enrolling. Despite the fact that the state government funds education in many countries of the world, there are some people who study in private schools and hence they provide their own funding. This shows that the rationale of state funding is to equalize the whole process in the pursuit of making sure that students from all social classes are in a position to assess education (Allan et al, 2009, p.538).

Back in the year 1789, Thomas Jefferson was for the idea of free public education that was deemed imperative for the new democracy to grow and thrive. Despite the fact that Jefferson pushed very hard for free public education, he never witnessed government-funded public education during his time. According to Alyson (2011, p.17), there is need for government budgeting for public education in order to bring about equality in school enrolment. This is because some educational institutions particularly the higher education discriminate upon the poor students as they are unable to pay for their tuition fees adequately (Arnove & Torres, 2007, p.384).

In general terms, education systems have undergone a number of changes right from the roles played by tutors, students, parents, governments, educational institutions, and other sources of educational finance. These changes have occurred through a long period of time and what can be seen in the present is totally different from what was there in the past. As indicated by Azad and Chandra (2008), in the past education was heavily financed by parents and students and no one could have thought that education would be financed by other financial aids (p.33). During this period of time, the cost of education was relatively low and hence many people were able to afford it. In the current world and economic conditions, educational financing has become very difficult bearing in mind that many people are enrolled in educational institutions and hence there is a need of increasing the number of tutors. It should be noted that, as put forward by Bayefsky and Waldman (2007, p.523), the advancement in technology that is experienced in the current world has attracted many people to join educational institutions in order to further education and other to start education. In the United States of America for instance, more than 75% of the total population are educated meaning that this country has developed heavily in terms of education (Brossard & Borel, 2008, p.23). In most of the developed countries like     Australia, Japan, United Kingdom, France, and Germany among others; people are increasingly acquiring education and hence there are a lot of students in public and private educational institutions hence calling for increased number of tutors.

According to Boadway and Shah (2007), in the traditional days most people were not educated and hence the government was able to pay for the few people’s educational expenditures in most countries (p.41). This implies that the cost of education in the traditional days was not high. In the current world, a lot of people are acquiring education through public, private, and e-learning means and hence there is need for technological advancement and other facilities to aid education and hence making the cost of education to be very high. As a result of this many governments are usually not able to afford to finance education for their citizens and hence parents and students are supposed to finance their education. Taking an example of financing education in Canada, it is clearly indicated that universities in this country finance education through sale of goods and services, investments, and fund raising (Cancian & Danziger, 2006, p.320). This is one of the ways that was used in funding education in most of the   American countries. Traditionally, many governments had absolute role of financing education and hence many people were able to attain even higher education through the financial aids that were provided by governments. In the current world, as revealed by Brux (2007, p.107), a good number of bright students in developing and less developed countries are unable to join higher education because of lack of financial assistance from governments. This has resulted to low  levels of education in these countries (Checchi, 2006, p.260).

There is an attempt to finance education for students according to their performances in many different schools. This aspect has been heavily criticized by many people especially the proponents of equality in educational financing (Chriatopher & Robert, 2010, p.189). It should be noted that even in the traditional days, education was provided by private and public educational institutions and hence parents used to take their children to any of the two aspects depending on their levels of wealth. According to Cohen et al., (2007, p.13), education was traditionally financed by local governments where localities used to handle all financing for the schools in their communities. The source of revenue was from property tax. In this respect, schools relied on the properties owned by each community. This method of education funding had shortcomings in that students transferring from one school to another particularly within different communities were considered as out of place (Cordes et al., 2005, p.100). This is because community properties were only used in funding education of students who come from that community. In this respect, students were indirectly forced to study in schools within their community if at all their education was to be financed by community properties (Craford, 2005, p.32).

After the World War II, different countries took the responsibilities of financing education for their citizens through a number of plans so that all students’ education was financed equally. This method was viewed by many people as the right path to excel in education since students studying in private and public schools were equalized in terms of educational funding (Dahlman et al., 2007, p.95). In the present situation of education financing, governments are almost contributing up to 50% while the rest is provided by parents, students, organizations, financial institutions, or even non governmental organizations. This present aspect has been viewed by many parents and students as discriminating as those people who are not able to finance for their education are forced to drop out (Dauchy, 2007, p.34). The aspect of the governments contributing up to 50% of education funding has resulted to low qualities of education as tutors are not adequately motivated to impart educational skills to their students while students from poor backgrounds are in most cases sent home because of finances. This, as indicated by Dustmann et al (2008, p.230), has contributed to the increased private education hence students in private schools perform better as compared to those in public schools.The reason given for this aspect is that in private schools there are technologically advanced facilities and well trained tutors hence students are able to learn both theoretical perspectives and practical ones. In the developing countries in particular, it has become very hard to equate the quality of education in private and public schools since the modes of learning and teaching are totally     different (Elizabeth et al, 2010, p.31).

Presently, the most common mechanism of education financing is known as Foundation Program which was introduced in the year 1920. According to this program, the local and state funds are combined in order to provide a level of funding that is adequate for financing education for all people (Fleet, 2010, p.243). Most countries of the world use this method where education is funded by state and local governments’ financial aids. In order to equalize the process of education funding to all communities, this program provides that the poorer communities are  entitled to a bigger share for the state and local government’s money as compared to richer communities (Goldin & Katz, 2008). This is done in order to make sure all communities are eligible for the money and all students from all communities benefit from these money. It should be noted that this method also includes the calculations that are incapacitated in meeting the requirements and needs of students requiring special education. In most countries of the world, students with special education are usually financed by the government especially if their parents are unable to fund their education (Gruescu, 2007, p.67).  

According to Guarino (2009), apart from the funding that is provided by governments in the present situations, there are other sources of education financing (p.16). The World Bank is supporting many countries’ education with an aim of making sure that all students are provided with adequate education equally. It has come to the knowledge of many people that education is one way that changes the economic conditions of a country. This is so because when people are heavily learned in a country that country does not necessarily look for expatriates from other countries (Hanushek & Welch, 2006, p.96). Taking examples of the industrialized and developed countries in the whole world, it is clear that the level of education in these countries is very high as more than 80% of the total populations are educated.  As a result of this, the World Bank and other financial institutions are heavily funding education sector especially in the developing and less developed countries (Honig, 2006, p.273).

Many governments usually give grants to students in order to enable them pay their   education. In this case flat grants are offered where the available state funds are divided either by the number of students or teachers in a country in order to give a unit figure and then give out the appropriate figure to each school in that country (Horner, 2007). This method is very helpful as it assists in financing education in a country in accordance to the number of teachers or students in that country. Many students especially in the United States of America, United Kingdom, Australia, China, and Japan have benefited heavily from this program (Hyman, 2007). The rationale that education is a responsibility of a government is mostly used by many governments to fiancé education. In this case, when governments are making annual budgets for the public spending, education financing is included in order to make sure that all students are provided with adequate education. In most countries of the world, the aspect of education is compulsory to all students and hence since there are some families that are very poor to the extent that they are unable to finance education for their children; it becomes the responsibility of the governments to finance their education (Imber & Geel, 2009 p.343).

The public expenditures are increasing at a very high rate in the current world resulting from the constant changes in economic conditions. Despite the fact that economic conditions in the whole world are deteriorating, many parents and students are increasingly spending a lot of money in financing education especially higher and special education. According to Lawrence (2008,  p.56), parents are spending a lot of money during the educational life time of their children and it may seem that in the near future many people will not be in a position to afford education especially those people from the lower social class. It is widely known that when economic conditions of a country deteriorate, people usually change the way they spent their money in order to try and save. This is not the case in matters relating to education since education is becoming a basic need and all people are striving to have it (Lin & Pleskovic, 2008, p. 30). According to the reports that are provided by non governmental organizations and World Bank, many people in developing countries are living below one dollar and they are expected to pay educational expenditures for their children. This is very difficult and unless something is done to solve this problem, people will not be able to afford quality education in the near future (Lioyd, 2005, p.101).

The rising cost of education is compounded by the fact that the associated expenditures of education are very many and too much for governments, parents, and students to bear. These  expenditures include; operational human resources, operational learning, investment infrastructure and maintenance of the aspect of free education by governments, management costs, and assistance costs like bursaries and grants (Lipphardt, 2008, p.30). Globally, higher education is facing a lot of problems where universities are underfunded, there is increasing worries about compromising quality of education, there is inadequate student support in terms of bursaries and grants, the amount of students from disadvantaged backgrounds is very small, and the aspect of financing education is regressive (Lou & Wang, 2008, p.143). This indicates that probability of having unstable education in the whole world is very high bearing in mind that the poor will be the most adversely affected. The proportion of students from disadvantaged backgrounds in    institutions of higher education is very small as a result of the fact that they are unable to finance their own education despite the fact that they are bright and talented (Martin, 2005, p.221). A good example can be traced in the United States of America when state spending for higher  education dropped and the tuition that was required rose significantly making many people unable to afford this education. It is believed by many people that college education or rather higher education is an investment that pays off. This has resulted in many people willing to study up to colleges but their dreams are usually put off by the fact that higher education in the whole world is increasingly becoming unaffordable (Martinson, 2008, p.56). This increased cost of education has called for financial aids from different sources in order to help governments, parents, and students in paying tuition fees and other required fees.

The main role of economists in education mostly relates to the labor market and the utilization of money. In financing education economic theories and principles like cost benefit    analysis need to be addressed. In cost- benefit- analysis, the main agenda is analyzing the cost of financing education and the benefits this education offers to the general public. This principle is used in determining whether the policy of funding education is worth or not. This is simple, if the benefits of a program are higher as compared to the costs; the program is worthwhile (Martinson, 2008, p.56).

The second aspect is efficiency which involves getting the maximum out of the valuable resources available. In this respect, efficiency is obtained if maximum outputs are obtained from the same inputs. This implies that the efforts that are put in financing education should be reflected on the outcomes of this education. Efficiency is an aspect where resources are distributed with an aim of giving productive results (Robert, 2010). 

The role of financing education is mostly played by state, federal, and state governments. These roles usually differ with the level of education. In most cases, regional and local governments in almost all countries of the world finance low levels of education like pre-primary and primary education. On the other hand, tertiary and higher educational levels are financed by central or state government. Government usually takes the responsibility of financing public education to a larger extent as opposed to private schools (Dougherty, 2004). Before the current economic down turn in the whole world, governments used to provide more than 70% of the   total expenditures in education institutions. The concept of inter-governmental funds transfer happens when governments support their citizens studying abroad.

