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International Institutefor Educational Planning

Higher education reformsInstitutional restructuring in Asia

Edited by N.V. Varghese

New trends in higher education


Edited by N.V. Varghese


The views and opinions expressed in this booklet are those of the author and do not necessarily represent the views of UNESCO or the IIEP. The designations employed and the presentation of material throughout this review do not imply the expression of any opinion whatsoever on the part of UNESCO or the IIEP concerning the legal status of any country, territory, city or area or its authorities, or concerning its frontiers or boundaries.

The publication costs of this study have been covered through a grant-in-aid offered by UNESCO and by voluntary contributions made by several Member States of UNESCO, the list of which will be found at the end of the volume.

Published by: International Institute for Educational Planning7-9 rue Eugène Delacroix, 75116 Parise-mail: [email protected] website: www.iiep.unesco.org

Cover design: Typesetting: Linéale ProductionPrinted in IIEP’s printshopISBN: 978-92-803-1335-2© UNESCO 2009

mailto:[email protected]

http://www.iiep.unesco.org

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ACKNOWLEDGMENTS

This volume on institutional restructuring of higher education in Asia is the product of a research programme initiated by the International Institute for Educational Planning (IIEP), Paris, in collaboration with many institutions and individuals. The contributions from each of the partners helped formulate the problem, implement the study, organize meetings and prepare the manuscript for publication.

We also would like to thank the following:

• Gudmund Hernes, former Director of IIEP, for his guidance and advice in the initial stages;

• Mark Bray, current Director of IIEP for his advice and support during the fi nal stages of the study;

• the RIHED Bangkok offi ce, especially Padoongchart Suwanawongse, former Director; Supachai Yavaprabhas, current Director; and Thanthakorn Puangsawat, Programme Offi cer, for their collaboration and support in carrying out the studies and organizing the meetings and policy forum;

• the UNESCO Bangkok Offi ce, especially Sheldon Shaeffer, Director; Molly Lee, Senior Programme Specialist; and Kim Chong Hong, Associate Expert, for their participation and support in the programme;

• the study authors who prepared the study reports and the papers for the policy forum and revised them for this volume;

• the experts and participants of the meetings and policy forum for their comments and suggestions;

• Teboho Moja for her very valuable and insightful comments that helped to revise the manuscript;

• Christine Edwards for her effi cient handling of all support activities to facilitate the organization of the policy forum, for her untiring efforts in following-up with the authors, and for editing this volume.

N.V. Varghese


7

TABLE OF CONTENTS

Acknowledgments 5List of abbreviations 9List of tables 11List of fi gures 14List of charts 14Executive summary 15Preface 211. Institutional restructuring of higher education in Asia:

an overview by N.V. Varghese 23

1.1 Introduction 23 1.2 Compulsion for change in higher education 25 1.3 Institutional restructuring of higher education 29 1.4 The countries and institutions studied 31 1.5 Trends in institutional restructuring in selected

universities 37 1.6 Some features of introducing institutional restructuring 42 1.7 Concluding remarks 502. Gadjah Mada University, Indonesia

by Sahid Susanto and M. Nizam 53 2.1 Introduction 53 2.2 Institutional restructuring 56 2.3 Aspects of expected improvement 58 2.4 Implementation of restructuring in the university 60 2.5 Constraints in the implementation of restructuring

measures 66 2.6 Impact of restructuring on the management

of universities 68 2.7 Implications for introducing reforms in universities 74 2.8 Input of institutional managers 773. Universiti Kebangsaan Malaysia 81 by Muhammad Yahaya and Imran Ho Abdullah 3.1 Introduction 81 3.2 Institutional restructuring 86 3.3 Expectations and rationale 91


8

Table of contents

3.4 Implementation of restructuring in the university 93 3.5 Constraints in the implementation of restructuring

measures 98 3.6 Impact of restructuring on the management of universities 100 3.7 Implications for introducing reforms in universities 1054. The Mongolian University of Science and Technology

by Yadmaa Narantsetseg 109 4.1 Introduction 109 4.2 Institutional restructuring 112 4.3 Implementation of restructuring in the university 119 4.4 Constraints in the implementation of restructuring


of universities 126 4.6 Implications of introducing reforms in universities 1285. King Mongkut’s University of Technology Thonburi,

Thailand 133 by Banterng Suwantragul 5.1 Introduction 133 5.2 Initiation of institutional restructuring in Thailand 133 5.3 Institutional restructuring in King Monkut’s University

of Technology 134 5.4 Implementation of restructuring in the university 138 5.5 Constraints on the implementation of restructuring


of universities 145 5.7 Implications of introducing reforms in universities 1596. Hue University, Vietnam

by Huyhn Dinh Chien 161 6.1 Introduction 161 6.2 The re-establishment of Hue University:

institutional restructuring of higher education in Hue City 165 6.3 Constraints on the implementation of restructuring 171 6.4 Impact of restructuring on university functioning 175 6.5 Lessons learned from the process of restructuring 191

References 195


9

LIST OF ABBREVIATIONS

AS academic staffASS administrative and support staffBHMN UGM state-owned legal entityBoT Board of TrusteesCADA Centralized administration decentralized academic

managementDGHE Directorate General of Higher EducationDIK the state appropriation for operational costs including

emolumentDIK-S public participation and self-generated fundingDIP state development budgetDUE Development of Undergraduate EducationEFA Education for AllFST Faculty of Science and Technology, UKMGATS General Agreement for Trade in ServicesGER gross enrolment ratioGNP gross national productHEI higher education institutionIAU Internal Audit UnitICT information and communication technologyIIEP International Institute for Educational PlanningIMEN Institute of Microengineering and NanoelectronicsIPB Bogor Agriculture UniversityIRHE Institutional Restructuring of Higher EducationIT information technologyITB Bandung Institute of TechnologyKMITT King Mongkut’s Institute of Technology, Thonburi

(Thailand)KMUTT King Mongkut’s University of Technology, Thonburi

(Thailand)LAN National Accreditation Board, Malaysia


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List of abbreviations

MNoP Minister of National EducationMoE Ministry of EducationMoET Ministry of Education and TrainingMoF Ministry of FinanceMoNE Ministry of National EducationMUA Ministry of University Affairs, ThailandMUST Mongolian University of Science and Technology NAB National Accreditation Board, Indonesia OECD Organisation for Economic Cooperation and

DevelopmentPBBS performance-based budgeting systemPC Professors’ CouncilPROAP UNESCO Principal Regional Offi ce for

Asia and the Pacifi cP2T GMU University project offi ceQA quality assuranceQAU Quality Assurance UnitR&D research and developmentRAISE-LEAP Relevance, Academic atmosphere, Internal management

and Structural organization, Effi ciency and productivity, Leadership, Equity and Access, and Partnership

SEAMEO RIHED Southeast Asian Ministers of Education Organization Regional Centre for Higher Education and Development

TMR&D Telekom Research & DevelopmentTTI Thonburi Technology InstituteUGM Gadjah Mada University (Universitas Gadjah Mada)UI University of IndonesiaUIS UNESCO Institute for StatisticsUKM Universiti Kebangsaan MalaysiaUMBI Medical Molecular Biology InstituteUNESCO United Nations Educational, Scientifi c and Cultural

OrganizationUNIMIS University Management Information System of MUST


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LIST OF TABLES

Table 2.1 Average value of the response from department heads on the level of autonomy granted as part of institutional restructuring 70

Table 2.2 Average value of response from department heads on the benefi ts of institutional restructuring 71

Table 2.3 Average value of the response from administrative staff on the benefi t of university restructuring 73

Table 3.1 Perception of major areas of change to academic programmes 102

Table 3.2 Academic staff opinion on certain aspects of academic restructuring 102

Table 3.3 Areas of major change according to groups surveyed 105Table 4.1 Opinions on diffi culties in the implementation

of the restructuring process: decision-making 124Table 4.2 Opinions on diffi culties in the implementation

of the restructuring process: fi nance and organizational structure 124

Table 4.3 Opinions on diffi culties in the implementation of the restructuring process: student-related 125

Table 4.4 Opinions on diffi culties in the implementation of the restructuring process: procurement procedures 125

Table 4.5 Perceptions of the university community on areas of university restructuring (percentage) 127

Table 4.6 Some comparative indicators of MTU and MUST 128Table 5.1 Background data on King Mongkut’s University

of Technology Thonburi 136Table 5.2 Senior university management: general information 145Table 5.3 Senior university management’s opinion on

areas effected by institutional restructuring 146Table 5.4 Senior university management’s opinion on the level

of autonomy 146Table 5.5 Senior university management: opinion

on the benefi ts of institutional restructuring 146


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List of tables

Table 5.6 Teaching staff: general information 147Table 5.7 Teaching staff’s opinion on the effect of

institutional restructuring 147Table 5.8 Teaching staff’s opinion on the institutional

restructuring process 148Table 5.9 Teaching staff’s opinion on the institutional

restructuring process 148Table 5.10 Teaching staff’s opinion on the benefi ts of

institutional restructuring 149Table 5.11 Teaching staff: civil service opinion 149Table 5.12 Teaching staff: university employee opinion 150Table 5.13 Administrative and supporting staff: general

information 150Table 5.14 Administrative and supporting staff’s opinion on

the effect of institutional restructuring 151Table 5.15 Administrative and supporting staff’s opinion on

the effect of institutional restructuring 151Table 5.16 Administrative and supporting staff’s opinion on

the benefi ts of institutional restructuring 151Table 5.17 Administrative and supporting staff: civil service

opinion 152Table 5.18 Administrative and supporting staff:

university employee opinion 152Table 5.19 Final year undergraduate students: general

information 153Table 5.20 Final year undergraduate students’ opinion on

the effect of institutional restructuring 153Table 5.21 Final year undergraduate students’ opinion on

institutional restructuring process 153Table 5.22 Final year undergraduate students: opinion on

the benefi ts of institutional restructuring 154Table 5.23 Number of staff 155Table 5.24 Graduate programmes offered

between 1998 and 2003 157Table 6.1 Areas where major changes have been introduced 177


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List of tables

Table 6.2 Leaders’ opinions on the level of autonomy granted as part of the institutional restructuring process 178

Table 6.3 Leaders’ opinions on budget allocation at the faculty level 181

Table 6.4 Administrative and support staff opinions on budget allocation at the faculty level 181

Table 6.5 Staff recruitment by civil service examination 183Table 6.6 Student admissions 184Table 6.7 Leaders’ opinions on the benefi ts of institutional

restructuring 186Table 6.8 Academic staff opinions on the benefi ts of

institutional restructuring 187Table 6.9 Administrative and support staff opinions

on the benefi ts of institutional restructuring 188


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LIST OF FIGURES

Figure 1.1 Restructuring and reorganization models of MUST 48Figure 2.1 Response of academic staff on the benefi t of

institutional restructuring 72Figure 3.1 Challenges to higher education in Malaysia 84Figure 3.2 Organizational structure of Universiti Kebangsaan Malaysia 90Figure 3.3 Restructuring of the social sciences 97Figure 3.4 Restructuring of the sciences 98Figure 3.5 Hierarchy in decision-making structures 103Figure 5.1 Public university reporting diagram 139Figure 5.2 Autonomous university reporting diagram 141Figure 5.3 King Mongkut’s University of Technology Thonburi

(KMUTT) administration chart 143Figure 5.4 Percentages of university employee/permanent staff 156Figure 5.5 Percentage of civil servant converted to

university employees 156

LIST OF CHARTS

Chart 6.1 Composition of interviewees 176Chart 6.2 Percentage of male and female interviewees 176Chart 6.3 College leaders’ opinions on decision-making

at the university/institutional level 180Chart 6.4 College leaders’ opinions on decision-making

at the faculty/department level 180Chart 6.5 Leaders’ opinions on diffi culties in the

implementation of the restructuring process 190


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EXECUTIVE SUMMARY

Higher education has become one of the fastest growing segments of the education sector. This expansion is also accompanied by the diversifi cation of providers, students, programmes and changing sources and modes of fi nancing, all posing challenges to the management of the system. Higher education institutions have therefore been introducing reform measures to improve their operational effi ciency.

All the reforms have one thing in common – a move away from state control towards the market. This new orientation, combined with managerial concern, has led to institutional restructuring, defi ned as changes in both the governance and management of institutions. Governance involves the structures and processes of decision-making, whereas management implies the implementation of decisions. Making and implementing decisions might entail, therefore, the creation of new structures, specifi ed criteria for the allocation of resources to various activities, the allotment of tasks to various groups, and the evaluation of performance. Structure mainly concerns the offi ces, positions and formal roles within an organization. Criteria refers to norms that form the basis for the distribution of responsibilities and resources to all lower level units within an organization.

There are different angles from which one can analyse these changes. Firstly, they can be seen as fi nance-driven reform measures. The dominant trend in public policy and action in developing countries during the period of structural adjustment programmes of the 1980s was to re-prioritize public investment in favour of primary education. The rate of return analysis provided a theoretical support to such a shift in policy. In many cases, reforms were introduced to arrest the declining resource base and deteriorating service conditions in many of the higher education institutions.

Secondly, the changes in higher education institutions were related to political changes – a move away from centrally-planned to market economies. This led to reforms for the reorganization of admissions, curricula, assessment practices, funding patterns, and so on. In these situations, the institutions were re-positioning themselves


16

Executive summary

to suit the requirements of market economies. Thirdly, some changes have more to do with the positioning of higher education institutions to support activities intended to improve quality and to enhance economic competitiveness. The primary objective of the reforms in this frame of analysis was to improve the relevance and quality of programmes and courses offered by universities rather than as measures to save or mobilize resources.

Institutional restructuring has changed the overall functioning of institutions, affecting various groups in the university sector in different ways. It is believed by some that the restructuring process has altered the university’s mission, whereas others feel that there was no alternative but to reform the system. Instances of strong resistance, both to these changes and to the restructuring process, are common throughout the countries involved, and a continual process of bargaining and negotiation plays a signifi cant part in the restructuring effort. Certain universities have been more successful than others in their implementation of change. IIEP initiated a research programme with the principle objective of studying the restructuring processes and their effects, both from a national and an institutional point of view.

The present study focuses on changes taking place in fi ve countries in the region, namely: Indonesia, Malaysia, Mongolia, Thailand and Vietnam. These countries are at varying levels of economic and educational development, especially with regard to higher education. The countries and institutions were selected based on a review of progress of the restructuring process, in collaboration with the Southeast Asian Ministers of Education Organization Regional Centre for Higher Education and Development (SEAMEO RIHED) and in consultation with the senior-level decision-makers in the region.

The countries selected for the study provide varying contexts for initiating the restructuring process. Among them, Malaysia and Thailand have been politically stable for a relatively long period. Malaysia is competing with other countries in the region to emerge as the leader in knowledge-based production with an emphasis on creating a knowledge-based economy. Its policy places a high priority on expanding and improving the quality of higher education. Thailand initiated steps to reform higher education in the 1990s, but the pace of reform seems to


17

Executive summary

be slow. Indonesia faced an economic crisis in 1999 – perhaps more severe than other countries – accompanied by a political crisis, having previously enjoyed a long period of stability. These crises provided, at least in part, the impetus for public sector reform. In Indonesia, the private sector has a strong presence in higher education, unlike the other countries included in the study. Mongolia and Vietnam had centrally-planned economies until relatively recently. Vietnam moved away from the centrally-planned structure in the mid-1980s, while Mongolia transited to a market economy in the 1990s. The move away from a centrally-planned system towards a market system brought about many changes in the organization and provision of services in these countries in all sectors of the economy, including higher education.

The studies were carried out by national teams focusing on the implementation of the restructuring process, the diffi culties encountered, and the implications for university management. Methodological workshops were held in order to ensure a common understanding of both the study and its analytical focus. The draft reports were discussed in a policy forum where researchers and decision-makers from each of the participating countries reviewed the study results.

The following is an attempt to draw some conclusions common to all the different universities studied in the countries selected.

• The impetus behind institutional restructuring was governmental rather than internal, with institutions responding to steps initiated by national governments. The major contribution of universities was to internalize reform measures and carry forward the diffi cult task of implementing these changes.

• Analysis of reforms in the universities studied shows that important factors infl uencing reforms at the national level include pressure to cope with advances in information and technology, the need for more accountable public administration, and a concern to provide quality education in relevant areas of study.

• All reforms indicated a move away from government control yet maintained the public university status of institutions, even when reform initiatives stemmed from the government. The governments continue to support the universities in all the countries studied. Countries have developed objective criteria for resource transfer


18

Executive summary

from the state to universities. Their performance is monitored and outcomes are evaluated. The criteria take the form of contractual arrangements and conditions to be honoured. The nature of the relationship between the state and universities and the areas of their operation are more clearly defi ned now than ever before.

• Universities have become autonomous entities. The case studies indicate that the universities have gained more freedom and autonomy in all countries, while the infl uence of government on day-to-day management has declined. Today, most decisions pertaining to universities are taken by bodies constituted by the universities themselves. The universities have their own management systems. Autonomy is becoming increasingly exercised in matters pertaining to the introduction of courses, recruitment of staff, decisions regarding admissions, and fi nancial matters – even in cases where government funds represent a signifi cant share of university funding.

• Academic restructuring is core to institutional restructuring. Curriculum changes and the reorganization of courses are central to many reform measures. In Indonesia, undergraduate courses were reviewed and reorganized. In Malaysia, the faculties and courses were reorganized and merged. In Vietnam and Mongolia, course contents were changed to refl ect the requirements of an emerging market-oriented economy. Five colleges and research institutions were amalgamated to form Hue University in Vietnam. The reorganization of these faculties helped create standardized units for academic and management purposes. The courses were reorganized and faculties were merged to form more viable units to avoid overlapping between subject areas. At present, Hue University consists of six schools and fi ve centres. The curriculum reforms are signifi cant as universities are traditionally slow to adapt to change.

• The most important feature of the institutional restructuring process is that the universities have all created internal structures to provide better management. In Indonesia, a Board of Trustees has been created that is responsible for all decisions taken for and on behalf of the university. In the case of Thailand, the reconstituted University Council is responsible for the overall management


19

Executive summary

of the university, with the Vice-Chancellor becoming Chief Executive Head of the institution. In Mongolia, the President’s Council was signifi cant both in terms of size and authority. Over the years, faculties have been replaced by schools and departments by professors, while the academic community has increased its representation in decision-making bodies.

• The decentralization of decision-making within the universities has increased. As a result of the process of institutional restructuring, the internal democratic functioning of the higher education institutions has increased considerably. Prior to these reforms, only senior management was involved in the management and administration of university affairs. However, this has changed considerably in recent times, with departments and schools increasingly articulating their requirements.

• Implementation requires strong leadership at the institutional level. This study indicates that institutional restructuring was facilitated by strong leaders, who reassured stakeholders that their relative position would remain strong despite the reforms. The international experience and recognition of the university head in Mongolia benefi tted the implementation of reforms. Indonesia and Thailand, too, profi ted from the presence of strong institutional heads who led the restructuring process. In Thailand, teachers had to take a decision regarding a shift in their employment status from civil service to university service. Job security is assured for the public sector, whereas there is no such guarantee for the private sector.

• The implementation of changes in higher education institutions is more diffi cult, primarily due to strong resistance to change in these institutions. Moreover, dispersed decision-making structures make it more diffi cult to implement reforms. The Malaysian experience shows that resistance to reforms can be overcome if consultations and discussions take place among stakeholders, providing them with the opportunity to refl ect and respond. This may lead to delays in implementation, but such delays are necessary to reduce the social cost of implementing reforms.

• Rushing the restructuring process is not the best way to introduce reforms. This may be seen as imposing changes against the will of


20

Executive summary

the academic community. In all instances, it is important to keep the interests of stakeholders in mind. Reforms are opposed when part of the academic community feels that it will lose as a result of the process. Any successful reform is a negotiation between what is desirable and what is feasible.

• The implementation of reforms introduces an element of risk at the institutional level – some people gain as a result of reforms, while others may lose. People are not ready to accept internal and institutional changes until they are assured that their relative position in the hierarchy will be at least retained, if not improved. The Malaysia study shows that resistance can be reduced and overcome if the Vice-Chancellor announces that no redundancies will occur as a result of the reforms.

• The institutional restructuring processes have reduced political control of the universities and improved institutional capacity to respond quickly to societal needs and market signals. The reputation of universities for being loosely attached organizations, with weak regulation and control, is now being replaced by the notion that universities can be tightly coupled institutions with effective monitoring systems – while still maintaining their mission. In general, the institutional restructuring process has resulted in better functioning institutions more focused on realizing their mission of providing relevant courses of good quality.


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PREFACE

The higher education sector has experienced dramatic changes in recent years. Growth in student numbers, the diversifi cation of programmes, institutional arrangements for provision, mechanisms of fi nancing, and sources of funding are all areas that have seen important reform measures. Many of these reforms were intended to reposition the university in the context of a changing environment – be it fi nancial, political or academic.

These reform measures have changed the ways in which higher education institutions are managed. Universities have become progressively more independent, both fi nancially and economically, and now have their own decision-making structures. This restructuring process, which has taken place over the past decades, implies changes in both the governance and management of institutions. New structures for decision-making and criteria for the allocation and re-allocation of responsibilities have emerged. These measures were not always easy to implement, and often met strong levels of resistance at the institutional level among staff and student bodies.

IIEP initiated a research programme with the major objective of studying the restructuring processes and their implications for institutions located in different regions. This book is based on studies carried out in the Asian region, namely a detailed survey of the nature of recent reform measures in universities from fi ve countries: Indonesia, Malaysia, Mongolia, Thailand and Vietnam. The overall conclusion of the study is that the restructuring process initiated in many countries in the region was not motivated primarily by fi nancial factors, but was rather a response to the perceived need to enhance the relevance and quality of the programmes offered. These reforms helped universities respond to the changing economic and social conditions of the countries.

The countries and institutions were selected based on a progress review of the restructuring process, undertaken in collaboration with RIHED and in consultation with senior-level decision-makers in the countries. The studies were carried out by national teams focusing


22

Preface

on the implementation of the restructuring process, the diffi culties encountered, and the implications for university management. This volume contains all the papers prepared and presented in the policy forum held at Hue University, Vietnam.

IIEP is grateful to the study authors for their contributions, to RIHED and UNESCO Bangkok for their collaboration and support at every stage, to Hue University for organizing the policy forum, and to N.V. Varghese for directing the research studies and activities leading to the publication of this volume.

Mark BrayDirector, IIEP


23

1. INSTITUTIONAL RESTRUCTURING OF HIGHER EDUCATION IN ASIA: AN OVERVIEW

N.V. Varghese

1.1 Introduction

The higher education sector has been expanding for several decades. This growth is refl ected in increases in the number of institutions, students and teachers. While expansion in the 1960s and 1970s occurred mainly in public institutions reliant on government funding, expansion in more recent decades has extended to private institutions and household funding. Many reform measures adopted during this period indicate a move away from government both in terms of fi nancial reliance and control. Institutions of higher education have become more autonomous both in setting priorities and mobilizing resources.

These changes can be analysed from different angles. First, they can be seen as fi nance-driven reform measures. During the structural adjustment programmes of the 1980s, the dominant trend in public policy and action in developing countries was re-prioritizing public investment in favour of primary education. The rate of return analysis, which provided theoretical support to such a shift in policy, argued that returns from primary education are higher than those at other levels of education, and hence the diversion of resources from higher to primary education was justifi ed in terms of economic rationality and profi tability (World Bank, 1986). Such policies led to the declining resource base and deteriorating service conditions in many higher education institutions, and were a contributory factor to the erosion of higher education in developing countries and the depletion of their national capacities. In extreme cases, universities in many developing countries became resource-starved and were on the brink of collapse.

Second, the changes in higher education institutions were related to political changes – a move away from a centrally-planned economy towards a market economy. This led to the total reorganization of admissions, curriculum, assessment practices, funding patterns, and so on, as universities repositioned themselves in line with the new political


24


realities. Third, these changes resulted principally from the positioning of higher education institutions to support activities intended to improve economic competitiveness. Within this frame of analysis the primary objective of reforms was to improve the relevance and quality of the programmes and courses offered by universities, not to act as measures to overcome fi nancial diffi culties. This chapter argues that institutional restructuring in East Asia was an effort to improve the relevance and quality of higher education rather than an instrument to mobilize additional resources.

Market orientation and managerial concerns have led to the restructuring of governance in the public sector. State support for education is questioned and the application of market principles in the provision of education services is encouraged. In this scenario, the role of the state as service provider is increasingly replaced by the regulative authority for controlling the quality of public services (Mok and Welch, 2003). Consequently, universities have adopted corporate models and have become entrepreneurial (Clark, 1998) leading to changes in university activities, organizational structures and management practices. In particular, economic rationality, market principles and the notion of ‘academic capitalism’ (Slaughter and Leslie, 1997) have governed changes in university managerial practices.

This chapter also attempts to point out some of the signifi cant features of the institutional restructuring process that has taken place in different universities in Asia. As mentioned above, the analysis in this chapter shows that institutional transformation and restructuring need not always be associated with the fi nancial diffi culties faced by institutions. Section 1.2 analyses the compulsion for change in higher education. This is followed by a discussion of the idea of institutional restructuring in Section 1.3, and a discussion on the East Asian context and the institutions studied in Section 1.4. Section 1.5 deals with some trends in the institutional restructuring process in different universities, while Section 1.6 attempts to capture some of the features of institutional restructuring that are common across countries. The fi nal section makes some concluding observations.


25

Institutional restructuring of higher education in Asia: an overview

1.2 Compulsion for change in higher education

The higher education scene has changed, forcing modifi cations in the management of the system. Factors infl uencing these changes include expansion of the system, diversifi cation in provision of services and resource base, and changes in the economic rationality of investing in higher education. Several other factors can be identifi ed as major sources of change in the organization and management of higher education.

a) Pressure to manage the expansion of the system

According to UNESCO statistics, enrolment in higher education increased from 28.1 million in 1970 to 132 million in 2004 (UIS, 2006). While in the 1960s and 1970s, both developed and developing countries made advances in expanding higher education, in the 1980s and 1990s, developing countries lagged behind developed countries. Gross enrolment ratios (GERs) in higher education trebled in the developed world between the 1980s and 1990s. The fi gures in the developing world remained constant or marginally improved during the same period.

Among developing countries, East Asian countries made considerable progress and increased their share of enrolment in higher education to total enrolment. The GER started improving in many developing countries during the late 1990s. In the developed world, higher education has assumed a mass character with GER surpassing 50 per cent, whereas in the majority of developing countries, especially in Africa, the GER is less than 10 per cent. However, the existing institutional arrangements were not in a position to accommodate the increasing social demand for higher education. Therefore, the mode of delivery and provision of services became diversifi ed, with private institutions and distance learning institutions – including e-learning and trans-border providers – becoming viable alternatives in many countries.

b) Pressure to change due to globalization of the economy

Globalization has contributed to the increasing demand for larger quantity and better quality of higher education graduates. With the transition towards knowledge-based production, economies are increasingly becoming aware of the importance of research in


26


development. The capacity to innovate is positively associated with the quality of higher education provided in the country, and the absorption of innovation depends on the quantity of people educated to higher levels (Stiglitz, 1998). The strength underlying international competitiveness is provided by the national pool of professionally trained human resources.

The knowledge-driven production of goods and services increases the demand for people educated to higher levels. Evidence of this phenomenon can be observed from the fact that, in developed countries, the proportion of university or higher education institution graduates continues to increase at a fast pace (World Bank, 2002a). The shift in employment prospects from the manufacturing to service sectors is also associated with the increasing qualifi cation levels of employees. In other words, the increase in intensity of knowledge use in production has led to a growth in demand for higher education graduates in the labour market, and this in turn has increased the demand for higher education.

Three aspects of recent developments, namely ‘capitalization of knowledge’, ‘deterritorialization of information’ and ‘technologialization of education’ (Peters, 2003), have created a conducive atmosphere for the globalization of education. Thus, cross-border education has promoted the process of privatization of public universities, the marketization of courses and programmes, and the corporatization of university services. As can be seen in the latter part of this book, the institutional restructuring process initiated in some of the countries studied is more the result of changes in the perception of education, than the need for mobilizing resources.

c) Pressure to change due to the higher rate of return for investment in higher education

The rate of return studies in the 1960s and 1970s showed higher rates of return for primary than other levels of education (Psacharopoulos, 1994). This trend changed in the 1980s in many countries and recent estimates indicate that returns for higher education are not only on the increase, but will also surpass those of other levels of education. This reversal is visible in developed countries, in some of the developing


27


countries in the Latin American region and in countries of the Asian and African regions (World Bank, 2002a).

UIS/OECD studies indicate that the earnings advantage of those educated to tertiary level over those educated to upper secondary is very high for both men and women. For men, the earning advantage of higher education graduates over secondary school graduates varies from 82 per cent in Indonesia to almost 300 per cent in Paraguay. For women, the corresponding variations are from 55 per cent in Indonesia to 179 per cent in Brazil (UIS/OECD, 2003). This increases the propensity of individuals and households to invest in higher education.

Higher education contributes to improved income through different channels. First, the labour force participation rates among those educated to higher levels are consistently higher than those who are less educated. Equally important is the fact that the unemployment rate in many countries is lower among university graduates than secondary school graduates. Second, people educated to higher levels access sectors and jobs that are higher paying, leading to a general enhanced average income of graduates. The higher wages skills required in the context of globalization (World Bank, 2002a) create a benefi cial environment for the growth of higher education. Greater returns from higher education lead to a willingness to invest in more higher education on the part of households and the state. The growth of private universities and the privatization of public universities are indications that this willingness is being capitalized upon.

d) Pressure to change due to the emergence of the private sector in higher education

At the turn of the twenty-fi rst century, private higher education is considered one of the most dynamic and fastest growing segments of post-secondary education (Altbach, 1999). The inability of the public sector to satisfy the growing social demand for higher education, the inability of public universities to offer courses that are employment-oriented and market-friendly, and the willingness of many households to pay for the higher education of their children have contributed to the fast growth of private institutions in higher education. Many of these are private for-profi t institutions that trade the stocks and shares of educational institutions (Ruch, 2001). A close scrutiny of


28


some of the private institutions (Varghese, 2004b) indicates that they are of recent origin, small in size, and offer courses in limited subject areas that are market-friendly, such as management studies, computer science, medical and engineering subjects.

Many of those who provide cross border e-learning facilities are private operators or operate on a full-cost basis. As noted earlier, deregulation policies and the globalization process have encouraged private operations in higher education in many countries. A large number of private higher education institutions operating in different countries are funded and at times managed by religious agencies, many of which are not-for-profi t institutions. As a result of the operation of private higher education institutions, pressure has been placed on public institutions to change. Studies (World Bank, 2002b) note that private sector institutions, although small in size compared to public universities, introduce elements of competition, innovation and management style that are considered to be more effi cient than their equivalents in public universities.

e) Pressure to change due to reduced public funding

One of the important features of the 1990s was the expansion of higher education in developed and in many developing countries, despite unfavourable funding conditions. This was made possible by privatization strategies for higher education, which enabled the sector to move away from reliance on the state. In other words, the contemporary political attitude to supporting higher education, the changing political scenario in eastern European countries, the inability of the state to continue its operations on the same scale in developed countries, and the structural adjustment programmes in developing countries all persuasively encouraged privatization in higher education.

Country experiences from Asia (Sothorn and Yiibing, 1995) indicate that privatization can imply no support from the state (full pricing) and partial funding by the state (quasi-privatization). In cases of quasi-privatization, there will be regulatory monitoring by the state. Whether privatization is quasi or total, new vocabulary has entered into the sector (Guttman, 2000); for example, university vice-chancellors and presidents can be referred to as ‘chief executive offi cers’, principals as ‘managers’, and parents and students as ‘customers’. The changing


29


terminology denotes a change in the attitude of individuals and policy-makers towards education.

Reform measures to overcome funding diffi culties were introduced, including the following: (i) cost-saving measures such as a freeze on both staff salary and recruitment; (ii) cost-sharing measures such as enhancing student fees and introducing student loans; and (iii) resource mobilizing strategies that included developing short courses or training programmes on a full cost-recovery basis, undertaking contract research, consultancies, linking universities with production sectors (Martin, 2000), and other various income-generating activities. All of these implied a change in the way universities operated, and posed challenges for management of the higher education sector.

1.3 Institutional restructuring of higher education

At present, the state and households are willing to support the expansion of higher education. The willingness of the household is reinforced by the capacity to invest, whereas the willingness of the state, at present, is not always supported by adequate public funding. Public support exists for policy measures that provide autonomy and operational freedom to institutions of higher education. Such an environment provides conducive conditions for the reorganization of universities and their operations. This forms the context for the institutional restructuring of higher education.

Most recent reforms in university education have focused on notions of effi ciency in operation, performance evaluation and accountability measures. It is this market approach to provision of public services from a ‘managerialism’ perspective that lies at the core of the changes introduced in many universities. The massive sweep of liberal reforms that have structured and privatized the state sector, have left national education systems overwhelmingly part of the public sector. State provision of an increasingly ‘massifi ed’ system of formal education remains the dominant form of organization of knowledge (Peters, 2003), although most governments have followed policies that indicate a process of incremental and parallel privatization designed to blur the boundaries between the public and the private. In other words, the process of institutional restructuring for public institutions


30


also implies the application of effi ciency parameters and accountability measures practised in the private and corporate sectors.

