The sheer cost of developing materials for <strong>distance</strong> courses meant that in general those<strong>distance</strong> teaching universities that developed extensive <strong>learning</strong> materials to support theircourses had to constrain the size of their curriculum by limiting the number of specialistdegrees offered, <strong>and</strong> the number of optional courses offered to students. Use of existingresources (textbooks, etc.) got round this problem, leading to the development of what weresometimes called “wrap-around courses” (courses where a strictly limited set of guidancenotes helped students tackle materials presented in textbooks, etc.). The development ofcomputer mediated communications helped here, by enabling students to interact with theirteacher <strong>and</strong> with other students. Put together these developments enabled course designersto answer two of the main criticisms of highly structured <strong>distance</strong> teaching courses: thereliance on an over-packaged course that reduced students to “passive” consumers (acriticism that was never entirely justified since it ignores the constructivist process that goeson as students try to make sense of the materials before them), <strong>and</strong> the lack of democraticargument <strong>and</strong> discussion within <strong>distance</strong> courses where students were isolated from theirteacher <strong>and</strong> from each other. As a result, a typical course model emerged that involves acombination of a virtual library of materials, a Webliography that directs students to otherreputable online sources, a computer conferencing environment structured around topics<strong>and</strong> moderated by a lecturer, <strong>and</strong> electronically submitted <strong>and</strong> returned assignments thatteachers marked (c.f. Parnell, 2002; Litto, 2004).If networked computers seemed to address one set of problems, two others quicklyemerged. The first was whether a teacher could look after more or fewer students onlinethan in a face-to-face environment; the second was whether teaching online was moreor less labour-intensive than teaching face-to-face. Both issues were fiercely debated.Bates (2000: 126-7) suggested that in comparison with face-to-face teaching, computermediated communication (CMC) does lower the costs of tuition because a good deal ofthe students’ time is spent studying the material, <strong>and</strong> so the teacher needs to spend lesstime per student overall in class. Other analysts argue that students will also spend agreat deal more time <strong>learning</strong> from their peers, <strong>and</strong> that this too will reduce the dem<strong>and</strong>sthey make of their tutors. Certainly DiBiase (2000: 15-16), teaching for Penn StateUniversity’s World Campus, found that he <strong>and</strong> his Teaching Assistant were spending lesstime supporting students on an online course (1.6 hours per student against 2.6 hourson a regular course). The general consensus, however, is that the teacher’s workloadrises given the enormous volume of messaging arising from increased interaction withstudents, with each message requiring more time to compose than is the case in verbalinteractions. Some estimates suggest that tutors could well spend twice as much timetutoring online as they do face-to-face (c.f. Rumble, 2001). This raises the question ofhow many students an online instructor can h<strong>and</strong>le. In classroom courses in the USA, itlooks as if people think they can h<strong>and</strong>le from 25 to 30 students, working perhaps 10 to12 hours a week. Boettcher (1999) suggests that experience indicates that a member offaculty can h<strong>and</strong>le more students on a Web course – in the range 25 to 65, but that thiswill require more time – so that although there are courses with 50 – 60 students on them,there are many courses where student numbers are deliberately kept down, somewherein the range of from 12 to 20 students. Whether there is an efficiency gain or loss isvery dependent on student numbers. One way of coping with the cost implications ofthis increase in workload is to employ more staff but reduce the cost of hiring through“labour-for-labour” substitution – that is, the substitution of cheap labour includingadjunct staff <strong>and</strong> postgraduate students for expensive faculty labour. These options aremuch discussed in the US literature.There is also some evidence that the lower levels of cost are more likely to be found ona synchronous online course (in which access to the online tutor is in effect timetabled),with asynchronous courses costing more. Certainly Whalen <strong>and</strong> Wright (1999: 32) found35
significant differences between synchronous <strong>and</strong> asynchronous course development costs.The former required much less development time because they involved less media.Also, synchronous contact reduces the open-ended nature of asynchronous tutoring, thusreducing costs.Further analyses can be found in the literature, reflecting, on the one h<strong>and</strong>, a Europeanperspective (Hülsmann, 2000 <strong>and</strong> Ortner <strong>and</strong> Nikolmann, 1999), <strong>and</strong> on the other, aNorth American one (Finkelstein et al, 2000 <strong>and</strong> Matkin, 1997).NATURE OF COSTS IN HIGHER EDUCATION(a) Operating costsCosts arise from the acquisition <strong>and</strong> use of organisational resources. In <strong>distance</strong><strong>education</strong>, the majority of expenses are determined by the decisions (a) to offera curriculum of a particular size, <strong>and</strong> (b) to provide the infrastructure to manage<strong>and</strong> support learners. Such committed costs cover most personnel costs, the costsof computing <strong>and</strong> telecommunications systems, <strong>and</strong> depreciation on buildings <strong>and</strong>equipment. Hence, committed costs are any costs that provide the necessary infrastructureto enable one to provide goods or services at a certain capacity (e.g. staff costs of anoffice of student admissions <strong>and</strong> records or staff costs within an audiovisual studio).They are distinguished from indirect (common) costs, which are those that cannot easilybe “untangled” <strong>and</strong> thereby assigned to a particular service or product (e.g. the cost ofcartridges in a desktop publishing office). Committed costs are unaffected by how muchthe organisation uses the committed resources. Rather they are related to a plannedlevel of activity. The fact that capacity is fixed (<strong>and</strong> is being paid for) in advance ofdetermination of the actual need means that if dem<strong>and</strong> levels fail to meet expectation,unused capacity results. This unused capacity has a cost that has to be covered by income.Committed costs can be distinguished from flexible costs that are paid for only in theamounts used. Examples of flexible costs would be the costs of payments to materials’authors hired on contracts for service, the costs of delivering materials to students, <strong>and</strong>payments to tutors for assignments marked. This is all day-to-day work. Generally,flexible resources do not have a capacity defined for them because their supply (<strong>and</strong>capacity) can be adjusted up or down to meet actual dem<strong>and</strong>s.Flexible costs, by their very nature, can be traced to particular products or services.In contrast, committed costs related to the provision of capacity often cannot easilybe attributed to particular products <strong>and</strong> services. Such costs are referred to as indirect(common) costs. Other indirect costs are entirely independent of the decisions to providecapacity: rather, they sustain the organisation in being. Such costs (the costs of topadministrative staff, for example) can be thought of as business-sustaining expenses.Generally, activity based costing approaches will assign capacity-related indirect coststo products, services <strong>and</strong> customers, but will not attempt to assign business-sustainingexpenses further down the organisation.(b) Capital costsAll the above are recurrent operating costs (that is, other things being equal, what is spentthis year will also be spent next year). There will also be capital costs associated withthe provision of buildings <strong>and</strong> equipment. These arise only when one needs to purchasea capital item. These need to be depreciated over appropriate periods: in the case of36
- Page 1 and 2: PERSPECTIVES ONDISTANCE EDUCATIONLi
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- Page 5 and 6: ACKNOWLEDGEMENTSIn addition to the
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- Page 19 and 20: THE CONTRIBUTORChristopher McIntosh
- Page 21 and 22: INTRODUCTIONIn his 1996 report to U
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- Page 27 and 28: force of the undertaking. Here agai
- Page 29 and 30: RELEVANT INTERNET SITESUNESCO Task
- Page 31 and 32: Notes1. This phrasing has been used
- Page 33 and 34: goals (Daniel, 1996). Lifelong lear
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- Page 39 and 40: targets systematically for the use
- Page 41 and 42: Rausch, A.S. (2003). A case study o
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- Page 57 and 58: Litto, Fredric M. (2004). Digital l
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offers its programmes to Turkish ci
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mega universities apply a set of st
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RELEVANT INTERNET SITESThe Commonwe
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2. QA initiatives or publications b
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assurance of ODL. This DST will be
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Educational Planning has been respo
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A system of weighting of the key qu
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RELEVANT INTERNET SITESHigher Educa
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CHAPTER 9THE FINNISH VIRTUAL UNIVER
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foreign providers. In Finland, the
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to make the best use of new educati
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The foremost task for the Service U
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part of quality management. The aim
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online courses; an educational tech
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polytechnics, research institutions
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CHAPTER 10PROMOTING CROSS-BORDERREC
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The Bologna Declaration was followe
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indicators currently being used for
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the qualification resulting from th
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Table 9.1: Outline of the portfolio
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• Make sure that incoming student
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CHAPTER 11CHARTING THE EVOLUTIONOF
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Another common characteristic was t
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the current capacity of the educati
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conditions for success. Conditions
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Cultural and ethical issues in inte
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the cost and maintenance of learnin
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Research can be a useful tool for c
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REFERENCESBates, A. (1995). Technol
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Twigg, C. (2001). Quality Assurance
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y, for example, entering into partn
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and even greater steps, and the dec