Reforms

International Institute
for Educational Planning
Higher education reforms

Institutional restructuring in Asia
Edited by
N.V. Varghese
New trends in higher education

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 Planning
7-9 rue Eugne Delacroix, 75116 Paris
e-mail: info@iiep.unesco.org
IIEP website: www.iiep.unesco.org
Cover design:
Typesetting: Linale Production
Printed in IIEPs printshop
ISBN: 978-92-803-1335-2
UNESCO 2009
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 final stages of the study;
the RIHED Bangkok office, especially Padoongchart
Suwanawongse, former Director; Supachai Yavaprabhas, current
Director; and Thanthakorn Puangsawat, Programme Officer, for
their collaboration and support in carrying out the studies and
organizing the meetings and policy forum;
the UNESCO Bangkok Office, 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 efficient 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
www.iiep.unesco.org
TABLE OF CONTENTS
Acknowledgments
List of abbreviations
List of tables
List of figures
List of charts
Executive summary
Preface
1.
Institutional restructuring of higher education in Asia:
an overview
by N.V. Varghese
1.1 Introduction
1.2 Compulsion for change in higher education
1.3 Institutional restructuring of higher education
1.4 The countries and institutions studied
1.5 Trends in institutional restructuring in selected
universities
1.6 Some features of introducing institutional restructuring
1.7 Concluding remarks
2.
Gadjah Mada University, Indonesia
by Sahid Susanto and M. Nizam
2.1 Introduction
2.2 Institutional restructuring
2.3 Aspects of expected improvement
2.4 Implementation of restructuring in the university
2.5 Constraints in the implementation of restructuring
measures
2.6 Impact of restructuring on the management
of universities
2.7 Implications for introducing reforms in universities
2.8 Input of institutional managers
3.
Universiti Kebangsaan Malaysia
by Muhammad Yahaya and Imran Ho Abdullah
3.1 Introduction
3.3 Expectations and rationale
5
9
11
14
14
15
21
23
23
25
29
31
37
42
50
53
53
56
58
60
66
68
74
77
81
81
86
91
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Table of contents
3.4
3.5
4.
5.
6.
Implementation of restructuring in the university

Constraints in the implementation of restructuring
measures
3.6 Impact of restructuring on the management of universities
The Mongolian University of Science and Technology
by Yadmaa Narantsetseg
4.1 Introduction
4.4 Constraints in the implementation of restructuring
measures
of universities
4.6 Implications of introducing reforms in universities
King Mongkuts University of Technology Thonburi,
Thailand
by Banterng Suwantragul
5.1 Introduction
5.2 Initiation of institutional restructuring in Thailand
5.3 Institutional restructuring in King Monkuts University
of Technology
5.5 Constraints on the implementation of restructuring
measures
of universities
Hue University, Vietnam
by Huyhn Dinh Chien
6.1 Introduction
6.2 The re-establishment of Hue University:
institutional restructuring of higher education in Hue City
6.4 Impact of restructuring on university functioning
6.5 Lessons learned from the process of restructuring
References
98
100
105
109
109
112
119
121
126
128
133
133
133
134
138
144
145
159
161
161
165
171
175
191
195
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LIST OF ABBREVIATIONS
AS
ASS
BHMN
BoT
CADA
DGHE
DIK
DIK-S
DIP
DUE
EFA
FST
GATS
GER
GNP
HEI
IAU
ICT
IIEP
IMEN
IPB
IRHE
IT
ITB
KMITT
KMUTT
LAN
academic staff
administrative and support staff
UGM state-owned legal entity
Board of Trustees
Centralized administration decentralized academic
management
Directorate General of Higher Education
the state appropriation for operational costs including
emolument
public participation and self-generated funding
state development budget
Development of Undergraduate Education
Education for All
Faculty of Science and Technology, UKM
General Agreement for Trade in Services
gross enrolment ratio
gross national product
higher education institution
Internal Audit Unit
information and communication technology
Institute of Microengineering and Nanoelectronics
Bogor Agriculture University
Institutional Restructuring of Higher Education
information technology
Bandung Institute of Technology
King Mongkuts Institute of Technology, Thonburi
(Thailand)
King Mongkuts University of Technology, Thonburi
(Thailand)
National Accreditation Board, Malaysia
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List of abbreviations
MNoP
MoE
MoET
MoF
MoNE
MUA
MUST
NAB
OECD
PBBS
PC
PROAP
P2T
QA
QAU
R&D
RAISE-LEAP
SEAMEO RIHED
TMR&D
TTI
UGM
UI
UIS
UKM
UMBI
UNESCO
UNIMIS
Minister of National Education