While it can be argued that improving managerial effi ciency is central to institutional restructuring, it is not always correct to associate the restructuring process with cost-saving reform measures. Needless to say, improving effi ciency in operation very often leads to a reduction in the cost of operation. But it need neither be the primary objective nor the sole purpose of institutional restructuring. This is certainly the case in East Asia where the the reorganization of activities in higher education institutions is very often orientated towards academic improvement, in terms of changes in the study programmes and courses offered. Academic activities lie at the heart of the operation of universities and institutions of higher education, and in many cases, the reorganization of courses and programmes need not necessarily lead to reduced expenditure for university operation.

Many of the restructuring processes have led to changes in programmes and courses, staff recruitment procedures, the status of university staff, and admission procedures, as well as the introduction of fees, changes in fi nancial management, and the establishment of cost centres or companies to coordinate resource mobilization activities. These changes individually and collectively have led to the reorganization of university activities in general. Universities have therefore become cost conscious in their operations, and planning at all levels of the organization has become unavoidable. Strategic planning is common in most of the universities and is considered a useful and necessary instrument in the process of institutional restructuring.

Institutional restructuring is defi ned as changes in both governance and management of institutions. Governance involves structures and processes of decision-making, whereas management implies the implementation of decisions. Taking and implementing decisions might entail, therefore, the creation of new structures, specifi ed criteria for the allocation of resources to various activities, the allotment of tasks to various groups, and the evaluation of performance. Structure mainly concerns offi ces, positions and formal roles within an organization. Criteria refers to norms that form the basis for distribution


31


of responsibilities and resources to all lower level units within an organization.

The institutional restructuring process has led to a reorganization of the various spheres of university activities. The present study will focus on changes in the following areas:i. restructuring of academic programmes; ii. restructuring of recruitment and staff management procedures; iii. restructuring of fi nancial management procedures; iv. restructuring of student evaluation procedures, in line with the

credit system performance evaluation procedures of employees; v. overall restructuring of the management of universities.

The process of change will be examined in its entirety throughout the study of an institution. While the institutional transformation may have overcome a crisis, it might have generated, in the process, an evolution of the actual mission and a reorientation of the university and its activities. The study will also analyse the possible effects of the restructuring process by taking into account the opinions of different stakeholders.

The process of institutional restructuring has changed the overall functioning of institutions and affected various groups in the university sector in different ways. It is believed by some experts that the restructuring process has altered the university’s mission, whereas others feel that there was no alternative but to reform the system. Instances of strong resistance, both to these changes and to the restructuring process, are common across countries. A continual process of bargaining and negotiating is characteristic of the restructuring effort. Certain universities have been more successful than others in their implementation of change. The present research will focus on institutions in which the restructuring initiative has been successfully implemented.

1.4 The countries and institutions studied

Education has played an important role in shaping the patterns of development in East Asian and Southeast Asian countries (World Bank, 1993, 2000; Tilak 2000). Economic progress in the region has been led by the export sector, which was highly labour-intensive. The


32


skill intensity of the exports (Wood, 1994) was high, and regional and international competition was fi erce. An educated labour force could maintain a competitive advantage over exports. Therefore, increasing demand for an educated labour force formed part of the development process in these countries. Many countries in the region had high literacy and primary enrolment rates to begin with; others progressed quickly, which resulted in an overall improvement in the educational level of the population.

Pressure in these countries1 to expand higher education comes from at least three sources (Varghese, 2001a): the government and enterprises, to maintain their competitiveness in the world economy; the households, to improve individual competitiveness in the labour market for better jobs and higher wages; and pressure from the education sector due to the expansion of secondary education. A growing economy increases employment opportunities and enhances wage levels. Many of the economies are export-oriented, the export sector is labour-intensive, and the employment elasticity of the product in the sector is positive and high. In order to remain competitive, the export sector must rely on better-qualifi ed personnel. The demand for better qualifi ed people leads to the expansion of employment opportunities for graduates.

One of the distinguishing features of the region’s economies was the low share of government expenditure to gross national product (GNP) in these countries. This share was maintained at around 20 per cent in many countries (Malaysia has a higher ratio of around 30 per cent). However, the social allocation ratios (the proportion of government expenditure going to social sectors including education and health) were higher. These greater allocations helped achieve higher levels of equality in the provision of basic education. In addition, expanding secondary education accompanied by higher household incomes increased the demand for higher education. Moreover, the increasing share of higher education has made this a non-elite sector contributing to distributive equality (Varghese, 2001a). Countries such as Mongolia and Vietnam have a different history. Being part of centrally planned

1. The remaining part of this chapter is based on the following studies carried out under the IIEP project study on institutional restructuring in higher education in Asia. See for details: Chien and Tho (2004); Narantsetseg and Boldbaatar (2004); Susanto. and Nizam. (2004); Suwantragul. (2004); Yahaya and Abdullah (2004).


33


systems, the state was the dominant, if not the sole player in all areas of activity, including education.

However, the economic crisis changed the situation dramatically in many countries of the region. The crisis began in Thailand in July 1997 when the baht lost roughly 15 per cent of its value against the dollar virtually overnight. The crisis then spread to Indonesia, Malaysia, Singapore and later to Korea. During the crisis period government debt doubled or trebled, interest payments accounted for the major share of public spending, and unemployment increased. The capacity of the state to invest in order to revive the economy was limited, and the higher education sector suffered considerably during this period (Varghese, 2001b). In Vietnam and Mongolia, the political changes – transitions from a centrally planned to a market economy – necessitated changes in the orientation and operation of institutions.

This study focuses on changes that have taken place in fi ve countries in Asia, namely: Indonesia, Malaysia, Mongolia, Thailand and Vietnam. These countries have varying levels of economic and educational development, especially in higher education.

Among these countries, Malaysia and Thailand were affected to varying degrees by the East Asian economic crisis, the impact of which was also experienced in the fi eld of higher education. Malaysia was able to protect itself from the crisis at a faster rate than other countries. More importantly, Malaysia is competing with other countries in the region to emerge as the leader in knowledge-based production. Its policy places a high priority on expanding and improving the quality of higher education. Thailand initiated steps to reform higher education in the 1990s, but the pace of reform seems to be slow. However, these two countries have been politically stable for a relatively long period and did not experience any political upheaval. However, some reform measures were halted during the period of economic crises. In other words, as noted earlier, the institutional restructuring process in East Asia is not an offshoot of the East Asian economic crisis.

Indonesia faced an economic crisis in 1999 – perhaps more severe than other countries – accompanied by a political crisis, having previously enjoyed a long period of stability. These crises provided, at least in part, the impetus for public sector reform. In Indonesia, the private sector


34


has a strong presence in higher education; nearly 95 per cent of higher education institutions and more generally, 62 per cent of enrolments in higher education are in the private sector. In all other countries selected for the study, the public sector was dominant in education in general and in higher education, although the situation is changing following the initation of reform processes and changes in rules and regulations to encourage and promote private sector ownership and operation of higher education institutions.

Mongolia and Vietnam had centrally planned economies until recently. Vietnam moved away from the centrally-planned structure in the mid-1980s while Mongolia transited to a market economy in the 1990s.

This move brought about many changes in the organization and provision of services in all sectors of the economy, including higher education. Not only was the private sector encouraged to operate, but existing public institutions were reorganized. The course structure and content were thoroughly changed to suit the needs of the market economy: new courses were introduced, new evaluation systems were put into place, and staff orientation became necessary.

The expansion of higher education in these countries is also partly due to expansion at the level of secondary education. Countries such as Malaysia, which is focusing on knowledge-based production and relying on export earnings, have demonstrated faster growth in higher education. However, it needs to be noted that one of the reasons for increasing enrolments in higher education institutions in Malaysia, particularly in 1999 and 2000, was the return of students studying abroad during the period of economic crisis (Varghese, 2001b). This also helped the private sector to grow during this period (Lee, 1999). More importantly, the progress made by Malaysia is also due to the fact that it invests nearly one quarter of its public expenditure in education and an equal share of the total education budget is spent on the higher education sector.

Universities have considerably modifi ed the organization of their activities. Many institutions enjoy enhanced autonomy in the spheres of fi nance, programmes and staff. With reduced dependence on government, universities have become self-governing institutions


35


with their own rules and regulations. They are now responsible for their actions and more accountable to stakeholders, which has changed both their overall structure and functioning.

The studies analysed the policy context of initiating changes in universities from a macro perspective, as well as examining both their nature and implementation from a micro/institutional perspective. While the fi rst part of each study was based on an analysis of policy shifts and interviews with certain initiators at the origin of the changes, the second part concerned an in-depth study of institutions that have experienced institutional restructuring in the recent past.

The major reform process initiated in Indonesia towards the end of the 1990s is working to constitute universities as legal entities. Some universities are well advanced in terms of implementing the reforms. Gadjah Mada University (UGM) is one of four prominent universities to become autonomous under the new reform measures. It is one of the largest public universities in Indonesia with an enrolment of around 50,000, 62 departments and 4,600 staff.

Three measures key to the restructuring processes are: (a) moves towards making the university a legal entity (corporatization); (b) restructuring of academic programmes; and (c) fi nancial management, which includes the changing fee structure, and commercial and non-commercial ventures. The university is introducing reform measures that totally alter its functioning, management and fi nancial arrangements.

The university reform process began in Malaysia in the late 1990s. One of the major reforms initiated was the corporatization of universities. The corporatized status allowed universities to form business entities, which could venture into income-generating activities, especially to meet recurring expenditure. More importantly, this implied a total alteration in the functioning of universities. Universities obtained more autonomy; they reorganized courses and departments, reallocated staff, and so on. The Kebangsaan (National) University of Malaysia is one such university, which implemented many of the reforms. In fact, in response to this effort, the university started UKM Holdings Sdn. Bhd. under the Companies Act and reorganized its faculties. UKM has an enrolment of more than 22,000 and an academic staff body of 1,700


36


spread across 12 different faculties. Important areas for the restructuring process are: (a) corporatization or formation of companies and commercial ventures initiated by the university; (b) academic auditing introduced at the university; and (c) fi nancial management, especially in the context of university autonomy and decentralization of powers to various faculties and departments.

In Mongolia, under the centrally-planned economic system, university authorities were centralized at the top. All decisions regarding teaching resources, students’ issues and employee social security were taken at the highest level of the organization. This model was a source of hierarchical bureaucracy, and thus the enthusiasm and motivation of the lower levels of the organization declined due to constraints on new ideas or creativity, while the middle level functioned as the messenger. The government withdrew fi nancial support to universities and they were given freedom to reorganize their activities, levy fees from students, and mobilize resources from other sources. Many university activities were reorganized and a credit system was introduced, which has infl uenced the teaching-learning process, the reorganization of curriculum, and teaching and student evaluation methods in Mongolia.

The Mongolian University of Science and Technology (MUST) introduced many of these reform measures. The university has a student enrolment of around 18,600 with 17 faculties and approximately 850 academic staff members. The academic structure comprises 17 schools with 128 chairs and over 40 research institutes and centres. By recognizing several of the country’s well-established research institutions, it has brought their resources within its reach. University activities, including research, have been restructured and reorganized. The reform process dates from the early 1990s when the university attained institutional autonomy. The introduction of a credit-based curriculum was a signifi cant step towards the restructuring of university activities.

University functioning in Thailand in the early 1990s was felt to be constrained by bureaucratic procedures. Plans were laid for universities to become autonomous and freed from bureaucratic control, particularly with respect to academic, personnel and fi nancial issues. The long range plan (1990-2004) envisaged that most public universities would become


37


autonomous by the end of the plan period, with students covering all operating expenses through student fees, in conjunction with student loan schemes. The fi ve new universities established after 1990 were created as autonomous institutes. But none of the existing public universities opted for autonomous status. King Mongkut’s University of Technology Thonburi, Thailand (KMUTT) is the fi rst public university to make the transition from being a public to an autonomous university, and chose to have a dual track employment system. The university has an enrolment of approximately 10,000 students and employs around 1,300 academic staff (many of whom are temporary). This case study highlights the changes introduced in the functioning of a university when it becomes autonomous, the effects on management, and the dual system of staff recruitment and deployment – the transition from civil service status to the university system.

Political change in Vietnam from 1986 onwards saw the emergence of a policy of moving away from centralized planning towards a more market-based economy. Pursuant to this policy, Vietnam entered a new phase of development. It transformed a highly centralized and totally subsidized economy into a free market, albeit with a state orientation. Another aspect of this renovation was the bringing together of institutions of higher education under one umbrella. Prior to the reforms, higher education provision was fragmented between various institutions. The renovation plan amalgamated the universities and institutes of Hue City into Hue University. The university now enrolls more than 50,000 students and employs around 1,200 academic staff. The amalgamation has many implications in terms of autonomous status, fi nancial management, and rationalization of the academic and administrative staff of the university.

1.5 Trends in institutional restructuring in selected universities

The studies on institutional restructuring in the selected countries indicate interesting trends. As mentioned earlier, the major reform initiated in Indonesia is the reconstitution of universities as legal entities. Under the new legal status, universities have a governance structure that includes a Board of Trustees, Academic Senate, Board of Auditors and Professors’ Council. Under the new system, the university rector and vice-rectors are not appointed by the ministry; they are nominated


38


by the Academic Senate and appointed by the Board of Trustees. The university does not report to the Minister of National Education.

As a legal entity, the university is permitted to run commercial ventures to mobilize resources, reorganize courses and programmes of study, and regulate enrolments. A Memorandum of Understanding is signed with the Ministry of Education for an agreed number of intakes. However, the universities are permitted to enrol a larger number of students than agreed, the additional cost of which is not covered by the government. The universities can also invest in profi table ventures. Under the new legal status, the university has a new governance structure under its own Board of Trustees.

Following the transition, university activities at GMU are decentralized and shared among university faculties and institutions. Most of the university community welcomed the changes, and hence the introduction of the restructuring process did not face strong resistance. The academic community in general is happy with the changes, although they too feel that the benefi ts are yet to become visible. The administrative staff have yet to realize any positive effects from the restructuring process and are not happy with the changes introduced in the university. The students too are unhappy regarding the increase in tuition fees. On the whole, the introduction of reforms was subjected to less resistance than expected.

Universities in Malaysia were corporatized with effect from 1998. The corporatized status allowed universities to become autonomous to form business entities. With the establishment of UKM Holdings Sdn. Bhd. the University of Kebangsaan Malaysia (UKM) could venture into income-generating activities. The management structure of the university was reorganized; the University Council was replaced by a Board of Directors, the Vice-Chancellor became the Chief Executive Offi cer, and so on.

One of the major restructuring measures initiated at UKM was the restructuring of faculties. For example, in 1999 four science faculties were amalgamated into one Faculty of Science and Technology. This was followed by the formation of the new Faculty of Social Sciences and Humanities, and later by the merging of the Faculties of Economics and Management. The agenda is the creation of an undergraduate academic


39


structure that refl ects the consolidation of knowledge, introduction of multi-disciplinary programmes, and specialization in course areas that are relevant and market-friendly. The restructuring was expected to lead to a more optimal use of resources.

The implementation of the restructuring process was thought out well in advance. In 1996, the University Council proposed a review of the existing academic faculties. A working paper was produced by the Vice-Chancellor. After discussion, an agreement was reached to form a Restructuring Committee to examine and make recommendations for a subsequent university retreat. This committee constituted sub-committees to make recommendations and suggestions regarding restructuring. These suggestions were discussed during the university retreat.

There was resistance to change. However, the changes were introduced slowly, step-by-step, with the restructuring process beginning in one area, and after its completion, moving to another. The staff were given enough time to respond and the feedback system functioned well. As an example, the restructuring process in social sciences took around three years. The Vice-Chancellor’s announcement that there would be no redundancies gave people confi dence to accept the reforms.

Most of those interviewed agreed that the restructuring process helped to strengthen academic aspects. But there is less certainty regarding the supposed cost savings from restructuring. However, it is commonly agreed that the new structure and procedures have increased academic research and publications.

The academic structure comprises 17 schools with 128 chairs and over 40 research institutes and centres. By recognizing several of the country’s well-established research institutions, it has brought their resources within its reach. The university staff consists of the President, three Vice-Presidents, professors, associate professors, lecturers, research associates, and administrative and technical staff. The university has a Governing Board, an Academic Council and a President’s Council.

In Mongolia, the academic restructuring of MUST changed student evaluation procedures and introduced the credit system. The


40


implementation of a credit system also necessitated the preparation of handbooks and guidelines on advance self-study for students. The changes resulted in the emergence of a totally new range of operational activities, such as faculty member and student records, attendance and examination scores, performance-related pay for academic staff, and so on. As a consequence, the university had to develop a reliable Management Information System.

The management of MUST views the implementation of a credit-based system not only in terms of the ‘collection’ of credits included in training curriculum by academic staff and students, but also recognizes that effi cient forecasting and estimation of creativity and innovation in the market generate more success. Therefore, the periodic development of a credit-based system should not be focused on the concepts but should be persistent in its motivation of academic staff and students in terms of fi nancial planning.

The university has a Governing Board, an Academic Council and a President’s Council. The President is the executive person responsible for the university and convenes and chairs the President’s and the Academic Councils. Academic leadership and overall institutional planning are the President’s responsibility. The President is nominated from the Governing Board and appointed by the Minister of Education, Culture and Science. The Vice-Presidents are responsible for the implementation of the university’s missions and strategy. There are three Vice-Presidents at the university.

The supreme authority of the university is the Governing Board. The Governing Board is responsible for deciding the organizational structure of the university, approving annual budget allocation and investment priorities, and determining students’ tuition fee rates and dormitory service payments.

The Academic Council defi nes policies and guidelines regarding the quality of scientifi c research, higher education training, the implementation of new technology, and enhancement of services. The Academic Council is composed of leading scholars and university professors nominated by the President’s Council.


41


The management and control of the university and all its property, revenue, business and affairs on a consensus basis are vested in the President’s Council. It develops action plans, assesses the annual plans of schools affi liated to the university, and controls and supervises the implementation of action plans.

In Thailand, as mentioned earlier, KMUTT was the only existing university to make the transition from public to autonomous university. KMUTT has total control over its budget, which allows it to own and manage property, grant authority to set up new faculties and departments, and introduce new academic programmes.

The university has a University Council, an Academic Council and a Personal Administration Finance and Assets Management Committee. The staff members were given an option whereby they could continue as civil servants or become university employees. A large proportion of employees (57 per cent) opted for university employee status, while the remainder continued to be part of the civil service.

The introduction of reforms was subjected to resistance primarily due to uncertainty surrounding the options to be exercised by employees. In terms of employment security and long-term pension benefi ts, people would prefer to continue with the present system of being part of the civil service. Since this is the fi rst university to have opted for autonomy, the lessons learned from its experience will have wider implications.

In Vietnam, as noted above, a renovation plan amalgamated the universities and institutes of Hue City into Hue University. University administration is split between two levels: Hue University and the affi liated universities. At the Hue University level, administrative arrangement is responsible for developing policies and strategies, staff recruitment and staff management, budget allocation, design and introduction of new courses, an so on. In other words, administration at the Hue University level takes all crucial decisions regarding university management.

At the affi liated university level, each university is responsible for implementing programmes proposed by Hue University, adapting these proposals in ways appropriate to it. In addition, each university can


42


elaborate proposals that suit best, pending approval from Hue University. As such, the affi liated universities function more as implementing units than decision-making units.

1.6 Some features of introducing institutional restructuring

The following paragraphs attempt to draw some conclusions common to all the different universities studied in the countries selected.

a) The pressure for institutional restructuring came from reforms initiated by national governments

The institutional reform measures initiated by all the universities studied clearly indicate that the impetus for reform came from national governments. In fact, the institutions were responding to steps initiated by the governments. In Thailand, for example, the issue of university autonomy had long been discussed, but no public university, until KMUTT, was willing to implement the necessary changes. In Indonesia, the government initiated steps to make universities legal entities, and Gadjah Mada University was one of four universities to implement the reforms. Reforms in higher education were on the agenda from the mid-1990s in Malaysia, with the intention of improving the competitiveness of the economy and competition among universities, so as to improve their operational effi ciency. In Mongolia and Vietnam, the shift in politics from a centrally-planned to a market economy provided the external environment for changes in the higher education scene. Some of these efforts were supported by external funding agencies.

The pressure to restructure did not come from within the institutions undergoing the restructuring process. The institutions were responding to reform measures initiated at the national level. The major contribution of the universities can be seen in terms of concretizing the reform measures in their institutional context and carrying forward the diffi cult task of implementing reforms.

b) What infl uenced the national governments to initiate changes?

There is a general belief that the restructuring of universities and institutions of higher education was initiated due to lack of funding support from public sources, and that the changes were therefore intended


43


to mobilize fi nancial resources for universities. An analysis of reforms in the universities studied shows that this is not true, at least not in the East Asian context, although it is a fact that all reforms were intended to enable universities to mobilize a part of their revenue. However, this was not the sole purpose of reform. The study of Malaysia notes that important factors infl uencing reforms at the national level included pressure to cope with advances in information and technology, the need for more accountable public administration, and concern for providing quality education in relevant areas of study. This is also true for other countries in the region. The fi nancial freedom granted to universities during the initial stages of reform implementation was rather limited in Malaysia and they still depend on public funding for most of their activities.

In Indonesia and Thailand too, the universities continue to rely on public funding for their core activities, although the restructuring process helped to initiate steps to mobilize funding. However, this was not the primary concern; this was to improve national competitiveness by providing quality higher education. Even the reforms in funding were aimed initially at introducing incentive-based funding in Indonesia, rather than a withdrawal of funding by public authorities. The incentive funding began with a project called Development of Undergraduate Education (DUE), which was funded by the World Bank.

In Mongolia and Vietnam, the changes in the education sector formed part of broader political changes. In these cases too, the primary concern was to change the curriculum and course contents of higher education to make them relevant and able to meet the requirements of a transition economy – transitioning from a centrally-planned to a market economy. The mobilization of additional resources was not the overriding consideration behind the changes introduced in higher education in these countries, although the reforms did include the possibility of additional funding.

One general trend in recent times, in all cases except Thailand, has been the considerable increase in interaction with outside institutions. For example, an Indonesian report indicates that collaborations between national and international institutions, agencies and universities have mushroomed as a result of globalization. Malaysia, too, as mentioned


44


earlier, has been competing to emerge as one of the fastest growing economies with a strong emphasis on technological development. The developments both in Mongolia and Vietnam are infl uenced not only by international agencies, but also at times supported by funding agencies.

c) All reforms indicated a move away from government control, but maintained the public university status of the institutions

It is interesting to note that although reform efforts were initiated by the government, they focused on shifts to areas way beyond its control. There is a general belief that too much bureaucratic control is not good for universities or their growth. Academics have always sought academic freedom and university autonomy. The government, while funding the universities, wanted to control and regulate university operations. Needless to say, in many countries, too much control was opposed by the academic community. Therefore, what has developed is a reform process that takes place within the public sector, but permits autonomy for institutions to operate independently.

However, this move does not absolve governments from the responsibility of providing funding support. The government in all these countries continues to support the universities. But the change, perhaps, is that this support cannot be taken for granted. Countries have developed objective criteria for resource transfer from the state to the universities. University performance is monitored and outcomes are evaluated. The criteria take the form of contractual arrangements and conditions must be honoured.

The institutions are also not convinced about the merits of moving completely out of the public realm. Moving from public to private operations can perhaps create high uncertainties. The public sector at least guarantees job security for employees and minimum funding for the survival of institutions. The institutions also want to retain the benefi ts of government support, that they enjoy in the public sector. It may not be unrealistic to argue that their experience during the East Asian economic crisis, which clearly indicated the need for support and protection, may have reinforced the case for public support.


45


It is interesting to note that even when people criticize public intervention, no one prefers a situation of total absence of state intervention and support. In fact, these reforms and the institutional restructuring process have redefi ned the relationship between the public authorities and university functioning. The nature of the relationship between the state and universities and the areas of their operation are more clearly defi ned now than ever before. In other words, the institutional restructuring process has redefi ned the relationships between the state and universities, maintaining the image of the university as a public institution and retaining the benefi ts associated with being a public institution.

d) Universities became autonomous entities

The singular feature of all these reform measures at the national level was the granting of more autonomy to universities. In all countries, as the case studies indicate, the universities gained more freedom and autonomy. However, the question is autonomy from whom and for what?

The infl uence of the government on day-to-day university management declined after the move towards autonomy. For example, in Indonesia, the universities were previously expected to report to the relevant government department. This provision has been changed as part of the recent reforms. In Malaysia, although a large share of funding still continues to come from public authorities, the ministry does not directly supervise university activities. In Thailand, the move to autonomy had long formed part of state policy but no university was willing to effect the necessary changes until the case of KMUTT, as the case study indicates. This also involved a change in staff status from the civil service to university staff, which also affects recruitment procedures and employment conditions. In the case of Mongolia and Vietnam, the change is more substantial since the universities fell under the direct supervision of the government, departments or ministries of education. Today, most of the decisions pertaining to universities are taken within the bodies constituted by the university. The universities possess their own management structure and enjoy a high degree of autonomy – a signifi cant feature of changes taking place in this part of the world.


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Universities enjoyed autonomy previously, however, this autonomy was confi ned either to paper or academic matters. At the close of the fi rst decade of the twenty-fi rst century, autonomy is increasingly exercised in matters pertaining to the introduction of courses, recruitment of staff, decisions on admissions, and fi nancial matters – even when a large share of funding still comes from the government. The major observed change concerns the granting of authority, which allows universities to take their own decisions.

e) Academic restructuring is core to institutional restructuring

Curriculum changes and reorganization of courses are core to many of the reform measures. In Indonesia, undergraduate courses were reviewed and reorganized. In Malaysia, faculties and courses were reorganized and merged. At UKM, traditional departments were abolished and new schools and centres of study were established. Faculties were amalgamated. For example, four science faculties were merged to form the Faculty of Science and Technology, followed by the integration of the Faculty of Language Studies, the Faculty of Development Studies and the Faculty of Social Sciences. More recently, the restructuring process involved the amalgamation of the Faculty of Economics and Business Management.

In Vietnam and Mongolia, course contents were changed to refl ect the requirements of the new market-oriented economy. Five colleges and research institutions were merged to form Hue University in Vietnam. The reorganization of these faculties helped create standardized units for academic and management purposes. Courses were reorganized and faculties were amalgamated to form more viable units, to avoid overlapping between subject areas. At present, Hue University consists of six schools and fi ve centres. The change in university curriculum is a major step since universities are traditionally slow to adapt to change.

In Mongolia, courses were reorganized and some departments were enlarged then divided into two. For example, in 1995, the School of Mechanical Engineering and Technology was split into two separate schools, while in 1996, the School of Geology and Mining Engineering was divided into the School of Geology and the School of Mining Engineering. Furthermore, the university founded new schools and introduced new courses. In 2000, with the foundation of the School


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of Engineering Education, three schools were built, namely the School of Mathematics, the School of Chemical Technology and the School of Humanities. Similarly, research activities were restructured and reorganized along the lines of a university research centre – a standard that has been enforced steadily throughout university research and development activities. Consequently, the Mining Institute, the Institute of Thermal Technology and Ecology and the Textile Research Institute were founded within the Mongolian University of Science and Technology.

In addition to these reorganizations, the university also established off-campus education. The Mongolian University of Science and Technology established branches in the countryside, and consequently, in 1997, two schools emerged in Uvurkhangai Aimag and Erdenet City, with another school opening the following year in Sukhbaatar City.

All these efforts reinforce the point that fi nancial resource mobilization was not the major concern of institutional restructuring in East Asian countries. Crucial university functions, such as programmes of study and courses, were reorganized to make them more relevant to changing circumstances and to improve the quality in provision of services.

f) Creation of new structures of university management

The most important feature of the institutional restructuring process is that all the universities have created structures within which to provide better institutional management. In Indonesia, a new Board of Trustees structure has been created, responsible for all decisions taken for and on behalf of the university. Other internal bodies have also been created, which although they include representatives from the Ministry of Education and/or Ministry of Finance, enjoy the freedom to take decisions on all crucial aspects related to university functioning.

In Thailand, the reconstituted University Council is responsible for the overall management of the university, with many other committees and bodies functioning under its supervision. In Malaysia, in line with the corporatization process, the University Council was replaced by a University Board of Directors. The Vice-Chancellor became Chief


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Executive Head of the institution, and many other internal management structures were created.

In Mongolia, the previous management structure took the form of an inverted triangle (as shown below). The President’s Council was large in size and had much authority. Over the years, faculties have been replaced by schools, and departments by professors (Figure 1.1), and the academic community has increased its representation in decision-making bodies.

Figure 1.1 Restructuring and reorganization models of MUST

Faculties

Before 1992 1992-2002 2002

Schools

President’sCouncil

Schools

Professors



DepartmentsDepartments

g) Decentralization of decision-making within universities has increased

As a result of institutional restructuring, the internal democratic functioning of institutions of higher education has increased considerably. Before these reforms, the management and administration of university affairs was largely the province of senior management. However, this has changed signifi cantly in recent times, with departments and schools becoming much stronger in the articulation of their requirements. However, in the context of Vietnam, there is more centralization at the university level in terms of decision-making, while lower level units are not always associated with crucial decision-making processes. As mentioned earlier, these function more as implementing agencies.

h) Implementation needs a strong leader at the institutional level

The study of universities included in the project indicates that institutional restructuring was facilitated by strong leaders. The leaders


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in these cases gave stakeholders confi dence that their relative positions would not worsen as a result of the reforms. The international experience and recognition of the university head in Mongolia benefi tted the implementation of reforms. Indonesia and Thailand, too, profi ted from the presence of strong institutional heads who led the restructuring process. In Thailand, teachers had to take a decision regarding a shift in their employment status from the civil service to university service.

i) Resistance to change

The implementation of changes in higher education institutions is more diffi cult, primarily due to strong resistance to change in these institutions. Moreover, dispersed decision-making structures make it more diffi cult to implement reforms. The Malaysian experience shows that resistance to reforms can be overcome if consultations and discussions take place among stakeholders, providing them with the opportunity to refl ect and respond. This may lead to delays in implementation, but such delays are necessary to reduce the social cost of implementing reforms.

Rushing the restructuring process is not the best way to introduce reforms. This may be seen as imposing changes against the will of the academic community. In all instances, it is important to keep the interests of stakeholders in mind. Reforms are opposed when part of the academic community feels that it will lose as a result of the process. For example, the reorganization of departments and schools may lead to some people losing their positions. Any successful reform is a negotiation between what is desirable and what is feasible.

The implementation of reforms introduces an element of risk at the institutional level – some people gain as a result of reforms while others may lose. People are not ready to accept internal and institutional changes until they are assured that their relative position in the hierarchy will be at least retained, if not improved. The Malaysia study shows that resistance can be reduced and overcome if the Vice-Chancellor announces that no redundancies will occur as a result of the reforms.

Many reforms worldwide are resolutely resisted by university staff and students. It has been argued elsewhere (Varghese, 2004a) that incentives are a better means than mandates to overcome resistance


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to change. In many cases, resistance to change is reduced when the academic community sees positive incentives for themselves as individuals and for the institution as a whole. These incentives need not be in the form of fi nancial rewards or returns. In other words, resistance is least when no one loses in the change process. The challenge lies in devising institutional reforms where losers can be reduced to the minimum and staff and students can be convinced of a better future for the institution in the long run.

1.7 Concluding remarks

The above discussions show that these changes have transformed both universities in general, and their functioning in particular. New positions have been introduced in the hierarchy, new operating rules have been formulated, and structures for decision-making and reform implementation have been created. Academic and administrative delivery systems have been improved. The institutions studied, especially in Indonesia, Malaysia and Thailand, were not subjected to severe budget cuts. The restructuring process was oriented towards seeking relevance and improving quality of services provided. In general, the institutional restructuring process has resulted in better functioning institutions more focused on realizing their mission of providing relevant courses of good quality.

The institutional restructuring processes have reduced political control of the universities and improved institutional capacity to respond quickly to societal needs and market signals. The reputation of universities for being loosely attached organizations with weak regulation and control, is now being replaced by the notion that universities can be tightly coupled institutions with effective monitoring systems – while still maintaining their mission. Such changes in behaviour of institutions cannot be achieved through mandates. The academic community needs to be convinced of the need for the changes and this conviction can be generated and reinforced through consultations. In other words, there is no alternative to consultations and discussions if restructuring is to be introduced in institutions of higher education.

Discussions necessitate a vision statement and the elaboration of an operational plan to realize the visions. Strategic planning becomes


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an essential tool to guide discussions and gain consensus on matters of crucial importance to the institution. These plans need to evolve with the agreement of stakeholders. The institutions we have studied developed documents concerning the restructuring processes, their contents and steps for implementation. Staff members – even those who have long been part of institutions – now have a clearer idea than ever before of the institutional mission and their role in realizing that mission. Strategic planning is becoming an effective tool to bridging the gap between what is desirable and what is possible within the institutional context.

In the process of introducing institutional restructuring, not only is the mission rendered clear, but also the overall functioning of the institution becomes more transparent. The time allocations to various activities, the work allocation to individuals, and budget allocations to departments are based on objective criteria that can be verifi ed and evaluated. This transparency in operation is a great achievement and a good way of implementing reforms in the years to come. Normally, it is believed that reforms in older institutions are very diffi cult. But the experience presented here clearly indicates that reforms, if initiated with preparation, can be successfully implemented even in old universities and institutions.