This denotes an organization that collects money from other institutions or the general public and invests them in financial assets. In this case, this may provide a good source of funds for education in any one country they are found (Robert, 2010). Additionally, this aspect may mean the collect way to organize finances that are provided to support education in order to    accomplish their goal. Naidu, Joubert, Mestry, Mosoge and Ngcobo(2008), describe all organizations need to have a structure that shows how management functions are carried out. It therefore makes sense that a governing body, which is responsible for the management of school funds, sets up a financial committee. In the creation of an organizational structure for school    financial management the requirements of school act must adhered to (p.171).

Financial management is the performance of management actions (regulatory tasks)  connected to the finance of schools or educational organizations with the main aim achieving effective education. These activities comprise of part of the individuals in official positions of authority. Financial management is an integral aspect of resource management. It ensures that expenditure is well-directed towards achieving good value for money involving appropriate acquisition and allocation of physical resources. Other activities that help achieve this include the use of budgets, planning and resource control (Levacic, 1989, p.7). Financial mismanagement can be reduced if a policy is drawn up to set out the regulations, practices and procedures necessary for the prevention of fraud (Knight, 1993, p. 150). Financial  control is concerned with money as it flows into the school financial resources (such as cash) held by the organization, and money flowing out in the form of salaries and expenses. Each of the categories of financial resources is controlled so that revenues are sufficient to cover expenses.  Berkhout and Berkhout (1992) noted the following specific functions be performed for control purposes:

Comparison between the amounts of budgeted and the result achieved
Analysis and interpretation of discrepancies
Audit and calculation
Accounting and reporting
Implementation of corrective measures.

 Income and expenditure must be monitored and controlled. Monitoring is the process of comparing actual income and expenditure against budgeted income and expenditure. Whilst   control safeguards funds and ensures that they are spent as authorized (Watkins, 1989:86; Knight, 1993: 147). The roles and responsibilities of individuals within the school need to be spelled out and information should be reported regularly (cf. Naidu, Joubert, Mestry, Mosoge and Ngcobo, 2008: 176).

 In order to make sure that all finances that are provided are used for the intended purposes, it is very essential to come up with a strategy top control utilization of finances. In this case, finances meant for educational support should not be used in other ways. This calls for the correct appropriation of funds in order to avoid operating at a loss (International Monetary Fund , 2006).  

Financial accounting and reporting are also forms of control (Naidu, Joubert, Mestry, Mosoge and Ngcobo, 2008, p.179). In order to make sure that representatives of educational finance are accountable and responsible for all the money provided to particular schools, the   aspect of financial accounting and reporting is very imperative. All the money that has been used in educational institutions is recorded and reported as a way of showing transparency. This prevents mismanagement of funds and brings about appropriate utilization of finances (Dougherty, 2004).

Different countries of the world have different financial policies but all of them are       directed to assist in the improvement of education and financing education. Different parties    especially those involved in matters related to finances in education sector are guided by these policies. As noted by Naidu, Joubert, Mestry, Mosoge and Ngcobo (2008), the financial policy serves to guide the financial administration of the school. It assists with financial control, regulation of receipt-keeping and withdrawal and expenditure of funds. It is an important financial management tool, clearly outlining how funds and (including school fees, donations, other generated funds and government grants) are to be managed at a specific school (p.173).  Additionally, the process of government funding education and the portion by which a  government should contribute is provided by this policy. 

Equity in education funding is generally defined as the aspect of equal per student expenditure in all school districts. Differences in expenditures among different school districts are typically brought about by a function of local tax rates and revenues. According to International Monetary Fund (2006, p. 59), it is very interesting, inspiring, rewarding, and exciting experience when studying in most of the developed countries but it may be very difficult to fund ones education. The concept of the state government partly paying education has resulted in parents and students paying a higher proportion of the cost of education as compared to other countries (John, 2006, p.36). Among the groups that are adversely affected by the increasing cost of  education are the international students as they are not covered by any government grant. It would be cheap if the local government at district level was in charge of funding education as they are far much aware of the conditions of students in these schools. This is so because, as stated by Dougherty (2004), the local community is aware of the earning levels of parents in a certain district and hence they are better positioned in determining how these schools should be funded (Jones, 2007, p.36).

According to Joseph (2010, p.206), education is very essential in all countries of the world and hence it should be supported heavily by all avenues of revenues. In the less developed countries, it is very hard for the government to fully finance education and hence other financial aids are called upon to help in this matter. It is the responsibility of many governments all over the world to ensure that their citizens are adequately educated in order to contribute to the development and growth of economy and hence there are different means that are sought to finance education. It is of great importance to note that developed countries like European countries are able to finance education for their citizens either directly or indirectly. This aspect has increased the need to many people from other parts on the world to enroll in education programs of these countries through the e-learning programs.

It has been reported by Kerzner (2009, p.45) that, the cost of education all over the world has increased drastically and it has become a fact that most of the poor people have to rely on fundraising in order to be able to fund their education. Governments are unable to fully finance education because of the increased costs of education and this has left people to manage and pay for their education. In order to have a full, adequate, and high quality education in the whole world, it is of great importance to address the following aspects; budget management, grants,  financial aids from different sources, expenditures and the rising cost of education, and the    economic policy that are implemented in order to aid education financing.

The aspect of budget management implies that the money that is allocated for a particular purpose is well appropriated and utilized in the defined purpose. It should be noted that in some countries schools are very corrupt and hence the money that is allocated for financing education in these schools are used in other activities that are not the intended ones (Lawrence, 2008). In order to make sure that all students are well provided with adequate education it is the role of representatives of different schools to ensure that the amount of money allocated for different schools are well utilized. This is only brought about if people will become accountable for the money allocated for their schools are become very responsible in spending them (King, 2008, p.103).

Everard, Morris and Wilson (2004, p.210) explain that investment can either take the form of developing or maintaining existing resources or acquiring new resources. The question is: how do we invest limited financial resources so as to maximize the benefit to the school? This question is especially pertinent to disadvantaged schools, where the money provided hardly   covers year-to-year financial and resources needs. For this reason school governing bodies are subjected to difficult choices in relation to resources. The appropriateness of decisions by governing bodies in this regard depends on how well these bodies are informed and skilled in resource management (cf. Naidu, Joubert, Mestry, Mosoge and Ngcobo, 2008:164)

According to Xuedong (2008, p.56)), in China the government has initiated the aspect of compulsory education in the rural areas of China and hence in the budget there are some amounts of money that are appropriated for financing rural education. This implies that governments are in the front line in financing education by setting aside some parts of the public money for education (Lin & Pleskovic, 2008, p.30). It should be noted that as a result of the deteriorating economic conditions in the whole world, educational sector is not provided with much money from the government as most governments only provide 50% of the total educational financing. This shows that the money provided should be well managed and used according to the set   budget.

It has been indicated by Lioyd (2005, p.101) that, the formula funding method that is used by some countries in education funding results from the budget that is made by governments in supporting education. As indicated earlier, in the past education financing was a full responsibility of the governments where the governments made budgets on the appropriate amount of money that should be appropriated to educational sector. In the current world, this budgetary appropriation has reduced and hence the little money issued should be well utilized (Lipphardt, 2008, p.30). In most cases, since most of the money used in education financing comes from governments’ budget management, accountability and responsibility is required in order to have adequacy and equality in education funding. On the other hand, there are portions that are appropriated by many governments in order to help students undertaking higher educational programs. This money is paid back once a beneficiary is employed.

In most countries, students are provided with grants and bursaries depending on their   situations and the course they are undertaking. Grants are provided by governments in order to help students that are unable to pay for their tuition fees (Martin, 2005, p. 221). The difference between grants and budget management is that grants are provided and given to particular students who are considered needy while budgetary finances are provided direct to educational institutions in order to help in purchasing facilities and equipments that are used in the process of schooling. According to Lou (2008, p. 143), students in public schools in China are provided with governments grants in order to be able to manage paying their school fees. This is a process which is considered very useful sine grants are not necessarily paid back. Bursaries are similar to grants as they serve the same purpose but the only difference is that they are issued to people pursuing particular courses or careers (Martinson, 2008, p.56).

Financing education as a concept has undergone an underlying structural change from the former centralized system which had narrow revenue source to a decentralized system that is heavily diversified in terms of revenue base (Nicholas, 2009, p.205). Due to the fact that most countries have compulsory education especially for primary education, governments provide grants to enable all people be able to advance their education to the secondary and tertiary level (Megumi, 2008, p.7). The aspect of globalization and advancement in technology has resulted in many students from all over the world going for abroad education or e-learning. In order to support this aspect of education, governments are issuing intergovernmental grants.

According to Nikos (2010, p. 41), intergovernmental grants are usually based on a number of interconnected choices which include; the national government decides whether to provide grants for its students studying abroad, the national government determines the conditions under which these grants should be issued, the sub-national government makes decisions on whether to accepts the issued grants, and the sub-national government determines policies which include the spending levels on the received grants. This implies that, there must be an agreement between the national and sub-national governments on whether to provide or receive grants respectively (Norman et al., 2011, p.233). Through grants students are able to acquire education from foreign countries and hence increase the resource base of their countries.

It has been noted by OECD Indicators (2008, p. 37) that, the cost of education in many countries is increasing at a very high rate and hence there is a need for education financing to be assisted by different financial aids. In this respect, sources like International Monetary Funds and World Bank are playing a very significant role in supporting education in different countries  especially the developing and less developed countries. A good example that is provided by International Monetary Fund (2006, p.59) is Rwanda which is receiving a lot of financial support from International Monetary Funds in order to support its education. Most of the African countries are heavily supported by international monetary institutions in order to finance their education. These sources are viewed by many people as good ways of enhancing education through providing adequate and equitable education. In most cases, as noted by John (2006, p. 36), research institutions and higher learning are provided with financial support from international monetary institutions in the pursuit of improving and enhancing research and higher education especially in developing and less developed countries.