Ministry of Education
Ministry of Education and Training
Ministry of Finance
Ministry of National Education
Ministry of University Affairs, Thailand
Mongolian University of Science and Technology
National Accreditation Board, Indonesia
Organisation for Economic Cooperation and
Development
performance-based budgeting system
Professors Council
UNESCO Principal Regional Office for
Asia and the Pacific
GMU University project office
quality assurance
Quality Assurance Unit
research and development
Relevance, Academic atmosphere, Internal management
and Structural organization, Efficiency and productivity,
Leadership, Equity and Access, and Partnership
Southeast Asian Ministers of Education Organization
Regional Centre for Higher Education and
Development
Telekom Research & Development
Thonburi Technology Institute
Gadjah Mada University (Universitas Gadjah Mada)
University of Indonesia
UNESCO Institute for Statistics
Universiti Kebangsaan Malaysia
Medical Molecular Biology Institute
United Nations Educational, Scientific and Cultural
Organization
University Management Information System of MUST
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LIST OF TABLES
Table 2.1
Table 2.2
Table 2.3
Table 3.1
Table 3.2
Table 3.3
Table 4.1
Table 4.2
Table 4.3
Table 4.4
Table 4.5
Table 4.6
Table 5.1
Table 5.2
Table 5.3
Table 5.4
Table 5.5
Average value of the response from department

heads on the level of autonomy granted as part of
institutional restructuring
Average value of response from department heads
on the benefits of institutional restructuring
Average value of the response from administrative
staff on the benefit of university restructuring
Perception of major areas of change to
academic programmes
Academic staff opinion on certain aspects
of academic restructuring
Areas of major change according to groups surveyed
Opinions on difficulties in the implementation
of the restructuring process: decision-making
Opinions on difficulties in the implementation
of the restructuring process: finance and
organizational structure
Opinions on difficulties in the implementation of
the restructuring process: student-related
Opinions on difficulties in the implementation of
the restructuring process: procurement procedures
Perceptions of the university community on areas
of university restructuring (percentage)
Some comparative indicators of MTU and MUST
Background data on King Mongkuts University
of Technology Thonburi
Senior university management: general information
Senior university managements opinion on
areas effected by institutional restructuring
Senior university managements opinion on the level
of autonomy
Senior university management: opinion
70
71
73
102
102
105
124
124
125
125
127
128
136
145
146
146
146
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List of tables
Table 5.6
Table 5.7
Table 5.8
Table 5.9
Table 5.10
Table 5.11
Table 5.12
Table 5.13
Table 5.14
Table 5.15
Table 5.16
Table 5.17
Table 5.18
Table 5.19
Table 5.20
Table 5.21
Table 5.22
Table 5.23
Table 5.24
Table 6.1
Teaching staff: general information

Teaching staffs opinion on the effect of
Teaching staffs opinion on the institutional
restructuring process
Teaching staffs opinion on the benefits of
Teaching staff: civil service opinion
Teaching staff: university employee opinion
Administrative and supporting staff: general
information
Administrative and supporting staffs opinion on
the effect of institutional restructuring
the benefits of institutional restructuring
Administrative and supporting staff: civil service
opinion
Administrative and supporting staff:
university employee opinion
Final year undergraduate students: general
information
Final year undergraduate students opinion on
Final year undergraduate students opinion on
institutional restructuring process
Final year undergraduate students: opinion on
Number of staff
Graduate programmes offered
between 1998 and 2003
Areas where major changes have been introduced
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147
147
148
148
149
149
150
150
151
151
151
152
152
153
153
153
154
155
157
177
List of tables
Table 6.2
Table 6.3
Table 6.4
Table 6.5
Table 6.6
Table 6.7
Table 6.8
Table 6.9
Leaders opinions on the level of autonomy granted

as part of the institutional restructuring process
Leaders opinions on budget allocation at
the faculty level
Administrative and support staff opinions
on budget allocation at the faculty level
Staff recruitment by civil service examination
Student admissions
Leaders opinions on the benefits of institutional
restructuring
Academic staff opinions on the benefits of
Administrative and support staff opinions
178
181
181
183
184
186
187
188
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LIST OF FIGURES
Figure 1.1
Figure 2.1
Figure 3.1
Figure 3.2
Figure 3.3
Figure 3.4
Figure 3.5
Figure 5.1
Figure 5.2
Figure 5.3
Figure 5.4
Figure 5.5
Restructuring and reorganization models of MUST