Institutional restructuring and transformation can be brought about by relying either on mandates or on incentives. Mandates demand compliance and punishment for failure to comply. Incentives motivate individuals to change collectively, which leads to institutional reform. In general, mandates are more easily complied with when institutions are struggling to survive, whereas incentives and rewards are preferable when institutions are to be revived and revitalized. The professoriate wields considerable infl uence in all universities as the intellectual leaders of their own domains of operation. Mandates are the least preferred means to win the support of the professoriate; it is therefore diffi cult to introduce changes through mandates in universities. The East Asian experience shows that the success of the institutional restructuring process in these universities lies in their reliance on incentives to motivate individuals to change rather than on mandates to comply.


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2. GADJAH MADA UNIVERSITY, INDONESIA

Sahid Susanto2 and M. Nizam3

2.1 Introduction

In a world economic system shifting swiftly towards a knowledge-intensive economy, an important ingredient for a country’s survival is the development of quality higher education. Inequalities resulting from globalization are likely to increase in the coming decades, as developing countries undergo the diffi cult transition to more competitive, transparent and rule-based market systems, and competition becomes the name of the game. Education is one option available to manage some of the more negative effects provoked by globalization. Unfortunately, for less well-off countries, the price of delivering good education is overwhelmingly high (Brodjonegoro, 2002). Higher education in Indonesia, as in other developing countries, is confronted with multiple, pressing tasks. First, there is an urgent need to improve quality, relevance, access and equity, effi ciency and the governance system; second, there is a need to properly position higher education to become an independent moral force towards democratization and socio-political reform; and third, there are new challenges arising from the construction of knowledge economies, internationalization and ever increasing competition (Nizam, 2004). All these problems occur within a very tight government budget, where funding for higher education competes with other, more urgent sectors. The university must adapt to survive these pressing challenges. There can be no ‘business as usual’ since many universities believe that the only way to adapt is by fi rst reforming themselves. A higher education system’s ability to adapt and successfully confront old and new challenges becomes the key to successful reform.

During the late 1970s to early 1980s, high economic growth in Indonesia, fuelled by an oil-price boom, resulted in rapid expansion of

2. Sahid Susanto is Professor/Chairman at the Centre for Higher Education Planning and Management Studies, Gadjah Mada University, Yogyakarta, Indonesia.

3. M. Nizam is a Researcher at the Centre for Higher Education Planning and Management Studies, Gadjah Mada University, Yogyakarta, Indonesia.


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higher education. The system, which catered for a mere 200,000 students in 1975, had by 1995 grown into a system with 2.5 million students. Almost 15 years later, more than 3.5 million students are enrolling in over 2,300 higher education institutions (HEIs) (86 public and some 2,200 private). The GER increased rapidly from just 2 per cent in 1975 to more than 13 per cent in 2003. This rapid expansion, driven by economic growth and an international trend that started much earlier in other countries, transformed the elitist higher education system into one that touched the masses. Interestingly and contrary to common belief, this expansion has not led to increased unemployment rates – despite a higher rate of unemployment among university graduates – nor has it reduced the social demand for higher education. These factors prove that higher education has attained a mainstream character, in which both the individual and society consider university experience essential for the future.

Internally, public universities in Indonesia face problems of deteriorating quality and relevance. On the one hand, they are under-funded due to limited budgets; yet, at the same time, they can be considered as over-funded because of poor performance and high ineffi ciency of staff and institution overheads. Lack of autonomy, due to centralistic planning and bureaucratic regulations, cause university management to devote unnecessary time and effort to resolving trivial issues, leaving management with insuffi cient time to tackle the main academic tasks of education, research and community services. These regulations also weaken university effi ciency, since a uniform bureaucratic system is non-specifi c and applies to any kind of government agency. The existing, prevailing regulations, therefore, must be reformed to provide a framework that will enable university management to perform its main tasks more effi ciently and respond better to changing market needs. This necessitates a long-term government policy reform of higher education development. The new paradigm, which consists of fi ve pillars – quality, autonomy, accountability, accreditation and evaluation – has been applied as a development strategy. Under this paradigm, university performance will be measured based on a different set of performance indicators from those applied to other government agencies, which differ in organizational nature.


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Gadjah Mada University, Indonesia

Higher education reform has actually been on the agenda since 1996 (Soehendro, 1996). In line with the spirit of democratization and amidst the economic diffi culties that began in 1997, higher education reform in Indonesia put forward a strategic long-standing agenda driven by greater autonomy and decentralization of authority. The urgent need to position higher education as a moral force to drive the democratization process found a channel within political reform. The reform required higher education institutions to develop institutional credibility by restructuring the nation-wide system as well as the university management system. These systems should be accountable to the public, demonstrating high operational effi ciency, and quality and relevance of outputs. Furthermore, they should boast an internal management that is publicly transparent and complies with an acceptable standard of quality. An adaptive and responsive system can only be achieved if it is autonomous, yet, at the same time, accountable. These two aspects are the foundation of the reform: providing autonomy and decentralizing authority to the university, while simultaneously infusing more direct accountability into the system. Such a framework should encourage public participation in setting quality and relevance of higher education as well as in providing funding (Brodjonegoro, 2003).

Autonomy was provided by changing a university’s status, transforming it from a government institution into an independent legal entity. In 2000, four of the most established state universities were piloted to become legal entities or autonomous universities. As a legal entity, the university is separated from government bureaucracy and becomes more accountable to the public instead of to the ministry. With such status, a university can generate and manage its own revenue to support its operations as well as set its own salary scale. Consequently, university management has also been transformed, adopting a more corporate style. The transformation of management style is necessary and is mainly driven by the need to improve effi ciency. Within ten years, all staff – to this point considered to be civil servants – will become university employees. The university community, which for more than 50 years was under tight government regulation, responded to the reform with mixed reactions.

This chapter is based on a study of the impact of the reforms at Gadjah Mada University (UGM). The study examined the implementation


56


of reforms to restructure the university’s organization under the new status, and focused in particular on three aspects: (i) structural changes, including aspects of legality, university governance and management; (ii) funding mechanisms and fi nancial management; and (iii) changes in academic programme management. The response from the university community, including the university executives, deans and heads of departments, academic and administrative staff and students, were assessed through questionnaires. Benefi ts and risks were analysed, and input to institutional managers is proposed based on lessons learned.

2.2 Institutional restructuring

University profi leUGM, located at Yogyakarta Special Province, is the oldest and

largest state university in Indonesia (apart from the Open University) with more than 50,000 students, 2,300 academic and 2,100 supporting staff. Prominent scholars and founding fathers of the Indonesian education system, such as the Sultan of Yogyakarta established the university in the early years of independence. Gadjah Mada is named after a fourteenth-century statesman of the Majapahit kingdom who proclaimed the unity of the thousands of islands now known as Indonesia. The university was an amalgamation of the Gadjah Mada Institute of Higher Learning, the Bandung Engineering Institute at Yogyakarta (established by the Department of Education by recruiting the staff and students of the pre-war Bandung Engineering Institute), the Faculties of Medicine, Dentistry, Pharmacy, Agriculture and Veterinary Medicine at Klaten, and the College of Political Science. UGM was formally established under Government Decree No. 23 of 1949 as the country’s fi rst national university. Around 600 students were enrolled in the four faculties (Medicine, Dentistry, Pharmacy, Veterinary Medicine and Agriculture; Engineering; Law and Letters; and Political Science) as the fi rst batch of students.

In 1983, UGM had 18 faculties comprising undergraduate programmes (S-1); two faculties of diploma programmes (D-3), namely the Faculty of Diploma of Economics and the Faculty of Diploma of Engineering; and one Faculty of Graduate Programmes (S-2 and S-3). Following the Decree of the Ministry of Education and Culture in 1991,


57


the Faculty of Graduate Programmes was changed to the Graduate Programme, and the Faculty of Diploma was modifi ed to the Diploma Programme. The 18 faculties are the Faculties of Biology, Economics, Pharmacy, Philosophy, Geography, Law, Social and Political Sciences, Medicine, Dentistry, Veterinary Medicine, Forestry, Physics and Mathematics, Agriculture, Animal Husbandry, Psychology, Letters, Engineering, and Agricultural Engineering. Since then, UGM has become Indonesia’s biggest university, with more than 50,000 students. Its 18 faculties offer 68 undergraduate programmes, 17 diploma programmes and 65 graduate programmes. All study programmes have been accredited by the National Accreditation Board. The university also has 24 research centres and an Institute of Community Services, which comprises six centers of community services. Nine supporting service units were also established to provide services to run the university.

The need to reformUnder the former system, universities in Indonesia were required

to adopt a uniform structure both in management and programme development, regardless of their size and context. They conformed to central government norms and regulations that also applied to other administrative units of government bureaucratic institutions. A centralized system rendered higher education institutions unable to adapt to the dynamic of constantly changing challenges, causing universities to become ineffi cient. Although government funding was inadequate to develop quality education, an institution’s capacity to generate funding from other sources was not explored due to a disincentive system that applied to government institutions. As in other public universities with a centralized control system and inadequate salaries, staff moonlighting was rampant; many senior teachers neglected their classes; institutional planning and management capacity were weak; graduates’ length of study was unacceptable; both curriculum and research were frequently irrelevant; and university operations were highly ineffi cient and overstaffed (Moeliodihardjo et al., 2003). Supporting staff were overburdened with a cluttered central government accounting system. Since staff were civil servants, there was no easy way to introduce an effective reward and penalty system to improve performance.


58


These unfavourable conditions needed reform if universities wished to better adapt to the challenges of changing environments and respond more quickly to market signals. This need to reform the higher education system had existed since the mid-1990s, as evidenced in the government’s Higher Education Long Term Strategy Framework 1996-2005 (Soehendro, 1996). However, it was not until the end of 1999 – in the midst of an economic and political crisis – that the bold step to signifi cantly reform the system took place. UGM together with three of the most established state universities – the University of Indonesia (UI), the Bandung Institute of Technology (ITB) and Bogor Agriculture University (IPB) – were invited by the government to transform their status from state university to that of a state-owned legal entity. This was part of the implementation of higher education reform at the university level.

2.3 Aspects of expected improvement

StatusUnder the former system, a university did not have the formal legal

status to represent itself before the law; it could only act on whatever its superior, the Ministry of National Education (MoNE), asked and commanded it to do. The reform, while not meant to privatize the state university, provided a formal legal status to the university. Under the new status, the university was still owned by the state (state-owned legal entity – BHMN). The status of state-owned legal entity proved later on to be problematic; this will be addressed in this chapter. With this status, the university can formally represent itself before the law, and plan and conduct its management autonomously. However, as a state-owned entity, the state is still responsible for providing funding, at least in part. Funding for a state university is basically divided into three groups: fi rst is the state appropriation for the operational cost including emolument (DIK), second is the state development budget (DIP), and third is public participation and self-generated funding (DIK-S). Under the government budget regulation, any revenue generated by the university has to be submitted to the government. The university can then propose a budget for the revenue it generated through DIK-S. Any budget surplus at the end of the budget year has to be submitted to


59


the government. Such a system does not generate effi ciency; instead, it creates a disincentive and tends to develop ineffi cient management.

Administrative autonomy and accountabilityPreviously, the university’s management fell under the direct

responsibility of the Minister of National Education. Every year the university reported to the Minister. Indirect accountability to stakeholders rendered the university less responsive to the changes and needs of the market and other users. With the new status, the autonomous university is no longer under the Minister but directly accountable to the public through the Board of Trustees. A university has the freedom to develop its administrative system, planning, budgeting and human resources. All state assets, except land, are granted to the university for the purpose of higher education operations. The university can utilize and make use of these assets for educational purposes or to support the operation of the educational process.

Formerly subsidized through a line-item budgeting system, the university’s operational cost is now presented in the form of a block-grant or budget envelope. It is up to the university to plan and spend the money for academic delivery. The government appropriation for operational cost is given based on a formula that weighs the university’s outcome, such as the number of graduates produced annually to a certain quality standard. The investment budget is provided through competition (competitive funding) based on proposals submitted by each university. Such competitive funding schemes for development budgets have been implemented since 1996 – fi rst with the support of the World Bank, but now solely from government money.

Academic autonomyAcademic autonomy is another important element of the reform’s

intended outcome. Under the former centralistic system, the central authority drove academic programme development. The central government’s role was very strong, with even a national standard curriculum designed centrally. Every study programme adopted the rigid national standard; otherwise, it could not be recognized by the authority. Such a system created nothing but infl exibility and poor


60


response and adaptation to market demand. The centralistic plan tended to hinder the progress of more developed institutions while making it diffi cult for the less established to maintain the standard. With academic autonomy, a university can set its own academic programme and improve its relevance and quality based on its own environmental setting; therefore, it can respond fl exibly to the market and social needs. The university can also set its own capacity, which is expected to improve the effi cient use of resources.

2.4 Implementation of restructuring in the university

Institutional reform initiativeUGM responded to the invitation to become a pilot for university

reform by establishing a number of task forces. These were assigned to assess the university’s position by conducting a thorough self-evaluation, developing a plan for the new status, and creating a road map for the transition. For a large institution like UGM, with diverse organizational and academic cultures among its units, the intended change was very challenging, diffi cult to implement, and if not well integrated socially, risky to the institution. By adopting a bottom-up, participatory approach, the plan was not only developed at the university level, but each of the 18 faculties was requested to develop its own plan for adaption to the new system being developed by the university task forces. Preparations spanned almost one year, entailing intensive data collection, public hearings, discussions and workshops to substantiate the plan. Proposals were submitted to the government review panel. After several refusals, the proposals were fi nally accepted and the university received legal status as a state-owned legal entity through Government Regulation No. 153 of 2000, issued by the government in December 2000. The subsequent fi ve years were considered a transition period designed to lead to full autonomy.

The reforms at UGM indicated an institutional restructuring of the organization, university governance, academic programme and fi nancial management. The university management coined the reform issues to be addressed as ‘RAISE-LEAP’, which stood for Relevance, Academic atmosphere, Internal management and Structural


61


organization, Effi ciency and productivity, Leadership, Equity and Access and Partnership.

Reform staging and structural changesThe task of transforming a big institution, with more than 50 years of

organizational culture as a government institution, into a corporate-like organization was broken down into three stages to be implemented over ten years. The fi rst was socialization; top priorities at this stage were setting up the new governance system with the necessary infrastructures and by-laws, and information system infrastructure development. The second stage targeted the introduction and implementation of revised budget arrangements, refi nement and introduction of new academic programme arrangements, and development of by-laws related to personnel management. Finally, the most diffi cult stage encompassed the ten-year transformation of existing civil servants into university employees, which included arranging retirement and pension plans.

Governance structureThe fi rst stage was initiated in the fi rst year of the transition. The

university no longer reported directly to the MoNE; instead, it now reports to a Board of Trustees as a representative of the stakeholders. The Board represents the government, public and academic community and acts as the highest body in the new governance structure of the university. As the supreme body, the Board appointed a rector and laid down the university’s strategic plan as well as its by-laws. The Board consists of a representative of the MoNE, representative members of the Academic Senate, administrative staff, students, employers, users, the local governor and the community at large. The representative of the MoNE has 35 per cent of the vote in the rector election. A Board member is elected for a term of fi ve years. For the initial set up, the former Academic Senate proposed members of the Board to the MoNE, which appointed the Board in February 2001. The Senate also appointed a committee to select candidates for the rector which were submitted to the Board. For the fi rst time in its history, UGM advertised the post publicly. Although only a few applicants outside of the university responded to the offer, the move, nevertheless, was viewed as a step towards corporatizing university management.


62


The selection of the rector was conducted in a manner consistent with the appointment of a manager in a corporate entity. The Board elected the rector from a choice of three fi nal candidates selected by the Senate.

The rector is supported by the Senior Vice-Rector for Academic Affairs, the Senior Vice-Rector for Administrative Affairs, the Vice-Rector for Research and Public Services, the Vice-Rector for Student Support and the Vice-Rector for Cooperation and Enterprise Development. One or two assistants support each vice-rector. Contrary to the perception that improved effi ciency means a leaner organization, the actual number of executive staff increased. In addition, new administrative coordinating units were established as departments, transforming the original fi ve bureaus under the rector’s offi ce. A director chairs each department. There are also supporting and service units: the Central Library, the Computer Centre, the Workshop and the University Press.

The next step was the establishment of other governance units, starting with a new Senate. Previously, membership to the Academic Senate was granted automatically when an academic staff member became a professor. Under the new regulations, Senate members are representatives of both the professor and non-professorial staff, representing all 18 faculties. A Senate member is now selected and elected at the faculty level. The Senate’s main role is to develop academic programmes and partner with the rector. Formerly, the rector ex offi cio was also chairperson of the university Senate; under the new regulation, the rector cannot chair the Senate and must be elected by the members. Many professors opposed the regulation denying automatic membership to the Senate for all professors. To avoid unnecessary confl ict, a new body entitled The Professors’ Council (PC) was founded. The main role of the PC is to develop and maintain an academic ethical standard.

In the spirit of transparency and good governance, a new Internal Audit Unit (IAU) was appointed by the rector. The role of IAU is to assist the rector in assuring the appropriateness of budget implementation, and effective academic delivery. To assist the rector in developing and implementing the transition process, a non-structural unit called


63


the Secretariat for the Preparation and Development of University Autonomy was established.

With regard to academic matters – since quality higher education drives the reform – a Quality Assurance Unit (QAU) was established to gather, develop and disseminate good practices, quality standards, and to improve teaching and learning methods. QAU also engaged in developing an academic auditing system, which included training internal academic auditors to international standard and certifi cation. Additional aims of the reform process are image building and quality improvement.

Changes in organizational structure at the faculty level are not as signifi cant as at the university level. In line with the university, Faculty Academic Senate members are now selected and/or elected by the department and the names submitted to the dean. The faculty dean is no longer the Chairman of the Faculty Academic Senate, who is instead elected from among the members.

Through such reforms, the university community expects to become more effi cient and effective in its management of resources, to better use of its staff, to generate more funds to support its operation, and to deliver a quality product in terms of graduates, research and community services. The fundamental aim is to become a prominent research university by the end of the transition process.

Financial restructuringThe restructuring of fi nancial management focused on revenue

generation, budget planning and allocation. The development of fi nancial management was based around the philosophy of ‘fi duciary system cooperation’, in other words, all fi nancial matters must be clear to the stakeholders – students, parents, government, employees, faculties and other related parties. In implementing this philosophy, fi nancial management is characterized by transparency, accountability, feedback value and quality-improvement. The development of an internal audit system and establishment of the IAU help instil these principles. The implementation of a new management plan to centralize the administration and decentralize academic matters – CADA (centralized administration decentralized academic management) – is


64


still under development, which includes consolidated budgeting, a new integrated accounting system, regular reporting, internal auditing and establishment of many new procedural standards for administration. In the 2003 fi scal year, bottom-up strategic planning and development of a consolidated budget was initiated. Each faculty was fi rst requested to develop a budget plan based on its own operational development plan for the year; these were then consolidated by the university management into a single university budget plan. The faculty operational plan was, in turn, a consolidation of departmental plans.

Motivated by the need to generate more funds, the university established commercial revenue centres. The university also invested in potential profi t-making ventures. All ventures are managed and coordinated under a holding company directly responsible to the rector. A simpler source of income is the students’ parents through tuition and fees. In 2003, UGM shook the national consensus on joint entry exams for student recruitment by conducting its own national recruitment in 19 provinces. It is well-known that students from well-off families benefi t more from government subsidies to state universities than those of poorer families due to asymmetric opportunities at the lower education level. Nationally, around 31 per cent of pupils from the quintile of the richest consumption group have access to the university compared to only 3.3 per cent from the poorest quintile (Triaswati and Roeslan, 2003). Realizing this, UGM established a differential tuition system in which the wealthier are requested to pay more in order to subsidize the poorer students. The implementation of this tuition system is seen by many as the primary result of university reform. Conceptually, the university was also obliged to negotiate with the government to establish agreed enrolment growth targets and produce a certain number of graduates within a set standard of quality and with fi nancial grants made accordingly through a budget envelope. However, due to many hindrances discussed later, this concept has not yet materialized.

To improve staff performance, the university plans to provide better salary scales for staff, based on workload and performance, although this has not yet taken place. Greater effi ciency is also expected as a result of consolidation of the budget plan and optimization of available resources through sharing and joint utilization. Faculties are expected to contribute to desirable university-wide services, such as


65


security, cleaning services, IT infrastructure and networking, rather than allowing each unit to purchase partial services at higher unit costs. Many university services are encouraged to be self-fi nancing to reduce the burden of the regular operating budget.

Academic reform: quality assuranceOne main reason for the reform was to improve academic quality.

This includes programme development, quality and relevance. Under centralistic planning and control, it was almost impossible to use and maintain a single quality standard of education. In 1996, when the fi rst higher education reform was introduced, an accreditation body was established by the MoNE and the National Accreditation Board (NAB). The board developed compulsory accreditation for all study programmes. With thousands of study programmes to be assessed and accredited nationwide, it was a Herculean task almost impossible for NAB to accomplish. Being autonomous, a university is expected to develop its own system of quality standards and control, provided that this is recognized by its stakeholders. Realizing that quality assurance is the main foundation for developing public trust in higher education institutions, UGM developed the QAU as its fi rst step towards autonomy.

Quality assessment of academic performance has been carried out at the university for many years, although in a manner different to the current practice of quality assurance (QA). Student academic assessments have taken the form of tests, exams, grading of homework, grading of reports, and so on, while the assessment of teachers’ performance by students has been common practice in several study programmes since the early 1980s. Externally, all 65 undergraduate study programmes have been accredited by the NAB. As for the graduate programmes (S-2/Master), all 57 study programmes have been accredited. Under the new QAU, good practices established in many of the study programmes are compiled and disseminated. The unit also developed guidelines for quality assurance systems and standards distributed to all university units, which can be refi ned to match the needs of each unit. The four components of quality assessment applied within the university are input, process, outcomes and strategies for improvement.


66


If the QAU’s task is to develop and disseminate standards and good practices, the implementation of quality assurance rests at the faculty level or unit in the form of research centres and academic service units. Quality audits are conducted by the IAU, which audits not only administrative implementation, but also academic delivery. IAU and QAU developed their capacity to conduct academic audits by training academic auditors. Collaboration and experience-sharing with international QA agencies were also augmented, most importantly through the ASEAN University Network. As a result of this ceaseless effort, UGM has now become the centre for national quality audit networks.

Autonomy in developing academic programmes has been exercised in some study programmes through the introduction of a new curriculum, implementation of student-centred learning and problem-based learning, and the offering of international classes. In a relatively short time, the curriculum and course delivery methods of some programmes have become the reference for other universities and, de facto, the national standard.

2.5 Constraints in the implementation of restructuring measures

Although presentation of the strategy and plan took place without diffi culty, many constraints have hindered the reform’s implementation, both external and internal. One stumbling block, diffi cult to overcome, is the legal infrastructure that provides the reform’s framework. Although a new National Education System law was declared in 2003, other laws outside the authority of MoNE have not been reformed in line with the plan. The relevant legal infrastructures are thus still not conducive for the planned reform related to legal entity status, employment and fi nancial regulations.

Under the current legal system, there are only two kinds of entities: a government unit or a state-owned enterprise. The former is considered a not-for-profi t unit, whereas the latter is a for-profi t unit. Higher education as a legal entity is a not-for-profi t unit, but is still not part of the government as such status is non-existent under current regulation. This status has very signifi cant consequences for funding and taxation. If higher education is considered as a state-owned


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enterprise, it should follow the fi nancial and taxation system applied to commercial enterprises. On the other hand, if it is considered as part of the government service unit, it must revert to its former status without the desired autonomy. To overcome the problem, a possible compromise has been worked out called a ‘state-owned public service unit’. Such a unit still belongs to the government but has the autonomy to manage its own business. This compromise has not fulfi lled the expectations of the reform, but suffi ces for the time being.

With regard to employment, there is no existing legal framework to protect the conversion of civil servant status to that of a university employee, and shift the budget appropriation for salary into a block grant budget for the university. Without the assurance of staff emolument, the initiative is considered too risky. Another diffi cult, related aspect concerns the pension and retirement scheme, which will require considerable fi nancial support, currently not provided. Without assurance of the availability of government appropriation for staff emolument, it is hard for the university to implement the conversion of staff into university employees. Even the new, planned salary scale cannot be easily implemented since all staff are still civil servants abiding by the existing regulation. Contractual-based employment is also a diffi cult option, as current regulation demands the fulfi lment of requirements on the part of the university, such as limitation on contract duration and a social security scheme.

Other stumbling blocks include the different perceptions of the parties involved in the reform, as well as other stakeholders. The new tuition fee structures introduced along with commercial ventures developed by the university caused many to perceive the higher education reform as a form of commercialization, or even privatization of the higher education institution. Moreover, the analogy with privatization of state enterprises resulted in many parliament members feeling that government subsidies to autonomous universities should be reduced. Inaccurate perceptions by stakeholders render it diffi cult for the university to develop public trust or gain their support. Misperceptions occurred not only among external stakeholders, but also within the university community. To a certain extent, many within the faculty and department management believed autonomy would mean more freedom at all levels, whereas in fact, autonomy tends to result in more


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direct control of units. While the university had already placed higher demands on staff to improve their professionalism, high expectations on the part of many staff for outcomes such as a better salary scale have not transpired. The momentum, at times, appears to decrease as time passes. Strong resentment also comes from students, who feel that they bear the burden with increased tuition fees.

The university needs a good public relations stance to explain the reality of circumstances and convince internal and external stakeholders that it remains on the right track. The rector’s role is instrumental in representing the university before the parliament through lobbying, negotiating with and persuading other ministries; convincing stakeholders; and regaining public trust to support the university. UGM is working hand-in-hand with the other three autonomous universities, to plead its case and solicit the government to keep its promise. Internally, many workshops have been conducted to better inform the academic community. Bottom-up planning and budgeting have also been introduced to gain support and participation from the academic community.

2.6 Impact of restructuring on the management of universities

Effectiveness of the new structures The academic community may be one of the most diffi cult

communities to reform. Less than three years into the reform, it is too early to assess the effectiveness and functioning of the new structures. All the main components of the university organization have now been established. The Board of Trustees meets regularly to discuss strategic issues and lay down strategic plans. For the fi rst time, students and administrative staff are involved in the decision-making process through their representative on the Board of Trustees, while representatives from industry can provide suggestions for better managing the university. The university management, in close collaboration with stakeholders, can now cultivate programmes that respond to issues in the real world. The Academic Senate has produced the university by-laws, and all units are working at full speed to develop regulations, standards, norms and guidelines.


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University reform has stirred the academic community to refl ect on ways to improve the university. As part of the process of developing the university management structure, the role of organization units and the process of decision-making were thoroughly reviewed, perhaps for the fi rst time. Many trials and errors took place during the fi rst three years. New university regulations, a new accounting system, a new planning system and a new reporting system were introduced. ‘Business as usual’ no longer exists. To sum it up, a learning organization was born.

Perception of the university communityPerceptions from academic communities regarding the restructuring

impact on university functioning were collected during the university’s transition period. The university communities assessed: (i) senior management including university executives, selected deans and heads of departments; (ii) academic or teaching staff; (iii) administrative and supporting staff; and (iv) undergraduate student representatives.

Under the new legal status, there are three fundamentally important types of benefi t for the university: (i) academic benefi t; (ii) organizational benefi t; and (iii) fi nancial benefi t. For academic benefi t, the university realized that the granting of more academic freedom needed to be accompanied by better control mechanisms. Organizational benefi t may be traced to the implementation of organizational restructuring in terms of: (a) fl exibility in the organizational structure to ensure improvement in effi ciency; (b) concordance to achieve a coherent and unifi ed management system (here the emphasis is on an integrated management system with the university at its centre); and (c) improvement in participation and effectiveness on the part of the organizational divisions. Financial benefi t was implemented through a strategic planning approach based on objective assessment of the university’s needs. An objective assessment of assets and fi nancial resources plays an important part in the university’s restructuring and reform measures. The exploitation of assets and resources will always be based upon effi ciency, effectiveness and prudence. Assessment of the university’s strategic assets will cover fi nancial capital as well as physical assets, information capital and human capital.


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a) Deans and heads of department

Most deans are supportive of the change in university status. They expect greater autonomy in running the faculty, while at the department level, most department heads also expect more autonomy in managing their departments (Table 2.1). Concerning the benefi ts of structural reform within the university, most feel that the reform is conceptually good on paper; however, implementation is hindered by existing regulations, which are practically identical to those of the previous system. The regulations that many deans and department heads feel are the most restrictive concern fi nance, the civil servant system, and the government budget accounting system (Table 2.2).

Table 2.1 Average value of the response from department heads on the level of autonomy granted as part of institutional restructuring

StatementResponse value 1 2 3 4 5 6 7 8 9 10 11 12 13

2.63 2.50 2.00 2.25 2.63 3.13 3.13 2.63 3.00 3.13 2.50 2.63 3.00Statements:Decision-making structure at the institutional levelDecision-making structure at the faculty/department levelAcademic staffIntroducing new study programmesStaff recruitmentAllocation of budget to departmentsProcurement proceduresIncome-generating activitiesStudent admissionsDetermination of students feesStudent evaluation proceduresQuality assurance systemAudit system

Response value:Total autonomyHigh degree autonomyLimited autonomyNo autonomyNo answer


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Table 2.2 Average value of response from department heads on the benefi ts of institutional restructuring

StatementResponse value 1 2 3 4 5 6 7 8 9 10 11 12 13 14

2.75 2.50 2.50 3.00 2.63 2.50 2.38 2.50 2.63 2.88 2.88 2.63 2.75 2.38Statements:

University autonomy1. Autonomy of department2. Autonomy of academic staff3. University decision-making process4. Academic programmes5. Staff recruitment procedures6. Staff evaluation procedures 7. Allocation of budget/resources8. Procurement procedures 9. Income-generating activities10. Cost-saving measures11. Admission procedures12. Student fees 13. Students support systems14.

Response value:No benefi t 1. Moderate benefi t2. Signifi cant benefi t3. Not applicable4. No answer5.

There is no signifi cant difference between the responses of faculty and department executives. The average response of most department heads regarding the degree of autonomy and benefi t of restructuring is that the level of autonomy they have is still limited to moderate; in spite of this, most feel that there is some benefi t to be gained from the restructuring. Both faculty and departments have experienced more academic freedom. The change in organizational culture from a top-down approach to a bottom-up approach has given better opportunities to faculty and departments to reform their organization. Changing the funding mechanism, particularly for DIP from a top-down approach to a bottom-up approach, allowed faculty and departments to decide their own development needs and determine how to use fi nancial resources in a more effective way.


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b) Academic staff

On average, there was general agreement concerning the restructuring infl uence in improving the fi ve aspects of academic impact. The restructuring process is viewed as the right method to improve curriculum development, relevance, the multi-disciplinary programme, research and education relationships, and to develop innovative programmes. However, academic staff, in general, have not felt the benefi t of the reform (Figure 2.1). They have not yet seen autonomy related to university and department management, academic staff, the decision-making process, academic management, recruitment and human resource development, budget and fi nances or other management improvements.

Figure 2.1 Response of academic staff on the benefi t of institutional restructuring

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

1 2 3 4 5 6 7 8 9 10 11 12 13Statement

Perc

enta

ge

1 = No benefit 2 = Some benefit 3 = Absolutely benefit 4 = Do not know 5 = No answer

Statement:1. More autonomy for university management2. More autonomy for department/study programme management 3. More autonomy for academic staff4. More autonomy in decision-making process at university level5. More autonomy in managing academic programme6. More autonomy in developing staff recruitment procedure7. More autonomy in developing staff evaluation procedure8. More autonomy in developing budget and resources allocation9. More autonomy in developing revenue generating activities10. More autonomy in decreasing high cost management11. More autonomy in developing students admission12. More autonomy in developing student tuition and fee system13. More autonomy in developing education support system


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c) Administrative staff

If academic staff, on the whole, hold a positive view of the reform, responses from administrative staff are mainly negative or neutral. In other words, the administrative staff did not see the reform as an opportunity to improve university performance or address their concerns. On some occasions, they have even expressed negative feelings, perceiving the reform as a threat to job security, for example. They could see neither the impact nor the benefi t of the reform, other than in terms of a change in university governance structure and less job security (Table 2.3).

Table 2.3 Average value of the response from administrative staff on the benefi t of university restructuring

StatementResponse value 1 2 3 4 5 6 7 8 9 10 11 12 13 14

1.87 1.18 1.21 1.56 1.34 1.65 1.54 1.48 1.26 1.45 1.62 2.05 2.08 1.65Statements:

More autonomy in managing administration at university level1. More autonomy in managing administration at department level2. More autonomy in strengthening performance of educative or academic staff3. More autonomy in improving decision-making process at university level4. More autonomy in managing study programme administration5. More autonomy in developing administrative staff recruitment procedure6. More autonomy in developing administrative staff evaluation procedure7. More autonomy in developing budget and resources allocation8. More autonomy in developing procurement offi ce facilities and equipment9. More autonomy in developing revenue generating activities10. More autonomy in decreasing high cost management 11. More autonomy in developing new students admission procedure12. More autonomy in developing student tuition and fee system13. More autonomy in developing education support system14.

Response value: 1. No impact, 2. Some impact, 3. Signifi cant impact, 4. Do not know, 5. No answer

d) Students

The response from students on the reform process is quite clear. They experience the education reforms in terms of curriculum changes


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and a more work-oriented learning process. Negative responses mostly concern the changes to tuition fees. The introduction of a new admission fee system was seen by many as a logical consequence of the new legal status.

2.7 Implications for introducing reforms in universities

Some important lessons were learned during the transition period.