World Bank has invested a lot of money in financing education in Africa and hence many students have benefited heavily from these investments. According to Jones (2007), it is the    responsibility of the World Bank to ensure that the borrowed funds that are intended to finance education in different countries reach to the intended beneficiaries. This is because some people are very corrupt and may end up using this money for other purposes. It should be noted that the funds that are provided by the World Bank are paid back and hence they should be used appropriately in order to meet the intended purposes (p 36).   

In most cases, International Monetary Funds support higher education in order to eliminate the perspective that only the elites are eligible to education particularly in developing and less developed countries. The aspect of globalization is taking the concept of education financing up to the global level and international monetary institutions are taking the front line in assisting the poor to get accessibility of education (King, 2008, p.103). A pint worth noting is that education is increasingly becoming under funded and hence it becomes very costly to be  afforded by the poor (Joseph, 2010, p.213). This has been the main course of action of the international monetary institutions like the World Bank and the International Monetary Funds (IMF).

Economic policy is not a direct source of revenue for financing education since it does not involve collecting money but involves appropriate use of public money. From a general perspective, economic policy is the actions that are undertaken by governments in the economic field. These actions involve systems of setting government budget, labor market, national ownership, and interest rates among other areas of government intervention in the economy. Megumi (2008, p. 13) notes that economic policies are usually influenced by global institutions like the World Bank, International Monetary Funds (IMF) and political issues and beliefs. In education financing perspective, economic policy many be implemented by governments in    order to regulate the average spending of students especially higher education students provided with grants and financial assistance by the government. According to Nicholas (2009, p.207), most students spend a lot of money in unnecessary extravagant lifestyles in institutions of higher learning hence increasing government spending in this type of education. In this case, this spending may be reduced by the government in order to make sure that students are spending the right amount of money that is proportional to an average life of an ordinary higher education  student (Nikos, 2010, p. 233).

On the other hand, economic policy involves the attempts made by a government to stimulate economy out of recession. As indicated earlier, the increased cost of education has resulted from the recession that is facing many countries in the world. In this respect, many governments are not able to management their budgets and allocate money to educational sector. Norman et al., (2011, p.229) note that economic policies are used in redeveloping economic  conditions of a country in order to be able to finance education. This is done through taxation and tax policy where a government may decide to tax higher its citizens in order to afford financing its education (Phillippe & Sullivan, 2006, p.127).

 It should be noted that according to Keynesian theory of economics, government spending and taxes are guided to redevelop the economy of a country. The other aspect is monetary policy which controls the value of a currency in a country by usually lowering the supply of money in order to control inflation and raising it so that the country’s economy may be stimulated. OECD Indicators (2008) reveal that, inflation rates of a country directly impact the accessibility of education and average educational related expenditures (p.37). In this respect, in countries where inflation rates are very high students, parents, and governments usually spend a lot of money in financing education. It is therefore the role of the government to make sure that the amount of money in circulation is heavily controlled in order to stimulate economy and prevent increase in the rates of inflation (John, 2006, p.33).

The concept of funding public schools has been challenged heavily in the courts throughout the past 40 years. In this case, the main issue is how equal funding of public education is  carried out in the process of providing equal education to all students (Richard, 2010, p. 153). These adequacy issues are centered to the academic standards and assessments. This is because some public schools are funded on the basis of how students perform at school. Poor students may  perform lower than affluent ones because they do not have adequate learning resources(Robert, 2010, 47).

It is becoming very hard for governments, parents, and students to finance education and hence other financial aids are called up on to assists. As a result of this the field of education is becoming very competitive and for the elites only who are able to afford paying tuition fees  (Roberts, 2010, p.209). The aspect of many sources of revenues coming together to fund education is somehow welcomed with a number of challenges. These challenges are typically reducing the morale of these financial institutions and governments to provide funds for education (Rye, 2008, p.25).

The aspect of corruption and misappropriation of funds is a challenge that is adversely affecting the concept of financing education. In this respect, some people are not accountable and responsible when using government’s money that is provided to support education (Sidlow & Henschen, 2010, p. 68). In most countries because of lack of accountability and responsibility, the money that is supposed to finance education is being used for personal gains or in other fields that are not the actual intentions. According to Schwartz (2007,), education financing is faced by the problem of misappropriation of funds hence resulting to some people being unable to afford education while in the real sense their education is financed (Smart, 2008, p. 6).

In the current world, human populations have increased and the national economies have reduced. This implies that in most countries population levels are not proportional to economic levels and as a result of technological advancement, many people are increasingly enrolling for higher education. In this case, governments are facing the problem of financing education for huge populations in their countries. In developing countries as indicated by Snider (2010) learning facilities for nursing are very minimal as compared to the number of students taking this course. This indicates that it is becoming increasingly difficult for financial aids to adequately appropriate money for the increasing populations of students (Sykes et al, 2009, p.27).

Developing countries are not like developed countries where almost all people are able to afford education and hence almost all students in developing countries are relying on financial aids from governments and international monetary institutions in financing their education (Theodore, 2010 p. 84). The aspect of individuality is affecting the concept of education financing. In this case, some people feel that they are rich enough to finance education for their children and hence do not require any support from the government or any other source.   

                                                           

In winding up, financing education in the whole world should be reviewed as it has become very costly. It is the wish of many parents to have their children provided with free   public education but many governments do not apportion large amounts of funds for funding public education. The cost of education is increasing in the whole world and hence students are nearly failing to afford education in most countries. It should be noted that when education costs are high, students are not able to study appropriately as they keep on thinking where they will get the money for their education.These thoughts usually affect the performances of students. There are many ways through which education is financed in developed and developing world. These include; government budget management, through grants, financial aids from other revenues like International Monetary Funds and the World Bank, and also through economic policies that are implemented by governments in order to check inflation rates and stimulate economic conditions of a country.   

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Education Finance and Economics

 

Education is a very essential aspect and should be provided to all students in a country equally. In this respect governments should take initiatives of financing education in order to allow students from poor background to be able to access  education. For instance, in the United States of America education is primarily under the responsibility of state and local government. This topic is of great importance as it analyzes the historical and theoretical foundations of funding education. Evaluation of sources of revenues and their influence on educational results is also addressed in this study. Some light shed to educational institutions, local, and state government in matters  relating to education in a global perspective. More light is shed on the determination of capital and general expenditures of educational institutions and an analysis of the role of ethics in the process of making the financial decisions for educational institutions.

Additionally, the aspect of how government and educational institutions make budget and manage it in order to help in adequately financing education is of great importance. Finances for supporting education come from different avenues which include grants and other financial aids from different sources (Xuedong, 2008, p. 52). In this case, this study will address these sources and indicate how they impact the aspect of education. In the current world and economy, expenditures of parents towards their children is reported to increase drastically as a result of the increasing cost of education. Because of economic conditions of different countries all over the world, it has become very difficult for parents and students to finance their children’s or their education respectively (Alan, 2010, p. 52). This calls for economic policies that are implemented by governments in ensuring that all citizens are equally provided with education. Economic policies ensure that there is a portion of the governments spending on public that is allocated for education financing.

A number of changes have occurred in the education systems of many countries in the whole world, as indicated by Alan Haskvitz (2010), particularly in matters relating to financing education (p.58). Most striking aspect has been the sharp drop in the public share of funding higher education and the recent interest in financing based on institutional performance. This has resulted in educational institutions particularly higher education to raise their tuition fees, cut costs by outsourcing services to external providers, and aggressively seek private finances. This has impacted the way these educational institutions provide equality of opportunities when  enrolling. Despite the fact that the state government funds education in many countries of the world, there are some people who study in private schools and hence they provide their own funding. This shows that the rationale of state funding is to equalize the whole process in the pursuit of making sure that students from all social classes are in a position to assess education (Allan et al, 2009, p.538).

Back in the year 1789, Thomas Jefferson was for the idea of free public education that was deemed imperative for the new democracy to grow and thrive. Despite the fact that Jefferson pushed very hard for free public education, he never witnessed government-funded public education during his time. According to Alyson (2011, p.17), there is need for government budgeting for public education in order to bring about equality in school enrolment. This is because some educational institutions particularly the higher education discriminate upon the poor students as they are unable to pay for their tuition fees adequately (Arnove & Torres, 2007, p.384).

In general terms, education systems have undergone a number of changes right from the roles played by tutors, students, parents, governments, educational institutions, and other sources of educational finance. These changes have occurred through a long period of time and what can be seen in the present is totally different from what was there in the past. As indicated by Azad and Chandra (2008), in the past education was heavily financed by parents and students and no one could have thought that education would be financed by other financial aids (p.33). During this period of time, the cost of education was relatively low and hence many people were able to afford it. In the current world and economic conditions, educational financing has become very difficult bearing in mind that many people are enrolled in educational institutions and hence there is a need of increasing the number of tutors. It should be noted that, as put forward by Bayefsky and Waldman (2007, p.523), the advancement in technology that is experienced in the current world has attracted many people to join educational institutions in order to further education and other to start education. In the United States of America for instance, more than 75% of the total population are educated meaning that this country has developed heavily in terms of education (Brossard & Borel, 2008, p.23). In most of the developed countries like     Australia, Japan, United Kingdom, France, and Germany among others; people are increasingly acquiring education and hence there are a lot of students in public and private educational institutions hence calling for increased number of tutors.

According to Boadway and Shah (2007), in the traditional days most people were not educated and hence the government was able to pay for the few people’s educational expenditures in most countries (p.41). This implies that the cost of education in the traditional days was not high. In the current world, a lot of people are acquiring education through public, private, and e-learning means and hence there is need for technological advancement and other facilities to aid education and hence making the cost of education to be very high. As a result of this many governments are usually not able to afford to finance education for their citizens and hence parents and students are supposed to finance their education. Taking an example of financing education in Canada, it is clearly indicated that universities in this country finance education through sale of goods and services, investments, and fund raising (Cancian & Danziger, 2006, p.320). This is one of the ways that was used in funding education in most of the   American countries. Traditionally, many governments had absolute role of financing education and hence many people were able to attain even higher education through the financial aids that were provided by governments. In the current world, as revealed by Brux (2007, p.107), a good number of bright students in developing and less developed countries are unable to join higher education because of lack of financial assistance from governments. This has resulted to low  levels of education in these countries (Checchi, 2006, p.260).

