They refused to reward students based on effort.. That's right, the school wanted grades to be more dependant on effort (60% of the grade should be based on effort for freshmen, 50% for sophomores else). And some professors said, "No, that's dumb." And got canned.
Let us put this in perspective. Should an unemployed individual be paid just because he tries very hard to find a job? Should a doctor that tries very hard but has yet to save a patient be rewarded for this? And going the opposite direction, should a student who puts no effort in, but does well on exams and assignments be penalized because they put in poor effort?
Not to go all objectivist or anything, but there's a bit of a hazard basing a quantitative system on something strictly qualitative- like effort.