The benefi tsa) General

The primary objective of the new paradigm is higher education’s contribution to developing the nation’s competitiveness by improving the quality and role of the university. As a centre for elite groups comprising the most highly educated people, UGM is a fundamental source of skilled human resources for national development. Its organization and management could become a model for other organizations. Graduates produced by the university will have experienced its evolving culture and will introduce that culture into their professional community. Thus, the effect of successful implementation of this paradigm in UGM could have a signifi cant impact on the larger society.

b) Ownership, effi ciency and sustainability

In implementing this new paradigm, UGM had the authority to develop its own plan. Consequently, UGM became the sole accountable unit for performance evaluation. UGM feels that the university earns capital infl ux through its performance. This has signifi cantly improved its ownership over investment programmes. Since UGM has control over the investment fund, it tries its best to utilize the fund effi ciently and effectively. In the event of a surplus, the fund can be used to acquire additional capital goods. Greater ownership has also improved sustainability for the programme and investment, and the capacity to develop and implement a plan will last beyond the project duration.


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c) Relevance and accountability

Since the scheme requires a rigorous evaluation of the university’s output and outcome, they consequently provide more attention to satisfying the needs of the Board of Trustees as stakeholders of the university. The term ‘stakeholder’ is not limited to its traditional superordinate (Directorate General of Higher Education – DGHE and MoNE), but also includes alumni, employers, students and the community at large. Efforts to fulfi l stakeholder demands therefore improve both accountability and relevance.

d) Internal management and academic atmosphere

Many aspects of university management can be improved without signifi cant capital input. Strong motivation and a commitment to improve management, as required by the new paradigm, are far more effective compared to physical investment. Improving staff morale and motivation, reducing bureaucracy, requiring self-evaluation and a better budget allocation mechanism to refl ect the university’s priorities are just a few positive aspects stemming from this new paradigm.

Implementing the new paradigm also requires a good academic atmosphere as a performance indicator. For the university, a conducive academic atmosphere is a prerequisite for a healthy relationship between staff and students, as well as among the staff and students themselves. Such a relationship enables the development of good, quality education, supported by all teaching and support staff, and students. Furthermore, student and peer evaluations play an integral part in promoting the development of mutual trust among the academic community. Transparency in all aspects of academia can unite every member of the organization in sharing the same belief and value system.

The risks Introducing cultural change during a transition period carried some

risk for the university. Mutual distrust among groups, a weak coalition government, and pressures from short-sighted economic interests were a few of the problems that characterized the transitional atmosphere. These issues could have hindered the smooth transition to a new culture and attitude; therefore, careful remedial actions needed to be designed to anticipate these risks. The risk elements comprised the following:


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a) Funding mechanism

The two key aspects able to bring about changes in institutions are the enabling regulatory environment and appropriate fi nancial incentives under the government’s responsibility. The regulatory environment must encourage innovation at the level of individual institutions, whereas fi nancial incentive schemes must be able to steer institutions towards quality, effi ciency and equity (Salmi, 2002). The competitive funding mechanism for an investment budget offered by the government through development for undergraduate education (DUE), quality for undergraduate education and DUE-like projects, is a good initiative to break obstacles embedded in the existing mechanism regulating all government-funded activities. These projects override almost the entire mechanism by providing a block grant directly to the university’s special account. The existing scheme for government-funded projects complies with Indonesia Corruption Watch rules and passes through complex agencies – the local treasury offi ce and the university project offi ce (P2T).

As a pilot scheme, it might be accepted as a new initiative until better alternatives to the existing scheme are found. For university operations over the long term, however, the government should either adopt a new standard scheme or comply with the existing scheme. Failure to do this will make the university, as it continues under the new paradigm, an eternal alien to the local system and will endanger its sustainability.

b) Staff attitude and culture

Decades of over-centralization have suppressed initiative, creativity, entrepreneurship and motivation within UGM, including units and individuals within the university. A positive attitude regarding competition has been eroded and most staff passively wait for direction from the central authority. Younger generations, who experienced an overseas education, are discouraged, apathetic and have either fallen out of the mainstream or left university to fi nd a better working atmosphere.

The new paradigm brings a new culture, which is sometimes considered alien to the existing tradition and requires a change in staff


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attitude. Unless a tremendous effort to change the existing staff attitude and culture is carried out, the risk associated with implementation will be high. Merit-based competition, a central element in the new paradigm, requires both high commitment and motivation.

c) Consistency and commitment

The selection of the new paradigm as a national strategy requires consistency and commitment on the part of the central government. Consistency could be demonstrated by gradually expanding the implementation and enlarging the proportion of DIP allocated. It could also be demonstrated by avoiding large investment programmes, including projects supported by donor agencies, which are not in line with the concept. This is necessary to eliminate distrust over government commitment, which is still strongly felt at universities.

Commitment is basically demonstrated by systematically loosening the government’s grip over centralized regulatory measures, such as the civil service, DIK, curriculum and programmes. New regulations have been enacted refl ecting this commitment, for example, the appointment of deans and the management of graduate programmes (Government Regulation 60 of 1999 or PP 60 of 1999). Commitment is also refl ected in systematic capacity building to improve universities’ planning and management, particularly for institutions in the lower tiers. Without such programmes, they will never make any progress, and may instead end up with a sense of abandonment, frustration and envy.

It is important that consistency and commitment are not limited to DGHE auspices, but include other government agencies, such as the ministries of national education and of fi nance and the Agency for Civil Service Administration. This paradigm should be supported by a whole-hearted commitment from all government agencies; otherwise, the university as a grantee of state-owned legal status cannot implement the new paradigm fully and effectively.

2.8 Input of institutional managers

During the present transition period to implement autonomous university status, the following additional roles and functions of


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the university’s central management (in other words, the university managers) should be taken into account:

1. Initiate structural adjustment for all new university bodies, including university governance, under Government Regulation No. 153 of 2000 and By-laws of the university 2003, to clarify each university body’s role, function and performance as well as the role, function and performance of each lower unit, such as faculties, research centre institutes, and others.

2. Develop a consensual commitment from the various bodies to support and implement the autonomous nature of the university by utilizing the university’s resources (fi nancial, physical, human, management resources, etc.) more effi ciently and effectively.

3. Develop a clear schedule and systematic plan to provide greater autonomy to the lower units, and demand more accountability from them in order to gradually and appropriately implement the new paradigm, leading to full autonomy.

4. Increase contributions in preparing and drafting a new Law on Higher Education in order to accommodate the legal status of an autonomous university within the legal hierarchy system.

5. Develop a concrete system and standard instrument for internal auditing, focusing on fi nancial, academic and human resource performance, followed by an in-house mechanism and procedural measure for overall university performance.

6. Encourage closer relationships between universities, related government agencies and industrial sectors by:

i. introducing various incentives for industries to develop research collaborations with a university;

ii. developing research collaborations between the university and industries with clear and well-targeted objectives;

iii. encouraging input in developing curriculum and other academic programmes relevant to the society.

For managers at lower units, the following action should be considered:

1. Familiarizing themselves with, and implementing the new paradigm through various actions in:

i. conducting self-evaluations through a participatory process;


79


ii. developing a strategic plan according to the new paradigm in each unit;

iii. participating in the available tiered competitions offered by the government;

iv. gradually changing staff attitude to adapt themselves to the new paradigm;

v. improving RAISE-LEAP.2. Revisiting the individual unit’s mission and vision in accordance

with the university’s mission and vision by: i. conducting an in-depth analysis of its strengths and

weaknesses; ii. identifying its threats and opportunities through intensive

interaction with its stakeholders; iii. identifying its competitive and comparative advantages; iv. focusing and sharpening its mission to optimize its strengths

and optimally make use of the available opportunities; v. developing a consensus among staff and students on balancing

implementation between exercising social responsibility and developing competitive advantage.

3. Improve its management and planning capacity by: i. developing a reliable information system; ii. conducting a series of management training courses for its

staff; iii. developing entrepreneurial capacity and cost consciousness; iv. developing a performance-based internal funding mechanism; v. developing an acceptable unit cost for each education

programme offered, including identifi cation and calculation of expected sources of revenue;

vi. developing an incentive system to encourage and support inter-faculties, inter-departments, inter-unit collaboration in the form of joint degree programmes, joint research, resource and expertise sharing, and also providing more fl exibility for students to move across unit and programme boundaries;

vii. developing a merit-based personnel management with an incentive and disincentive system.


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4. Based on the self-evaluation conducted, review the academic operation and conduct various improvements of RAISE-LEAP by:

i. re-evaluating the existing curriculum and gradually introducing general education;

ii. re-evaluating the existing programme, phasing out inappropriate programmes, and opening new necessary programmes based on a set of criteria, e.g. effi ciency, demand, resources and contribution to society;

iii. re-evaluating its mode of course delivery; iv. establishing, strengthening, developing and effectively

utilizing the learning support centre; v. reviewing its research direction, providing more attention

to deliverable products, i.e. publications, patents, inventions and discoveries leading to product development;

vi. reviewing its research policy, involving students in research, and integrating it with education and services;

vii. reviewing its policy on community services, particularly to explore the possibility of developing start-up incubators and other entrepreneurial activities.


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3. UNIVERSITI KEBANGSAAN MALAYSIA

Muhammad Yahaya4 and Imran Ho Abdullah5

This study has been made possible via a research grant from UKM (11JQ2003) and UNESCO on Institutional Restructuring in Asia. We would also like to thank all who participated in the study.

3.1 Introduction

The challenges confronting higher education in Malaysia are not unlike those faced by other nations. Johari Mat, as Head of the Malaysian Delegation at the UNESCO World Conference on Higher Education 1998, highlighted expanding enrolment, quality and relevance of programmes, and funding as critical issues for higher education in Malaysia in the new millennium. Recent reform efforts in higher education in Malaysia can be seen as strategic steps towards meeting these challenges.

Expanding enrolmentSince independence in 1957, student enrolment in higher education

has increased in leaps and bounds. In 1990, the total enrolment in universities in Malaysia was 57,000. In 2000, undergraduate enrolment was 200,000 (Hassan, 2003). The percentage of Malaysian citizens aged 20 years and over with a higher education (i.e. post secondary, college or university) also increased from 8.9 per cent in 1991 to 16 per cent in 2000 (Population and Housing Census 2000). To achieve Vision 2020 (i.e. to be a fully developed nation by year 2020), the government has set a target that at least 21 per cent of the college cohorts should receive tertiary education.

In order to achieve this target, growing enrolment is commensurate with an increase in the number of public institutions of higher learning, from seven in 1990, to 11 in 1999 and 17 in 2004. The government

4. Muhammad Yahaya is Director of the Academic Advancement Centre (UKM), Bangi Selangor, Malaysia.

5. Imran Ho Abdullah is Deputy Director (Strategic Planning) at the Centre for Academic Development (UKM), Bangi Selangor, Malaysia.


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has been the primary provider (and regulator) of higher education in the country, funding 90-100 per cent of the total budget for public institutions of higher learning through budget allocations, as well as lump-sum funding for development and capital expenditures. Although the government sees higher education as a strategic social investment, realistically the higher education system cannot continue to be wholly dependent on public funds (Johari Mat, Head of the Malaysian delegation, in a speech at the UNESCO World Conference on Higher Education, 1998). Thus, the government actively encourages the private sector to play a complimentary role in providing higher education for all Malaysians. In line with this, the government enacted the Private Higher Education Institution Act 1996, which increased markedly the number of private institutes of higher learning in the country, complementing public universities as providers of tertiary education. The move was seen as an effective way of reducing the outfl ow of Ringgit overseas (due to the high number of Malaysians studying abroad). More importantly, the move was in line with the promotion of Malaysia as a regional education hub, which will ultimately contribute to national income as education becomes an increasingly important sector of the service and knowledge-based economy.

Quality and relevance of programmesWith the increase in number of public institutions for higher

learning and the drive towards making Malaysia a regional educational hub comes a need for ensuring the quality of programmes offered by the institutions. Towards this end, the Ministry of Education (now under the purview of the Ministry of Higher Education) established the National Accreditation Board (LAN) and the Code of Practices for Quality Assurance, as well as the Malaysian Qualifi cation Framework, to ensure that programmes offered by the various higher learning institutions in Malaysia attain acknowledged global standards. To enable internationalization of higher education, Malaysian public universities must ensure that their academic programmes are in compliance with international standards and are benchmarked against similar programmes in premier universities overseas. With such practices in place, universities would operate according to international standards in their core business of providing quality higher education.


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Universiti Kebangsaan, Malaysia

FundingPublic universities in Malaysia, as elsewhere, come under

intense scrutiny by the public and government. There are now higher expectations and demands for accountability and quality from public universities, which are allocated a substantial amount of public funding annually. For instance, the 2003 operational expenditure for public universities amounted to in excess of RM 4 billion, and the development allocation for universities in the eighth Malaysian Plan amounts to over RM 7 billion. Thus, there is a certain amount of pressure for universities to generate their own income for operational budgets as well as to commercialize their research. In 1998, the corporatization of various public universities was initiated with the main thrust of the exercise focused on a more effective and accountable management system. In 1998, fi ve public universities were given greater institutional autonomy with corporate-styled university boards replacing the University Council. However, the corporatization of public universities did not extend to fi nancial matters as university bursars are subject to the same regulations of the Malaysian treasury. Furthermore, the universities’ emolument structure still falls under the jurisdiction of the Public Service Commission. Even the matter of determining student fees is subject to Education Ministry guidelines. Although there is some delegation of power on certain fi nancial matters, for example on procedures pertaining to tender, on the whole, public universities have not been given total autonomy and their fi nancial structure is akin to that of most government agencies, audited by the Auditor General. Nevertheless, corporatization has allowed universities to set up companies to generate income while holding on to the core business of providing high quality tertiary education to as many qualifi ed Malaysians as possible.

Other equally important factors that have led to the need for academic institutional rethinking, that is, institutional restructuring nationwide, are the rapid pace of ICT advancement and the process of globalization and liberalization. Yasin (2003) notes that public universities clearly need a newly defi ned role – one that takes into consideration their traditional strengths, niches and overall potential. This can be expressed either nationally, through the combined efforts of all universities, or individually at the university level. He adds that “the impact of technological progress and innovations in many areas means


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that universities too have to play a greater role in producing graduates with competencies in many critical areas or disciplines comparable to graduates from leading universities from other parts of the world”. He believes that to achieve this, the university should plan its curriculum development to be competitive at the national and global levels in line with development in other universities around the world. Concerning the labour market, it is imperative that the academic curriculum is adjusted, whenever necessary, to meet new needs in the work environment, as well as to incorporate new disciplines and specializations in the curriculum. This would, inevitably, allow graduates an increased degree of fl exibility, and greater creativity and capacity for critical thinking. Quality also extends to the products of institutes of higher learning. In this respect, the nation demands that graduates are knowledgeable and able to contribute effectively to the nation and society. The various challenges in higher education in Malaysia can be summarized by Figure 3.1 (Idrus, 2003).

Figure 3.1 Challenges to higher education in Malaysia

Governance &funding changes

Organizationalchanges

ADVANCES IN ICT

Higher Education

– Quality– Accountability– Relevance– Increased public and government’s expectations

GLOBALIZATION

CHANGINGTRENDS

– Economic– Social/value– Political– Academic

Educationalreforms (Acts)

Reforms or new initiatives in the form of legislation, institutional restructuring, organizational changes and changes in governance have


85


been introduced to meet the various challenges and trends in higher education mentioned above. New legislative initiatives in higher education strategies include:

• Akta Pendidikan Baru (1996) – New Education Act (1996)• Akta Universiti dan Kolej Universiti (1996) – Universities and

University Colleges Act (1996)• Akta Institut Pendidikan Tinggi Swasta (1996) – Private Higher

Education Institution Act (1996)• Akta Majlis Pendidikan Tinggi (1996) – National Council on

Higher Education (1996)• Akta Lembaga Akreditasi Kebangsaan (1996) – National

Accreditation Board Act (1996)• Akta Lembaga Tabung Pendidikan Tinggi Negara (1997)

– National Higher Education Fund Board Act (1997).

Organizational administrative changes in higher education include the establishment of the Department of Higher Education in the Ministry of Education in 1995, which is responsible for policy planning and formulation as well as the overall development of public higher educational institutions. The department’s role includes overseeing, coordinating and ensuring higher education quality, as well as reforming universities’ governance structure through the corporatization initiative. In the following year, through the National Council for Higher Education Act 1996, a council responsible for the planning and formulation of policies and strategies related to higher education development in Malaysia was established, with the Department of Higher Education serving as its secretariat. A more recent development directly related to higher education was the establishment of the Ministry of Higher Education in March 2004. Previously, the Ministry of Education attended to all levels of education. With the elevation of the higher education portfolio to a ministry, more focused attention can be given to higher education development, both public and private, in the country.

The universities, in response, have also embarked on and undertaken initiatives to review, strategize and reprioritize their missions and objectives. The review took into consideration aspects of institutional restructuring and governance needed for meeting national challenges in higher education in Malaysia. In the next section, we


86


will examine how UKM has responded to some of these challenges by restructuring the institution.


UKM was established on 18 May 1970 as the national university of Malaysia. For the education continuum, a national university is a necessity to cater to the growing number of students in secondary education, especially those in the Malay medium of instruction, whose numbers have increased rapidly since the inception of the national education system. The founding of the university represents the realization of a struggle by Malay intellectuals and the fulfi llment of an aspiration of all Malaysians.

With an initial intake of 192 students, the newly established university consisted of three pioneer faculties – the Faculty of Arts, the Faculty of Science and the Faculty of Islamic Studies. Three years later, in 1973, the Faculty of Medicine and the Institute of Malay Language, Literature and Culture were established in response to demands by Malaysian society. Then in 1974, in line with the growth and expansion of knowledge and academic programmes, the Arts Faculty was renamed Social Sciences and Humanities. The change took into account the two major fi elds in the arts, and catered for the increasing number of students in these fi elds. At the same time, the Department of Economics in the Arts Faculty became the anchor for a new Faculty of Economics and Management (this later expanded in 1979 into two separate specialized faculties – the Faculty of Economics and the Faculty of Business Management). Also in 1974, the Sabah branch campus of UKM was offi cially established to provide opportunities for students in Sabah and Sarawak to receive higher education, and also to enhance national integration through the educational process. Five years later, in 1979, the Faculty of Science and Natural Resources was established at the Sabah Campus of UKM with its own academic programmes.

In the 1980s, the continual rapid expansion of both undergraduate and graduate programmes witnessed an increase in student numbers that, in turn, led to the establishment of several new faculties. These included the partition of the Faculty of Science into three separate entities in 1982 – the Faculty of Physical and Applied Sciences, the Faculty of


87


Life Sciences, and the Centre for Quantitative Studies (which in 1991 was renamed the Faculty of Mathematics and Computer Science). In 1983, a Centre for Graduate Studies and a Centre for General Studies were established followed by the Engineering Faculty, the Law Faculty and the Language Centre in 1984, and the Faculty of Education in 1986. Both the Language Centre and the Faculty of Education were offshoots from the Faculty of Social Sciences and Humanities. The Language Centre was subsequently renamed the Faculty of Language Studies in 1996.

In the 1990s, further growth and specialization, national and market demand and the expansion of technology – especially information technology – heralded the formation of the Faculty of Allied Health Sciences (1991), and the birth of two separate faculties from the Faculty of Mathematics and Computer Sciences (1994) – namely, the Faculty of Mathematical Sciences and the Faculty of Technology and Information Science.

Aside from these developments in academic faculties, the 1990s also saw the emergence of several research centres. These centres of excellence embodied the maturing and consolidation of research niches and research strengths at UKM. In 1993, the Institute of Malay Language, Literature and Culture – the fi rst research centre for Malay studies of its kind in Malaysia (established in 1972) – was renamed the Institute of Malay World and Civilization, to better refl ect the scope of research undertaken at the institute. In 1995, the Institute of Malaysia and International Studies was established as a centre of excellence for research and postgraduate teaching in the fi elds of social sciences and humanities. A year later, in October 1996, the Institute for Environment and Development was established as a multi-disciplinary research centre with a focus on the environment and sustainable development, following resolutions of the United Nations World Summit in Rio de Janeiro in 1992. In January 2003, the Institute of Microengineering and Nanoelectronics was offi cially established with research concentration in six major research themes: micro-electro-mechanical systems, high frequency technology for telecommunication (collaboration with telecom research and development – TMR&D), very-large-scale integration systems, photonics, organics and electronics and nanoelectronics. In the same year, two other research institutes, namely


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the Medical Molecular Biology Institute (UMBI) and the Institute for Space Research (Angkasa) were established in line with the growing stature of UKM as a research university.

By 2001, UKM had contributed 75,153 graduates (69,799 at the undergraduate level, 5,008 Masters and 366 PhDs) to the national educated workforce – an average of 2,500 graduates per year. Within three decades of existence, UKM had emerged from being a national university to an institute attracting students from all over the world. In addition, UKM has also contributed immensely to the advancement and growth of the medical sciences, engineering, science and technology, agriculture, business, the arts and social sciences. It is, thus, not surprising that UKM has been earmarked by the Malaysian Ministry of Education as a premier public research university. UKM grew in proportion to the rapid expansion of knowledge and increasing specialization – from a university with three faculties to 17, before the restructuring exercise began in earnest. Academic staff numbers also increased substantially compared to earlier days. Currently, the university employs over 1,700 full-time academic staff, consisting of 150 professors, 347 associate professors, 985 lecturers, 80 teachers and 161 tutors.

Restructuring measures adopted by UKMAs early as 1996, UKM was examining and debating the changing

trends in higher education and the critical demands on academia, especially with respect to new inclinations, relevance and quality of academic programmes, and issues related to governance and funding.

It was recognized that UKM’s expansion and growth (prior to restructuring in 1999, UKM consisted of 18 faculties, six centres and three research institutes), and the return to the main campus of branch campus faculties had inevitably led to overlaps in courses and resources. There was considerable wastage, to say the least, and lack of accountability. At the same time, the ‘branching out’ and formation of numerous faculties led to a tendency towards narrow specializations in academic programmes, which ran against the multi-disciplinary liberal education trend.


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UKM embarked on several restructuring exercises. Among these were the restructuring of the science faculties, with the amalgamation of four science faculties and the formation of the Faculty of Science and Technology (FST) on 19 July 1999. This was followed by the formation of the new Faculty of Social Sciences and Humanities (FSSK) on 15 November 2001 as a result of the amalgamation of the Faculty of Language Studies, the Faculty of Developmental Sciences and the Faculty of Social Sciences and Humanities.

The creation of both new faculties (FST and FSSK) effectively abolished the traditional academic departments with the formation of schools or centres of study. In the former structure, there were fi ve schools, namely the School of Bioscience and Biotechnology, the School of Applied Physics, the School of Chemical Sciences and Food Technology, the School of Mathematical Sciences and the School of Environmental Science and Natural Resources. In the latter (FSSK), six schools were formed, namely the School of Language Studies and Linguistics, the School of Malay Language, Literature and Culture, the School of Media and Communication Studies, the School of Social, Development and Environment Studies, the School of Psychology and Human Development, and the School of History, Politics and Strategic Studies.

In April 2004, the Faculty of Economics and the Faculty of Business Management were merged into a single Faculty of Economics and Business. Other faculties were also advised to restructure internally to meet the academic challenges of the new millennium. It should also be noted that administrative reform took place alongside academic restructuring, with the internal restructuring of the Registrar’s offi ce and the Bursar’s offi ce. Beneath the Vice-Chancellor are three Deputy Vice-Chancellors, overseeing Academic Affairs, Developmental Affairs and Student Affairs. Below the Registrar is the Bursar, who is directly linked to the Deputy Vice-Chancellor of Developmental Affairs.


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Figure 3.2 Organizational structure of Universiti Kebangsaan Malaysia

CHANCELLOR AND PRO-CHANCELLOR

PRO-CHANCELLOR

VICE-CHANCELLOR

BOARD OF DIRECTORSUNIVERSITI KEBANGSAAN MALAYSIA

MANAGEMENT OF DIRECTORSUNIVERSITI KEBANGSAAN MALAYSIA

CHAIRMAN

CHANCELLOR

SECRETARY

VICE-CHANCELLOR

PRO-CHANCELLOR

MEMBERS

DEPUTY VICE-CHANCELLOR(academic affairs) REGISTRAR

BURSARY

CHIEF LIBRARIAN

DEPUTY VICE-CHANCELLOR(development affairs)

DEPUTY VICE-CHANCELLOR(student affairs)

Another element in the restructuring exercise was the move towards corporatization of the institution. The governance of UKM was effectively ‘corporatized’ on 15 March 1998. In line with corporatization, the University Council was replaced by a University Board of Directors. The Vice-Chancellor was no longer just the Academic Head of the university, but also its Chief Executive Offi cer. The new corporatized status permitted the formation of business entities. As a result, the UKM Holdings Sdn. Bhd. was formed on 8 March 2001 under the Companies Act (1965). With changes in the governance of public universities through the corporatization of management, public higher learning institutions were expected to be more accountable, more competitive and more responsive to stakeholders. They were also expected to actively generate income to meet their operating costs so that the ratio of government funding could be reduced accordingly.


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3.3 Expectations and rationale

The working paper for the ‘merger’ (penggabungan) of faculties identifi ed four main challenges, the resolution of which implied a need for restructuring.

• The tendency to specialize: The philosophical argument for specialization is traced to elitism

and specialization, which led to a decrease in comprehensive knowledge. The tendency to specialize also brought about the parceling of knowledge, not only in the sciences and social sciences, but also in the entire knowledge corpus. The restructuring was argued to be the starting point from which knowledge should be consolidated in its generation, development, dissemination and practice.

• The quality of the graduates produced: It was felt that a graduate from the current system was too

specialized and only had the opportunity to be trained in a confi ned area of specialization, due to the prevailing faculty structure and the division of areas of knowledge into departmental components. Time constraints and the need to focus were also contributing factors to the specialization syndrome, as well as restrictive cross-faculty structures. As a result, students were only exposed to fragments of knowledge as addendum to his or her area of specialization. The parceling up of knowledge in the sciences and social sciences was also a result of emphasis being placed on specialization (whether rightly or wrongly). The professed main agenda of restructuring was the creation of an undergraduate academic structure that refl ects the consolidation of knowledge; the introduction of multi-disciplinary programmes; and the realization of students’ whole academic potential, independent of their area of specialization, to render the academic experience more employable and relevant to current market demands.

• The administrative structure: The existing structure, which bureaucratizes knowledge, also

leads to the bureaucratization of knowledge dissemination. This results in minimal cross-fertilization of disciplines, information, human resources and students among existing faculties and, to a


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lesser extent, among departments in the same faculty. It is hoped that a restructured administration and governance will reduce bureaucracy to foster a more open and collegial spirit within the larger rumpun ilmu (knowledge group).

• The optimization of resources: These included infrastructural and physical resources as well as

human resources. The present structures prohibit the movement of support staff, technical staff and academic staff. It appeared that the restructuring exercise could overcome these constraints and lead to a more supportive sharing of personnel, joint use of resources, and ultimately improve cost effi ciency in the newly merged ‘super’ faculty.

The aforementioned concerns became the rationale for academic restructuring at UKM. In line with this rationale, a proposal covering four major areas was presented to the Senate to address the concerns. Its guiding principles were as follows:

• The restructuring and redefi nition of knowledge: – strategic redirection and consolidation of knowledge to attain

excellence; – consolidation of academic expertise; – strengthening of the system and the knowledge-generating

structure.• The endeavour to produce quality students: – creation of multi-disciplinary programmes to fulfi ll

professional needs and the demands of society (the nation); – increased use of information communication technology in

teaching and research; – creation of academic programmes responsive to the latest

challenges in the fi eld of social sciences and humanities.• The restructuring of the administrative system: – decentralization of the decision-making process to the most

suitable level for the quickest (best) feedback; – strengthening of strategic networking and the implementation

of programmes for the common interest; – human resource management based on enrichment of the

work environment and the inculcating of collegial culture;


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– creation of procedures and practices that emphasize the free fl ow of information among staff with centres of knowledge.

• The restructuring of resources: – optimum, effi cient and effective usage of resources to achieve

teaching, research and social service objectives; – encouragement of value-added activities in terms of quality,

cost and services; – budgeting based on planning and the creation of a system of

responsibility at all levels, taking into account the various cost centres and profi t centres.

This chapter now examines the present research on the effects of the restructuring exercise, focusing on a case study of the Faculty of Social Sciences and Humanities.


The beginningFollowing UKM’s rapid expansion, in 1996 the University Council

proposed a review of the academic faculties and departments, which at that point consisted of 17 faculties or centres and three institutes offering 113 programmes. The University Management Meeting on 1 April 1997 studied a working paper prepared by the Vice-Chancellor on the matter and agreed to form a Restructuring Committee to examine and make recommendations for a subsequent university retreat.

The committee on restructuring and staff consultationsOn 3 April 1997, the Main Committee on the Restructuring of

Academic Faculties and Departments in UKM met and established sub-committees to suggest different options and models for restructuring, and identify the changes and actions needed university-wide. The deliberations and suggestions of these sub-committees were discussed at a university retreat that took place from 1 to 3 August 1997. The main issues discussed at the retreat were the following:

a. status of current programmes and directions for new programmes;b. strategic directions in knowledge and management;c. proposal for restructuring at the university level;


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d. the foundations and suggestions for restructuring at the faculty and departmental level;

e. centres of excellence;f. the development and management of human resources;g. activity-based costing;h. development and application of information technology;i. lessons to be learnt from experiences of restructuring at other

universities worldwide.

The retreat deliberations attested to the existence of three knowledge groups (rumpun ilmu) in UKM, namely:

a. the Health Sciences group – encompassing the Faculty of Medicine, Allied Health Sciences and Dentistry;

b. the Science and Technology group – encompassing the Faculty of Life Sciences; Physical and Applied Sciences; Mathematical Sciences; Science and Natural Resources; Technology and Information Science; and Engineering;

c. the Social Development Sciences group – encompassing the Faculty of Islam Studies; Law; Social Sciences and Humanities; Language Studies; Education; Business Management; and Economy.

Back to the University Management MeetingThe University Management Meeting on 7 October 1997 agreed

that the academic faculties would be restructured in conjunction with the four science faculties. A sub-committee was established to oversee the restructuring exercise. The four faculties met several times and provided feedback to the sub-committee on the restructuring of the science faculties.

Endorsement of the proposal and follow-upMeanwhile, on 13 December 1997 the University Council

endorsed the restructuring proposal developed at the university retreat. Implementation followed and new structures such as the Board of Directors were formed. On 11 July 1998, the newly formed Board of Directors endorsed the proposal for restructuring and a merger of four science faculties, namely the Faculty of Life Sciences, the Faculty of


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Physical and Applied Sciences, the Faculty of Mathematical Sciences and the Faculty of Science and Natural Resources.

The UKM Senate, at its 279th meeting on 18 November 1998, established the Senate Committee on the Sciences (Pengajian Rumpun Sains) to detail the restructuring of knowledge and academic programmes, as well as the consolidation of the governance and resources system in the new faculty. Following deliberations, the Senate Committee developed a set of guiding principles for restructuring the science faculties. The Committee envisioned that these principles would provide the rationale for restructuring and developing new and revised programmes for the sciences.

The fi nal proposal presented to the Senate for the restructuring and amalgamation of the four science faculties contained principles and rationale for restructuring, the vision and mission statement, the strategies, the proposed new schools and programmes, the academic structure, the governance and the optimization of resources. This was approved by the Senate on 19 July 1999, and the new Faculty of Science and Technology was offi cially launched on 28 July 1999.

Restructuring of social sciences and humanitiesWhile the restructuring of the sciences was nearing completion,

discussion on restructuring the social sciences and humanities began in earnest. On 30 November 1998, the Vice-Chancellor chaired the fi rst meeting on the restructuring and evaluation of programmes in the social sciences.

The same process of retreats, meetings and discussion was initiated to draft a proposal for consideration by the UKM Senate. The proposal was presented to the Senate on 11 December 2000, when a Senate Committee on the Restructuring of the Social Sciences was established to deliberate the proposal (UKM Senate 7/2000). A designated dean was appointed and several working committees, comprising members from all three faculties, were formed to consider issues such as academic programmes, governance, resources and centres of excellence. These committees reworked the fi nal proposal for submission to the Senate. A special session was held in October 2001 and the newly restructured Social Sciences and Humanities Faculty was offi cially launched on


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15 November 2001. Its six schools merged three faculties, namely the Social Sciences and Humanities, Language Studies and Developmental Science.

The third and fi nal phase of faculty restructuring via faculty mergers involved the Faculty of Economics and the Faculty of Business Management. As with the sciences and the social sciences, a Senate Committee was formed and charged with drawing up the document in consultation with the faculties. The document was presented to the Senate on 19 November 2003, and the newly merged faculty – the Faculty of Economics and Business Studies – was offi cially launched on 1 April 2004. The structures of the faculties before and after restructuring are presented in Figures 3.1 and 3.2. The process spanned a period of almost seven years. The consultative process and feedback involved meetings and retreats at various levels. The restructuring process in the sciences involved elaborate consultation and feedback from faculty members, as seen in the various milestones charted above. However, new programmes in the faculty did not begin until the following session, in 2001.