There is an attempt to finance education for students according to their performances in many different schools. This aspect has been heavily criticized by many people especially the proponents of equality in educational financing (Chriatopher & Robert, 2010, p.189). It should be noted that even in the traditional days, education was provided by private and public educational institutions and hence parents used to take their children to any of the two aspects depending on their levels of wealth. According to Cohen et al., (2007, p.13), education was traditionally financed by local governments where localities used to handle all financing for the schools in their communities. The source of revenue was from property tax. In this respect, schools relied on the properties owned by each community. This method of education funding had shortcomings in that students transferring from one school to another particularly within different communities were considered as out of place (Cordes et al., 2005, p.100). This is because community properties were only used in funding education of students who come from that community. In this respect, students were indirectly forced to study in schools within their community if at all their education was to be financed by community properties (Craford, 2005, p.32).

After the World War II, different countries took the responsibilities of financing education for their citizens through a number of plans so that all students’ education was financed equally. This method was viewed by many people as the right path to excel in education since students studying in private and public schools were equalized in terms of educational funding (Dahlman et al., 2007, p.95). In the present situation of education financing, governments are almost contributing up to 50% while the rest is provided by parents, students, organizations, financial institutions, or even non governmental organizations. This present aspect has been viewed by many parents and students as discriminating as those people who are not able to finance for their education are forced to drop out (Dauchy, 2007, p.34). The aspect of the governments contributing up to 50% of education funding has resulted to low qualities of education as tutors are not adequately motivated to impart educational skills to their students while students from poor backgrounds are in most cases sent home because of finances. This, as indicated by Dustmann et al (2008, p.230), has contributed to the increased private education hence students in private schools perform better as compared to those in public schools.The reason given for this aspect is that in private schools there are technologically advanced facilities and well trained tutors hence students are able to learn both theoretical perspectives and practical ones. In the developing countries in particular, it has become very hard to equate the quality of education in private and public schools since the modes of learning and teaching are totally     different (Elizabeth et al, 2010, p.31).

Presently, the most common mechanism of education financing is known as Foundation Program which was introduced in the year 1920. According to this program, the local and state funds are combined in order to provide a level of funding that is adequate for financing education for all people (Fleet, 2010, p.243). Most countries of the world use this method where education is funded by state and local governments’ financial aids. In order to equalize the process of education funding to all communities, this program provides that the poorer communities are  entitled to a bigger share for the state and local government’s money as compared to richer communities (Goldin & Katz, 2008). This is done in order to make sure all communities are eligible for the money and all students from all communities benefit from these money. It should be noted that this method also includes the calculations that are incapacitated in meeting the requirements and needs of students requiring special education. In most countries of the world, students with special education are usually financed by the government especially if their parents are unable to fund their education (Gruescu, 2007, p.67).  

According to Guarino (2009), apart from the funding that is provided by governments in the present situations, there are other sources of education financing (p.16). The World Bank is supporting many countries’ education with an aim of making sure that all students are provided with adequate education equally. It has come to the knowledge of many people that education is one way that changes the economic conditions of a country. This is so because when people are heavily learned in a country that country does not necessarily look for expatriates from other countries (Hanushek & Welch, 2006, p.96). Taking examples of the industrialized and developed countries in the whole world, it is clear that the level of education in these countries is very high as more than 80% of the total populations are educated.  As a result of this, the World Bank and other financial institutions are heavily funding education sector especially in the developing and less developed countries (Honig, 2006, p.273).

Many governments usually give grants to students in order to enable them pay their   education. In this case flat grants are offered where the available state funds are divided either by the number of students or teachers in a country in order to give a unit figure and then give out the appropriate figure to each school in that country (Horner, 2007). This method is very helpful as it assists in financing education in a country in accordance to the number of teachers or students in that country. Many students especially in the United States of America, United Kingdom, Australia, China, and Japan have benefited heavily from this program (Hyman, 2007). The rationale that education is a responsibility of a government is mostly used by many governments to fiancé education. In this case, when governments are making annual budgets for the public spending, education financing is included in order to make sure that all students are provided with adequate education. In most countries of the world, the aspect of education is compulsory to all students and hence since there are some families that are very poor to the extent that they are unable to finance education for their children; it becomes the responsibility of the governments to finance their education (Imber & Geel, 2009 p.343).

The public expenditures are increasing at a very high rate in the current world resulting from the constant changes in economic conditions. Despite the fact that economic conditions in the whole world are deteriorating, many parents and students are increasingly spending a lot of money in financing education especially higher and special education. According to Lawrence (2008,  p.56), parents are spending a lot of money during the educational life time of their children and it may seem that in the near future many people will not be in a position to afford education especially those people from the lower social class. It is widely known that when economic conditions of a country deteriorate, people usually change the way they spent their money in order to try and save. This is not the case in matters relating to education since education is becoming a basic need and all people are striving to have it (Lin & Pleskovic, 2008, p. 30). According to the reports that are provided by non governmental organizations and World Bank, many people in developing countries are living below one dollar and they are expected to pay educational expenditures for their children. This is very difficult and unless something is done to solve this problem, people will not be able to afford quality education in the near future (Lioyd, 2005, p.101).

The rising cost of education is compounded by the fact that the associated expenditures of education are very many and too much for governments, parents, and students to bear. These  expenditures include; operational human resources, operational learning, investment infrastructure and maintenance of the aspect of free education by governments, management costs, and assistance costs like bursaries and grants (Lipphardt, 2008, p.30). Globally, higher education is facing a lot of problems where universities are underfunded, there is increasing worries about compromising quality of education, there is inadequate student support in terms of bursaries and grants, the amount of students from disadvantaged backgrounds is very small, and the aspect of financing education is regressive (Lou & Wang, 2008, p.143). This indicates that probability of having unstable education in the whole world is very high bearing in mind that the poor will be the most adversely affected. The proportion of students from disadvantaged backgrounds in    institutions of higher education is very small as a result of the fact that they are unable to finance their own education despite the fact that they are bright and talented (Martin, 2005, p.221). A good example can be traced in the United States of America when state spending for higher  education dropped and the tuition that was required rose significantly making many people unable to afford this education. It is believed by many people that college education or rather higher education is an investment that pays off. This has resulted in many people willing to study up to colleges but their dreams are usually put off by the fact that higher education in the whole world is increasingly becoming unaffordable (Martinson, 2008, p.56). This increased cost of education has called for financial aids from different sources in order to help governments, parents, and students in paying tuition fees and other required fees.

The main role of economists in education mostly relates to the labor market and the utilization of money. In financing education economic theories and principles like cost benefit    analysis need to be addressed. In cost- benefit- analysis, the main agenda is analyzing the cost of financing education and the benefits this education offers to the general public. This principle is used in determining whether the policy of funding education is worth or not. This is simple, if the benefits of a program are higher as compared to the costs; the program is worthwhile (Martinson, 2008, p.56).

The second aspect is efficiency which involves getting the maximum out of the valuable resources available. In this respect, efficiency is obtained if maximum outputs are obtained from the same inputs. This implies that the efforts that are put in financing education should be reflected on the outcomes of this education. Efficiency is an aspect where resources are distributed with an aim of giving productive results (Robert, 2010). 

The role of financing education is mostly played by state, federal, and state governments. These roles usually differ with the level of education. In most cases, regional and local governments in almost all countries of the world finance low levels of education like pre-primary and primary education. On the other hand, tertiary and higher educational levels are financed by central or state government. Government usually takes the responsibility of financing public education to a larger extent as opposed to private schools (Dougherty, 2004). Before the current economic down turn in the whole world, governments used to provide more than 70% of the   total expenditures in education institutions. The concept of inter-governmental funds transfer happens when governments support their citizens studying abroad.

This denotes an organization that collects money from other institutions or the general public and invests them in financial assets. In this case, this may provide a good source of funds for education in any one country they are found (Robert, 2010). Additionally, this aspect may mean the collect way to organize finances that are provided to support education in order to    accomplish their goal. Naidu, Joubert, Mestry, Mosoge and Ngcobo(2008), describe all organizations need to have a structure that shows how management functions are carried out. It therefore makes sense that a governing body, which is responsible for the management of school funds, sets up a financial committee. In the creation of an organizational structure for school    financial management the requirements of school act must adhered to (p.171).

Financial management is the performance of management actions (regulatory tasks)  connected to the finance of schools or educational organizations with the main aim achieving effective education. These activities comprise of part of the individuals in official positions of authority. Financial management is an integral aspect of resource management. It ensures that expenditure is well-directed towards achieving good value for money involving appropriate acquisition and allocation of physical resources. Other activities that help achieve this include the use of budgets, planning and resource control (Levacic, 1989, p.7). Financial mismanagement can be reduced if a policy is drawn up to set out the regulations, practices and procedures necessary for the prevention of fraud (Knight, 1993, p. 150). Financial  control is concerned with money as it flows into the school financial resources (such as cash) held by the organization, and money flowing out in the form of salaries and expenses. Each of the categories of financial resources is controlled so that revenues are sufficient to cover expenses.  Berkhout and Berkhout (1992) noted the following specific functions be performed for control purposes:

Comparison between the amounts of budgeted and the result achieved
Analysis and interpretation of discrepancies
Audit and calculation
Accounting and reporting
Implementation of corrective measures.

 Income and expenditure must be monitored and controlled. Monitoring is the process of comparing actual income and expenditure against budgeted income and expenditure. Whilst   control safeguards funds and ensures that they are spent as authorized (Watkins, 1989:86; Knight, 1993: 147). The roles and responsibilities of individuals within the school need to be spelled out and information should be reported regularly (cf. Naidu, Joubert, Mestry, Mosoge and Ngcobo, 2008: 176).

 In order to make sure that all finances that are provided are used for the intended purposes, it is very essential to come up with a strategy top control utilization of finances. In this case, finances meant for educational support should not be used in other ways. This calls for the correct appropriation of funds in order to avoid operating at a loss (International Monetary Fund , 2006).  

Financial accounting and reporting are also forms of control (Naidu, Joubert, Mestry, Mosoge and Ngcobo, 2008, p.179). In order to make sure that representatives of educational finance are accountable and responsible for all the money provided to particular schools, the   aspect of financial accounting and reporting is very imperative. All the money that has been used in educational institutions is recorded and reported as a way of showing transparency. This prevents mismanagement of funds and brings about appropriate utilization of finances (Dougherty, 2004).

