The department I worked in had two tenured faculty members that had two very different visions for the department. Unfortunately they did not have a working relationship that allowed them to reach a compromise, and one member of the department would refuse to actually make progress on an issue. There was a general feeling of disappointment about the placement of students into graduate school, but an unwillingness to commit to higher (or harder) standards because of a fear of student unhappiness. While student morale does need to be maintained, nurturing an environment where students realize they are being challenged can increase satisfaction and the feeling of accomplishment.The more difficult member of the department would also undermine those that worked at changing the environment.
Partially this is a problem with the particular department I was in. The school as a whole had larger problems revolving around leadership and disclosure. In particular, both my initial contract (which I signed) and my renewal contract (which I declined) were delivered late, and with significant reductions in benefits. However, the school had asked for verbal agreement to working there before the contracts, while presenting the benefits as unaffected.