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Figure 3.3 Restructuring of the social sciences

Faculty of Arts

Faculty ofEconomics

Faculty ofEducation

Faculty of Social Sciences& Humanities (FSKK)

Faculty of Economics& Management

Faculty ofLanguage Studies

1974

1984

1991

1986

2002

1979Faculty of Business

Management

Faculty of SocialSciences & Humanities

Faculty of Economics& Business

2004

Faculty of DevelopmentalScience

LanguageCentre

Faculty ofEducation


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Figure 3.4 Restructuring of the sciences

Faculty of Science

Faculty of Engineering

Faculty ofMathematics and

Computer Science

Faculty of LifeSciences

Faculty of Physical

and Applied Sciences Centre for

Qualitative Studies

Faculty ofTechnology &Information

Science

Faculty of Mathematical

Sciences

1970

1973

1984

1994

1991

1999Faculty of Science

& Technology Faculty of

Engineering

1979 Faculty of NaturalResourceSciences

Faculty ofTechnology &Information

Science


Diffi culties faced during the implementation stagesDuring the restructuring of the social sciences, the most contentious

issues were:

a. decisions concerning the structure and number of schools to be formed;


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b. structure of the academic programmes and the programmes to be offered.

The decision of how many schools and what schools to form was naturally contentious, as all entities in the restructuring exercise, especially the departments, were well entrenched and established. The Faculty of Social Sciences and Humanities consisted of eight departments, namely: the Department of Malay Letters, the Department of Linguistics, the Department of History, the Department of Geography, the Department of Psychology, the Department of Political Science, the Department of Communication, and the Unit of Strategic and Security Studies.

The Faculty of Language Studies consisted of four departments: the Department of English Language Studies, the Department of English Language Profi ciency, the Department of Foreign Languages and the Department of Malay Language and Translation. On the other hand, the Faculty of Developmental Sciences consisted of three units running multi-disciplinary programmes: the Unit of Urban and Town Studies, the Unit of Economics and Management Studies, and the Unit of Philosophy and Civilization Studies.

The pre-restructured faculties overlapped in some instances, for example, between the courses offered in the Geography Department and courses in the Unit of Urban and Town Studies; between the linguistics courses offered in the Department of English Language Studies and those in the Department of Linguistics. Various permutations of schools (combining various departments) were discussed during the process of implementation. The original proposal contained seven schools, but this was eventually reduced to fi ve. The restructuring exercise also made national headlines with the proposal to combine the Department of Malay Letters and the Department of Linguistics with the Faculty of Language Studies to form a single school. Objections came mainly from the Department of Malay Letters, which perceived this as a threat to the national language. After numerous interventions, a School of Malay Letters was included as the sixth school in the restructured Faculty of Social Sciences and Humanities.

Another diffi culty arose with the structure of academic programmes. Naturally, the old faculties – to some extent – consisted


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of different structures. However, the new academic structure was quickly determined by consolidating social science and humanities core subjects in the fi rst year and reducing specializations. Various sub-committees were formed to propose new (multi-disciplinary) academic programmes and to revamp existing ones. A total of 25 programmes were initially proposed. However, after several rounds of discussion and a feasibility study (based on student preference and market demand), only 18 programmes were offered by the new faculty. Constraints on the number of new programmes to be offered were also, in part, due to the decrease in intake of arts students, with the introduction of the 60:40 ratio of science to arts intake for higher learning public institutions directed by the government.

Resistance from staffIn some ways resistance to the restructuring was contained since

the discussion concerning the restructuring of the social sciences took three years, during which time staff were given ample opportunity to provide feedback and have their views heard. Members were involved in various committees to provide feedback. Nonetheless, some staff were ‘worn out’ due to the time it took for the faculties to fi nally merge. This aside, the Vice-Chancellor’s assurance that no one would be made redundant meant that staff had less to fear in the process. However, some unresolved issues, for example, the placement of language teachers in the Department of English Language Profi ciency (a unit that offers no academic programmes but instead provides service courses to the entire student population), were deferred. (Eventually, after restructuring, all courses and staff of the department were transferred to the Centre for General Studies. Members of the Department voted on the decision, with most language teachers voting to join the Centre for General Studies, while the lecturers stayed on in the School of Language Studies and Linguistics.)


The impact and benefi ts of the restructuring undertaken at UKM are discussed according to the following sub-sections below. Discussion then focuses on the survey of the Faculty of Social Sciences and Humanities.


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Academic programmesThe major impact and most immediate benefi t of restructuring lies

with academic programmes. Restructuring afforded faculties a fresh look at their academic programmes, which was itself the main thrust of the exercise. For example, in the social sciences the restructuring exercise allowed faculties to re-examine their curriculum for existing programmes, and to come up with new multi-disciplinary programmes. Some new programmes offered as a result include: Malay culture and arts, communications and public policy, human development, social work and international relations.

The curriculum was reworked to refl ect a social science core common to all programmes, along with the introduction of information technology-related courses with a corresponding reduction in specialization in a particular discipline.

The effect of the restructured faculty was confi rmed by a survey conducted as part of a study. This impact was felt equally strongly among administrators, academic staff and students (Table 3.1).

Academic staff were asked specifi cally to indicate whether they agreed with certain matters with respect to the academic restructuring of the faculty. A summary is presented in Table 3.2.

On two academic restructuring aspects, namely the development of innovative curriculum, and the development of multi-disciplinary courses or programmes, a larger proportion of academic staff were of the opinion that the restructuring managed to achieve both. On several aspects, such as the development of employment-oriented courses, strengthening of research and teaching, and strengthening of academic programmes, academic staff were equally divided between those who felt that the restructuring achieved these objectives and those who felt that the restructuring did not achieve them. On two aspects, improvement of interaction and collaboration between schools and improved access to faculty resources, most staff felt that these had not been achieved. Interestingly, a larger portion (6:4) disagreed that the restructuring increased their academic workload.


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Table 3.1 Perception of major areas of change to academic programmes

Administrators Academics Support staff Students83.3 % 81.8 % 56.5 % 82.4 %

Table 3.2 Academic staff opinion on certain aspects of academic restructuring

Aspects of restructuring Strongly disagree

Disagree Agree Strongly agree

Restructuring enabled development of innovative curriculum

0.0 31.8% 59.1% 9.1%

Restructuring enabled development of employment-oriented courses

0.0 45.5% 45.5% 9.1%

Restructuring enabled development of multi-disciplinary and multi-skill courses

9.1% 22.7% 50% 18.2%

Restructuring has strengthened the links between research and teaching

0.0 50% 40.9% 9.1%

Restructuring has strengthened academic programmes of the university

0.0 45.5% 54.5% 0.0

Restructuring has improved interaction and collaboration between staff in different departments ou schools

9.1% 59.1% 31.8% 0.0

Restructuring has improved access to and sharing of faculty resources

9.1% 54.5% 27.3% 9.1%

Restructuring has reduced administrative costs

18.2% 36.4% 31.8% 13.6%

Restructuring has increased academic workload

0.0 63.6% 36.4% 0.0

Restructuring has increased administrative workload

4.5% 36.4% 50% 9.1%

Restructuring has increased monitoring and control of resources

4.5% 27.3% 59.1% 9.1%

Restructuring has increased accountability measures of the staff

13.6% 36.4% 50% 0.0

Administrative proceduresAll the restructured faculties, in effect, established new

governance and organizational structures. This included the demise of the departmental structure and the formation of schools or centres


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of studies, with a Chair as the administrative head of the school. Administrative procedures remained intact in most instances on matters relating to research, study leave, acquisition, maintenance, and so on. It is not surprising that only 50 per cent of the staff surveyed thought signifi cant changes to administrative procedures had taken place.

In terms of the decision-making process, an additional level of hierarchy was perceived from programme heads to the Chair of the school and the deans. This could be a result of the conception of heads of programmes as equivalent to heads of departments.

Figure 3.5 Hierarchy in decision-making structures

Deanery Deanery

Academicdepartments

Schools

Academicprogrammes

Pre-restructuring Post-restructuring


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The intermediate level of the schools is, in effect, the combination of several departments in some instances, or the case of single departments being raised to the level of a school. Thus, perception of impact differs. Only a third of administrators thought there were major changes to the decision-making structures. On the other hand, more academic staff (68.2 per cent) perceived major changes to the decision-making structures.

In relation to staff evaluation, the staff appraisal procedure remained the same as it is a university-wide procedure. Nevertheless, more than half the academic staff (54.6 per cent) and support staff perceived major changes in staff evaluation. The only changes were in the people who evaluated the staff. While previously staff were evaluated by their head of department (HOD) with the Dean (Deputy Dean) as second evaluator, after restructuring the Chair of the school and the Dean (Deputy Dean) acted as evaluators. It should be noted that in cases of an enlarged faculty, the second evaluator does not always know the members he/she is evaluating. However, the staff evaluation procedure is transparent and based on clear performance criteria and achievements.

Concerning student admissions and student management, the restructuring had little bearing as student admissions are handled via a centralized system at the Centralized University Unit of the Department of Higher Education, and managed through the Academic Division of the Registrar’s offi ce. Post-graduate admissions, on the other hand, are managed by the Centre for Post-Graduate Studies. Thus, the new structure did not have a major infl uence on student admissions and student management.

Similarly, the restructuring of faculties did not heavily impact fi nancial management. This is because the fi nancial system is centralized at the Bursar’s offi ce under a single line accounting system. However, faculties manage their own operating budget allocated through the central system. Prior to restructuring, the Deanery managed the operating budget. Post-restructuring has maintained this, with the faculty acting as the responsible cost centre. However at the faculty level, the Deanery may distribute the budget to the schools on certain matters while maintaining central control on other items. A summary


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of the major changes according to the group surveyed is presented in Table 3.3. The major change as a result of restructuring has taken place in the academic areas. The new schools have been established under the deans (Figure 3.5) and the decision-making structures have changed. Similarly, the management of staff and evaluation practices have changed. Needless to say, these changes are also accompanied by changes in administrative procedures.

Table 3.3 Areas of major change according to groups surveyed

Areas of major change Administrators Academics Support staff StudentsUniversity autonomy - 13.6% 17.4% 17.6%Decision-making structures 33.3% 68.2% 34.8% 20.6%Staff management and evaluation

16.7% 54.5% 39.1% 23.5%

Financial management and corporatization

16.7% 36.4% 26.1% 35.3%

Admission and student management

16.7% 18.2% 39.1% 67.6%

Administrative procedures 50.0% 54.5% 52.2% 38.2%

3.7 Implications for introducing reforms in universities

On the whole, the academic restructuring exercise in UKM brought about mixed responses from the various stakeholders directly affected by the changes. The survey results reveal the primary and immediate impacts of the exercise in the area of academic programmes. Changes were also felt in the optimization and allocation of resources, but the full impact of this is yet to be seen. It was clear from the outset that restructuring would not entail job cuts, thus there was little in the way of cost-saving from emolument, as is the case in most corporate-style restructuring. However, the exercise saw the movement and replacement of staff in different schools according to the ‘academic’ thrusts of their expertise and research.

The fi ndings should also bear in mind that it has only been two years since the new Faculty of Social Sciences and Humanities was formed. During this time, the new faculty has made signifi cant progress in terms of research and publication (personal communication of the founding dean and a report from the retreat of the new faculty).


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Much still remains to be done, including a blueprint for the faculty’s long-term plans, the clear commitment of management, and enhanced communication and information dispersal. Awareness and performance enhancement as well as ‘sustained’ staff performance with regard to the new faculty’s mission, vision and commitment to quality are crucial for continual improvement and excellence.

Diffi culties in the implementation of the restructuring processAdministrators were specifi cally asked to identify diffi culties

in the implementation of restructuring. Their responses, however, seldom focus on the process, but rather on the product of restructuring, which they found problematic. Some comments on the organizational structure included the observation that both the structure and administrative procedures appear to be the same, with the exception that the faculty-school-programme structure is more stratifi ed than the faculty-department structure. This means there is now an added layer of bureaucracy. The additional layer means that decision-making now takes longer. However, some thought that the new organizational structure is more realistic as it allows academicians to take control and ownership of their programmes, and thereby be more accountable for programme quality. Programme heads are able to do this since they are not overwhelmed by ‘administrative duties’, which should stop at the Head of Schools and the Deanery. Other comments on the structure include the observation that the defi nition of roles at each tier is not clear and remains fuzzy to some administrators.

During the decision-making process, administrators commented that too few people are vested with the power to make decisions at the university level with respect to faculty, and thus, the validity and reliability of these decisions is in question. For instance, there is only one representative for six schools at the Senate (in contrast with three deans for the Social Sciences and Humanities, Language Studies and Development Science faculties under the former structure). Academic staff line of accountability to Chairs of schools and programme heads also needs to be further clarifi ed. Some felt that the dependency on committees has slowed down the decision-making process.


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On support-staff-related matters, some commented that support staff were marginalized. These were not consulted and only met with management twice during the entire process. Although support staff understood that the restructuring was essentially ‘academic’ in nature, the entire administrative and support system was affected and accordingly, they should have provided some input. For example, the schools (compared to departments) carry too heavy a burden, being accountable for a larger number of staff. However, the Chairs are not assisted by an assistant registrar. Programme heads, too, appear to have no administrative power over their staff, which could lead to problems.

With regard to the students, some respondents observed that the students were neither consulted nor informed of the restructuring. However, in the rethinking of new programmes, student opinions were sought through surveys.

On budget-related matters, respondents said that the budget allocation should take into account the size and the needs of the various schools. Some lamented the fact that the budget still remains under a central system (bursar) and urged that the schools be given a certain amount of autonomy when it comes to their budget.

RecommendationsExternal infl uences on institutional restructuring, in the case

of UKM, came from various directions. These included the various challenges of globalization and the growth of ICT. At the same time, the imperative for quality and accountability in higher learning public institutions also required public universities to re-examine their structures and their ways of doing things. UKM took steps towards meeting these challenges from as early as 1996. One of the strategies is institutional restructuring.

The institutional restructuring undertaken at the faculty was essentially driven by the academic consideration highlighted in Section 2.2. However, the supporting areas (such as governance and resource allocation) were also revamped to some degree. This study noted that the academic restructuring of the social sciences at UKM was felt, on the whole, to have made an impact on different faculty aspects


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from autonomy, the decision-making process to student evaluation procedures. Overall, the objectives of the institutional restructuring have been met and must surely have some effect on the mission and function of UKM in meeting the challenges that necessitated institutional restructuring in the fi rst place.

Based on the feedback of the respondents in the study, the following recommendations should be given due consideration:

On decision-making processes:

• Certain autonomy must be given and responsibility devolved to the schools.

• The demarcation of powers and responsibility of programme heads and chairs of school should be elaborated upon. The programme head should focus on decisions relating to the programme and academic curriculum.

• A sense of ownership of programmes should be inculcated among those who teach the programme.

• Important decisions made at faculty management meetings should be discussed and reviewed at faculty meetings to avoid only routine and mundane matters being the purview and agenda of the meetings.

• Greater use of ICT should be implemented for the dissemination of decisions and consultation with faculty members.

On budget allocation systems at the school level:

• More involvement of faculty members in budget preparation.• More autonomy at the school level in making decisions to spend

allocation.

On staff recruitment at the school level:

• More autonomy in the recruitment of support staff – currently the views and opinions of the schools are sometimes taken into account in the recruitment of staff, but fi nal decisions rest with a committee.


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4. THE MONGOLIAN UNIVERSITY OF SCIENCE AND TECHNOLOGY, MONGOLIA

Yadmaa Narantsetseg6

4.1 Introduction

The last decade of the twentieth century was a decade of both failures and successes with regard to the process of restructuring and reforming national economies in former socialist countries. Mongolia embarked on a path of development away from a centrally planned economy and towards a system ensuring democracy, human rights and freedom. Today, the country presses on with far-reaching reforms of its former political and economic system. The process of reforming any system is always a time-consuming and complicated task; the education sector of Mongolia – notably higher education – has undergone particularly intensive changes and reforms during this decade.

The Government of Mongolia elaborated a policy on higher education development, which was then adopted by the Parliament of Mongolia in 1995. This law principally aimed at addressing challenges to higher education, with the aim of reforming higher education into one of the country’s leading social sectors. In line with new social and economic conditions, the Parliament of Mongolia introduced a set of laws on education. These laws determined the pattern of development for Mongolia’s education sector by providing opportunities for progress under universally accepted evolutionary practices, and laying the legal foundation for development in terms of transition to a market economy. In short, the laws have promoted a new education system for Mongolia.

Vision for the development of higher education in MongoliaThere are nine essential issues relating to the development of

higher education in Mongolia:

6. Yadmaa Narantsetseg is Director of Academic Affairs at the Mongolian University of Science and Technology (MUST), Ulaanbaatar, Mongolia.


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1. Setting up an academic framework to support new entrants: Support for new students in student life and academic programmes

needs to be introduced, such as consultations on learning methods, tutoring in basic subjects, and appointment of additional tutoring services.

2. Strengthening of linkages between major subjects: There is a need to establish an appropriate framework on

removing boundaries between qualifi cations. For example, an engineering graduate should have a fi rm knowledge of economics and management and thereby be fl exible in skills.

3. Training standards based on research: (Demand-based) training is a collaboration between students and

lecturers. Important scientifi c ideas are usually created as a result of cooperation between collective research and study. Therefore, the academic staff of universities should provide training based upon supported research activities and the accumulated knowledge of group experiences.

4. Effi cient application of information technology: Information technology should be effi ciently applied nationwide

to serve as a catalyst for higher education development and contribute to accessing global information and knowledge.

5. Change of evaluation procedures for academic staff: Academic freedom and the establishment of a framework to

motivate and encourage faculty staff are necessary prerequisites to achieving high quality standards in university and college academic research.

6. Creation of university or college image: Each university has its own image comprising historical paths,

traditions and guiding values. Therefore, the focus should be on enhancing research potential, improving contributions to national development, and strengthening university or college status for the purpose of training students who will graduate with an internationally accepted knowledge level.

7. Transform universities and colleges into institutions for continuous learning:


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The Mongolian University of Science and Technology

A university should be a place of learning not only for students but also for faculty staff. Therefore, the environment and infrastructure for learning and training of all should be expanded.

8. Development of teamwork and communication skills: Modern science and technology are becoming a basis for creativity

not only for individuals but also for groups and organizations. Therefore, training and individual education need to include building teamwork and strong communication skills.

9. Development of faculty staff: Staff development is key to the development of higher education.

The trainees will manifest the same qualities and competencies as refl ected in the learning outcomes for students; practice the learning processes; organize learning to support the learning processes; and be responsible for continually building and using learning partnerships. Staff development will need to be consistent with these expectations. Educational institutions must invest in staff development for transformation and change.

Various forces drive change in Mongolian society with implications for the future of higher education. First, there are fi nancial imperatives. The introduction of tuition fees over the last fi ve years is one factor behind the rapid growth of higher education in Mongolia. This has allowed the government to make fi nancial changes to the education sector. The services provided by universities continue to increase, therefore cost of services has also increased. But there remains a disparity between cost of services and quality of services. This creates challenges for higher education institutions. Furthermore, because of economic development, universities cannot increase costs to the level they wish. Meanwhile, political and social institutions are trying to reduce the cost of university services. This paradigm may not be able to adapt to the demand and realities of our times. Second, societal needs for the services provided by universities and colleges will continue to grow. But universities are not able to meet these growing and changing needs. Third, universities are greatly affected by the rapid advances in information technology. Again, universities in developing countries, such as Mongolia, may not be capable of responding to opportunities presented by new information technology and knowledge media. Finally, public universities are also affected by market forces.


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Competition for talented students and faculties is emerging not only among universities in Mongolia, but across the entire region and beyond. In many western countries, the number of students is decreasing, with developed countries looking for talent elsewhere. These market forces and pressures push for the restructuring of higher education. In a technology-driven society, these are the real challenges facing higher education in Mongolia.


Introduction to the universityFounded in 1969, the Mongolian University of Science and

Technology (MUST) has been highly successful, producing a great number of leading engineers and professionals specializing in the fi elds of science and technology. Since 1990, students have found the university to be a good place to nurture and more fully develop their intellectual abilities, character and spirit. The university has been recognized as one of the leading universities in Mongolia, noted for its cohesive organization and the superior quality of the services it offers.

The university is dedicated to building on these solid achievements, striving to move on from national recognition to become an education and research centre of excellence for North-East Asia. Its goal is to provide an environment in which students will have excellent opportunities to continue their education. At present, the university offers programmes in all major branches of engineering, science, humanities, management and languages.

Over the last few years, the university has developed and introduced across all levels a credit-based system of education that meets the requirements of Mongolia. The university is held in high academic regard and has a reputation for research and training across a wide range of engineering and science areas. It is particularly active in fi elds of intellectual enquiry that relate to topics of national importance and potential in science and technology. One goal of the university is to re-educate high-level specialists to work at the international level.


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Academic restructuring and the credit-based system One of the main activities of a university is training. In the early

1990s, lack of information combined with a negative perception of the organization of training processes in foreign universities and colleges led to hesitation concerning reforms and restructuring in higher education. However, a credit-based system was introduced across the sector to promote student mobility in the era of globalization.

It is essential to note that the MUST community has made substantial efforts to introduce a credit-based system in its activities through the following phases:

Phase I or Restructuring curriculum – 1992/1993 academic year

Phase II or Students’ evaluation system – 1996/1997 academic year

Phase III or Academic staff as an essential element of the university – 1997/1998 academic year

Phase IV or Accreditation – 1997/1998 academic year

Phase V or Methodology of assessment of academic staff performance by credits – 1998/1999 academic year

Phase VI or Credit-based system of MUST – 1999/2000 academic year

A fully-fl edged scale credit-based system has been implemented in MUST. To assist students with the learning process of self-planning in a credit-based system (e.g. selection of subjects and semesters to study a particular subject, selection of lecturers, individual scheduling using MUST time-sheets), the Department of Academic Policy and Coordination developed the ‘Student’s Handbook of MUST’ and provided copies for all students.

In addition, every school within MUST develops a ‘Student’s Handbook’ that includes a curriculum for every course as well as details


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of and information about the payment of tuition fees. The Department of Academic Policy and Coordination is responsible for the organization of and arrangements for MUST academic activities, in terms of the general academic calendar and the training plan for the implementation of the credit-based system.

Restructuring of governance and managementIn reforming any organization, managers begin with the

organizational structure. Restructuring and re-organization endeavour to implement desired goals and missions with the consolidated and scheduled workforce of the organization; only after that can fi nal outputs be achieved. In a democratic society, the most appropriate re-organization and restructuring ensures the independence of individuals, profi ciency of offi cials, accountability of fi nal outputs, and delegation of authority to those in charge of a particular assigned job.

Under the centrally-planned economic system, university authorities were centralized at the top level. All decision-making regarding teaching resources, students’ issues and social security matters concerning employees were considered at the highest level of the organization. This model was a source of hierarchical bureaucracy; enthusiasm and motivation among the lower levels declined due to constraints on new ideas and creativity, while the middle level acted as messengers.

The restructuring and reorganization models of MUST are shown in Figure 1.1. In analysing the current situation, MUST was challenged to delegate authority to the lower levels of management. With this purpose in mind, eight university faculties were reorganized into affi liated schools with fi nancial independence. This provided a close connection between the students and the schools. In addition, the promotion of deans of faculties to directors of schools, with expanded authority, facilitated the development of the schools, and hence, that of the university. Moreover, new centres were created by merging the departments of public services.

In 1995, the School of Mechanical Engineering and Technology was split into two separate schools, while in 1996, the School of Geology and Mining Engineering was divided into the School of Geology and


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the School of Mining Engineering. Furthermore, these centres were expanded into the School of Foreign Languages and the School of Engineering Education. The university established branches in the country; consequently, in 1997, two schools opened in Uvurkhangai Aimag and Erdenet City, with a further school in Sukhbaatar City the following year.

In 2000, following on from the foundation of the School of Engineering Education, three further schools were built, namely the School of Mathematics, the School of Chemical Technology and the School of Humanities. With these developments, it can be concluded that delegation of authority to the middle level of management awakened the interest of academic staff and lies at the root of the university’s enhancement and development. However, the hierarchy in the training structure has remained steady, in line with ‘university-school-department’. This, in turn, has constituted a general standard for management structure. The number of schools and departments has increased due to real demands; however, the emergence of new departments should not be seen in terms of fi lling gaps in this model. Nevertheless, the implementation of the credit-based system resulted in the establishment of a new Offi ce of Academic Policies at the university level, and academic offi ces at every school.

On a separate note, many research institutions have merged with the university since 1997. Research activities have been restructured and reorganized in the order of university-research institute-research centre. This standard has been enforced steadily throughout university research and development activities. Thus in 1997, the Mining Institute and the Institute of Thermal Technology and Ecology were founded, and in 1999, the Textile Research Institute started to function under the name of MUST.

By setting up academic offi ces at the university and in the schools, university professors and faculties were able to focus their attention on pure academic and research activities. In addition, by constituting research and development units to increase research and study capability based on real demands, new research and development centres and institutes were set up.


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To further improve aptitude and esteem, the university must lay out a practical structure of lower-level management authority. At the current stage, the university has started to introduce measures to expand responsibilities and abilities at the level of departments and research centres. The power of universities is not related to management, but to the professors and scholars who work in the university. Therefore, current attempts to reform the university correspond to this structure. Growth in the number of respected academics and professors infl uence its reputation and strength. Since a university is an organization of scholars and professors, providing opportunities for them to independently arrange academic and research affairs has real meaning for the university. As a consequence, in the 2002-2003 academic year, MUST restructured the departmental arrangements into a chair system and provided conditions to increase training and research freedom.

The academic structure comprises 17 schools, with 128 chairs and over 40 research institutes and centres. By recognizing several of the country’s well-established research institutions, it has brought their resources within its reach. The university staff consists of the President, three Vice-Presidents, professors, associate professors, lecturers, research associates and administrative and technical staff. The university has a Governing Board, an Academic Council and a President’s Council.

Effect of restructuring in MUST or other universities MUST was an initiator in restructuring measures and reforms

among Mongolian higher education institutions. A number of universities and colleges in the country have subsequently followed the reforms and renovation practices started at MUST. It is worth noting that this encouraged the MUST community, and inspired and invigorated them to pursue and implement new ideas.

Consortium of Mongolian Universities and Colleges

The Consortium of Mongolian Universities and Colleges was founded in 1995 on the initiative of fi ve leading Mongolian universities as a non-governmental and non-profi t organization. The Consortium’s mission is to strengthen higher education through cooperation and development of the intellectual and technological capabilities of


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universities, as well as to support universities in achieving international standards on education.

The Consortium serves as a catalyst for universities and colleges throughout Mongolia with regard to coordination activities and reforms in higher education, leadership in strengthening restructuring measures, and collaboration in expanding international cooperation and participation in international projects. The Consortium also contributes consistently to several major initiatives, including higher education workforce development, leadership development, research activities and international training for academic staff and students. The Consortium also plays a signifi cant role in organizing conferences on topics relating to higher education reform.

Within the framework of the programme on higher education management among Mongolian universities and colleges, MUST has been selected as a leader of the top six universities of Mongolia because:

• MUST is the fi rst university in Mongolia dedicated to the fully-fl edged implementation of a key element of the restructuring process – a credit-based system in all activities.

• MUST is the fi rst university in Mongolia devoted to setting up a chair system in which faculties are headed by leading and well-known professors of research and academic work, not only within the university but outside of Mongolia.

• MUST is the fi rst university in Mongolia committed to the establishment and maintenance of a future e-university through the maintainence of a University Management Information System (UNIMIS).

• MUST is one of the fi rst accredited universities in Mongolia. In addition, the fi rst programme accreditation in Mongolia was held on November 2003, during which the National Accreditation Council of Mongolia recognized a training programme on telecommunications, offered at MUST, as an accredited programme in the fi eld of engineering technology that responds to all requirements of international standards.


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International cooperation and foreign relations

MUST successfully developed a policy recognizing international practices in, for example, teaching theoretical knowledge within the Russian higher education system; democratization of training processes in the American higher education system; and leading roles of professors in German and Japanese universities, and has combined these experiences in accordance with conditions in Mongolia. This policy was effectively introduced in the university, with implementation to be carried out according to a planned schedule.

The university recognizes that foreign cooperation and the establishment of contacts with foreign institutions are a key approach for improving its training and research standards. Currently, MUST has academic links and exchange programmes with 93 academic and research institutions in over 20 countries worldwide.

From 2000 to 2010, at the start of a new millenium, the main cornerstone of MUST management and development is the Master Plan of Development for Mongolian University of Science and Technology. Each school and division of the university is developing and will presently implement its own master plans and detailed action plans based on this strategic document.

The principle signifi cance of the Master Plan is located in the following elements:

1. Assess the current social and economic situation of the country and identify tendencies and approaches in national development with regard to establishing priorities for the university.

2. Take precautions from potential risks and threats by identifying and defi ning main attributes of the mega, macro and microenvironments.

3. Sustain favourable conditions for management, monitoring, coordination and strengthening of activities at the university.

4. Facilitate integration of activities among students, teaching and research personnel, administrative and support staff of the university.


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The full employment and utilization of all MUST resources is crucial for the successful implementation of this Master Plan for university development.


The initiator of the restructuring ideaThe MUST complex offers over 120 training programmes

and consists of 128 chairs in 17 schools such as the School of Civil Engineering, School of Computer Science and Management, School of Foreign Languages, School of Food and Biotechnology, School of Geology, School of Humanities, School of Industrial Technology and Design, School of Material Technology, School of Mathematics, School of Mechanical Engineering, School of Mining Engineering, School of Power Engineering, School of Telecommunications and Information Technology, and the Technology Schools in Darkhan, Erdenet, Sukhbaatar, and Uvurkhangai provinces. The university contributes to fulfi lling the demands in training and preparation of essential specialists and builders of Mongolian society in the twenty-fi rst century.

Sustaining a complex such as MUST in Mongolia needs dedication to reform and renovation of knowledge and education in social and humanitarian sciences. Badarch Dendeviin,7 a leading scientist, has signifi cantly contributed to the restructuring and reform policies of higher education within the vision of a new democratic and renovated environment.

Presentation of restructuring measures to the university’s communityThe application of a credit-based system required a reorganization

of administrative and academic activities, as well as a great number of preparatory activities. For example, it necessitated developing

7. Badarch Dendeviin was awarded the honorary title of ‘Meritorious Educator of Mongolia’ for his substantial role in the development of higher education in 2001. He has worked at Darmstadt Technology University, Germany and Tokohu University of Japan. He was a visiting profesoor at South Dakota School of Mining and Technology, USA. He is an Honorary Professor of Utah Valley State College, USA and Ivanovo Textile Academy, Russian Federation and an Honorary Doctor of Ural Technical University, Russian Federation. His book entitled ‘American Education’ is devoted to the reforms of Mongolian higher education.


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guidelines for students for self-study, and for teachers to evaluate students, and so on. First of all, it was vital to understand how to customize the system for implementation in the university and country. This meant elaborating procedures and regulations for carrying out a fully-fl edged credit-based system. A number of successful meetings, seminars and interviews were held to introduce this system to the university community, particularly to the academic staff and students. Fortunately, several groups of professors, lecturers and administrators had studied in the United States, and therefore had experience with such a system.

The implementation of a credit-based system meant an increase in paperwork, as well as the development of handbooks and guidelines on advanced self-study for students. Hence, the system is based on student self-learning activities rather than on teaching. Furthermore, new challenges in the supervision of student learning and execution of assignments by academic staff needed to be solved. Both a detailed explanation for faculty members and fl exible decision-making were in urgent demand.

Besides the emergence of a totally new range of operational activities and the need to adapt rapidly to a fast-paced business environment, there was an urgent need to employ sophisticated information systems to appropriately manage information fl ow, records of faculty members and students, attendance and examination scores, payments to academic staff upon performance, and to ensure the training of IT-literate human resources. Thus, the university’s management information system needed urgent attention and development. The launching of the university’s management information system gave the administration the opportunity to obtain accurate information for rational, optimal decision-making on a timely basis. Furthermore, the application of advanced and sophisticated internet-based technology is a clear route for the enhanced delivery of training programmes. UNIMIS, the university’s management information system, was developed and implemented in two stages. In the fi rst stage of development, UNIMIS v.1.0 was launched, followed by the second stage, which involved the development of the fi rst version of the future e-MUST.


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The management of MUST views the implementation of a credit-based system not only in terms of the ‘collection’ of credits included in training curriculum by academic staff and students, but also recognizes that effi cient forecasting and estimation of creativity and innovation in the market generate more success. Therefore, the periodic development of a credit-based system will continue to motivate academic staff and students as regards fi nancial planning.

Financial and economic issues have underpinned reform and restructuring measures taken by MUST. These issues depend on various factors: the university’s strategic and short-term objectives and goals, management and organizational structure, foreign cooperation, management and coordination of training technology, mechanisms of fi nancial encouragement, awards and penalties for motivation of staff activities, monitoring and control of action processes and fi nal outputs, and fi nal achievement of goals and objectives. The economic and fi nancial aspects of the university are organized into two steps: (i) internal university activities are arranged to regulate between the university’s administration, and (ii) between departments or units in terms of economics and fi nance. However, the framework is designed to allow independent activities at each step.

Failure to follow this principle will impact upon management decentralization and will deter administration at the lower end of the organizational hierarchy. Consequently, this will lead to chaos in fi nancial management. At the same time, middle managers of faculties and research units, who carry out training and research activities or provide services for students, should have some understanding of economics and fi nance. Otherwise, the implemention of a credit-based system for improving training and education frameworks will prove diffi cult.