Different countries of the world have different financial policies but all of them are       directed to assist in the improvement of education and financing education. Different parties    especially those involved in matters related to finances in education sector are guided by these policies. As noted by Naidu, Joubert, Mestry, Mosoge and Ngcobo (2008), the financial policy serves to guide the financial administration of the school. It assists with financial control, regulation of receipt-keeping and withdrawal and expenditure of funds. It is an important financial management tool, clearly outlining how funds and (including school fees, donations, other generated funds and government grants) are to be managed at a specific school (p.173).  Additionally, the process of government funding education and the portion by which a  government should contribute is provided by this policy. 

Equity in education funding is generally defined as the aspect of equal per student expenditure in all school districts. Differences in expenditures among different school districts are typically brought about by a function of local tax rates and revenues. According to International Monetary Fund (2006, p. 59), it is very interesting, inspiring, rewarding, and exciting experience when studying in most of the developed countries but it may be very difficult to fund ones education. The concept of the state government partly paying education has resulted in parents and students paying a higher proportion of the cost of education as compared to other countries (John, 2006, p.36). Among the groups that are adversely affected by the increasing cost of  education are the international students as they are not covered by any government grant. It would be cheap if the local government at district level was in charge of funding education as they are far much aware of the conditions of students in these schools. This is so because, as stated by Dougherty (2004), the local community is aware of the earning levels of parents in a certain district and hence they are better positioned in determining how these schools should be funded (Jones, 2007, p.36).

According to Joseph (2010, p.206), education is very essential in all countries of the world and hence it should be supported heavily by all avenues of revenues. In the less developed countries, it is very hard for the government to fully finance education and hence other financial aids are called upon to help in this matter. It is the responsibility of many governments all over the world to ensure that their citizens are adequately educated in order to contribute to the development and growth of economy and hence there are different means that are sought to finance education. It is of great importance to note that developed countries like European countries are able to finance education for their citizens either directly or indirectly. This aspect has increased the need to many people from other parts on the world to enroll in education programs of these countries through the e-learning programs.

It has been reported by Kerzner (2009, p.45) that, the cost of education all over the world has increased drastically and it has become a fact that most of the poor people have to rely on fundraising in order to be able to fund their education. Governments are unable to fully finance education because of the increased costs of education and this has left people to manage and pay for their education. In order to have a full, adequate, and high quality education in the whole world, it is of great importance to address the following aspects; budget management, grants,  financial aids from different sources, expenditures and the rising cost of education, and the    economic policy that are implemented in order to aid education financing.

The aspect of budget management implies that the money that is allocated for a particular purpose is well appropriated and utilized in the defined purpose. It should be noted that in some countries schools are very corrupt and hence the money that is allocated for financing education in these schools are used in other activities that are not the intended ones (Lawrence, 2008). In order to make sure that all students are well provided with adequate education it is the role of representatives of different schools to ensure that the amount of money allocated for different schools are well utilized. This is only brought about if people will become accountable for the money allocated for their schools are become very responsible in spending them (King, 2008, p.103).

Everard, Morris and Wilson (2004, p.210) explain that investment can either take the form of developing or maintaining existing resources or acquiring new resources. The question is: how do we invest limited financial resources so as to maximize the benefit to the school? This question is especially pertinent to disadvantaged schools, where the money provided hardly   covers year-to-year financial and resources needs. For this reason school governing bodies are subjected to difficult choices in relation to resources. The appropriateness of decisions by governing bodies in this regard depends on how well these bodies are informed and skilled in resource management (cf. Naidu, Joubert, Mestry, Mosoge and Ngcobo, 2008:164)

According to Xuedong (2008, p.56)), in China the government has initiated the aspect of compulsory education in the rural areas of China and hence in the budget there are some amounts of money that are appropriated for financing rural education. This implies that governments are in the front line in financing education by setting aside some parts of the public money for education (Lin & Pleskovic, 2008, p.30). It should be noted that as a result of the deteriorating economic conditions in the whole world, educational sector is not provided with much money from the government as most governments only provide 50% of the total educational financing. This shows that the money provided should be well managed and used according to the set   budget.

It has been indicated by Lioyd (2005, p.101) that, the formula funding method that is used by some countries in education funding results from the budget that is made by governments in supporting education. As indicated earlier, in the past education financing was a full responsibility of the governments where the governments made budgets on the appropriate amount of money that should be appropriated to educational sector. In the current world, this budgetary appropriation has reduced and hence the little money issued should be well utilized (Lipphardt, 2008, p.30). In most cases, since most of the money used in education financing comes from governments’ budget management, accountability and responsibility is required in order to have adequacy and equality in education funding. On the other hand, there are portions that are appropriated by many governments in order to help students undertaking higher educational programs. This money is paid back once a beneficiary is employed.

In most countries, students are provided with grants and bursaries depending on their   situations and the course they are undertaking. Grants are provided by governments in order to help students that are unable to pay for their tuition fees (Martin, 2005, p. 221). The difference between grants and budget management is that grants are provided and given to particular students who are considered needy while budgetary finances are provided direct to educational institutions in order to help in purchasing facilities and equipments that are used in the process of schooling. According to Lou (2008, p. 143), students in public schools in China are provided with governments grants in order to be able to manage paying their school fees. This is a process which is considered very useful sine grants are not necessarily paid back. Bursaries are similar to grants as they serve the same purpose but the only difference is that they are issued to people pursuing particular courses or careers (Martinson, 2008, p.56).

Financing education as a concept has undergone an underlying structural change from the former centralized system which had narrow revenue source to a decentralized system that is heavily diversified in terms of revenue base (Nicholas, 2009, p.205). Due to the fact that most countries have compulsory education especially for primary education, governments provide grants to enable all people be able to advance their education to the secondary and tertiary level (Megumi, 2008, p.7). The aspect of globalization and advancement in technology has resulted in many students from all over the world going for abroad education or e-learning. In order to support this aspect of education, governments are issuing intergovernmental grants.

According to Nikos (2010, p. 41), intergovernmental grants are usually based on a number of interconnected choices which include; the national government decides whether to provide grants for its students studying abroad, the national government determines the conditions under which these grants should be issued, the sub-national government makes decisions on whether to accepts the issued grants, and the sub-national government determines policies which include the spending levels on the received grants. This implies that, there must be an agreement between the national and sub-national governments on whether to provide or receive grants respectively (Norman et al., 2011, p.233). Through grants students are able to acquire education from foreign countries and hence increase the resource base of their countries.

It has been noted by OECD Indicators (2008, p. 37) that, the cost of education in many countries is increasing at a very high rate and hence there is a need for education financing to be assisted by different financial aids. In this respect, sources like International Monetary Funds and World Bank are playing a very significant role in supporting education in different countries  especially the developing and less developed countries. A good example that is provided by International Monetary Fund (2006, p.59) is Rwanda which is receiving a lot of financial support from International Monetary Funds in order to support its education. Most of the African countries are heavily supported by international monetary institutions in order to finance their education. These sources are viewed by many people as good ways of enhancing education through providing adequate and equitable education. In most cases, as noted by John (2006, p. 36), research institutions and higher learning are provided with financial support from international monetary institutions in the pursuit of improving and enhancing research and higher education especially in developing and less developed countries.

World Bank has invested a lot of money in financing education in Africa and hence many students have benefited heavily from these investments. According to Jones (2007), it is the    responsibility of the World Bank to ensure that the borrowed funds that are intended to finance education in different countries reach to the intended beneficiaries. This is because some people are very corrupt and may end up using this money for other purposes. It should be noted that the funds that are provided by the World Bank are paid back and hence they should be used appropriately in order to meet the intended purposes (p 36).   

In most cases, International Monetary Funds support higher education in order to eliminate the perspective that only the elites are eligible to education particularly in developing and less developed countries. The aspect of globalization is taking the concept of education financing up to the global level and international monetary institutions are taking the front line in assisting the poor to get accessibility of education (King, 2008, p.103). A pint worth noting is that education is increasingly becoming under funded and hence it becomes very costly to be  afforded by the poor (Joseph, 2010, p.213). This has been the main course of action of the international monetary institutions like the World Bank and the International Monetary Funds (IMF).

Economic policy is not a direct source of revenue for financing education since it does not involve collecting money but involves appropriate use of public money. From a general perspective, economic policy is the actions that are undertaken by governments in the economic field. These actions involve systems of setting government budget, labor market, national ownership, and interest rates among other areas of government intervention in the economy. Megumi (2008, p. 13) notes that economic policies are usually influenced by global institutions like the World Bank, International Monetary Funds (IMF) and political issues and beliefs. In education financing perspective, economic policy many be implemented by governments in    order to regulate the average spending of students especially higher education students provided with grants and financial assistance by the government. According to Nicholas (2009, p.207), most students spend a lot of money in unnecessary extravagant lifestyles in institutions of higher learning hence increasing government spending in this type of education. In this case, this spending may be reduced by the government in order to make sure that students are spending the right amount of money that is proportional to an average life of an ordinary higher education  student (Nikos, 2010, p. 233).

On the other hand, economic policy involves the attempts made by a government to stimulate economy out of recession. As indicated earlier, the increased cost of education has resulted from the recession that is facing many countries in the world. In this respect, many governments are not able to management their budgets and allocate money to educational sector. Norman et al., (2011, p.229) note that economic policies are used in redeveloping economic  conditions of a country in order to be able to finance education. This is done through taxation and tax policy where a government may decide to tax higher its citizens in order to afford financing its education (Phillippe & Sullivan, 2006, p.127).

 It should be noted that according to Keynesian theory of economics, government spending and taxes are guided to redevelop the economy of a country. The other aspect is monetary policy which controls the value of a currency in a country by usually lowering the supply of money in order to control inflation and raising it so that the country’s economy may be stimulated. OECD Indicators (2008) reveal that, inflation rates of a country directly impact the accessibility of education and average educational related expenditures (p.37). In this respect, in countries where inflation rates are very high students, parents, and governments usually spend a lot of money in financing education. It is therefore the role of the government to make sure that the amount of money in circulation is heavily controlled in order to stimulate economy and prevent increase in the rates of inflation (John, 2006, p.33).