48
Response of academic staff on the benefit of
72
Challenges to higher education in Malaysia
84
Organizational structure of Universiti Kebangsaan Malaysia 90
Restructuring of the social sciences
97
Restructuring of the sciences
98
Hierarchy in decision-making structures
103
Public university reporting diagram
139
Autonomous university reporting diagram
141
King Mongkuts University of Technology Thonburi
(KMUTT) administration chart
143
Percentages of university employee/permanent staff
156
Percentage of civil servant converted to
university employees
156
LIST OF CHARTS
Chart 6.1
Chart 6.2
Chart 6.3
Chart 6.4
Chart 6.5
Composition of interviewees
Percentage of male and female interviewees
College leaders opinions on decision-making
at the university/institutional level
at the faculty/department level
Leaders opinions on difficulties in the
implementation of the restructuring process
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176
176
180
180
190
EXECUTIVE SUMMARY
Higher education has become one of the fastest growing segments
of the education sector. This expansion is also accompanied by the
diversification of providers, students, programmes and changing sources
and modes of financing, all posing challenges to the management of the
system. Higher education institutions have therefore been introducing
reform measures to improve their operational efficiency.
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, defined 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, specified 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 offices, 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 finance-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
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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 universitys 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 significant 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 five 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 knowledgebased 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
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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 centrallyplanned 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 difficulties 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 difficult
task of implementing these changes.
Analysis of reforms in the universities studied shows that important
factors influencing 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
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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 defined 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 influence 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 financial
matters even in cases where government funds represent a
significant 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 reflect 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 five centres. The curriculum
reforms are significant 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
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Executive summary
of the university, with the Vice-Chancellor becoming Chief

Executive Head of the institution. In Mongolia, the Presidents
Council was significant 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 benefitted the implementation of reforms. Indonesia and
Thailand, too, profited 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 difficult, primarily due to strong resistance to change in these
institutions. Moreover, dispersed decision-making structures make
it more difficult 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 reflect 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
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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 diversification of programmes,
institutional arrangements for provision, mechanisms of financing,
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 financial,
political or academic.
These reform measures have changed the ways in which higher
education institutions are managed. Universities have become
progressively more independent, both financially 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 five 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 financial
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
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Preface
on the implementation of the restructuring process, the difficulties

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 Bray
Director, IIEP
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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 reflected 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 financial 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 finance-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 justified in terms of economic rationality and
profitability (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
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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 financial difficulties. 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 significant
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 financial difficulties 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 final section makes
some concluding observations.
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Institutional restructuring of higher education in Asia: an overview
1.2 Compulsion for change in higher education

The higher education scene has changed, forcing modifications
in the management of the system. Factors influencing these changes
include expansion of the system, diversification in provision of services
and resource base, and changes in the economic rationality of investing
in higher education. Several other factors can be identified 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 figures 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 diversified, 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
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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 qualification 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
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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 beneficial 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-first 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-profit institutions that trade the stocks
and shares of educational institutions (Ruch, 2001). A close scrutiny of
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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-profit 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 efficient 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 officers, principals
as managers, and parents and students as customers. The changing
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terminology denotes a change in the attitude of individuals and

policy-makers towards education.
Reform measures to overcome funding difficulties 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 efficiency 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 massified 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
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also implies the application of efficiency parameters and accountability

measures practised in the private and corporate sectors.
While it can be argued that improving managerial efficiency is
central to institutional restructuring, it is not always correct to associate
the restructuring process with cost-saving reform measures. Needless
to say, improving efficiency 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 financial 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 defined 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, specified criteria
for the allocation of resources to various activities, the allotment of
tasks to various groups, and the evaluation of performance. Structure
mainly concerns offices, positions and formal roles within an
organization. Criteria refers to norms that form the basis for distribution
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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.
ii.
iii.
iv.
v.
restructuring of academic programmes;