The peaceful democratic changes that took place at the beginning of the 1990s had a major impact on the country’s social, political and educational situation. The country took advantage of the possibilities of independent development to shift from a centrally-planned economy towards a market economy. Although favourable conditions for


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reforming higher education emerged at the time, the reform processes and restructuring measures started much later. Nevertheless, it is certain that the correct path for reform and renovation was chosen and, as a result, certain successes in higher education development in Mongolia have been achieved recently.

It was important to defi ne the university’s vision for its development in terms of market conditions. Thus, in October 1992, MUST assessed the period with respect to activities on training and research, the situation in training and research facilities, teaching resources, fi nancial and decision-making status, and the organizational structure of the university. The assessment results were discussed at the Academic Council for the university.

The Academic Council reviewed the situation and concluded that the running of research and academic activities were not disimilar from traditional methods. To overcome hurdles in development suitable to market economy conditions, it needed to obtain modern technology and facilities, employ new methods of management and organization, and increase fi nancial opportunities. The conclusions were summarized as follows:

• Attempts to restructure training contents and methodologies have been undertaken over the last few years. However, outdated and decrepit principles are preventing real transformation.

• Training facilities and equipment have become obsolete and new investment promotions are unavailable.

• The supply of textbooks and handbooks has deteriorated and a lack of paper reserves prevents the publication of new training materials.

• The framework for upgrading skills and capabilities of academic staff has been distorted.

• Assessment of academic staff performance standards has been drastically lowered and social security issues of university staff have not been clearly defi ned.

• Principles of accountability for university staff are not functioning, resulting in waywardness and disorder in the carrying out of responsibilities.


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• Financial constraints occurred as a result of budget scarcity, leading to an actual and projected defi cits.

• As a consequence of absence of proper management concepts, staff incentives have been dropped.

• The learning approach of students is weakened and the motivation and attitudes of students have been undermined.

It is worth noting that there were few confl icts or burdens in implementing restructuring measures relating to administrative and academic staff or students. However, a survey received from UNESCO’s International Institute for Educational Planning (IIEP) and results of annual feedback surveys among the university’s academic staff and students, revealed that the reforms had met a number of drawbacks and constraints, described below.

Table 4.1 shows the opinions of directors and chairs of MUST schools regarding the diffi culties in implementation of the restructuring process: decision-making.

Table 4.2 shows opinions on the diffi culties in implementation of the restructuring process: fi nance and organizational structure.

Table 4.3 addresses opinions on the diffi culties in implementation of the restructuring process: student-related. As is evident from this table, professors and directors state that the background knowledge of students and their motivation for learning are not adequate, and attitudes toward inventory, university facilities and liability for payment of tuition fees are unsatisfactory.

The responses below indicate the opinions of university staff on procurement supply.

MUST administration is concerned with the aforementioned limitations in carrying out restructuring measures and places emphasis on improving both the cause and effects. Another concern relates to the survey results of the IIEP questionnaire on students’ perceptions, in which over 80 per cent of the total student population disagreed with changes in the fee structure – tuition fees are increasing every year and the fee per credit unit is unreasonably high. It is clear that the university administration must make addressing these frustrations a priority.


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Table 4.1 Opinions on diffi culties in the implementation of the restructuring process: decision-making

No Responses Frequency Percentage1 Decision-making at the university has many features,

in general. Schools have more rights in strategic decision-making. Although academic staff participation in decision-making is high, this depends very much on workload and time availability.

12 24.0

2 Suggestions and feedback of primary units on principal issues are not well refl ected in collaborative work and decision-making. Some decision-making strongly depends on leaders’ capabilities, knowledge initiative and courage. Decisions taken have multiple implementation stages, therefore, time is required to reach the bottom level of primary units.

19 38.0

3 Do not know/No response 19 38.0Total 50 100

Table 4.2 Opinions on diffi culties in the implementation of the restructuring process: fi nance and organizational structure

No Responses Frequency Percentage1 Organizational structure is suffi cient. Organization of

activities is well structured. 13 26.0

2 The situation of administration staff is complicated and although the Academic Affairs offi ces of the schools have many staff, their contributions to decision-making and students consultation are poor. Responsibilities and liabilities of administrative and support staff should be re-defi ned and assigned accordingly. Young professors lack experience. MUST single treasury expenditures should be made transparent.

18 36.0

3 Do not know/No response 19 38.0Total 50 100


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Table 4.3 Opinions on diffi culties in the implementation of the restructuring process: student-related

No Responses Frequency Percentage1 Students’ core background, discipline, activity, learning

and motivation to study is not adequate; whereas material consciousness and foreign language-learning ability is poor.

16 32.0

2 Wide use of tests produces engineers with poor speech skills. The large student numbers participating in seminars do not allow for a course to be conducted at the required level and cause constraints in individual work with students. Social and cultural services provided for students are unsatisfactory.

10 20.0

3 Students have enough ability to make decisions individually. Need to fi nd ways to improve students’ motivation to learn.

4 8.0

4 Due to lack of students’ abilities to pay, it is necessary to enhance mechanisms for payment of tuition fees.

3 6.0

5 Do not know/no response 17 34.0Total 50 100

Table 4.4 Opinions on diffi culties in the implementation of the restructuring process: procurement procedures

No Responses Frequency Percentage1 Due to the need to strengthen university facilities and

material support, schools lack training and research facilities. There is a lack of capacity to provide training classes and lecture halls. There is an insuffi cient supply of published textbooks, books and computers. It is necessary to search for additional fi nancial sources other than tuition fees to solve procurement problems.

27 54.0

2 The State Single Treasury Account system has an adverse impact on decision-making on procurement procedures.

1 2.0

3 Decision-making on procurement procedures is independent for MUST schools.

3 6.0

4 Do not know /No Response 19 38.0Total 50 100


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According to responses to the questionnaire on students’ perceptions on access to and quality of social services for students – and implementation of restructuring measures in regard to this – certain areas call for special attention. In particular, 34 per cent of student-respondents were not satisfi ed with library services and access to textbooks and research literature; moreover, they viewed changes in cultural measures as unsatisfactory. Regarding improvements in students’ loan fund, 35 per cent of students held an unfavourable opinion, and 45.5 per cent considered that student services had not been changed at all.

In relation to responses to the questionnaire on academic staff perceptions, with respect to the opinions on changes in evaluation of academic staff performance, 41 per cent of respondents among academic staff were moderately satisfi ed with the effectiveness of restructuring measures, and 33 per cent highly praised such changes. However, 3 per cent were not at all satisfi ed with the changes. Moreover, with regard to evaluating performance and increasing accountability in the procedures for hiring teaching personnel, 66 per cent are pleased with reforms in these areas, whereas 10 per cent strongly considered the changes to be positive. Nevertheless, in ranking these areas of change, only 4.1 per cent viewed optimistically the effectiveness of restructuring and changes for staff management and evaluation of academic staff performance. Therefore, the MUST administration considers that restructuring in these two areas needs further improvement.


This part of the chapter is based on feedback received from different segments of the university community. The survey included the administration (members of the Governing Board, the President, Vice-Presidents, heads of departments) and support staff of MUST (40 people); directors and chairs of MUST schools (50 people); academic staff of MUST schools (100 people); and senior students enrolled in the third and fourth years of MUST schools (200 people). Moreover, reports, documentation, resolutions, degrees and other research literature related to the restructuring process were selected as research objects for this study.


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Feedback to the question ‘What is your opinion on areas of change that have been introduced by the university as part of a restructuring process?’ has been analysed and is shown in Table 4.5. The table shows that the academic community, including students, are familiar with the restructuring process. However, the non-response rate was rather higher, especially among students and academic staff. Many students were not present at the university when the restructuring process took place, hence the lack of awareness among students is understandable. However, the high non-response rate among the academic staff indicates that those who held positions – directors, chairs and administrative staff – were more aware of the reform.

Of those who responded, the pattern seems to be similar. It seems that different segments of the university community have indicated curriculum as a management reform, followed by university autonomy (Table 4.5), students and admissions, and so on.

Table 4.5 Perceptions of the university community on areas of university restructuring (percentage)

Areas of change Administrativeand support staff

Directors and chairs

Academicstaff

Students

University autonomy 17.4 15.8 20.1 20.3Decision-making structures 13.8 14.4 12.1 7.8Restructuring curriculum 15.2 15.3 20.6 21.1Academic staff management and assessment

11.8 14.7 7.4 15.0

Financial management and corporatization 11.8 13.7 12.1 11.8

Admissions and student management 13.2 11.6 15.6 10.8

Administrative procedures 13.2 10.3 9.4 6.4Any other 3.8 4.2 2.7 6.8Total 102 100 100 100


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4.6 Implications of introducing reforms in universities

Table 4.6 Some comparative indicators of MTU and MUST

MTU in 1990s MUST in the new millenniumInstitute has just recently obtained status of a university.

Confi rmed status of a university and has expanded. Dedicated to achieving its mission to become one of the largest universities in North-East Asia.

3,021 students and 323 faculty members.

18,595 students and 830 faculty members.

Organizational structure consisted of faculties, centralized management and framework of university-faculty-department.

Has obtained an independent school structure; authority has been delegated to lower levels of management. Currently introduced framework of University-School-Chair. There are 17 schools and 128 chairs at the university. Internal management is democratized; Faculty Senate and Students Union are operating independently.

Had qualifi ed academic staff. However, young faculty members comprised only 10.8 per cent of total academic staff. Retraining of faculties was organized once every fi ve years in Russian Federation.

Enriched with experienced and skilled faculty members, over 30 per cent of total academic staff have academic ranking, and more than half of faculty are young. Over 70 faculty members have studied abroad and more than 10 of the younger faculty members have graduated from doctoral programmes in foreign countries. 100-150 faculty members are engaged in various training programmes to update their skills annually.

Supply of textbooks and training materials getting worse with limited availability to publish new ones.

The Printing House established with initial publication of textbooks on general science, followed by textbooks on specializations according to designated schedule. Engineering handbooks and descriptive dictionaries published in the mother language. Foreign textbooks and literature supplied within a certain scope to libraries. Currently, over 20,000 volumes of foreign literature, mostly printed in English, are used for training and research.


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Laboratory facilities obsolete and not satisfying training requirements.

Laboratories and facilities installed at an amount of nearly US$ 7 million. Research and training facilities of the university are becoming stronger, including the Analytical Laboratory, Printing Production and Training Centre, Training Centre named in honour of Prime Minister of India, Sir Shri Atal Bihari Vajpayee, the Internet Centre, Toyota Laboratory, Siemens Digital Communication Laboratory, Physics Laboratory, computer laboratories, and various specialized laboratories on electronics, industry automation, etc.

Narrow scope of research did not provide post-graduate training programmes.

MUST is offering postgraduate training programmes for Master and Doctoral degrees. It has built a Research and Technology Centre with its own resources. There are currently over 40 research centres at the university. During the last period, MUST organized over 10 international research conferences with assistance from Italian, Japanese and Korean partners and international organizations.

International cooperation ties related mostly to certain Russian and Chinese institutes. Ties were specifi c to a certain period.

MUST is a member of the Association of World Universities and has set up a mutual cooperation agreement with over 90 universities and colleges and 10 large companies in nearly 20 countries.

Training curriculum was structured on Russian models.

The credit-based system has been studied and introduced into training. The Internet network is maintained for wide use in academia and research.

Evaluation of faculty members’ work performance was poor with employees leaving the university to join the private sector.

Academic staff’s salaries increased due to several bold steps; currently, the level of evaluation is higher than average. However, further increases are still needed.

Assessment of the restructuring at MUSTOver the last decade, MUST has become one of Mongolia’s leading

universities due to its leadership, shared responsibility and democratic reforms of management, academic and research organizations. The whole reform process at MUST can be considered a success story from the perspective of higher education in Mongolia. The following section details some of the key factors in that success:


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1. The reform process at MUST took place at the beginning of the country’s economic transition. After the democratic revolution, democratic ideas and initiatives, reform and restructuring were encouraged by the government and top political leaders. This created a unique opportunity for universities to determine their vision for reform. In other words, this period was characterized by a creative search for best practices and a new management culture. Fortunately, the strategy, which was adopted by the MUST Academic Council at the beginning of the 1990s, was successful.

2. Unlike the other universities, MUST was able to protect its autonomy during this period. No political appointments took place at MUST; this gave greater stability and autonomy to the university. After three years of reform, the higher education community began to recognize the new reorganization, ideas and initiatives of the university.

3. Strong leadership and wide recognition, not only within the country but also at the international level, provided great freedom to implement new ideas and initiatives. Many new initiatives, implemented successfully at MUST, have been instrumental in the adoption of new laws and regulations on higher education. MUST has also been an initiator and a leader of the Consortium of Mongolian Universities.

4. Extensive training opportunities abroad for management and teaching staff were the most convincing factor for new reform initiatives. Those who were trained abroad were the main supporters of the restructuring process.

As always, there were constraints in implementing all new initiatives and ideas, namely:

1. There was confl ict between old and new thinking. The principle concern was how to change old ways of thinking. Nostalgic behaviour of old management staff and some senior staff was the main obstacle to implementing new ideas. This was a period defi ned by a learning democracy and was all about the market economy.

2. Political instability and numerous government changes slowed down the reform process. Sometimes political pressure reoriented the reform process, especially with regard to university autonomy.


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The new Law on Education initially proposed that autonomy be exercised at universities through a governing board. The governing board was the key stable management structure for universities – responsible for the entire strategic management process, including the selection and appointment of the university president. But later amendments to the law extended the authority of the Minister and weakened the role of the governing board. This created instability for the university and political appointments.

3. Strong government support for public universities is absent. Even though the government wishes to extend its control over public universities, fi nancial support is decreasing. There must be government investment in public universities.

The following is a brief list of actions to be implemented by the university in the coming decade.

Short-term plan for the next ten years1. Verify the status of the university’s autonomy and carry out

academic freedom to its fullest meaning.2. Introduce multifaceted measures to enhance the quality of

training.3. Restructure training methodologies and technology, and introduce

advanced methods and creative thinking.4. Develop and carry out electronic technology training with a

combination of traditional methods of training.5. Support innovation and creative thinking focused on carrying out

research with suitable mechanisms for implementation.6. Put in place mechanisms for the wide functioning of technology

transfer and implementation activities with collaboration from companies and enterprises.

7. Signifi cantly improve English profi ciency of academic staff, students and graduates.

8. Offer joint training programmes for improving the quality of training.

9. Strengthen academic potential by establishing cooperation with young scholars studying overseas.


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10. Develop a sustainable policy on continuing traditions for the respect of elders and support of young scholars, especially those who graduated from foreign institutions.

11. Support students’ self-learning and, thereafter, create a life-long learning environment by setting up various student centres.

12. Work out functions and scope of managerial etiquette at each management level.

13. Establish trusts for young scholars with managerial abilities and promote these to management positions.

14. Increase accountability and responsibility of every person and support promotion of creativity.

15. Emphasize the university’s management in providing an environment for innovative and creative ideas.

16. Eliminate any lags in social development. Be an initiator and force for future social development.


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5. KING MONGKUT’S UNIVERSITY OF TECHNOLOGY THONBURI, THAILAND

Banterng Suwantragul8

5.1 Introduction

The object of this chapter is to scrutinize the restructuring process and its effect, both from a macro and an institutional point of view. The chapter identifi es internal and external infl uences on major areas of institutional restructuring. It analyses the process of implementing institutional restructuring and the effect of restructuring on both the mission and the functioning of the university. This chapter focuses on King Mongkut’s University of Technology Thonburi (KMUTT).

5.2 Initiation of institutional restructuring in Thailand9

The Higher Education Long Range Plan (1990-2004) of the Ministry of University Affairs (MUA) addressed four major issues for Thai higher education, namely: equity, effi ciency, excellence and internationalization. One of its six policy recommendations for the government was “the State should reform the relationship between degree-level institutions and the State by developing state universities under MUA to become autonomous, responsive, effi cient and academically excellent. This should be achieved by the transition of existing state universities into autonomous universities while new state universities to be created should be autonomous from the beginning”. (Ministry of University Affairs, 2004)

During the government of Prime Minister Anand Panyarachun, when Professor Kasem Suwannkul was Minister of Universities Affairs, there was an attempt to effect the transition of 16 universities, including King Mongkut’s Institute of Technology (KMITT), from bureaucratic state universities to autonomous institutions. In March 1992, the draft bills on 16 autonomous universities were tabled at the Legislative

8. Banterng Suwantragul is Associate Professor at King Mongkut’s Institute of Technology Thonburi Bangmod (KMUTT), Bangkok, Thailand.

9. See Krissanapong Kirtikara (2004).


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Assembly; the Assembly President dissolved the Assembly thereby throwing out all the draft bills.

5.3 Institutional restructuring in King Monkut’s University of Technology

Introduction to King Mongkut’s University of Technology ThonburiKing Mongkut’s University of Technology Thonburi (KMUTT)

can trace its origins to the Thonburi Technology Institute (TTI), which was established on 4 February 1960 by the Department of Vocational Education, Ministry of Education. TTI had as its objective the training of technicians, technical instructors and technologists. By the Technology Act, enacted on 21 April 1971, three technical institutes under the Department of Vocational Education, TTI, North Bangkok Technical Institute and Nonthaburi Telecommunication Institute, were combined to form one degree-granting institution, constituting three campuses. TTI thus became KMIT Thonburi campus. In 1974, KMIT was transferred from the Ministry of Education to the Ministry of University Affairs.

A new Technology Act was enacted on 19 February 1986; the three campuses of KMIT became three autonomous institutes, each having the status of university. KMIT Thonburi Campus henceforth became KMITT.

On 7 March 1998, as announced in the Royal Gazette, KMITT became KMUTT. KMUTT is the fi rst public university in Thailand to receive full autonomy. Its administrative system is now based on that of international government-owned universities. The new act gives KMUTT total control over its budget, allows it to own and manage property, and grants authority to set up new faculties and departments, as well as to introduce new academic programmes.

The development of academic programmes at KMUTT can be broadly grouped into three periods. These are:

1. First decade: The mission of the university was to produce technicians (through three-year programmes after Grade 12), practical engineers (through fi ve-year programmes after Grade 12)


135

King Mongkut’s University of Technology Thonburi, Thailand

and technical instructors for technical colleges (through two-year programmes after technician diploma) at Bachelor degree level.

2. Second decade: The university established a broader academic programme in science and technology by offering bachelor degree programmes in engineering and multidisciplinary technologies.

3. Third decade: New areas in science, engineering and multidisciplinary technologies were covered at Bachelor, Masters and Doctoral degree levels, resulting in increased emphasis on research, development and international academic cooperation. A Masters programme in applied linguistics and Bachelor and Masters programmes in architecture were initiated. Technical services units were established.

Being one of the top technological universities, KMUTT has a mandate to nuture leading scientists and technologists capable of performing R&D for the broad purpose of enhancing the standard of living for humanity.

Basic information Basic information of King Mongkut’s University is shown in

Table 5.1.

After the failed attempt to effect the simultaneous transition of 16 state universities into autonomous universities in March 1992, KMITT reached the conclusion that it was impossible to achieve the simultaneous transition of all state universities. Each university differs in its character, history and limitations. Each university nurtures its own values, visions and aspirations. KMITT therefore decided to move ahead on its own to become an autonomous university. KMITT was resolute in its determination and possessed a strong sense of continuity with regard to transition policy in the form of the University Council. The Council President and members (from outside the university) served continuously during those six crucial years. These were Mr. Boonyium Meesook (President), Dr. Tongchat Hongsladarom, Professor Pote Sapianchai, Professor Sanga Sabbhasri, Professor Dr. Yongyuth Yuthawongs and Mr. Khemmadhat Sukonthasingh.


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Table 5.1 Background data on King Mongkut’s University of Technology Thonburi

(a) Physical facility

Land BuildingThonburi 52 acres 248,798 square metresBankhuntien 80 acres 71,944 square metresRajaburi 460 acresTotal 592 acres 320,742 square metres

(b) Staff

Academic 540Administrative and support 541Temporary and other employee 635Total 1,716

(c) Programme offered

Undergraduate 33Graduate – Graduate diplomas 8

– Masters 57– Doctorates 22

Total 120

(d) Number of students

Undergraduate 8,357Graduate – Graduate diplomas 22

– Masters 3,782– Doctorates 292

Total 12,453

Note: Academic year 2004/1.Source: KMUTT Annual Report, 2004.

On the side of senior administration, during the six-year preparation period, there was an uninterrupted policy on autonomy at the highest level. The university President, Associate Professor Dr. Pibool Hungspreugs – the KMITT President during the fi rst transition attempt in 1992 – was followed by Associate Professor Dr. Harit Sutabutr;


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then in 1992 by the KMITT Vice-President, who subsequently became the fi rst KMITT President during the transition time. Other senior administrators at the faculty level – despite personnel changes – continued with a determination for autonomy.

By late 1994, the draft of the second KMITT Act, quite different from the fi rst draft and unique to the university, was ready. Drafts of supporting regulations and guidelines were also fi rmly in place. The university submitted the second draft Act for consideration by the Cabinet and received approval on 18 April 1995. The draft was then forwarded to the House of Representatives on 25 September 1995. The House dissolution on 27 September 1995 effectively threw the second draft out of the legislative process again, and the Act failed to get through for the second time.

After the second failure, additional time was available for KMITT to work further on the details of KMITT as an autonomous university and other supporting regulations. KMITT resubmitted the draft without much alteration to the Cabinet again and received approval on 20 February 1997. The House of Representatives passed the fi rst reading on 27 August 1997; the Senate on 27 December 1997. The Act was published in the Royal Gazette on 6 March 1998 and became effective on 7 March 1998. The legal transition of KMITT to KMUTT as an autonomous university was complete.

There are presently six autonomous universities in the country: four public and two Buddhist universities. Five new universities were established as autonomous universities; only one – KMUTT – made a transition.

Following recovery from the economic crisis of the 1970s, state universities in Thailand, including KMUTT, found that they were losing many of their competent lecturers to industry due to better pay. Furthermore, state universities were required to follow the same government guidelines and regulations as other bureaucratic departments. Many regulations such as procurement procedures, budget disbursement and operational structures are not fl exible enough for the higher education world. This was the immediate reason for the initial decision to restructure the university.


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The university expected the smooth transition to be completed within fi ve years, which is the period of time given in the University Act.


Initiation of restructuring at KMUTTThe restructuring process was initiated by Associate Professor

Dr. Harit Sutabutr and Dr. Krissanapong Kirtikara, the past and present Presidents of KMUTT, who served during the 15-year higher education plan. The idea was supported by the University Council and then by the University President, Associate Professor Dr. Pibool Hungspreugs.

Communication to the staff

The idea of institutional restructuring was communicated to the staff by various means:

1. The university management held meetings with staff at various stages of development.

2. The KMUTT Lecturer Council took an active role in the development of university autonomy. The Council also organized public hearings within the university.

3. The university set up several task forces and working groups to study the management of academic matters, university personnel and fi nancial matters that involved large groups of staff. Participation in working groups helped staff thoroughly understand the concept of university autonomy.

The new structureThe University Council

One important mechanism for an autonomous university is the restructuring of governance and management, with the University Council playing a key role in setting the direction and making fi nal decisions. The University Council has three important operating arms, namely: the Academic Council, the Personnel Administration Committee and the Finance and Assets Management Committee.

Under the old structure, the University Council had limited authority, being constrained by many other organizations that the


139


university had to deal with. The university conformed to the rules and regulations of these organizations, as shown in Figure 5.1.

Figure 5.1 Public university reporting diagram

BudgetBureau

Change ofitemizedbudget

allocation

Setting upor dissolving

work units

Changes inprocurementprocedures

Changes infinancial

regulations

Changes insalary

structure

New curriculanot in 5-Year

Plan

University Council

University

Ministryof

Finance

Commission onHigher Education

Ministry of Education

Stipulated bythe Government

for all civil servants

Office ofthe PrimeMinister

PrimeMinister

PersonnelAdministration

UniversityCivil ServantCommittee

UniversityCivil Servant

Sub-committee

Examples of such constraints included:

• In setting up or dissolving a work unit, the university needed approval from the Ministry of Education even though the University Council had already given its approval. The same was true for new curricular offerings if these were not in the fi ve-year plan.

• The university, being a public organization, was required to follow the rules and regulations of the offi ce of the Prime Minister regarding procurement procedures.

• Change in salary structure was possible only when the government had such a national policy on the issue applicable to all civil service employees.

• Change in fi nancial regulations was possible only when the Ministry of Finance had such a policy that was also applicable to all public organizations.


140


• Changes in itemized budget allocation needed approval from the Budget Bureau.

• Personnel management was obliged to follow the frameworks of the University Government Service Sub-committee and the Government Service Committee.

In summary, the university, being a government service organization, followed the same rules and regulations as other public organizations. This made running the university very diffi cult.

The transition to an autonomous university made it possible to restructure the governance and management of the university (Figure 5.2).

With the new structure, all of the above points fall within the authority of the University Council. However, as the university is still partially funded by the government, it is not fully autonomous. The Budget Bureau controls fi nancial support or allocation; there are (no more than) two MOE representatives on the University Council, agenda concerning the university must be submitted to the Council of Ministers through MOE, and fi nancial matters are audited by the Government Auditing Offi ce.


141


Figure 5.2 Autonomous university reporting diagram

Change ofitemizedbudget

allocation

Setting upor dissolving

work units

Changes inprocurementprocedures

Changes infinancial

regulations

Changes insalary

structure

Personneladministration

New curriculanot in 5-Year

Plan

University

University Council

Total amount of budget

controlled by Budget Bureau

Has representationin the University

Council

Commission in HigherEducation/Ministry of Education

Submit agendaconcerning

University toCouncil of Ministers

Government Auditing Officeexamines compliance

with regulations

In addition, the university is audited by other agencies, such as the Offi ce for National Education Standards and Quality Assessment and the Council of Engineers.

The Academic Council

The Academic Council’s duties are to screen and advise the University Council in matters related to management and academic affairs of the university as well as other matters.

The Personnel Administration Committee

The main authority and duty of the Personnel Administration Committee is to develop terms of reference for hiring, fi ring and other matters related to personnel administration, and to submit these to the University Council for approval. Approving employment and termination of employment do not fall under the authority of the University Council. The Academic Council is also the responsibility of the committee.


142


The Finance and Assets Management Committee

The main authority and duty of the Finance and Assets Management Committee is to approve fi nance and assets matters that are beyond the authority of the President and to screen matters in cases where the authority of the University Council is needed.

Decision-making structures

At KMUTT, two Senior Vice-Presidents are appointed, one for Academic Affairs and one for Administrative Affairs. A Vice-President responsible for the Bangkhuntien and Rajaburi campuses is also appointed. This frees the President from routine, day-to-day matters, enabling him to focus on policy issues and contact with other organizations in Thailand and overseas. In addition to the Vice-Presidents, the Academic Council, the Personnel Administrative Committee and the Finance and Assets Management Committee are important mechanisms through which the President, being the Chairman of the Council and Committees, can administer his or her duties.

All academic matters fall under the responsibility of the Senior Vice-President for Academic Affairs, working together with the Vice-President for Student Affairs and the Vice-President for Research and Information.

All administrative matters fall under the responsibility of the Senior Vice-President for Administrative Affairs working together with the Vice-President for Human Resources, the Vice-President for Planning and Development and the Vice-President for Property and Finance.


143


Figure 5.3 King Mongkut’s University of Technology Thonburi (KMUTT) administration chart

Adviser to the University

Vice-President

University Council

Academic Council

University Promotion Committee

Property and Finance Committee

Personnel Administration Committee

Academic Service Division- National entrance examination

Institute for Scientific and Technological Researchand Services- Academic exhibition both in and outside the university and communityand rural areas services

Building and Ground Division- In case of emergency in the university, for safety ofproperties and personnel ofthe university, both during and outside of office hours

Special project for specific matter

Adviser to the President

Internal Audit Unit

Faculty and Staff Senate

University Welfare Committee

KMUTT Alumni Association

Foundation Committee

KMUTT Co-operative of Saving & Credit

KMUTT Co-operative Service Limited

Academic Service Division

Student Affairs Division

Registration and Evaluation Division

The Graduates and International OfficePilot Plant Development and Training InstituteInstitute for Scientific and technological Research and ServicesIndustrial Park CenterComputer CenterKMUTT libraryFaculty/ScoolAffiliated Institute/School/University Consortium

Darunsikkhalai SchoolThe Joint Graduate School of Energy and Environment

Administration Service DivisionHuman Resource Development Division

Health Care Service Section

Planning DivisionBuilding and Ground Division

Security and Safety Management Section

Treasury Division

Benefits and Property Management SectionCommercial Resource Development Section

KMUTT (Bangkhuntien)Rajaburi Campus

Public Relations Section

Office ofthe President

Office ofthe President

Senior Vice-President for Academic

Vice-President for Student Affairs

Vice-President for Research and Information

Senior Vice-President for Administration Affairs

Vice-President for Human Resources

Vice-President for Planning & Development

Vice-President for Property and Finance

Vice-President – in charge of Bangkhuntien and Rajaburi

President


144


5.5 Constraints on the implementation of restructuring measures

Diffi culties faced during the implementation stageDiffi culties faced during the implementation stages included:

1. The transition of KMUTT occurred after the economic crisis of 1997. The university found it diffi cult to obtain an extra budget to top up the salary and provide funds and staff benefi ts. It took 17 months to settle this matter with the government.

2. The status of university employee was unrecognized by government agencies, who only recognized statuses related to government bureaucracy and state enterprises.

Resistance from staffThere was resistance from a small group of staff before the

university submitted the second KMUTT Act to the government. The university then held a staff meeting on the draft of the acts and other subsidiary regulations and guidelines on academic matters and personnel management. After the public hearing, organized by the KMUTT Lecturer Council, there were only small signs of resistance.

Measures to overcome diffi cultiesAll diffi culties were overcome through negotiations and

explanations. Mr. Paron Issarasena, the fi rst University Council President of an autonomous university, and other management members of the university, had to explain many times to the various government agencies, including the Prime Minister, the Ministry of MUA and other ministers, the extra budget needed to top up the salary and provident fund and staff benefi ts before the matter could be settled.

KMUTT explained, case-by-case, to various government agencies, such as the Police Department, the Customs Department, and so on, the existence of an autonomous university as a new type of government agency.


145



Perception of the university community on restructuringSurvey results show that all constituents of the university have

been affected by the transition and that changes have taken place in all aspects surveyed. It is not surprising that the effects on academic staff are somewhat unclear. This may be due to the fact that they are, to some degree, already autonomous. All personnel felt an increase in workload, increased monitoring and control of resources. Academic workload increased due to a greater number of new academic programmes, especially graduate and international programmes. Research and service work also increased. These in turn led to an increase in administrative workload. This is also due to other causes such as a change in budgeting system, dual-track management and the implementation of quality assurance systems. An increase in monitoring and control of resources is due to the relegation of authority to operating units. On the negative side, interaction and collaboration between departments or schools as well as sharing of facilities and resources are low.

Both university employees and civil servants are satisfi ed with their choice but there are some disagreements on job assignments and assessments.

Perception of senior management

The senior management in the university includes vice-presidents, deans and heads of departments.

Table 5.2 Senior university management: general information

ItemTotal 15Average age (years) 48.7Average experience in KMUTT (years) 16.7Gender: male (%) 86.7Gender: female (%) 13.3Status university employee (%) 100


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Table 5.3 Senior university management’s opinion on areas effected by institutional restructuring

Item Percentage1. On university autonomy 1002. On staff management and evaluation 73.33. On decision-making structure 60.04. On academic programmes 60.05. On staff management and evaluation 60.0

Table 5.4 Senior university management’s opinion on the level of autonomy

Aspects of restructuring Total autonomy

(%)

High degree of autonomy

(%)

Limited autonomy

(%)

No autonomy

(%)1. Student evaluation procedures

26.7 53.3 13.3 6.7

2. Decision-making structure at the institutional level

26.7 33.3 40.0 0

3. Decision-making structure at the faculty/department level

26.7 33.3 40.0 0

4. Staff recruitment 20.0 40.0 33.3 6.75. Introducing new study programmes

13.3 46.7 33.3 6.7

Table 5.5 Senior management in the university: opinion on the benefi ts of institutional restructuring

Aspects of restructuring No benefi t(%)

Moderate benefi t(%)

Signifi cant benefi t

(%)1. Academic programmes 6.7 40.0 53.32. Staff evaluation procedures 6.7 40.0 53.33. Staff recruitment procedures

0 40.0 46.7

4. University autonomy 13.3 40.0 46.75. Autonomy of academic staff

13.3 40.0 46.7


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Perception of teaching staff

Questionnaires were sent to the academic staff of 20 departments, fi ve for each department. The academic staff surveyed:

Table 5.6 Teaching staff: general information

ItemTotal 57Average age (years) 40.0Average experience in KMUTT (years) 15.6Gender: male (%) 68.4Gender: female (%) 31.6Status university employee (%) 56.1Civil servant (%) 43.9

Table 5.7 Teaching staff’s opinion on the effect of institutional restructuring

Item Percentage1. On university autonomy 1002. On staff management and evaluation 94.73. On fi nancial management and corporatization 77.24. On academic programmes 68.45. On admissions and student management 63.26. On administrative procedure 63.2


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Table 5.8 Teaching staff’s opinion on the institutional restructuring process


(%)

Disagree(%)

Agree(%)

Strongly agree(%)

1. Restructuring enabled development of innovative curriculum

3.6 28.6 58.9 8.9

2. Restructuring enabled development of employment-oriented courses

5.5 32.7 54.5 7.3

3. Restructuring enabled development of multi-disciplinary and multi-skill courses

5.6 29.6 59.3 5.6

4. Restructuring has strengthened links between research and teaching

3.6 47.3 38.2 10.9

5. Restructuring has strengthened academic programmes

9.3 38.9 46.3 5.6

Table 5.9 Teaching staff’s opinion on the institutional restructuring process


(%)

Disagree(%)

Agree(%)

Strongly agree(%)

1. Restructuring has increased academic workload

5.3 17.5 56.1 21.1

2. Restructuring has increased monitoring and control of resources

3.6 17.9 58.9 19.6

3. Restructuring has increased accountability measures of staff

5.4 25.0 55.4 14.3

4. Restructuring has increased administrative workload

2.0 21.6 62.7 13.7


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Table 5.10 Teaching staff’s opinion on the benefi ts of institutional restructuring


Moderate benefi t

(%)


(%)1. University autonomy 9.1 54.5 29.12. University decision-making structures (management structures)

13.5 50.0 25.5

3. Staff evaluation procedures 16.4 52.7 23.64. Cost-saving measures 33.3 40.7 20.45. Staff recruitment procedures 13.5 46.2 19.2

Dual system

Table 5.11 Teaching staff: civil service opinion

Item Agree(%)

Disagree(%)

1. Satisfi ed with civil service status 80.0 20.02. Planning to apply for university status in the near future

22.7 77.3

3. Agree with the university policy that for the same position, both civil service and university employee should be assigned work with the same job description

50.0 50.0

4. Satisfi ed with civil service salary 54.2 45.85. Agree with the university policy that working performance should be assessed with the same evaluation procedure

45.8 54.2


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Table 5.12 Teaching staff: university employee opinion

Item Agree(%)

Disagree(%)

1. Satisfi ed with university employee status 90.0 10.02. If possible, want return to government service position

27.6 72.4

3. Agree with the university policy that for the same position, both civil service and university employee should be assigned work with the same job description

76.7 23.3

4. Satisfi ed with university employee salary 70.0 30.05. Agree with the university policy that working performance should be assessed with the same evaluation procedure

80.0 20.0

Perception of administrative and support staff

Questionnaires were sent to the administrative and supporting staff of 20 departments and to the offi ce of the President, 100 in total.