The concept of funding public schools has been challenged heavily in the courts throughout the past 40 years. In this case, the main issue is how equal funding of public education is  carried out in the process of providing equal education to all students (Richard, 2010, p. 153). These adequacy issues are centered to the academic standards and assessments. This is because some public schools are funded on the basis of how students perform at school. Poor students may  perform lower than affluent ones because they do not have adequate learning resources(Robert, 2010, 47).

It is becoming very hard for governments, parents, and students to finance education and hence other financial aids are called up on to assists. As a result of this the field of education is becoming very competitive and for the elites only who are able to afford paying tuition fees  (Roberts, 2010, p.209). The aspect of many sources of revenues coming together to fund education is somehow welcomed with a number of challenges. These challenges are typically reducing the morale of these financial institutions and governments to provide funds for education (Rye, 2008, p.25).

The aspect of corruption and misappropriation of funds is a challenge that is adversely affecting the concept of financing education. In this respect, some people are not accountable and responsible when using government’s money that is provided to support education (Sidlow & Henschen, 2010, p. 68). In most countries because of lack of accountability and responsibility, the money that is supposed to finance education is being used for personal gains or in other fields that are not the actual intentions. According to Schwartz (2007,), education financing is faced by the problem of misappropriation of funds hence resulting to some people being unable to afford education while in the real sense their education is financed (Smart, 2008, p. 6).

In the current world, human populations have increased and the national economies have reduced. This implies that in most countries population levels are not proportional to economic levels and as a result of technological advancement, many people are increasingly enrolling for higher education. In this case, governments are facing the problem of financing education for huge populations in their countries. In developing countries as indicated by Snider (2010) learning facilities for nursing are very minimal as compared to the number of students taking this course. This indicates that it is becoming increasingly difficult for financial aids to adequately appropriate money for the increasing populations of students (Sykes et al, 2009, p.27).

Developing countries are not like developed countries where almost all people are able to afford education and hence almost all students in developing countries are relying on financial aids from governments and international monetary institutions in financing their education (Theodore, 2010 p. 84). The aspect of individuality is affecting the concept of education financing. In this case, some people feel that they are rich enough to finance education for their children and hence do not require any support from the government or any other source.   

                                                           

In winding up, financing education in the whole world should be reviewed as it has become very costly. It is the wish of many parents to have their children provided with free   public education but many governments do not apportion large amounts of funds for funding public education. The cost of education is increasing in the whole world and hence students are nearly failing to afford education in most countries. It should be noted that when education costs are high, students are not able to study appropriately as they keep on thinking where they will get the money for their education.These thoughts usually affect the performances of students. There are many ways through which education is financed in developed and developing world. These include; government budget management, through grants, financial aids from other revenues like International Monetary Funds and the World Bank, and also through economic policies that are implemented by governments in order to check inflation rates and stimulate economic conditions of a country.   

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Leading Change in Educational Organization

Despite the fact that change is difficult to do well, it is a very vital aspect to organizational growth and survival. Dismissal record of success is one thing that is shared by the different forms of change. In educational organizational setting, change is required in order to bring about high performance and high quality of education. It should be clearly understood that out of the very many companies that implement change for success, only a few of them are able to succeed. This is the reason as to why it is indicated that change is difficult to implement. Educational organization across the whole world are beginning to see the benefits of change and hence are increasingly beginning to use a new and innovative approach that brings about small and large scale systems of change in different schools especially universities (Fullan, 2001, pp.43).

This study addresses the concept of change and its impacts or effects to educational organization settings, management and leading change, counteracts to change, politics, and economics, comprehension of the dynamics of change and their effects on the strategic planning of learning institutions, and other information that is related to leading change in educational organizations. Educational organizations are among the aspects that are experiencing a lot of change in the whole world and hence information concerning how this change should be led and managed is of great importance. There are different ways that are used in bringing about change in educational systems. Many researchers and scholars have stated that bring about change is one thing and leading and managing that change is another aspect. Traditional educational settings need to be changed in order to incorporate the aspect of advanced technology in education (Harris, 2007, pp.316).  

In order to gain a clear understanding of educational change process and its associated impacts on the practices of education, it is very imperative to examine change, leadership theories, behavior, and principles. In this case, change is brought about by leaders and good leaders usually consult the employees before implementing a change as indicated by the participatory leadership theories (Silverman, 2005, pp.23). According to the behavioral theory of leadership, great leaders are usually made but not born. In this case, a leader learns how to be a leader through practicing. Principles of a good leader include; listening, trusting oneself, empowering the subordinates, learning to be resilient, communicating effectively, and learning to take responsibilities. 

In order to clearly understand the concept of change, it is of great importance to define this change. Change can be defined differently according to different situations. As indicated by Werkman (2009, pp.670), change is so all-encompassing in people’s lives to the extent that it almost defeats analysis and description. Generally, change is the aspect of making something looks new or transforming something from the old form to a new one (Harris, 2007, pp.317).

Change occurs over time and hence it is inevitable. This implies that there is not a time when individuals will avoid change; this is an aspect that comes as time goes by. For instance, the increased advancement of technology has brought about a lot of changes in all aspects of life over a very short period of time. Change is not always positive as in some ways it is negative or both. This means that change may come to alter what is already there either negatively or positively or even both. Researches, as indicated by Silverman (2005, pp.23), change is unavoidable and hence it is the role of the affected parties to make sure that this change is well led and managed (Leithwood et al, 1999). Change can be brought about by an individual to the society and it can emanate from the society to an individual. This indicates that a person can change the entire society while on the other hand a society can change the behaviors and thoughts of an individual. It should be noted that for a change to take place or to occur, there must be a cause and effects. In educational settings, technology has caused a lot of changes which have brought about improvement in performance of both students and teachers (Paton & McCalman, 2000).

Until recently, educational management structures and governance have been majorly bureaucratic particularly in their mode of operation which was based on centralized and top-down control. This indicates that the management and leadership of education were from districts to schools to departments to teachers to students (Dubrin, 2004, pp.87). Organizational theories and practices that have been developed and used indicate that effective educational organizations afford tampering and reforming the vertical chains of commands and greater degrees of self management as well as lateral collaborations that are characterized by bureaucratic school management (Jacobson et al, 2005, pp.617). This is a good example that change occurs over time and it is inevitable.

The concept of change does not only occur in the leadership and management of educational organizations but also to the performance of students and teachers. In this respect, the quality of education is changing where students because of improved and advanced technologies are increasingly performing very well at schools. It has become very easy for tutors to teach their students especially with the new internet technology. Organizational change, as stated by Fullan (2001, pp.43), is the process of moving from the present or current operational phase into the next and advanced functional phase. This process is very difficult as there are barriers of change. This indicates that there are some aspects that do not allow change to take place. In educational organizational settings, there are some barriers that hinder change from taking place. These barriers include; inefficient leadership and leadership strategies, ineffective communication with parties involved in change implementation, unclear processes and procedures concerning specific and general goals, lack of involvement of all parties that are concerned or involved in change management, resistance from employees, and improper or ineffective management of resources (Easterby-Smith et al, 2003, pp.23). 

The above described concepts of change have great impact on educational setting in the present or current education operational systems.  It has been indicated that change is inevitable and occurs over time. In this respect, the traditional management of educational organization that was majorly based on bureaucracy has changed in the recent times and schools are given a lot of autonomy to lead themselves (Davies, 2002, pp.43). Taking an example in the aspect of funding education, it is clear that not only, for example, in the United States of America where the state had overall role of financing education but in the whole world. This has changed over time because of a number of political, social and economic factors. On this basis, state governments in many countries of the world contribute only a half of the educational funding while the rest is contributed by other sources (Dessler, 2001, pp.65).

There has been a general trend towards devolved responsibility where schools are now allowed greater scope for self management and the empowerment of teachers allowing them to take professional responsibility for the learning that goes on their classes. It is of importance to note that communities that are served by schools are allowed to take broader opportunities in these schools in order to become more involved in school governance (Chrusciel, 2008, pp.156). This is a change that has occurred over a period of time and has its causes and effects.

Basically, when community members are allowed greater opportunities and involved in governance, there are the ones who are much aware of the situations of the students in these district schools and hence they direct teachers on which student requires much financial and social support (Fullan, 2007, pp.56). These changes in the organization of schools have at times been extensive and varied from systems mandated standards that permit tutors to utilize their professional judgment in determining the particular approach that should be the best for students in meeting the requirements of those standards, to the spread of charter schools which permit a lot of self management at school levels. The concept of change that characterizes it as providing positive and negative results is outlined by these changes that have been implemented in educational organizations (Bush & Middlewood, 2005, pp.28). In this case, outcomes have been disappointing especially where there is lack of management and leadership principles at school level.

A lot of changes have occurred in educational organizations settings in the last two decades and the years ahead will bring about much more changes. Most of these changes have come from developments in the external environment where educational organizations have to thrive and survive in. Sometimes changes occur without warning but experience has showed that is a very rare case hence implying that people ignore signs of change or misinterpret them.  Change is believed to be brought about by an individual to society or society to individuals and therefore in educational institutions good and well experienced managers are required who can implement positive changes (Spiro, 2010, pp.27). Taking an example in Iran, the minister of education has tried a lot in trying to reduce the high populations of students in the country’s universities. In this case, he proposed the introduction of blended education that is a mixture of face to face learning and online learning. This aspect has changed the overall education systems of this country as many students who are incapable of paying the full tuition fees in campuses are able to enroll for online learning programs. This has also relieved teachers from the burden of teaching large groups of students at universities. This is a good example of change that is brought about by an individual to the whole society.

Change is of no meaning if it is not well led and managed. In educational organizational settings, there is a requirement that well informed and experienced personnel should be selected to manage and lead change. For instance, the change that was introduced in Iranian private universities as describe above could be of no meaning if it was not properly managed and led (Rothwell et al, 2009, pp.45). Bringing about changes is one thing and managing is another. The traditional European education system that was adopted by many countries of the world is increasingly changing in extensity and scope. For instance, in the United States of America a lot of reforms are being implemented that are aimed at improving the quality of education. For instance, the No Child Left Behind Act of the year 2001 indicates that all students should be tested before they graduate from high school education to post secondary education. The responsibility and roles of testing students ranges from state to state, school to school, and from teacher to teacher. Students are tested at state level in order to examine their performance. This change has brought about a lot of positives in the education system as students are able to decide their future careers according to their performance in the numerous subjects that are tested (Hickman, 2009, pp.65). On the other hand, there are some problems that are involved in this process which indicate that changes do not only bring about positive aspects but also negative ones. In this case, students who do not want to continue with post secondary education are not helped by this testing at all (Reeves, 2009, pp.56). 

