Faced with budget cuts, demands for accountability by state legislatures and higher education councils, and a history of autocratic governance, the faculty morale at Paducah Community College, in Kentucky, reached its lowest point in 1990. A new president arrived, however, who had recently completed research on governance styles in higher education and developed the fourth paradigm of governance, Faculty Professional Self-Esteem. This paradigm contends that teachers who believe they are treated with respect and valued as professionals are more effective than those who do not believe so. Further, the concept is centered on the following nine variables of needs and interests of faculty and staff identified through a study of 25 community colleges in 13 states: (1) the physical environment and its condition, including the layout and state of repair; (2) appropriate consultative and participatory management; (3) open communications; (4) honest, even-handed administrators; (5) thorough and open access to budget development; (6) control over classroom-related matters; (7) adequate instructional support services; (8) opportunities for professional growth and renewal; and (9) meaningful involvement in setting and evaluating institutional mission, goals, and objectives. The fourth paradigm suggests that, in times of limited resources, enhanced self-esteem and shared governance provide the tools to reshape existing resources for a more effective learning environment. (KP)