restructuring of recruitment and staff management procedures;
restructuring of financial management procedures;
restructuring of student evaluation procedures, in line with the
credit system performance evaluation procedures of employees;
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 universitys 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
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skill intensity of the exports (Wood, 1994) was high, and regional and
international competition was fierce. 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-qualified personnel. The demand for better qualified people leads
to the expansion of employment opportunities for graduates.
One of the distinguishing features of the regions 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).
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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 five
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 field 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
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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 modified the organization of
their activities. Many institutions enjoy enhanced autonomy in the
spheres of finance, programmes and staff. With reduced dependence
on government, universities have become self-governing institutions
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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 first 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) financial
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 financial
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
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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) financial 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 financial 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 influenced
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 countrys 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 significant 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 financial issues. The long range
plan (1990-2004) envisaged that most public universities would become
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autonomous by the end of the plan period, with students covering all
operating expenses through student fees, in conjunction with student
loan schemes. The five new universities established after 1990 were
created as autonomous institutes. But none of the existing public
universities opted for autonomous status. King Mongkuts University of
Technology Thonburi, Thailand (KMUTT) is the first 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, financial 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
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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 profitable 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 benefits 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
Officer, 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
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structure that reflects 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-Chancellors announcement that there would be
no redundancies gave people confidence 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 countrys 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
Presidents Council.
In Mongolia, the academic restructuring of MUST changed
student evaluation procedures and introduced the credit system. The
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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 efficient 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 financial planning.
The university has a Governing Board, an Academic Council and
a Presidents Council. The President is the executive person responsible
for the university and convenes and chairs the Presidents and the
Academic Councils. Academic leadership and overall institutional
planning are the Presidents 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 universitys 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 defines policies and guidelines regarding
the quality of scientific 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 Presidents Council.
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The management and control of the university and all its property,
revenue, business and affairs on a consensus basis are vested in the
Presidents Council. It develops action plans, assesses the annual plans
of schools affiliated 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
benefits, people would prefer to continue with the present system of
being part of the civil service. Since this is the first 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
affiliated 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 affiliated 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
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elaborate proposals that suit best, pending approval from Hue University.
As such, the affiliated 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 efficiency. 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
difficult task of implementing reforms.
b)
What influenced 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
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to mobilize financial 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 influencing 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 financial 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
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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 influenced 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
benefits 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.
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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 redefined 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 defined now than ever before. In other words, the institutional
restructuring process has redefined the relationships between the state
and universities, maintaining the image of the university as a public
institution and retaining the benefits 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 influence 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 significant feature of changes taking place in this part of
the world.
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Universities enjoyed autonomy previously, however, this autonomy

was confined either to paper or academic matters. At the close of the first
decade of the twenty-first century, autonomy is increasingly exercised
in matters pertaining to the introduction of courses, recruitment of staff,
decisions on admissions, and financial 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 reflect
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 five 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 financial 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 Presidents 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 decisionmaking bodies.
Figure 1.1 Restructuring and reorganization models of MUST
Presidents
Council
Faculties
Departments
Before 1992
g)
Presidents
Council
Schools
Departments
1992-2002
Presidents
Council
Schools
Professors
2002
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 significantly 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 confidence that their relative positions

would not worsen as a result of the reforms. The international experience
and recognition of the university head in Mongolia benefitted the
implementation of reforms. Indonesia and Thailand, too, profited 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 difficult, primarily due to strong resistance to change in these
institutions. Moreover, dispersed decision-making structures make
it more difficult 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 reflect 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 financial 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 verified 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 difficult. 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 influence 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 difficult 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 countrys
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 difficult 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, efficiency 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 first reforming themselves. A higher
education systems 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.
3.
Sahid Susanto is Professor/Chairman at the Centre for Higher Education Planning and Management
Studies, Gadjah Mada University, Yogyakarta, Indonesia.
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
inefficiency 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 insufficient time to tackle the
main academic tasks of education, research and community services.
These regulations also weaken university efficiency, since a uniform
bureaucratic system is non-specific 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 efficiently 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 five 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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Higher education reform has actually been on the agenda since

1996 (Soehendro, 1996). In line with the spirit of democratization and
amidst the economic difficulties 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 efficiency, 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 universitys 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 efficiency. 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
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of reforms to restructure the universitys 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 financial 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. Benefits and risks were analysed, and
input to institutional managers is proposed based on lessons learned.

University profile
UGM, 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
countrys first 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 first 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,
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the Faculty of Graduate Programmes was changed to the Graduate

Programme, and the Faculty of Diploma was modified 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 Indonesias 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 reform

Under 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 inefficient. Although government funding was inadequate to
develop quality education, an institutions 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 inefficient 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.
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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 governments 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 significantly 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

Status
Under 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: first 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
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the government. Such a system does not generate efficiency; instead, it

creates a disincentive and tends to develop inefficient management.
Administrative autonomy and accountability

Previously, the universitys 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
universitys 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 universitys 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 first with the support of the World Bank, but
now solely from government money.
Academic autonomy
Academic autonomy is another important element of the reforms
intended outcome. Under the former centralistic system, the central
authority drove academic programme development. The central
governments 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 inflexibility and poor
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response and adaptation to market demand. The centralistic plan tended

to hinder the progress of more developed institutions while making
it difficult 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 flexibly to the market and social
needs. The university can also set its own capacity, which is expected
to improve the efficient use of resources.