Table 5.13 Administrative and supporting staff: general information

ItemTotal 93Average age (years) 38.1Average experience in KMUTT (years) 12.6Gender: male (%) 32.3Gender: female (%) 66.7Not specifi ed (%) 1.1Status: University employee (%) 58.1Civil servant (%) 41.9


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Table 5.14 Administrative and supporting staff’s opinion onthe effect of institutional restructuring

Item Percentage1. On university autonomy 100.02. On staff management and evaluation 89.23. On fi nancial management and corporatization 83.94. On administrative procedure 76.35. On admissions and student management 63.4

Table 5.15 Administrative and supporting staff’s opinion onthe effect of institutional restructuring

Aspects of restructuring No effect(%)

Moderate effect(%)

Signifi cant effect(%)

1. Staff evaluation procedures 6.6 34.1 59.32. Student fees 3.3 31.9 59.33. Staff recruitment procedures 11.4 22.7 58.04. Allocation of budget/resources 10.0 32.2 57.85. University decision-making structures (management structures)

1.2 41.7 50.0

Table 5.16 Administrative and supporting staff’s opinion on the benefi ts of institutional restructuring

Aspects of restructuring Not much benefi t

(%)

Some benefi ts(%)

Signifi cantbenefi t

(%)1. University decision-making structures (management structures)

5.9 37.6 49.4

2. Allocation of budget/resources 12.6 34.5 47.13. University autonomy 8.7 43.5 46.74. Staff recruitment procedures 12.8 32.6 45.35. Staff evaluation procedures 13.8 40.2 44.8


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Dual system

Table 5.17 Administrative and supporting staff: civil service opinion

Item Agree(%)

Disagree(%)

1. Satisfi ed with civil service status 94.9 5.12. Planning to apply for university status in the near future

25.7 74.3

3. Agree with university policy that for the same position, both civil service and university employee should be assigned work with the same job description

48.7 51.3

4. Satisfi ed with civil service salary 76.9 23.15. Agree with the university policy that working performance be should assessed with the same evaluation procedure

30.8 69.2

Table 5.18 Administrative and supporting staff: university employee opinion

Item Agree(%)

Disagree(%)

1. Satisfi ed with university employee status 88.0 12.02. If possible, want return to government service position

27.5 72.5

3. Agree with university policy that for the same position, both civil service and university employee should be assigned work with the same job description

78.0 22.0

4. Satisfi ed with university employee salary 76.9 23.15. Agree with the university policy that working performance should be assessed with the same evaluation procedure

82.7 17.3

Perception of students

The questionnaire was sent to fi nal year undergraduate students in 20 departments, 10 for each department.


153


Table 5.19 Final year undergraduate students: general information

ItemTotal number 177Average age (years) 21.5Average experience in KMUTT (years) (architecture) 5Average experience in KMUTT (years) (other) 4Gender: male (%) 65.0Gender: female (%) 35.0

Table 5.20 Final year undergraduate students’ opinion onthe effect of institutional restructuring

Item Percentage1. On university autonomy 79.72. On academic programmes 76.83. On admissions and student management 57.64. On staff management and evaluation 40.15. On administrative procedure 39.0

Table 5.21 Final year undergraduate students’ opinion on institutional restructuring process


(%)

Disagree(%)

Agree(%)

Strongly agree(%)

1. Introduction of employment-oriented courses

0 1.1 28.2 69.5

2. Restructuring curriculum 1.1 8.0 59.7 29.03. Changes in student evaluation procedures

2.9 18.9 56.6 12.6

4. Changes in admissions procedures

3.4 28.8 46.3 10.2

5. Changes in fee structure 22.6 48.6 19.2 7.3


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Table 5.22 Final year undergraduate students’ opinion on the benefi ts of institutional restructuring

Aspects of restructuring No improvement

(%)

Moderate improvement

(%)

Signifi cant improvement

(%)1. Access to Internet facilities 10.3 47.4 40.62. Availability of library books or journals

6.9 54.3 36.0

3. Teaching facilities 19.4 61.7 18.34. Infrastructure facilities 10.9 70.1 17.25. Interaction with staff members and students

28.6 53.1 12.6

Impact of restructuring on university functionsThe growth of university employees

Table 5.23 and Figures 5.4 and 5.5 show the number and percentage of university employees and civil servants at KMUTT. The maximum rate of change occurred in the second year, after the transition. In the fi fth year, the number of university employees is greater than civil servants. As of 16 July 2004, the percentage of university employees is 64.49 per cent and the number of civil servants who became employees is 49.68 per cent. It was expected that the percentage of university employees would reach 73 per cent and the number of civil servants who became employees would be 60 per cent by the end of October 2004.


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Table 5.23 Number of staff

Oct1997

Oct1998

Oct1999

Oct2000

Oct2001

Oct2002

Oct2003

July2004

University employees 0 39 103 300 406 458 558 672Civil servants 899 893 790 634 548 499 413 370Permanent employees 899 932 893 934 954 957 971 1042Temporary and others 214 330 328 457 494 559 568 604Total 1,113 1,262 1,221 1,391 1,448 1,516 1,539 1646Cumulative number of civil servants converted to university employees

0 39 119 223 301 345 424 463

Cumulative number of civil servant retirees, early retirees, transfers and employees who left

- - 23 75 83 88 95 99

Percentage of university employees to permanent employees

0 4.18 11.53 32.12 42.56 47.86 57.47 64.49

Percentage of civil servants converted to university employees

- 4.18 12.77 23.92 32.30 37.01 45.49 49.68

Percentage of civil servant retirees, early retirees, transfers and employees who left

- - 2.47 8.04 8.91 9.44 10.19 10.62


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Figure 5.4 Percentages of university employees/permanent staff

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Figure 5.5 Percentage of civil servants converted to university employees

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Source: KMUTT Annual Reports, 1997-2004.


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The growth of academic programmes

Due to rapid changes in science and technology and the labour markets, KMUTT, during the six years following the transition, offered a number of academic, mainly graduate programmes:

Table 5.24 Graduate programmes offered between 1998 and 2003

Level Academic year Total1998 1999 2000 2001 2002 2003

Undergraduate 0 1 4 1 1 2 9Graduate diplomas 0 0 0 1 0 0 1Masters 5 0 0 2 4 8 19Doctorates 6 1 2 0 0 2 11

In total, there are nine undergraduate and 31 graduate programmes, averaging 6.7 programmes per year – an increase of 50.6 per cent from 1997.

Financial management (allocation of budget and resources)

Prudent fi nancial management is of the utmost importance for an autonomous university. The university must seek income from other sources and must be careful about its expenses.

Since the beginning of the 2000s, the university has relegated the responsibilities for expenses to various operating units:• A budget is allocated to faculties or schools and departments,

based on teaching and research activities.• Faculties or schools and departments are responsible for the

salaries of their personnel.• Operating units are responsible for utility costs.• A facility management standard was set up to specify area

utilization and costs.• Building and equipment depreciation costs are taken into

account.• A performance-based budgeting system has been implemented.

The aim is to have good planning and prudent fi nancial management.


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Staff management and performance evaluation Staff management

The transition from being civil servants to university employees for KMUTT staff is voluntary but must be evaluated before being effective. As of 7 March 1997, new staff members, must become university employees.

As a result, there is dual-track employment in the university, in other words, civil servants and university employees. Those in management positions from heads of department upwards must be university employees.

Both university employees and civil servants in similar positions have the same job assignment and are evaluated according to the same criteria, but promotions are based on the individual systems.

Performance evaluation

A. Academic performance assessment

KMUTT evolved from KMITT, which evolved from TTI. There are still academic staff members who were recruited to teach in TTI. Staff recruited from back then are not expected to do research work. Therefore, the assessment criteria must allow such academic staff members to pass the assessments, if they are conscientious and are willing to work hard. At the same time, the criteria must lead to excellence in research for new staff members.

1) Academic work of academic staff is divided into three groups: • Teaching • Research, development and improvement of teaching • Service.

Academic staff must perform all three groups of work. There are pass/fail criteria for each group and overall performance. Evaluation of academic staff is both quantitative and qualitative. Quality of work is evaluated through students’ input, teaching preparation, homework, teaching assessment, and so on.


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2) Personality: academic staff evaluation is also based on non-academic matters, for example, ability to work as a team, capacity for continual improvement, and so on.

B. Administrative and support staff

Administrative and support staff are evaluated based on:1) job description: quantity, quality and outcomes;2) personality: teamwork, continuous improvement, and so on.

5.7 Implications of introducing reforms in universities

Why did restructuring succeed in KMUTT?The restructuring succeeded in KMUTT due to:

1. strong leadership on the part of the University Council and the past and present Presidents of the university;

2. the KMUTT Lecturer Council having a positive impact on the development of the autonomy of the university. The Council also organized public hearings within the university;

3. most of the KMUTT staff being dedicated, loyal and hard working. University unity is very strong.

Lessons learned from the restructuring processThe lessons learned from KMUTT are the following:

Success in transition must be internally driven, not externally driven.

1. The university Lecturer Council should have a positive impact on the development of university autonomy.

2. University management should hold meetings with staff at various stages of development. The staff should be informed of subsidiary regulations and guidelines on academic matters and personnel management together with the draft of the university Act.

3. The university should set up several task forces and working groups to study the management of academic matters, university personnel and fi nancial matters that involve large groups of staff. Participation in working groups can make staff thoroughly understand the concept of university autonomy.


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4. Government should allow a university to run with a dual-track employment system. Otherwise the transition will be delayed.

5. At KMUTT, the number of university employees is more than half of the total after fi ve years of transition. Both civil servants and university employees are satisfi ed with their choice.

6. At KMUTT, students are satisfi ed with the changes but are worried about fee increases.

7. At KMUTT, the most notable changes are: increased academic workload, increased administrative workload, increased monitoring and control of resources.


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6. HUE UNIVERSITY, VIETNAM

By Huyhn Dinh Chien10

6.1 Introduction

The need for educational restructuring in Vietnam Since Vietnam moved to an open-door policy and a free market

economy with a socialist orientation, the mission and objectives of higher education have been re-defi ned. The fundamental orientation of higher education reform moved from a service of demand and activities in the planned, centralized and subsidized economy to the satisfaction of requirements and operations in a multi-sector economy. In the process of implementing the reforms, many new opportunities and challenges have arisen, and many factors affecting the teaching and learning processes of teachers and students in higher education have emerged. To cope with this new, changing situation, the teaching and learning methodology needs to be continuously and systematically upgraded. Some key challenges can be summarized as follows:

New learning environment: Changes in student clientele, working conditions, educational environment, curricula, student assessment and instructional methods have required a large number of affi liated faculties to alter their usual teaching practices and adopt new relationships with students. Furthermore, academic staff must be aware of new approaches and innovations in education. Behavioural objectives, multimedia systems, audio-tutorial systems, computer-assisted learning, micro-groups, and many other approaches need to be studied so that teachers can adapt these to their own teaching styles.

New technological development: Globally, technology has had a great impact on teaching and learning in education, in general, and in higher education, in particular. In Vietnam, it is reported that during the early 1990s, universities and colleges were still poorly equipped. As a result, at some institutions, the only technology employed in

10. Huyhn Dinh Chien is Director at the Learning Resource Centre and International Centre Hue University, Hue City, Vietnam.


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teaching, to any great extent, was the overhead projector. Video and computer-assisted learning were used, but to a much lesser extent. This was evident from the fact that a number of Vietnamese lecturers studying abroad found it diffi cult to use video and computer equipment for their presentations. Recently, with increasing recognition of the importance of technology in learning and teaching, the central government, through the Ministry of Education and Training (MoET) and other institutions, has invested a large amount of money in higher education teaching and learning technologies. However, staff development is needed to help academic staff make full use of the existing technology along with the newly supplied and developed technology.

Diversity in student enrolments: New student groups, such as students coming from low socio-economic backgrounds, ethnic minorities, late-starters, part-time, open-learning, informal and distant students, have placed pressure on academic staff to adjust their usual practices and, in many cases, to acquire special sensitivities, techniques and skills.

Diversity in modes of delivery: New structures, such as external degree programmes, living-learning centres or inter-disciplinary programmes have also required higher education teachers to go beyond familiar specializations and relate to colleagues not only within, but also among institutions and students in new ways.

Change in teaching methods: In the past, the expository or teacher-centered method was used in all higher education institutions in Vietnam, and even at the present time, this method is still largely applied in a number of universities and colleges. It is argued that in the coming years the teacher-centered method will be replaced by the student-centered method, supplemented by self-paced learning, the use of media, technology and individualized education (Dao, Thiep, and Sloper, 1995). In order to apply the student-centered method effectively to higher education teaching, academic staff need to be trained in the new teaching method.

Change in test and assessment methods: Traditionally, tests and examinations in higher education in Vietnam were subjective both in terms of construction and scoring. Tests and examinations consisted mainly of written tests. Oral tests were also applied in a number of


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Hue University, Viet Nam

institutions. Generally speaking, subjective tests and examinations have low reliability as different teachers or markers may give the test different grades. Recognizing the disadvantages of subjective tests and to overcome the problem, MoET recently set up a research and assessment centre, encouraging higher education institutions to conduct research in testing and assessment, and to apply objective tests in their institutions. Although objective tests are highly reliable, as the student will obtain the same mark no matter which teacher marks the test, they are not easy to construct. To ensure a good test, the teacher or the test constructor must in most cases have experience and an expert knowledge of his or her discipline. Therefore, training in the area of testing for university and college teachers in Vietnam is a necessity. This training may include a refresher course on the basic principles and theories of testing, basic standard score terms, and other useful information on testing statistics.

Ability to develop teaching materials: For historical reasons, most of the teaching materials in use in various academic institutions tend to be imported or modifi ed from the former Soviet Union or other countries in Eastern Europe. Thus, these are irrelevant for the current Vietnamese context. Recently, owing to educational cooperation with higher education institutions in the West, some imported course books have also been used as teaching materials. However, as the media of instruction is Vietnamese, these materials must be translated. But by the time they are published, the information is often out of date. Academic staff must be made aware of this limitation and trained in such a way that they will become competent in selecting relevant and up-to-date texts, synthesizing information from a variety of teaching materials so as to design a course suitable for their own students and in line with the moral framework of their institutions and the government. Furthermore, academics are expected to have a high level of foreign language profi ciency, in order to remain informed of fi rst-hand information from various sources in their fi elds.

Changes in profession: In the past, most Vietnamese academic staff were involved mainly in teaching; only a small number were engaged in research and administration work (Walker, Tao and Bao, 1996). The new and changing environments have caused a shift in the roles of academic staff. Their core role has been identifi ed as teaching, including student


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consultancy, research, administration and service. Academic work now has dimensions that seem to be beyond many individuals’ abilities and, perhaps, inclinations, whilst at the same time creating new challenges and opportunities for advancement.

Ability for international cooperation and integration: Vietnam has been implementing an open-door policy allowing the Vietnamese higher education system to establish cooperation with academic institutions throughout the world. To be able to collaborate with their overseas counterparts, especially those in South East Asian countries, Vietnamese academics need to continuously improve and refresh their knowledge, skills, competence, expertise and performance.

Ability for research: In 1967, a national research institute and centre system was established. As a result, the main function of universities and colleges was reduced to teaching, with only a a small number of academics reportedly engaged in research. Since Vietnam has moved to a free market economy, higher education institutions and research institutes have been and are being restructured. Universities and colleges have become places not only for teaching but also for research. This change requires academic staff in general, and newly recruited staff in particular, to develop research skills.

In Vietnam, academic institutional restructuring is perceived as a key way of responding to these new challenges, as well as meeting the demands of a fast-changing and growing economy, and satisfying the expectations of stakeholders. It may be that, at the regional level, the amalgamation of local colleges into larger universities is a wise solution for future development. The birth of Hue University and certain other institutions was certainly the result of this type of thinking. Within the newly founded university, staff development is considered a key issue. Thus, all staff potentially need to consider their long-term planning in terms of development. In addition, the increase in autonomy for fi nancial activities is considered one of the most important points in the educational restructuring process – in the direction of quickly upgrading training quality so that students can adapt immediately to the social environment following graduation.


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Hue University considered as a place for the realization of a restructuring modelThe educational innovations mentioned above were introduced as

the country’s most important policy. But the simultaneous implementation of these innovations in all universities for all programmes was not feasible. Therefore, certain universities were chosen to be part of a pilot group. If successful, the pilot will be expanded to other universities across the whole country. MoET examined the characteristics of all national universities and fi nally selected Hue University to serve as the pilot for the university restructuring process. The reason for the choice was that Hue University satisfi es all the prerequisite conditions for the task:

• It was reorganized ten years ago (in 1994). • It is a multidisciplinary institution, including many small schools

with a broad diversity of training programmes.• It is medium-sized in terms of the number of students and staff (it

is not as large as some universities in Hanoi or Ho Chi Minh City, or as small as others in small provinces such as Nha Trang, Hai Phong, Da Lat, etc.)

• It has a system of in-service and distance training strong enough for the fl exible training activities required of the university.

• Its leaders and staff, as well as the affi liated colleges, are active and dynamic and motivated to realize innovation in the university.

6.2 The re-establishment of Hue University: institutional restructuring of higher education in Hue City

Hue University was originally founded on 1 March 1957 with the appellation ‘Vien Dai Hoc Hue’ (University of Hue). In its very beginning, the University of Hue had only a limited number of programmes: law, arts, mathematics, and pedagogy for the junior college system, medicine, and nursing and midwifery, with a total number of 600 students and a staff body of 40 teachers.

The University of Hue has subsequently increased its training programmes and number of students and teachers in line with social development. In 1975, before the unifi cation of the country, it had fi ve faculties: the Faculty of Sciences, the Faculty of Law, the Faculty


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of Pedagogy, the Faculty of Arts and the Faculty of Medicine. The non-university level programmes, were separated and no longer belonged to the administration of the university.

Following unifi cation (1975), the University of Hue divided itself into several independent colleges in compliance with the national reorganization of universities at the time.

Following that, before being merged into a joint university (Hue University), each separate college developed into a fully-fl edged institution. By the end of 1993, the total number of students at the colleges of Hue (arts, agriculture and forestry, pedagogy, sciences and medicine) was generally eight to nine times more than before 1975. The number of training staff and administrative staff also increased tenfold.

The present Hue University was established according to Governmental Decision No.30/CP signed on 4 April 1994, based on the rearrangement and reorganization of the colleges and tertiary schools in Hue. This is the fi rst restructuring activity at the tertiary education level to take place in Hue city. The establishment of Hue University is based on:• merging the existing colleges together – the College of Education,

the College of Sciences and the Medical College;• merging the College of Fine Arts and the School of Music to create

a new college – the College of Arts;• moving the College of Agriculture No. 2 from a northern province

to Hue and combining it with the Hue High School of Agriculture, Forestry and Animal Husbandry to create the new College of Agriculture and Forestry;

• creating fi ve centres – the Centre for Resources, Environment and Biotechnology; the Centre for Distance Training; the Centre for Social Sciences and Humanities; the Centre for National Defence Education and the Centre for Physical Education.

Hue University is itself a product of the Vietnamese ‘Doi Moi’11 educational restructuring process. The institutional restructuring that

11. ‘Doi Moi’ means ‘renovation’ in Vietnamese. It is the name given to a set of political and economic reforms that were instituted by the Central Committee of the Communist Party of Vietnam in 1986. As a result, many privately-owned enterprises were permitted in commodity production.


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took place in Hue University is an example of global reform in higher education in Vietnam:

• all colleges (most of them are oligo-disciplinary, single-discipline institutions) are combined to form a multidisciplinary university;

• all basic activities of all colleges, such as academic affairs, student affairs, research, etc., are now controlled and coordinated by the University President’s offi ce;

• similar programmes at different colleges (such as physics, chemistry, biology, etc. at the College of Education and College of Sciences, for example) are now run by a common body of teaching staff and share similar labs located at those colleges;

• the fi nancial activities are managed by a common offi ce, which usually allocates the budget in a more effective and reasonable way. As a result, investment becomes better focused.

Hue University is now a governmental educational and research institution located in Central Vietnam. The main function of the university is to prepare and train the human resources, especially the scientists working in different fi elds, for the development of the country – in particular, the provinces in the central region. At present, Hue University offers 63 programmes leading to a Bachelor’s degree, 54 to a Master’s degree, and 14 to a Doctoral degree. Hue University now consists of six schools (known as colleges): the College of Sciences, the College of Agriculture and Forestry, the College of Arts, the College of Pedagogy, the College of Medicine and the College of Economics. It also has fi ve centres: the Distance Training Centre, the Centre for National Defence Education, the Centre for Physical Education, the Centre for Resources, Environment and Biotechnology and the Learning Resource Centre.

Approximately 51,000 students are currently studying in different training programmes at Hue University. The number of teaching, administrative and supporting staff totals more than 2,000.

Hue University before restructuring As mentioned above, from its founding to 1975, Hue University

was a unifi ed organization comprising fi ve academic faculties – the Faculty of Letters, the Faculty of Law, the Faculty of Medicine, the


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Faculty of Science and the Faculty of Pedagogy. Following unifi cation in 1975, these fi ve faculties were separated into the College of Basic Sciences (formed by the Faculty of Letters and the Faculty of Science), the College of Pedagogy and the College of Medicine. As its programmes and curricula no longer corresponded to the new political regime, the Faculty of Law was dispersed. Aside from the above colleges, two new colleges were founded: the College of Music and the College of Fine Arts.

All of these colleges, except for the College of Medicine, which was subordinate to the Ministry of Health, and the College of Fine Arts and Music, which fell under the Ministry of Culture and Communication, were directly under the authority of MoET.

Functional structures of colleges before restructuring

Under the administrative centralization mechanism, colleges had relatively independent activities. They were not given the authority to make development policies; all had to be submitted for the governing ministries’ approval. The governing ministries made the fi nal decisions regarding the formation of strategies for academic and research activities, managing key parts in these activities such as programmes and curricula, as well as conferring certifi cations and approving national research projects.

With regard to fi nancial policies, expenditure for universities that depended on the number of students came from the governing ministries. Thanks to government subsidization, there were no tuition fees. Expenditure was spent on education and training activities, including the purchase of teaching and learning facilities and materials. Education expenditure also covered research, technology exchange, and administrative and foreign affairs activities. Expenditure for granting students’ scholarships was fi xed in quantity and calculated by related departments of MoET.

In terms of personnel organizing policies, all changes in organizational activities, such as founding new programmes or services centres, assigning administrative offi cials, or appointing staff to be trained at home or abroad, had to be approved by MoET.


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In general, the approval of MoET was indispensable. This working style was maintained for a long time in the college of Hue City (from 1975 to 1994).

Hue University during the period of restructuringFrom 1994 to 1998

Regarding operation mechanisms, the administration of Hue University consists of two levels: Hue University and affi liated colleges. Hue University’s administration lies at the macro level. Its responsibilities consist of developing strategies, personnel activities (recruitment, staff training, arranging and appointing staff, etc.), budget management (allocating budget to colleges, controlling receipts and expenses, etc.), training (opening new disciplines, enrolling students, testing curricula, assessing students, etc.), student administration (providing accommodation, approving scholarships, organizing extra-curricular activities, etc.), scientifi c research (approving national and ministerial research projects, giving fi nance, approving titles, etc.) and international cooperation (exchanging staff and students with other educational organizations all over the world, cooperating with universities and researching institutions throughout the world to undertake scientifi c research, while transferring technologies, appealing for investment from aid projects, opening international training courses, etc.). At the level of affi liated colleges, each university is responsible for implementing programmes proposed by Hue University and adapting those proposals as appropriate. In addition, each college can formulate its own proposals, await approval from Hue University, then carry them out.

In general, the affi liated colleges can no longer work separately but exist under a common organization, Hue University.

One achievement during the fi rst fi ve years following the formation of Hue University was the foundation of the College of General Education. This college embodied a brand new training model. All academic staff of basic science disciplines from all colleges was gathered into Hue University. General knowledge was taught in the college in the fi rst two academic years within a framework of seven different programmes, corresponding to specifi c fi elds chosen by students as their speciality. The advantage of the College of General


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Education was that students could use the certifi cation from this school to apply for any specifi c fi eld as long as it corresponded to programmes they had taken in the school. For example, students completing the biological programme in the College of General Education could apply to study on the biology programme of the College of Education or College of Sciences, or other disciplines in the Medical School. However, there were also disadvantages. For example, students might give up a programme in which they had registered, prior to the Entrance Examination, in order to take another with which they could more easily fi nd jobs after graduation or obtain a higher income. As a result, there was a shortage of students on some programmes. This was the main reason why the College of General Education was closed after a fi ve-year trial period.

From 1998 to 2003

After fi ve years operating under a new mechanism, all academic staff and employees of Hue University had reached an understanding of the appropriate and inappropriate points of the new mechanism. Many solutions for restructuring were suggested. These solutions helped to contribute the most noticeable aspect of the restructuring process, namely the foundation of Hue University with its affi liated colleges in its present form.

The fi rst stage of restructuring was the eradication of the College of General Education, which was undertaken under the agreement of the MoET. All staff of this school were transferred to other affi liated colleges corresponding to their professional skills. For example, biology teachers would teach human biology in the Medical School and botanical and zoological biology in the College of Agriculture and Forestry. Thanks to the eradication of the College of General Education, the academic activities work more effectively.

On the other hand, affi liated colleges are partly responsible for their own academic activities, fi nancial management, personnel organization, research management and international relations. They also propose new programmes. Hue University may accept their proposals and then submit them to MoET. The affi liated colleges also make decisions regarding receipts and expenses. They recommend staff for study abroad then the Personnel Organization Department submits


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the proposals to MoET. Research projects at the Ministry level, which used to be approved by the MoET, are now approved by Hue University, depending on recommendations from affi liated colleges. As a result, research is done more conveniently. Research projects at the university level are checked and taken over by universities. Affi liated colleges can also cooperate with international organizations more independently. Formerly, staff who wanted to study abroad needed approval from the Minister of Education and Training. At present, those who go abroad for less than three months only need approval from the President of Hue University. These examples of decentralization represent a change in Vietnamese educational policy.

The above are the summaries of the main points of educational restructuring carried out in Hue University since 1994.

6.3 Constraints on the implementation of restructuring

Legal and administrative constraintsIt goes without saying that backward administrative practices and

habits always obstruct restructuring. However, in Vietnam, when an organization is going to be restructured, preparation is usually carried out carefully over a long period – a practice which is benefi cial for the change in question. Moreover, because education, politics and legal systems share a close relationship, there are no signifi cant legal constraints.

It is an immutable rule that there are always certain constraints that affect restructuring, particularly in the early stages. At the macro level in the fi rst years, the management system at the central level does not adapt to the new model. Specialists from ministries and branches at the central level consider Hue University to be a small institution, not a regional one, which is much higher on the scale of training and scientifi c research compared to the former specialized universities before integration.

At the micro level, the main origin of constraints at Hue University is the split management of the affi liated colleges, now under the management of two levels, not one, as used to be the case. These now fall under the close and direct management of Hue University.


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They are mainly administrative constraints, not legal ones. However, because this is a new university model, everyone has to gradually adapt to it. This process of adaptation may bring diffi culties because of the additional and new tasks involved.

Financial constraintsThe fi rst constraint comes from the new fi nancial mechanism.

At the university level, the Offi ce of Planning and Finance manages all fi nancial activities within the university. This offi ce is in charge of making fi nancial plans for affi liated colleges. After collecting comments from all colleges and the presidential board, plans are elaborated and implemented. Hue University’s administrative offi ces do not have their own budget, but receive part of the budget from affi liated colleges – a situation that the colleges do not agree with. All colleges are united in agreeing that their respective budgets would be higher without the Hue University offi ce. From a fi nancial aspect, affi liated colleges do not want to work under the leadership of ‘an intermediary offi ce’, because of the need to share their budget. The progress was evident, even after the new model had been operational for only a short time.

The second constraint is how to distribute the common budget so as to ensure a fi nancial balance among colleges, while at the same time promoting the development of Hue University as a whole. The Vietnamese Government wants to establish sizeable regional universities in provinces far from the two big university centres in Hanoi and Ho Chi Minh City, with the intention of sharing academic staff and learning and teaching facilities. Furthermore, it is important that each regional university receive investment for its development as a whole. However, the problem is that affi liated colleges are all interested in being invested in. If the budget is equally divided among the colleges, it will become fragmented; this should be avoided. From the beginning, the leaders of Hue University had to fi nd a way to solve this problem.

The third constraint is the mode of decentralization for distributing and controlling the budget. Affi liated colleges are funded from the MoET through Hue University. Hue University is then responsible for distributing funds to its members. Money collected from affi liated


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colleges is reported to Hue University and also controlled by it. This decentralization mode was applied in the fi rst stage of restructuring in Hue University. However, because of the diffi culties with common development caused by this mode, Hue University’s affi liated colleges are not active in spending their own funds. Moreover, being under the strict control of Hue University, the colleges are not enthusiastic enough to organize profi table activities, and so the funds themselves do not have a tendency to increase. With these disadvantages in mind, Hue University proposed to the MoET that its affi liated colleges and centres be given more independence to collect and spend their own funds. MoET gave its approval, with the result that the colleges are now more actively spending budget funds and funds collected by themselves, after contributing a certain amount to Hue University’s offi ces.

One more constraint indirectly involved in fi nancial affairs is the need to reduce the staff of Hue University in order to minimize unnecessary expenditure, and increase the income of remaining academic and other staff. On the one hand, this is a good policy, but on the other, it acts as the university’s greatest constraint. One problem caused by the system of budget subsidies was a lack of qualifi ed academic staff, but an abundance of manual labourers. During this time everyone was offered a job and an equal salary. Following restructuring, the number of redundant labourers has become a heavy burden for the university and the numbers need to be reduced for the sake of its development. However, this is not an easy task to undertake, because the redundancies would both increase unemployment and attract public opinion. Up till now, no specifi c solution has been found to this problem. It is expected that the people affected will leave their offi ces voluntarily only when they reach the age of retirement. No strict measures have been applied to such ‘vulnerable’ people.

Resistance from the university community: teachers, administrative employees and studentsResistance to change is a common reaction, especially from those

who have been accustomed to the old ways. Before the restructuring took place, administrative employees and teaching staff were familiar with a system of independent activities inside each university. In this system, the university is fully organized with its own system of departments


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and faculties, advisory board, administrative staff and teaching staff who are in charge of both general and specifi ed training subjects. With this structure, the university fulfi lls its teaching functions, despite its limited development.

The foundation of Hue University created a latent resistance among the members of affi liated colleges. The degree of resistance varied according to each unit. However, resistance to restructuring has not been particularly critical among the Vietnamese people – a result of the extensive publicity on restructuring policies issued by the government and Communist Party. Decisions for founding new organizations are considered very carefully. Furthermore, every step in the restructuring process is closely monitored to ensure timely re-organization and to minimize hindrances. Thanks to these measures, negative reactions to restructuring are kept under control and are diminished little by little.

How did the university administration overcome these constraints?In reality, the constraints mentioned above have been identifi ed

by the managerial staff of Hue University. Consequently, overcoming these constraints should not be very diffi cult.

Regarding administrative constraints, decentralization from MoET to Hue University and from Hue University to affi liated colleges, needs to be applied more appropriately, as this is the primary cause of constraints.

