This study examined how sustained faculty participation produced substantial increases in external funding for a College of Education while the organizational climate of the college collapsed and faculty morale plummeted. The paper first offers a review of the literature on work motivation that provides a rationale for strategies for increasing external funding. Second, processes instituted by the College to increase external funding are listed including: (1) making increased external funding a clear goal; (2) continuing emphasis on this goal and progress toward it; (3) recognition of investigators for funding successes; (4) client centered grant office operations; (5) establishment of a research council to foster research initiatives; (6) hiring a development officer; and (7) changing all faculty appointments from 12 months to 11 months with no change in annual salary. These processes were analyzed for both expected and unexpected effects and in one case (establishing a Development Officer for the College) a direct monetary effect could be determined. Third, perceptions of principal investigators stratified by the level of funding they amassed are reported. The paper concludes that each of the seven mechanisms paradoxically produced faculty perceptions that were detrimental to faculty morale and the organizational health of the college. (Contains 20 references.)