Institutional reform initiative
UGM responded to the invitation to become a pilot for university
reform by establishing a number of task forces. These were assigned to
assess the universitys 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, difficult 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 finally 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 five 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 financial management. The university management coined the
reform issues to be addressed as RAISE-LEAP, which stood for
Relevance, Academic atmosphere, Internal management and Structural
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organization, Efficiency and productivity, Leadership, Equity and

Access and Partnership.
Reform staging and structural changes

The 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 first 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, refinement and introduction of new academic
programme arrangements, and development of by-laws related to
personnel management. Finally, the most difficult stage encompassed
the ten-year transformation of existing civil servants into university
employees, which included arranging retirement and pension plans.
Governance structure
The first stage was initiated in the first 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 universitys 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 five 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 first 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.
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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 final 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 efficiency means a leaner organization,
the actual number of executive staff increased. In addition, new
administrative coordinating units were established as departments,
transforming the original five bureaus under the rectors office. 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 Senates main role is to develop
academic programmes and partner with the rector. Formerly, the rector
ex officio 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
conflict, 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
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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 certification.
Additional aims of the reform process are image building and quality
improvement.
Changes in organizational structure at the faculty level are not as
significant 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 efficient 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 restructuring
The restructuring of financial management focused on revenue
generation, budget planning and allocation. The development of
financial management was based around the philosophy of fiduciary
system cooperation, in other words, all financial matters must be
clear to the stakeholders students, parents, government, employees,
faculties and other related parties. In implementing this philosophy,
financial 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
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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 fiscal year, bottom-up strategic planning and development of
a consolidated budget was initiated. Each faculty was first 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 profit-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
benefit 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 financial 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 efficiency 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
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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-financing to reduce
the burden of the regular operating budget.
Academic reform: quality assurance

One 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
first 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 first 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 refined 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.
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If the QAUs 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
difficulty, many constraints have hindered the reforms implementation,
both external and internal. One stumbling block, difficult to overcome, is
the legal infrastructure that provides the reforms 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
financial 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-profit unit, whereas the latter is a for-profit unit.
Higher education as a legal entity is a not-for-profit unit, but is still
not part of the government as such status is non-existent under current
regulation. This status has very significant consequences for funding
and taxation. If higher education is considered as a state-owned
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enterprise, it should follow the financial 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 fulfilled the expectations of the
reform, but suffices 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 difficult,
related aspect concerns the pension and retirement scheme, which will
require considerable financial 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 difficult option, as current regulation demands the fulfilment 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 difficult 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 rectors 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.

Effectiveness of the new structures
The academic community may be one of the most difficult
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 first 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 reflect 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
first time. Many trials and errors took place during the first 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 community

Perceptions from academic communities regarding the restructuring
impact on university functioning were collected during the universitys
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 benefit for the university: (i) academic benefit; (ii) organizational
benefit; and (iii) financial benefit. For academic benefit, the university
realized that the granting of more academic freedom needed to be
accompanied by better control mechanisms. Organizational benefit
may be traced to the implementation of organizational restructuring
in terms of: (a) flexibility in the organizational structure to ensure
improvement in efficiency; (b) concordance to achieve a coherent
and unified 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 benefit was implemented through
a strategic planning approach based on objective assessment of the
universitys needs. An objective assessment of assets and financial
resources plays an important part in the universitys restructuring and
reform measures. The exploitation of assets and resources will always
be based upon efficiency, effectiveness and prudence. Assessment of
the universitys strategic assets will cover financial 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 benefits 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 finance, 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
Statement
Response 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 3.00
Statements:
Decision-making structure at the institutional level
Decision-making structure at the faculty/department level
Academic staff
Introducing new study programmes
Staff recruitment
Allocation of budget to departments
Procurement procedures
Income-generating activities
Student admissions
Determination of students fees
Student evaluation procedures
Quality assurance system
Audit system
Response value:
Total autonomy
High degree autonomy
Limited autonomy
No autonomy
No answer
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Table 2.2
Average value of response from department heads

Statement
Response value
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 2.38
Statements:
1. University autonomy
2. Autonomy of department
3. Autonomy of academic staff
4. University decision-making process
5. Academic programmes
6. Staff recruitment procedures
7. Staff evaluation procedures
8. Allocation of budget/resources
9. Procurement procedures
10. Income-generating activities
11. Cost-saving measures
12. Admission procedures
13. Student fees
14. Students support systems
Response value:
1. No benefit
2. Moderate benefit
3. Significant benefit
4. Not applicable
5. No answer
There is no significant difference between the responses of faculty

and department executives. The average response of most department
heads regarding the degree of autonomy and benefit 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 benefit 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 financial resources
in a more effective way.
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b)
Academic staff
On average, there was general agreement concerning the