With regard to decentralization from MoET to Hue University, Hue University suggested further rights being devolved to widen the fi elds in which decisions may be taken. This proposal was approved. Taking an example of human resources management, the President of Hue University can now sign decisions for staff to travel abroad for less than a three-month long business trip, for students to study abroad, as well as decisions to establish certain administrative sections affi liated to the offi ces of the university.

With regard to decentralization from Hue University to its members, each college makes its own decisions concerning its affairs. The approval of Hue University is only an administrative procedure. Hue University only rules on affairs relating to its many colleges or


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the decisions that each university cannot make for itself. Mentioning specialized projects, Hue University can also pass on the decision to the university concerned. Thanks to these, affi liated colleges have a greater sense of self-control, and their resistance to Hue University is also reduced.

Regarding fi nancial constraints, there were many heated controversies over fi nancial policy during the fi rst years of restructuring, which helped Hue University actively fi nd better solutions for its fi nancial affairs, and also improved fi nancial relationships between Hue University and its members. As time goes by, affi liated colleges have more independent control over collecting and spending money. Regarding the national budget, there is minimal controversy between Hue University and its affi liated colleges as this depends on the number of students. However, there are disagreements over the mobilization of fi nancial contributions for common activities in Hue University, such as money for the presidential offi ce staff’s welfare, and for other activities of functional offi ces. To resolve such disagreements, Hue University proposed to MoET that each college be allowed to control its fi nancial affairs. The expenditure for common activities at the university level (i.e. presidential offi ces) would be spent with the agreement of all affi liated colleges. This solution was approved, and as a result, disagreements between Hue University and affi liated colleges regarding this issue have been resolved.

To summarize, although some negative effects occurred as a result of the restructuring process, Hue University overcame these obstacles and obtained many positive results.

6.4 Impact of restructuring on university functioning

To study the impact of restructuring on university functioning, an interview was carried out with all segments of the university, including university and college leaders, academic staff, administrative and support staff and students, using a set of questionnaires. These questionnaires were designed to elicit information about major changes, the benefi ts the restructuring brought about, and the diffi culties experienced during the restructuring process in Hue University.


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Interviewees

In total, four different sets of questionnaires were distributed to college leaders, academic staff (AS), administrative and support staff (ASS) and students. The percentage of interviewees is shown in Chart 6.1.

Chart 6.1 Composition of interviewees

31%

10%

34%

25%

Leaders Academic staff Support staff Students

The number interviewed was 406, of which 71 per cent were male and 29 per cent were female. The interviewees were chosen on the basis of variable ages and years of seniority. As can be seen from the chart below, the percentage of male over female is rather high; specifi cally, there are seven times more male college leaders than female.

Chart 6.2 Percentage of male and female interviewees

62.1

37.9

43.9

56.1

74

26

87.2

12.8

0%

20%

40%

60%

80%

100%

Leaders Academicstaff

Support staff Students

Female Male


177


Findings and discussion

Our study has identifi ed the areas where major changes have been introduced as: academic programmes, autonomy of affi liated colleges, admission and student management, and fi nancial management and allocation. Up to 80 per cent of interviewees thought that there were major changes to academic programmes, while only 41.6 per cent of interviewees thought that there were many changes to administrative procedures, and 36.2 per cent thought that there were many changes to decision-making structures.

Table 6.1 Areas where major changes have been introduced

Leaders(%)

Academic staff(%)

Support staff(%)

Students(%)

Total(%)

Academic programmes 82.4 86.0 87.8 71.4 80.0Autonomy of affi liated colleges

65.6 71.0 78.0 60.0 66.3

Admissions and student management

60.0 64.0 70.7 65.0 63.8

Financial management and allocation

68.8 62.0 70.7 36.4 56.2

Staff management and evaluation

52.8 56.0 53.7 33.6 47.0

Administrative procedures 52.0 44.0 51.2 27.9 41.6Decision-making structures

47.2 32.0 51.2 25.0 36.2

Others 28.0 17.0 24.4 30.0 25.6

The discussion is organized under the following areas:

Autonomy of affi liated collegesThe autonomy of affi liated colleges is enhanced after restructuring

and reorganization has been carried out for a period of time. Up to 66.3 per cent of interviewees shared the same opinion: that this is the second area that has undergone the most changes.

The decision-making structure at the university level and department level has changed a great deal and has been simplifi ed. This is partly due to the reform of the affi liated colleges, that is,


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decentralization in the decision-making process. The institutional levels of autonomy contribute to the forming of the colleges’ high (40.8 per cent of leaders) and total autonomy (22.4 per cent of leaders) in making useful and important decisions. However, the fact that administrative procedures are still complicated and are not completely reformed leads to limited autonomy and inappropriate decision-making (28.8 per cent of leaders).

Table 6.2 Leaders’ opinion on the level of autonomy granted as part of the institutional restructuring process

Aspects of restructuring Total autonomy

(%)

High degree of autonomy

(%)

Limited autonomy

(%)

No autonomy

(%)Decision-making structure at the institutional level

22.4 40.8 28.0 0.8

Decision-making structure at the faculty/department level

13.6 36.8 44.8 2.4

Academic staff 16.0 41.6 28.0 4.0Introducing new study programmes

20.8 34.4 29.6 7.2

Staff recruitment 17.6 39.2 28.8 8.0Allocation of budget to departments

15.2 19.2 32.8 24.8

Income-generating activities 18.4 24.8 32.8 18.4Student admissions 11.2 29.6 28.0 24.0Determination of student fees 20.0 24.8 24.8 24.8Student evaluation procedures

32.0 33.6 19.2 6.4

Restructuring should deal mainly with academic staff, because they themselves play the decisive role in training quality. The affi liated colleges experience some changes in the management of academic staff, and enhance each teacher’s self-management in teaching activities, while the self-management of academic staff increases more and more (56 per cent of leaders). Along with staff management, the recruitment of competent teachers to Hue University is of the utmost importance. The affi liated colleges have to self-manage step by step and have full power to recruit staff. The colleges’ autonomy in recruitment has been raised to a high level (56.8 per cent of leaders).


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One of the fi elds, that needs to be restructured is training programmes. At present, training programmes at the university level have many problems and do not meet the needs of society. It is necessary therefore to launch new study programmes. The opening procedure for new study programmes has many complicated steps, therefore, the colleges’ autonomy in opening new study programmes is limited (29.6 per cent of leaders).

Another important task in the restructuring process is the allocation of the budget to departments, which is a process that has not really been reformed. The affi liated colleges meet many diffi culties in managing the budget allocated to departments. Low autonomy (32.8 per cent of leaders) is due to inappropriate policy mechanisms. Therefore, budget allocation cannot respond in a timely manner to changes in colleges’ fi nancial situations and needs.

Decision-making processDecision-making power at the university level has changed

considerably. Following the amalgamation of the colleges (the college in Hue University is equal to the faculty in other universities) to establish the university in 1994, 63 per cent of the leaders said the rectors of the colleges had gained more power to make decisions. However, 37 per cent said that the rectors’ decision-making powers narrowed after amalgamation. According to the majority of respondents (76 per cent), the appointment of vice-heads of departments does not require approval from Hue University, but some people support this action (23.2 per cent). Devolution to various levels and decentralization should have clear regulations for defi nite fi elds. These would act as the basis for defi ning each level’s rights, so as to avoid overlap and to enable leaders to be active in the decision-making process. In order to avoid overlap and to reduce middle steps, it is suggested that the MoET devolve more power to Hue University, give more rights to the Director of Hue University – as it does to the Director of a national university – and as a consequence, the decision-making power of the affi liated colleges’ headmasters would be improved. These headmasters would thereby have the right to solve their colleges’ problems and Hue University would act as a general manager. If not, the colleges’ autonomy would be disturbed.


180


Chart 6.3 College leaders’ opinions on decision-making at the university/institutional level

63%

37%

Enlarged

Narrowed

According to 49 per cent of college leaders, the decision-making power of heads of departments at the department level has been raised, while 44 per cent believed it to be unchanged in comparison with pre-restructuring. Only a few people thought that restructuring reduces their decision-making power (7 per cent). However, 93.6 per cent of the people questioned thought that departments or colleges should be given more power. Departments should create more initiatives in setting training programmes and managing teachers’ teaching periods. However, according to some people, departments do not have the decision-making power. Departments are now simply operational units, that perform the tasks assigned by higher levels; hence departmental autonomy is very low. Therefore, it is necessary to devolve power to departments, especially to the section level. Heads of departments’ rights have to be in balance with their responsibilities and duties. Heads of departments should have more power to recruit staff, evaluate students, and manage their budget within their units.

Chart 6.4 College leaders’ opinions on decision-making at the faculty/department level

49%

44%

7%

EnlargedUnchanged

Narrowed


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Financial management and allocationTwo groups were surveyed about fi nancial management and

allocation: leaders and administrative and support staff (ASS).

Table 6.3 Leaders’ opinions on budget allocation at the faculty level

Budget allocation at the faculty level Yes (%) No (%)Your college allocates budget to every faculty or department. 42.4 55.2It is easy to allocate budget to each faculty or department. 27.2 61.6Budget allocation to faculty or department leads to activity in fi nancial management.

58.4 36.0

Table 6.4 Administrative and support staff opinions on budget allocation at the faculty level

Budget allocation at the faculty level Yes (%) No (%)Your college allocates budget to every faculty/department. 46.3 53.7It is easy to allocate budget to each faculty/department. 39.0 34.1Budget allocation to faculty/department leads to activity in fi nancial management.

51.2 29.3

According to the people questioned, fi nance allocation to departments helps units at the grass-roots level to be active in fi nancial management (58.4 p er cent of leaders, 51.2 per cent of ASS). However, allocation is not an easy task (61.6 per cent of leaders, 34.1 per cent of ASS). Therefore, the fi nance allocation process to departments is not yet widely initiated. Only 46.3 per cent of AS of the people questioned stated that, at the college level, fi nance is allocated to departments, while the rest have contrasting opinions. Allocation of the budget to departments does not depend greatly on the Division of Planning and Finance of Hue University (63 per cent of AS). However, colleges should be given more power in fi nancial management. More specifi cally, departments should be assigned to manage training funds, for example, with regard to yearly estimates, in order to increase their effect. At present, colleges and departments do not have real independence in management, especially with regard to fi nancial allocation and management. There are still many overlapping regulations. Therefore, colleges need to have more freedom to use their budget and their own


182


funds without any intermediary organization. Financial allocation to departments will help them take initiatives in professional activities. Financial allocation to departments, based on the number of students is not reasonable. Departments should be allowed to purchase their own equipment and instruments to avoid any unnecessary purchases.

The colleges carry out income-generating activities independently from Hue University (79 per cent of AS). Therefore, the colleges are active in allocating this income source (94 per cent of AS). In general, income-generating activities should help academic staff improve their capability. For example, foreign language centres and information centres create income for the academic staff, as well as improving their capability. Work should be allocated to departments, which thereby creates a fi nancial source for them.

Staff management and evaluationThere are many forms of recruitment used to attract competent

teachers, of which civil service examination is a popular form (56 per cent of leaders, 57.5 per cent of ASS). College leaders and support staff were questioned about this form of recruitment and their responses are presented in Table 6.5.

According to the results, 37.6 per cent of leaders and 31.7 per cent of ASS stated that this form of recruitment is not effective, while 62.4 per cent of leaders and 65.9 per cent of ASS thought that the civil service can attract competent members, and up to 64.5 per cent of people surveyed felt that recruitment can correctly evaluate a candidate’s capabilities. After restructuring, academic staff recruitment was more strict and orderly than before. Therefore, the quality of recruited academic staff is higher. Besides recruitment by civil service examination, the majority of respondents thought that recruiting high-calibre graduate students is also a good choice. Those admitted must have a good personality. They are not required to sit an examination but they must persuade the scientifi c council of their ability by giving lectures and attending oral examinations. Colleges have to invite candidates when they are still students, graduate students or postgraduates.


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Table 6.5 Staff recruitment by civil service examination

Staff recruitment by civil serviceexamination

Can attract competent members

Can correctly evaluate staff’s capacity

Yes (%) No (%) Yes (%) No (%)Leaders 62.4 37.6 65.6 32.8ASS 65.9 31.7 61.0 34.1Total interviewees 63.3 36.1 64.5 33.1

In terms of academic staff evaluation, most of the people questioned thought that the present method of evaluation is not effi cient (65.6 per cent of leaders, 56.1 per cent of ASS) and that it is merely a formality (23.2 per cent of leaders, 24.4 per cent of ASS). Few people thought that the present evaluation process is effi cient (15.2 per cent of leaders, 17.1 of ASS). With respect to the above situation, evaluation criteria should be quantifi ed more clearly (88 per cent of leaders, 82.9 per cent of ASS). At present, evaluations of teachers’ teaching quality are useless in terms of enhancing teaching quality. Quantifi cation of evaluation standards should deal with research activities, teaching methods and participation in student education. It is essential to create an active environment for teachers. Teaching content should relate closely to practical experience in working and undertaking research.

Restructuring is a common tendency, suitable to the demands of the present period. The fi rst encouraging results have been achieved by colleges sharing academic staff and material facilities. However, this process also encounters a number of problems:

• There are not enough teachers, while the number of learners year-on-year surpasses teachers’ training capacity;

• A favourable environment has not been set up to attract and exploit the potential of academic staff effectively;

• Cooperation between affi liated colleges is mainly administrative;• The unreasonable use of teachers is due to the unreasonable

mechanism of recruitment and appointment, which results in not hiring the most capable staff.

• It is necessary to use appropriate people for the appropriate job and to attract capable teachers.


184


Admissions and student managementCollege leaders and support staff were asked to give their opinions

on student admissions. As can be seen from the results in Table 6.6, enrolment activities increase in quantity with time and with the increasing number of candidates. By restructuring enrolment, Hue University is able to attract more good students than ever before.

Table 6.6 Student admissions

Student admissions Amount of work Attract more good students than ever before

Increase (%) Decrease (%) Yes (%) No (%)Leaders 77.6 15.2 76 16.8ASS 92.7 7.3 80.5 14.6Total interviewees 81.3 13.3 77.1 16.3

Hue University’s enrolment (entrance) exam is said to be stricter (96 per cent of AS) and the examination fee is low (78 per cent of AS). However, some are of the opinion that each college should be assigned charge of its enrolment activities, especially some special colleges, such as the College of Arts. Universities should be allowed to set exam questions, to defi ne the pass mark, and to decide the number of passing students. Universities should have complete freedom in any phase of enrolment. MoET should only set regulations and supervise. The number of admitted students should be based on the number of teachers. The area of enrolment should be defi ned to create stability in the number of students. The pass mark should not be too low, and only candidates with a good to fair high school graduate diploma should be allowed to take the entrance examination. Candidates should only be permitted to register two choices, and their choices should be respected. Hue University should not accept candidates with the pass mark of other universities.

Passing entrance examinations is much more diffi cult than graduating; this is now an unreasonable fact. This is partly due to ineffi cient evaluation. Of those questioned, 48 per cent agree that the most effi cient test is the oral test (56.8 per cent of leaders), but unfortunately due to a lack of appropriate conditions, the oral test is now only applied in certain cases. It is therefore necessary to improve


185


the evaluation of students. This in turn encourages students’ creativity and discourages learning by heart. Because each type of evaluation has its own strengths and shortcomings, no type should be idealized, but for each subject, a suitable method should be applied. However, the oral test is approved by an absolute majority of people on the basis that there are enough teachers for that subject or for similar subjects. It is necessary to combine three types of evaluation: written thesis, oral test and multiple choice, so that evaluation is more well-rounded and refl ects better the students’ capability. It is essential to evaluate skills rather than knowledge; and to assess personality and career motivation. Evaluation should be combined with awards and penalties. Scholarships should not be granted to moderately good students, but should rather be awarded to excellent students.

Academic programmesUp to 80 per cent of interviewees – of which 82.4 per cent of

leaders, 86 per cent of academic staff and 87.8 per cent of ASS – shared the same opinion: academic programmes comprise the area that has undergone the most change.

Academic staff were questioned about various aspects of the academic restructuring process. Their suggestions were as follows.

The restructuring process speeds up the use of up-to-date training programmes. For example, some spearhead training programmes are opened up, such as information technology and biology technology, to meet society’s urgent demands. It is also necessary to maintain and step up basic science subjects, in which Hue University has a tradition of providing training. A closer relationship between training and application should be established. Together with training, research activities should be enlarged across more fi elds, and academic staff should be encouraged to participate in an effective manner (91 per cent of AS). Research topics have to be derived from real training demands (85 per cent of AS).

At present, the training programmes of different colleges are not the same and still have many shortcomings. Therefore, it is essential to standardize training programmes (93 per cent of AS), especially those of social science subjects. However, standardization is not easy;


186


a training programme should be adapted and improved in order to meet the urgent needs of students and the society (58 per cent of AS). It is necessary to teach social knowledge for technical students, and cultural subjects should be developed alongside basic science subjects. The number of teachers and optional subjects should be increased so that students themselves can choose their favourite teachers and suitable subjects. Moreover, it is necessary to teach more minor subjects that support the main subjects, and to focus on training in practical skills.

Benefi ts and effectiveness achieved in the restructuring processThree groups were surveyed and their opinions on the benefi ts of

restructuring are presented in Tables 6.8 and 6.9, respectively.

The restructuring process brings about considerable benefi ts and effects. Affi liated colleges can restructure their autonomy step by step. The effect of this autonomy is considerable, not only bringing about advantages in management to colleges, but also helping them to better optimize each person’s capacity.

Table 6.7 Leaders’ opinions on the benefi ts of institutional restructuring

Aspects of restructuring

No benefi t(%)

Moderate benefi t

(%)


(%)

Not applicable

(%)Academic programmes 5.6 27.2 67.2 0University autonomy 4.8 27.2 66.4 0University decision-making structures 4.8 28.8 60.8 0Autonomy of academic staff 8 32 56 4.8Autonomy of departments 7.2 28.8 55.2 8Staff recruitment procedures 6.4 40.8 45.6 4Staff evaluation procedures 10.4 37.6 44.8 10.4Allocation of budget/resources 4.8 46.4 44.8 4Cost-saving measures 8 37.6 43.2 8Student fees 5.6 45.6 43.2 0.8Income-generating activities 7.2 43.2 42.4 5.6Student support systems 4 47.2 40.8 3.2Admissions procedures 5.6 48 36.8 4


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Table 6.8 Academic staff opinions on the benefi ts of institutional restructuring


Moderate benefi t

(%)


(%)

Not applicable

(%)Autonomy of academic staff in choosing teaching methods

4 15 78 1

Student support systems 2 14 78 2Staff evaluation procedures by departments

0 21 73 1

Autonomy of academic staff in doing research

4 16 72 3

Admissions procedures 3 18 70 0University autonomy in allocating budget

3 32 59 5

University autonomy in using human resources

4 31 57 1

Staff recruitment procedures 4 31 56 1Income-generating activities 2 35 53 2Autonomy of departments in fi nance 6 34 48 10Autonomy of departments in choosing assistants

1 16 44 3

Allocation of resources 8 29 40 6Cost-saving measures 8 45 39 2Allocation of budget 15 41 23 4Student fees 4 42 20 3Staff evaluation procedures by Hue University

17 27 17 32

For the academic staff, restructuring brings about independence and movement in training activities. Teachers are more active in changing and updating teaching methods (78 per cent of AS) to meet students’ needs. Teachers are active in proposing research fi elds, which serve teaching (72 per cent of AS). This fact contributes to the enhancement of teaching quality as well as output quality, creating prestige for Hue University.


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Table 6.9 Administrative and support staff opinions on the benefi ts of institutional restructuring


Moderate benefi t

(%)


(%)

Not applicable

(%)University autonomy 2.4 24.4 70.7 2.4Autonomy of academic staff 7.3 22.0 68.3 2.4Academic programmes 4.9 24.4 65.9 2.4Autonomy of departments 2.4 31.7 61.0 4.9Admissions procedures 7.3 36.6 48.8 2.4Staff recruitment procedures 9.8 39.0 46.3 2.4Staff evaluation procedures 9.8 36.6 46.3 7.3University decision-making structures (management structures)

2.4 31.7 43.9 7.3

Allocation of budget/resources 9.8 29.3 41.5 19.5Student fees 2.4 39.0 41.5 2.4Cost-saving measures 14.6 39.0 31.7 12.2Student support systems 14.6 39.0 26.8 4.9Income-generating activities 14.6 43.9 24.4 14.6

Along with the restructuring of teaching methods, training programmes have been restructured to keep pace with the demands of the society in industrialization and modernization. The restructuring of training programmes brings about signifi cant benefi ts in teaching and training students.

In terms of academic staff recruitment procedures, based on the new laws, the restructuring process results in signifi cant benefi ts (more than half of the staff). The evaluation of academic staff is also reformed, alongside the restructuring of recruitment procedures. However, there are two contrasting opinions. To leaders and ASS, restructuring results in signifi cant benefi ts (44.8 per cent of leaders and 46.3 per cent of ASS), especially in forming evaluation criteria. However, academic staff did not agree. Up to 32 per cent of AS thought that staff evaluation procedures by Hue University are not applicable and 17 per cent thought they are of no benefi t. In general, only 37.5 per cent of staff stated that the evaluation of academic staff achieves a moderate effect.

In terms of fi nance, restructuring results in many benefi ts. Restructuring in allocation of the budget at Hue University brings


189


about signifi cant benefi ts (44.8 per cent of leaders and 41.5 per cent of ASS). Affi liated colleges are now more active, especially in their training programmes. However, allocation of the budget through Hue University still encounters many diffi culties because of many overlapping and unfeasible policies (19 per cent of AS). Notably, up to 41 per cent of AS stated that allocation to the department has moderate benefi ts, and 15 per cent thought it has no benefi t at all. In contrast, at the department and faculty level, income-generating activities result in signifi cant benefi ts (53 per cent of AS and 42.4 per cent of leaders). To ASS, most said that income-generating activities result in moderate benefi ts (43.9 per cent of ASS) and up to 14.6 per cent said they result in no benefi t. Colleges leaders were reasonably positive about the changes in income-generating activities. For example, 43.2 per cent of leaders thought there are signifi cant benefi ts in this respect, while AS and ASS had contrasting opinions: 15 per cent of AS and 14.6 per cent of ASS thought there are no benefi ts and others thought these are not applicable (12.2 per cent ASS).

To departments, self-management of fi nance at the department level results in moderate and signifi cant benefi ts so that departments have more freedom in purchasing necessary teaching equipment. However, many departments do not benefi t at all because self-management of fi nance is not introduced. Departments then meet many diffi culties, are completely passive, and depend on the college’s budget. No considerable changes in training are made.

Concerning students, the restructuring process brings about many benefi ts in student enrolment and student support systems. The effects of restructuring can be seen clearly in recent entrance examinations, which have not had as many problems as before. Enrolment activities achieve moderate and signifi cant effects, which contribute to the fi rst successes of the restructuring process at the institutional level.

Diffi culties and obstacles in the restructuring processBesides the benefi ts and effects achieved, the restructuring process

also meets with many diffi culties and obstacles in various fi elds. Only college leaders were asked about this issue.


190


Chart 6.5 Leaders’ opinions on diffi culties in the implementation of the restructuring process

0

20

40

60

80

100

120

Num

ber

of p

erso

ns

1 2 3 4 5 6 7 8 9 10 11

Difficulties

Legend:Organizational structure 1: Lack of legal corridor for regional universities 2: Cumbersome government structureDecision-making process 3: Overlap between Hue University and affi liated colleges 4: Hue University is not yet equal to its roleStaff-related 5: Balance between academic staff and students 6: Appropriate assessment of academic staff’s capacityStudent-related 7: Management of a large number of students 8: Defi ning fee levels Budget-related 9: Allocation of budget to faculty/department 10: Low autonomy in fi nancial control leading to inactivity 11: Troublesome procedure for receiving budget

In terms of organizational structure, the legal corridor for regional universities is lacking, ineffi cient, and does not keep pace with the development of a multi-disciplinary university like Hue University (67.2 per cent). Hue University’s organization is cumbersome and consists of many levels, which results in many diffi culties in management (80.8 per cent). With the present administrative mechanism, overlap in management has considerable impact on the restructuring process.

In terms of the decision-making process, overlap exists in decision-making between Hue University and its affi liated colleges (62.4 per cent). This is partly because Hue University has not been devolved enough power to be equal to its roles in the region (69.6 per cent) and as a result, the affi liated colleges’ power decreases with regard to decision-making.

In terms of teachers, the increasing number of students admitted every year reduces the teacher-student ratio (67.2 per cent). This is not


191


suitable for the tendencies of a modern education. However, this is a fact that affects the restructuring process. The number of teachers does not increase in quantity and neither has the training quality improved. The effective evaluation of teachers’ capability (56.8 per cent) is a result of many factors. One major cause is the lack of standard criteria in teacher evaluation.

The ever-increasing number of students makes the management of students complex and diffi cult (68.8 per cent). The same problem occurs with schooling fees.

In terms of budget, the fact that the budget is not allocated to departments makes these departments lose autonomy in fi nancial matters and limits their activity in many fi elds including training (76 per cent of leaders). Even if these departments are allocated a budget, the procedure involves considerable inconvenience due to complicated administrative procedures (47.2 per cent of leaders).

6.5 Lessons learned from the process of restructuring

Through research, many good outputs and outcomes of the institutional restructuring process in Hue University have been gathered, but challenges and constraints have also been recognized. These could be used as lessons on restructuring methods for other higher educational institutions. The model of a multi-disciplinary university could be a good one and should be multiplied. The following lessons could be learned by those who want to build a similar multi-disciplinary university model.

Lessons on the impact of institutional restructuring on university functioningIn academic affairs

Hue University has become a united educational organization, whose members have more potential and higher quality education.

• Thanks to the integration of colleges in Hue into Hue University, majors that have the same basic subjects can share teaching staff and laboratories. Students from many colleges can be taught by qualifi ed teachers.


192


• For post-graduate education in particular, the integration of colleges into Hue University helped to establish good conditions for training at the Doctor and Master level.

In research activities

With the united strength of six colleges, Hue University has developed a better research strategy that is more feasible and easier to carry out: Hue University covers many major research topics involving different fi elds of sciences; the university has continued to establish many title-approving councils at the national level; and many more complicated experiments have been performed, making great contributions to scientifi c research of both theoretical and practical value.

Community services

Alongside training and scientifi c research, one important mission of Hue University is to serve the community. It would be a great shortcoming if it did not contribute to the socio-economic development of the community where it is based – in other words, if it could not help graduate students to accumulate more knowledge through practices to support the community effectively. Through the merging of all colleges in Hue into Hue University, this mission has been improved remarkably: Hue University has been trusted by many development organizations, and assigned to conduct important development projects. The local government considers Hue University to be a consistently trustworthy consultancy.

Lessons in autonomy at the affi liated college levelThe autonomy of affi liated colleges has been improved following

the period of restructuring and rearrangement. Decisions made by colleges and departments have been made simpler and faster. The restructuring should concentrate on teaching staff as they have a great infl uence on education quality. The autonomy in staff recruitment of member colleges has improved signifi cantly.


193


Lessons on making decisionsThe colleges’ rights to take decisions have changed remarkably,

and the rector’s right regarding decision-making has been broadened. However, it was said that this right had been restricted following the rearrangement and integration into the university. According to most of the interviewees, the appointment of vice-heads of departments need not be approved by the university. In addition, decentralization should be clear, and defi ned for each level as well as each college, so that there is no overlapping of rights. As a consequence of the changes, decisions are now actively made.

Lessons on fi nancial managementThanks to fi nancial allocation, departments are more active in

controlling their budget. However, there should be a more complete fi nancial allocation for each college. It is better to give training expenditure to departments so that they can estimate these more effectively. Budget allocation to each department has not been in accordance with the training characteristics of each discipline. Budget allocating based on student numbers is inappropriate.

Lessons on human resource management To attract more qualifi ed teachers, colleges have applied many

methods of recruitment, among which civil service examination is quite popular. The qualifi cations of academic staff have been improved following the restructuring of teaching staff recruitment.

Lessons on student enrolment and assessmentAn increase in the number of candidates, together with the

restructuring of university entrance examinations, has attracted more students of excellence to the university. At the university, this examination is more closely concentrated, saving a signifi cant amount of money. However, some were of the opinion that each college should actively organize this examination itself.


194


Lessons on academic programmesThe restructuring process has fostered the implementation of

new academic programmes in key training fi elds such as information technology, biology technology, and so on, to meet the pressing demands of society. At the same time, the basic sciences, which form the strong points of the university’s academic programmes, should also be maintained and developed. There should be a closer relationship between basic science teaching and applied science teaching. Along with teaching tasks, research activities should be carried out in line with educational sciences. Research projects must be linked strictly with, and support, academic affairs.

In summary, the restructuring or the integration into Hue University has made a good impression on the restructuring of education in Vietnam, as well as in Central Vietnam. Training qualifi cations will obviously be improved thanks to the restructuring. It is hoped that this restructuring will be further developed and completed so that students of Hue University are qualifi ed enough to contribute to the development of society and of the country.


195

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Badarch, D.; Enkhbold, D.; and Narantsetseg, Y. 2000. Credit-based system. Ulaanbaatar: Print and Publishing Education Centre (PPEC) of Mongolian University of Science and Technology.

Badarch, D. 2002. An individual organization of training processes. Ulaanbaatar: Print and Publishing Education Centre (PPEC) of Mongolian University of Science and Technology.

Badarch, D. 2002a. Professor – a knowledge manager. Ulaanbaatar: Print and Publishing Education Centre (PPEC) of Mongolian University of Science and Technology.

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Badarch, D. 2003. Theoretical and methodological aspects of higher education. Ulaanbaatar: Admon Printing Company.


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IIEP publications and documents

More than 1,200 titles on all aspects of educational planning have been published by the International Institute for Educational Planning. A comprehensive catalogue is available in the following subject categories:

Educational planning and global issuesGeneral studies – global/developmental issues

Administration and management of educationDecentralization – participation – distance education – school mapping – teachers

Economics of educationCosts and fi nancing – employment – international cooperation

Quality of educationEvaluation – innovation – supervision

Different levels of formal educationPrimary to higher education

Alternative strategies for educationLifelong education – non-formal education – disadvantaged groups – gender education

Copies of the Catalogue may be obtained on request from:IIEP, Publications and Communications Unit

[email protected] of new publications and abstracts may be consulted online:

www.iiep.unesco.org


mailto:[email protected]


The International Institute for Educational PlanningThe International Institute for Educational Planning (IIEP) is an international centre for advanced training and research in the fi eld of educational planning. It was established by UNESCO in 1963 and is fi nanced by UNESCO and by voluntary contributions from Member States. In recent years the following Member States have provided voluntary contributions to the Institute: Australia, Denmark, India, Ireland, Netherlands, Norway, Spain, Sweden and Switzerland.

The Institute’s aim is to contribute to the development of education throughout the world, by expanding both knowledge and the supply of competent professionals in the fi eld of educational planning. In this endeavour the Institute co-operates with training and research organizations in Member States. The IIEP Governing Board, which approves the Institute’s programme and budget, consists of a maximum of eight elected members and four members designated by the United Nations Organization and certain of its specialized agencies and institutes.

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Designated Members: Christine Evans-Klock

Director, ILO Skills and Employability Department, Geneva, Switzerland. Carlos Lopes

Assistant Secretary-General and Executive Director, United Nations Institute for Training and Research (UNITAR), United Nations, New York, USA.

Jamil SalmiEducation Sector Manager, the World Bank Institute, Washington DC, USA.

Diéry Seck Director, African Institute for Economic Development and Planning, Dakar, Senegal.

Elected Members:Aziza Bennani (Morocco)

Ambassador and Permanent Delegate of Morocco to UNESCO. Nina Yefi movna Borevskaya (Russia)

Chief Researcher and Project Head, Institute of Far Eastern Studies, Moscow.Birger Fredriksen (Norway)

Consultant on Education Development for the World Bank.Ricardo Henriques (Brazil)

Special Adviser of the President, National Economic and Social Development Bank. Takyiwaa Manuh (Ghana)

Director, Institute of African Studies, University of Ghana.Philippe Méhaut (France)

LEST-CNRS, Aix-en-Provence, France. Xinsheng Zhang (China)

Vice-Minister of Education, China.

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Reforms in higher education are very often driven by both financial considerations and by efforts to improve the quality and relevance of courses and programmes of study. Privatization of services, corporatization of operations, and re-orientation of curriculum and student assessment are

common recent reform measures in higher education. As a result of such reforms, institutions of higher education have become managerial and entrepreneurial in their approach, as well as in their operations. Although these reform measures were introduced initially on a small scale, they have cumulatively led to dramatic transformations in the organization of university activities leading to a restructuring of the institutions. Institutions have become progressively more independent from the government and have introduced new governance and management structures. This book, based on the IIEP research carried out in Indonesia, Malaysia, Mongolia, Thailand and Vietnam, examines the trends in institutional restructuring in countries of the Asian region.

The editor

N.V. Varghese, Professor and former Head of the Educational Planning Unit at the National Institute of Educational Planning and Administration (NIEPA) in New Delhi, is currently Head of the Governance and Management in Education Unit at the International Institute for Educational Planning (IIEP-UNESCO) in Paris. He has published books and articles in the areas of educational planning, fi nancing and quality of education, among them: Impact of the economic crisis on higher education in East Asia: Country experiences (2001); Private higher education (2004) and Growth and expansion of private higher education in Africa (2006).

ISBN: 978-92-803-1335-2



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