Leading change implies that the change that has been introduced in educational organizations is correctly led in order to bring good yields to the directly and indirectly involved parties. If changing; professionally, organizationally, and personally, were very simple and straightforward process, there could be a lot of visions which are actualized, mission accomplished, and dreams realized (Case, 2005, pp.34). Since change is not a simple aspect to implement and manage, it is required that professionals be used in this aspect. Leading change means that providing relevant resources, engaging all parties involved in the process of implementation of change, and using effective tactics in change implementation (Roueche et al, 2008, pp.31). In the current world, leading and managing change in educational institution setting requires a lot of innovations and inventions. This is because the current world is changing at very high rate and without innovations and inventions educational institutions will lag behind.

The other aspect of change is that it should be learned. This implies that in order to for people to clearly understand changes, they must have plenty of information about the particular changes. This therefore calls for learning of changes. In the current educational institution settings, a lot of changes have been brought about by advancement in technology and hence it’s the role of teachers to train students on the ways of using this technology. For instance, many schools in the world especially in the developed world have moved from the aspect of copying notes in a book to typing notes during classes while using laptops. This is a technological change and which should be taught to students over time (Baldridge & Deal, 1975, pp.76). The best way of managing change in educational organization settings is to train parties involved (teachers, students, and seniors) on the uses of that change. The integration of learning management systems in K-12 has opened a lot of opportunities where teachers, students, and parents are able to communicate and interact online.

It has been indicated by McDonald and Stockley (2010, pp. 37) that, if something cannot be measured in an organization it becomes very difficult to manage it. In this case, changes occurring in educational organization settings need to be measured so that they can be managed. This concept of change has increasingly impacted educational organization as when changes occur they are measure accordingly and when their scopes and intensities are identified, it becomes very easy to manage them (Durrant & Holden, 2005, pp.16). For example, the change that was brought about in Iranian private universities by the minister of education to this country was measurable and hence easily managed.

The numerous changes that have occurred in educational institutions in the whole world have positively and negatively impacted these institutions. This is because a lot of students are enrolling for higher education in different universities of the world as a result of the introduction and implementation of blended learning (Werkman, 2009, pp.25). The quality of education has changed greatly as a result of introduction of new technologies in education sector and increased supply of information from the internet. Changes in educational settings are brought about by political and economic aspects. For instance the blended learning in Iran is as a result of political aspect (Silverman, 2005, pp.58). Additionally, the aspect of many governments from all over the world deciding to fund education partly is a result of economic aspects since educations has become very expensive.

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The negative side of these changes is that education in the whole globe has become very expensive and competitive especially to the international students (Paton & McCalman, 2000, pp.78). Many people are unable to pay their tuition fees while studying in different schools. Learning programs are increasingly changing with the increased technological changes in the whole world. The increase populations in different countries of the world have brought about the increased number of educational organizations. This is explained by the aspect of changes occurring over a period of time since before the last two decades, the number of schools in the whole world were very few as many people were not attending schools. In the current world, education has been defined as the key to economic success of a country and hence there is increased numbers of students at schools (Jacobson et al, 2005, pp.623).  

One of the contradicting aspects that are facing educational organizations in the whole world is lack of leaders and managers to identify and understand their roles. Leaders do not make plans, solve problems, or organize people but they prepare educational organizations for change and assist them cope in their struggle through change (Dubrin, 2004, pp.34). On the other hand managers, plan and budget for changes, organizing people to be prepared for change, do the staffing, control the workforce, and help in solving problems that may be brought about by this change. it should be noted that in educational organizations setting, change managers analyze the situation, motivate the parties involved in change implementations towards acceptance of this change, and set up public relations with the people (Students, teachers, communities, and administrators) who are affected by the change (Easterby-Smith et al, 2003, pp.63). Leadership in change is always of low percentage as compared to management as it was indicated by Davies (2002, 201). 

Effective leadership in change is indicated by actions that create and improve organizational capabilities and management systems which are exhibited through increased interactions with governmental capacities represented by management systems. In leading change in educational organization, leaders should establish a direction, motivate people, and align them in order to be very much prepared in receiving change. It should be noted that changes are mostly rejected by people if they are not made to understand the benefits of this change (Dessler, 2001, pp.26). For instance, blended learning that was introduced in Iran and which is implemented in many other nations of the world could have been rejected by teachers if they were not motivated and aligned to receive it (Chrusciel, 2008, pp.29).

Management on the other hand involves planning, budgeting, organizing, and staffing in order to get prepared for that change. When a certain educational program or course is introduced in a campus in any country, it is the role of the managers to make sure that the project is adequately funded, the sources of funds, the personnel who will be involved in that project like who will be the head of department, which teachers will be teaching this new course and so on, and the responsibilities of each and every member of staff who will be required to take part in that project. If the numbers of tutors or trainers are not enough in undertaking this course, the management is responsible for staffing (Spiro, 2010, pp.45).    

In most modern organization, management of change has become a very crucial aspect in seeking the final component of successfully managing strategy, culture, and process (Fullan, 2007, pp.36). The increased technological innovations and demographic changes that are experienced in educational institutions today require these organizations to change at very high rates. This is because, as revealed by Bush and Middlewood (2005, pp.39), change management is a continuous process where a combination of art and science is used in assuring alignment of an educational organization’s process, strategy, and structures. Researchers have indicated that leaders who are much more satisfying to their subjects are more transformational and less transactional (Spiro, 2010, pp.43). This implies that leaders should bring about changes in educational institutions in order to satisfy their followers. An effective leader recognizes that transformational changes will occur in an interaction among the followers. Educational organizations undertake political, social, economic, and technological changes that are needed in their survival and prosperity in the current environment. Teachers, students, and administrators are being involved in these changes in order to make sure that barriers of change are reduced drastically (Reeves, 2009, pp.19). 

In order to effectively manage and lead change in educational organizations, there must be change agents and representatives in the management of change. Particular educational institutions should select individuals who are very much capable of bringing about change. Transformational change in education sector is very crucial and hence professionals should be used in determining what type of change that should be implemented (Hickman, 2009, pp.66). For instance, a university that intends to introduce blended learning should be able to manage the aspect of online learning by creating and designing a website where online students will be able to get class materials and present their assignments. These are preparations that should not be underestimated when talking about leading change. In the current world which is full of technological innovations, high level of leadership and management qualities are required in ensuring that educational organizations go hand in hand with the prevailing technological advancements (Rothwell et al, 2009, pp.67).

Leading change in educational organizations is ensuring that the change is making sense to those who are affected. This denotes that people outside educational organizations like community members may be affected by the changes that may be implemented (Baldridge & Deal, 1975, pp.19). There has to be some sound personal reasons why other parties like teachers, non teaching staff, local community representatives, and administrators should be engaged in the process of implementing change (Case, 2005, pp.87). For instance, if it is the case of testing students before they graduate to post secondary education, parents and teachers should be engaged in decision making. Leading change imply getting people engaged and involved with it in order to make them engage positively with it (Roueche et al, 2008, pp.67). When people are engaged in a change, there is a high probability of accepting it.

Leaders of change need to communicate and continue communicating direction and purpose of the change. It should be noted that if change is well led and managed it brings about prosperity to the people involved and the entire educational organizations. Educational organizations are involved in training students to be good managers and leaders and hence they need to be in the front line in matters relating to leading and managing change. The fact that change is inevitable should be used as strength in these organizations in making sure that they are at all times ready for changes. Additionally, as learned under the concept of change, changes are either positive, negative or even both and hence it all depends with the leaders and managers of change. In this case, if the leadership and management are good a change will be favorable (Moe & Chubb, 2009, pp.56).

Change, despite its widespread benefits is not a straightforward aspect that is welcomed by all aspects in educational organizations. This implies that there a number of factors that hinder change and it is the role and responsibility of leaders and managers of change to make sure that these barriers or resistances are counteracted. In order to identify the various ways of counteracting resistance to change, it is of great importance to identify the various barriers of change in educational organizations (McDonald & Stockley, 2010, pp.32).

Organizational change usually involves human resources in the process of altering through advancing the way things are conducted in an institution. This process is very tough for both the institution and the involved parties. It should be noted that in the process of implementing change, there can be changes in the transfer of employees, ownership, and processes of an institution (Durrant & Holden, 2005, pp.65). It is the tendency and nature of human beings to resist change and hence the agents of change usually have a very difficult time in making sure that they are able to counteract the resistances of change. Individuals resist change because of the fear that the change will negatively impact them. For instance, teachers may resist the aspect of blended learning fearing that they will be over burdened or they will be required to further their education (Tye & Tye, 1992, 65). In this case, the fear of negative impacts of change makes people and mostly the employees in educational organizations resist change. It should be noted that many people are mostly concerned with their current circumstances as compared to those of the organization and hence they fear that a change implemented would negatively impact their current circumstances (Werkman, 2009, pp.670). In this case, employees fail to recognize the positive impacts the implemented change will have to the entire organization.

In any organization, employees usually form work habits and hence they usually fear that if a change is introduced in that organization, their habits would be negatively impacted. Mostly, it is very hard to break bad habits but they must be in order for an educational organization like a university to develop (Silverman, 2005, pp.45). For instance, lecturers may have formed a habit of skipping some lectures or leaving lectures earlier than the required period of time and hence they fear that a change in the way students are taught may negatively impact their habits (Cummings & Worley, 2008, pp.34). Employee absenteeism and churn are some of the ways in which employees may manifest their resistance to changes. In this respect, lecturers may start absenting themselves from classes in order to communicate to the administration that they are not in support for the proposed change (Paton & McCalman, 2000, pp.25).

Teachers may resist change because of the worries of how their lives and work will be affected by the proposed change. This is fear of the uncertainty which makes teachers, even though they have dissatisfaction with their present jobs, to resist change (Leithwood et al, 1999, pp. 36). The concern over personal loss is another aspect that makes teachers to resist change in educational institutions. Some changes may benefit district schools but some teachers may resist this change because of the cost of change in matters relating to loss of power, salary, quality of work, and prestige. Group resistance is another aspect that needs to be addressed in identifying the barriers of change (Harris, 2007, pp.320). In this case, different groups have different norms, behaviors, and performances that are communicated to the members. If a change does not comply with these behaviors, norms, and performances of these groups, this change will be rejected (Jacobson et al, 2005, pp.630).        