restructuring influence in improving the five 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 benefit 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 finances or other
management improvements.
Figure 2.1 Response of academic staff on the benefit
of institutional restructuring
70.00
Percentage
60.00
50.00
40.00
30.00
20.00
10.00
0.00
1
1 = No benefit
2 = Some benefit
7
8
Statement
3 = Absolutely benefit
10
4 = Do not know
11
5 = No answer
Statement:
1.
More autonomy for university management
2.
More autonomy for department/study programme management
3.
More autonomy for academic staff
4.
More autonomy in decision-making process at university level
5.
More autonomy in managing academic programme
6.
More autonomy in developing staff recruitment procedure
7.
More autonomy in developing staff evaluation procedure
8.
More autonomy in developing budget and resources allocation
9.
More autonomy in developing revenue generating activities
10.
More autonomy in decreasing high cost management
11.
More autonomy in developing students admission
12.
More autonomy in developing student tuition and fee system
13.
More autonomy in developing education support system
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13
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 benefit 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 benefit of university restructuring
Statement
Response 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 1.65
Statements:
1. More autonomy in managing administration at university level
2. More autonomy in managing administration at department level
3. More autonomy in strengthening performance of educative or academic staff
4. More autonomy in improving decision-making process at university level
5. More autonomy in managing study programme administration
6. More autonomy in developing administrative staff recruitment procedure
7. More autonomy in developing administrative staff evaluation procedure
8. More autonomy in developing budget and resources allocation
9. More autonomy in developing procurement office facilities and equipment
10. More autonomy in developing revenue generating activities
11. More autonomy in decreasing high cost management
12. More autonomy in developing new students admission procedure
13. More autonomy in developing student tuition and fee system
14. More autonomy in developing education support system
Response value:
1. No impact, 2. Some impact, 3. Significant 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.

Some important lessons were learned during the transition
period.
The benefits
a)
General
The primary objective of the new paradigm is higher educations

contribution to developing the nations 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 significant impact on the larger society.
b)
Ownership, efficiency 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 influx through its performance. This has significantly improved
its ownership over investment programmes. Since UGM has control
over the investment fund, it tries its best to utilize the fund efficiently
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 universitys

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 fulfil stakeholder demands therefore
improve both accountability and relevance.
d)
Internal management and academic atmosphere
Many aspects of university management can be improved without

significant 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 reflect the universitys 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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75

a)
Funding mechanism
The two key aspects able to bring about changes in institutions are
the enabling regulatory environment and appropriate financial incentives
under the governments responsibility. The regulatory environment
must encourage innovation at the level of individual institutions,
whereas financial incentive schemes must be able to steer institutions
towards quality, efficiency 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 universitys
special account. The existing scheme for government-funded projects
complies with Indonesia Corruption Watch rules and passes through
complex agencies the local treasury office and the university project
office (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 find 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 governments grip over centralized regulatory measures, such as the
civil service, DIK, curriculum and programmes. New regulations have
been enacted reflecting 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 reflected
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 finance 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 universitys central management (in other words, the university

managers) should be taken into account:
1.
2.
3.
4.
5.
6.
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 bodys role, function and performance as well as
the role, function and performance of each lower unit, such as
faculties, research centre institutes, and others.
Develop a consensual commitment from the various bodies to
support and implement the autonomous nature of the university
by utilizing the universitys resources (financial, physical, human,
management resources, etc.) more efficiently and effectively.
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.
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.
Develop a concrete system and standard instrument for internal
auditing, focusing on financial, academic and human resource
performance, followed by an in-house mechanism and procedural
measure for overall university performance.
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;
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ii.
2.
3.
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.
Revisiting the individual units mission and vision in accordance
with the universitys 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.
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 identification 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 flexibility 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. efficiency,
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 enrolment
Since 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.
5.
Muhammad Yahaya is Director of the Academic Advancement Centre (UKM), Bangi Selangor,
Malaysia.
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 outflow 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 programmes

With 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 Qualification 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
Funding
Public 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, five 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 financial 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 financial matters, for example on procedures
pertaining to tender, on the whole, public universities have not been
given total autonomy and their financial 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 qualified 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 defined 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 flexibility, 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
ADVANCES IN ICT
CHANGING
TRENDS
Economic
Social/value
Political
Academic
Higher Education
Educational
reforms (Acts)
Quality
Accountability
Relevance
Increased public and
governments expectations
Organizational
changes
Governance &
funding changes
GLOBALIZATION
Reforms or new initiatives in the form of legislation, institutional

restructuring, organizational changes and changes in governance have
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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 departments 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
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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 fulfillment 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 fields in the arts, and catered for the increasing number of students
in these fields. 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
officially 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
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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 first research centre for Malay
studies of its kind in Malaysia (established in 1972) was renamed the
Institute of Malay World and Civilization, to better reflect 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 fields 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 officially 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 UKM

As 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 UKMs 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 five
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 Registrars office
and the Bursars office. 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
CHANCELLOR
PRO-CHANCELLOR
PRO-CHANCELLOR
BOARD OF DIRECTORS
CHAIRMAN
VICE-CHANCELLOR
MEMBERS
SECRETARY
MANAGEMENT OF DIRECTORS
VICE-CHANCELLOR
DEPUTY VICE-CHANCELLOR
(academic affairs)
REGISTRAR
(development affairs)
BURSARY
(student affairs)
CHIEF LIBRARIAN
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 Officer.
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
identified 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 confined
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 reflects 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 efficiency 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 redefinition 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 fulfill

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 field 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

flow of information among staff with centres of knowledge.
The restructuring of resources:
optimum, efficient 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 profit 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 beginning
Following UKMs 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 consultations

On 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.
b.
c.
status of current programmes and directions for new programmes;

strategic directions in knowledge and management;
proposal for restructuring at the university level;
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d.
e.
f.
g.
h.
i.
the foundations and suggestions for restructuring at the faculty

and departmental level;
centres of excellence;
the development and management of human resources;
activity-based costing;
development and application of information technology;
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.
b.
c.
the Health Sciences group encompassing the Faculty of Medicine,

Allied Health Sciences and Dentistry;
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;
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 Meeting

The 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-up

Meanwhile, 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 final 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 officially launched on 28 July 1999.
Restructuring of social sciences and humanities

While 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
first 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 final proposal for submission to the Senate.
A special session was held in October 2001 and the newly restructured
Social Sciences and Humanities Faculty was officially 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 final 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 officially
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
1974
Faculty of Social Sciences

& Humanities (FSKK)
Language
Centre
Faculty of Developmental
Science
Faculty of
Education
1986
Faculty of
Language Studies
1991
2002
Faculty of Business
Management
Faculty of
Economics
1979
1984
Faculty of Economics
& Management
Faculty of Social
Sciences & Humanities
Faculty of
Education
2004
Faculty of Economics
& Business
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Figure 3.4 Restructuring of the sciences

1970
1973
Faculty of Science
Faculty of Life
Sciences
Centre for
Qualitative Studies
Faculty of Physical
and Applied Sciences
1979
Faculty of Engineering
1984
Faculty of
Mathematics and
Computer Science
1991
Faculty
of Mathematical
Sciences
1994
1999
Faculty
of Natural
Resource
Sciences
Faculty of Science
& Technology
Faculty of
Engineering
Faculty of
Technology &
Information
Science
Faculty of
Technology &
Information
Science

Difficulties faced during the implementation stages
During 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 Proficiency, 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 five. 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 difficulty 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 first 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 staff

In 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 finally merge.
This aside, the Vice-Chancellors 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 Proficiency (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 benefits 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 programmes
The major impact and most immediate benefit 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 reflect 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 confirmed 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 specifically 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
83.3 %
Table 3.2
Academics
81.8 %
Support staff
56.5 %
Students
82.4 %
Academic staff opinion on certain aspects of academic

restructuring
Aspects of restructuring
Restructuring enabled development of
innovative curriculum
employment-oriented courses
multi-disciplinary and multi-skill courses
Restructuring has strengthened the links
between research and teaching
Restructuring has strengthened academic
programmes of the university
Restructuring has improved interaction
and collaboration between staff in different
departments ou schools
Restructuring has improved access to and
sharing of faculty resources
Restructuring has reduced administrative
costs
Restructuring has increased academic
workload
Restructuring has increased administrative
workload
Restructuring has increased monitoring and
control of resources
Restructuring has increased accountability
measures of the staff
Strongly Disagree Agree Strongly

disagree
agree
0.0
31.8% 59.1% 9.1%
0.0
45.5%
45.5%
9.1%
9.1%
22.7%
50%
18.2%
0.0
50%
40.9%
9.1%
0.0
45.5%
54.5%
0.0
9.1%
59.1%
31.8%
0.0
9.1%
54.5%
27.3%
9.1%
18.2%
36.4%
31.8%
13.6%
0.0
63.6%
36.4%
0.0
4.5%
36.4%
50%
9.1%
4.5%
27.3%
59.1%
9.1%
13.6%
36.4%
50%
0.0
Administrative procedures
All 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
significant 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
Pre-restructuring
Post-restructuring
Deanery
Deanery
Academic
departments
Schools
Academic
programmes
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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 Registrars office. 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 influence on student admissions and
student management.
Similarly, the restructuring of faculties did not heavily impact
financial management. This is because the financial system is
centralized at the Bursars office 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

University autonomy
Decision-making structures
Staff management and
evaluation
Financial management and
corporatization
Admission and student
management
Administrators Academics Support staff Students