There are a number of ways that resistance to change may be countered and make it easy to implement change. The methods of counteracting resistance to change are not always forceful but educative and convincing where those people who are resisting change are made to understand the benefits of this change and the benefits that they and the whole institution will have when the proposed changes are implemented (Fullan, 2001, pp.65). These ways include; education and communication, participation and involvement, negotiation and agreement, facilitation and support, manipulation and cooptation, and explicit as well as implicit coercion (Wagner, 1998, pp.513).

When school leaders adequately communicate with organization members in order to assist them see the usefulness of the change and the logic behind it. Communication in any organization, as indicated by Dubrin (2004, pp.56), is very essential as it makes all people feel that they are recognized in that organization. Lack of proper communication and education makes people reject or refuse a change without knowing its implications. This is achieved through face to face communication, publications, special reports, or even formal group presentations (Bascia & Hargreaves, 2000, pp.75). By educating and communicating to each other, the leader- member relation is strengthened and characterized by mutual trust. 

Educational institution’s members who are involved in the process of planning and implementing a change are less likely to resist that that as they are the ones who planned and implemented it. As a result of this therefore, as argued by Easterby-Smith et al (2003, pp.19), leaders and managers of change may allow those people oppose change to express their views on the proposed change indicating potential problems and giving suggestions on the modifications. By doing this, resistance to change will be reduced drastically (Lewis, 2011, pp.12).

During the process of implementing change, leaders should manifest facilitative and supportive leadership conducts. This is done by listening to teachers’ ideas, using teachers’ ideas that have merits, and being approachable (Davies, 2002, pp.201). Leaders make the working conditions more pleasant by supporting the organizational members. For instance they may develop the staff by helping them acquire more skills that are crucial in implementing the change especially at difficulty times. Such behaviors are likely to diminish resistance to change (Dessler, 2001, pp.39).

Through provision of incentives for cooperation, leaders are able to neutralize actual or potential resistance. For example when there is a collective bargaining at school between the school board and different employee unions, employees can be given certain concessions in order to provide their support for a new program proposed by the school leaders (Hargreaves et al, 2010, pp.43). These concessions may be things like bonuses, increased union representations in decision making, and increments in salaries. By doing this, the leaders will be reducing the level of resistance of employees to a proposed change (Chrusciel, 2008, pp.150).

In order to make sure that a change will be successful, school leaders chose to be much selective on the people who are supposed to get information, how much information, the accuracy of that information, and when to disseminate the information (Fullan, 2007, pp.17). Additionally, resistance to change may be reduced by giving the leaders of resisting groups the main roles in decision making about the change. This will help in identifying their views and making sure that they propose something which they cannot resist (Bush & Middlewood, 2005, pp.78). It should be noted that the main reason for seeking the advice of resisters is not to arrive at a better decision but to make sure that their endorsement is adequately captured. These two methods are less costly in influencing potential resisters to accept change but they may backfire especially when the resisters know that they are being tricked (Lieberman, 2005, pp.16). In this case therefore, they should be conducted with great care not to bring about more problems. 

vi)               

Force or coercion should be used as the last resort when all other ways have failed in making people accept change. It should be noted that some changes require urgent or immediate implementation and hence coercion may be used to force the resistors to accept it (Spiro, 2010, pp.89). This can be done by threatening resistors that they will lose their jobs, their salaries will be frozen, or they will be demoted if they do not comply with the change. Coercion should be used with great care since there are negative effects that are associated with it (Horsford, 2010, pp.43). These effects include; alienation, revenge, frustration, and fear which may result in employees’ turnover, dissatisfaction, and poor performance (Hussey, 2000, pp.17).

As indicated earlier in this study, changes are influenced by political and economic factors. In order to implement changes in educational organizations, leaders require seeking a lot of support from the local authorities, from teachers, students, ministry of education, and even the government. This is because political aspects may be used as a way of resisting change (Hiatt & Creasey, 2003, pp.60). Politicization of changes in educational institutions is a concept that is taking place in many parts of the world. In this case, when leaders want their proposed changes to be accepted by the teachers, students, workers’ unions, and other parties, they introduce certain elements of politics (Morrison, 1998, pp.78). When the political leaders are not happy with the proposed change they may ensure that it is not accepted by the affected parties. This is done by lobbying for resistance or by making sure that the affected parties are made to recognize the negative effects of this change. This, as revealed by Sims and Sims (2004, pp.13) is very destructive and may lead to resistance of this change. Change is brought about by individuals and communicated to individuals and hence the political aspect is introduced in this change (McLaughlin, 1977, pp.56). 

Change is influenced by economic conditions prevailing in a certain educational organization at a certain period of time. In this case, a change proposed by leaders should be within the proposed budgets of managers in order to avoid proposing a very expensive change (Lee et al, 2004, pp.12). As indicated in leading and managing change, it is the work of managers but not leaders to ensure that there are adequate resources to support the proposed change. On this basis, a change that is too expensive will not be accepted by many people despite the fact that it may be very beneficial (Giacquinta, 1973, pp.180). This is because there will be no resources (capital, human, and physical) to support it. It is therefore very imperative for leaders and managers of change to consider the politics and economics of change before they implement them.

Dynamism is a concept of change and it is characterized with it. Change is dynamic meaning that it keeps on changing with changes in economics, politics, and technologies among other aspects. In this case, aspects in educational organizations change from the past situation through the current to the future. These changes that are characterized with change drastically influence the educational organizations (Pugh, 1974, pp.67). According to Moe and Chubb (2009, pp.34), over a period of time education in higher institutions has gone under a large number of changes. For instance, in the past higher education in both private and public educational institutions was characterized by face to face learning (Sunaina & George, 2005, pp.56).

            This aspect has changed drastically in the present situations where many campuses especially private campuses in the developed and developing world have introduced blended learning that encompasses both traditional face to face learning and online learning (Clarke et al, 2000). This is an aspect of dynamism of change that is experienced in the whole world. It should be noted that the aspect of dynamism of change has helped a lot the educational institutions in introducing and implementing a change (Brickell, 1962, pp.84). This is because that type of change that is implemented today may change in the future. When implementing change for instance introducing online learning, campuses usually take into consideration the future aspects of this change. In this case, the leaders and managers of change consider what will be the future changes that will be brought about by the proposed change (Jellison, 2006, pp.45).  

Leaders of change should understand the dynamics of change as they are normal outcomes in order to avoid over reacting to the conducts of teachers or workers’ unions. People in most cases feel ill and awkward as well as self conscious when a change is introduced. In this case, when teachers or other employees in educational organizations are required to do things differently, their habitual ways are disrupted (Pugh, 1974, pp.56). As they try to eliminate the old responses and learn the new change, they tend to feel awkward or uncomfortable. Despite the fact that the new changes will bring about positive results both to the employees and the educational institutions in general, employees tend to concentrate mostly on what they will lose rather than the profits or benefits that will be accrued (Moe, T. and Chubb, 2009, pp.34). This indicates that people focus mainly on what they will have to give up when they accept the change. When change leaders in these institutions are very much aware of these dynamics, they will be in a position to deal with employees in the appropriate way (Sunaina & George, 2005, pp.56). It is therefore of great importance for the leaders to acknowledge the loss of the old ways and should not be frustrated with irrational or tentative responses to change.

In most cases, people affected by a change usually feel alone even though everyone else is undergoing through the same change process. This is because each and every individual wants to feel that their situations are special and unique (Brickell, 1962, pp.83). This results in the aspect of isolation for the people who are undergoing the change. In this respect, change leaders should be gentle and proactive in making sure they show the employees that their situations are understood (Clarke et al, 2000). The magnitude of change is a very essential aspect to put into consideration because people are usually unable to handle too much change within a very short time period. Employees in educational organizations will only be able to undergo small changes per certain period of time in order to remain functional (Jellison, 2006, pp.89). It is true that some changes are beyond the control of employees or the parties that are affected by these changes and hence it becomes more advantageous if changes are not piled upon changes. 

When any type of change in introduced, there are its supporters and those people who have difficulties in adapting.This indicates that people are at diverse levels of readiness for change. Those people who resist changes initially they come to accept them afterwards (Pugh, 1974, pp.67). In this case, those people who are more ready for changes are in a better position of influencing others to accept them. This can be done through open discussions that are allowed in educational institutions (Moe & Chubb, 2009, pp.34).

change is a concept that occurs over a period of time and from time to time. Not all people in an organization are ready for this change and hence it can be resisted by some people. It is therefore the role of change leaders to make sure that all people are incorporated in the process of adapting change. The managers of change in educational institutions should ensure that there are enough resources for the implementation of a new change. It is very essential for leaders to understand the views of all people in order to avoid much resistance to change. 

 

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Question by Grattan C: Main Research Question:How can Design Education enable a design thinker to operate in the contemporary world?
Main Research Question:
How can Design Education enable a design thinker to operate in the contemporary world, and not so much on any particular discipline? The practical application of design.

Sub Problems:
1.The human brain. How do we think? How do we learn? What exactly is education? How does information play a role in my knowledge? How do I construct a mental model? How does consilence play a role in learning?
2.Ideas. Where do they come from? Is design a matter of problem solving or is it more than this?
3.How does the environment in which we learn play a role in education? How does mental and physical space play a role in both education and everyday life? In what context do we learn, and in what context does design take place, are these different?
4.Why is creativity so important in learning? How can other aspects of design play a role in the teaching thereof? How can education maintain inspiration?
5.Sustainability. What does this mean on an educational level?
6.Past models of education versus current models. What are these? What processes are involved in the fuzzy front end of design, and why is it just that…the “fuzzy” front end?
7.What exactly is technology and how does it play a role in education? What is intellectual technology? What is the difference? Where does all this fit into education?
8.Synthesis, integration, multi-disciplinary. Why are these key words in design education? The jump between education and the real world? How can the system help students deal with this?

Best answer:

Answer by Maria
Suggestion: Don’t even wait for the answer to this short question.

Know better? Leave your own answer in the comments!