13.6%
17.4%
17.6%
33.3%
68.2%
34.8%
20.6%
16.7%
54.5%
39.1%
23.5%
16.7%
36.4%
26.1%
35.3%
16.7%
18.2%
39.1%
67.6%
50.0%
54.5%
52.2%
38.2%

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 findings 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 significant 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 facultys

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 facultys mission, vision and commitment to quality are crucial for
continual improvement and excellence.
Difficulties in the implementation of the restructuring

process
Administrators were specifically asked to identify difficulties
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 stratified 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 definition 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 clarified. 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.
Recommendations
External influences 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 first 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 final 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 countrys 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 Mongolias 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

Mongolia
There 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.
2.
3.
4.
5.
6.
7.
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.
Strengthening of linkages between major subjects:
There is a need to establish an appropriate framework on
removing boundaries between qualifications. For example, an
engineering graduate should have a firm knowledge of economics
and management and thereby be flexible in skills.
Training standards based on research:
(Demand-based) training is a collaboration between students and
lecturers. Important scientific 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.
Efficient application of information technology:
Information technology should be efficiently applied nationwide
to serve as a catalyst for higher education development and
contribute to accessing global information and knowledge.
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.
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.
Transform universities and colleges into institutions for continuous
learning:
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8.
9.
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.
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.
Development of faculty staff:
Staff development is key to the development of higher education.
The trainees will manifest the same qualities and competencies
as reflected 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 financial imperatives.
The introduction of tuition fees over the last five years is one factor
behind the rapid growth of higher education in Mongolia. This has
allowed the government to make financial 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 university
Founded 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
fields 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
fields 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

Phase III or Academic staff as an essential element of the
university

Phase IV or Accreditation

Phase V or Methodology of assessment of academic staff
performance by credits

Phase VI or Credit-based system of MUST

A fully-fledged 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 Students Handbook of MUST and
provided copies for all students.
In addition, every school within MUST develops a Students
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 management

In 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 final
outputs be achieved. In a democratic society, the most appropriate
re-organization and restructuring ensures the independence of
individuals, proficiency of officials, accountability of final 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 affiliated schools with financial 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 universitys 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 filling gaps in this
model. Nevertheless, the implementation of the credit-based system
resulted in the establishment of a new Office of Academic Policies at
the university level, and academic offices 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 offices 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 influence
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 countrys 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
Presidents 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 five leading Mongolian universities
as a non-governmental and non-profit organization. The Consortiums
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 significant 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 first university in Mongolia dedicated to the

fully-fledged implementation of a key element of the restructuring
process a credit-based system in all activities.
MUST is the first 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 first 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 first accredited universities in Mongolia. In
addition, the first 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 field 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 significance of the Master Plan is located in the
following elements:
1.
2.
3.
4.
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.
Take precautions from potential risks and threats by identifying
and defining main attributes of the mega, macro and
microenvironments.
Sustain favourable conditions for management, monitoring,
coordination and strengthening of activities at the university.
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 idea
The 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
fulfilling the demands in training and preparation of essential specialists
and builders of Mongolian society in the twenty-first 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
significantly 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 universitys community
The 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-fledged 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 flexible 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 flow, 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 universitys management
information system needed urgent attention and development. The
launching of the universitys 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 universitys management information system, was developed and
implemented in two stages. In the first stage of development, UNIMIS
v.1.0 was launched, followed by the second stage, which involved the
development of the first 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 efficient 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 financial planning.
Financial and economic issues have underpinned reform and
restructuring measures taken by MUST. These issues depend on
various factors: the universitys strategic and short-term objectives and
goals, management and organizational structure, foreign cooperation,
management and coordination of training technology, mechanisms
of financial encouragement, awards and penalties for motivation of
staff activities, monitoring and control of action processes and final
outputs, and final achievement of goals and objectives. The economic
and financial aspects of the university are organized into two steps:
(i) internal university activities are arranged to regulate between the
universitys administration, and (ii) between departments or units in
terms of economics and finance. 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
financial 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 finance. Otherwise, the implemention of a credit-based
system for improving training and education frameworks will prove
difficult.

The peaceful democratic changes that took place at the beginning
of the 1990s had a major impact on the countrys 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 define the universitys 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, financial 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 financial 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 defined.
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 deficits.
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 conflicts or burdens in

implementing restructuring measures relating to administrative and
academic staff or students. However, a survey received from UNESCOs
International Institute for Educational Planning (IIEP) and results of
annual feedback surveys among the universitys 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 difficulties in implementation of the restructuring
process: decision-making.
Table 4.2 shows opinions on the difficulties in implementation of
the restructuring process: finance and organizational structure.
Table 4.3 addresses opinions on the difficulties 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 difficulties in the implementation of the

restructuring process: decision-making
No Responses
Frequency Percentage
1 Decision-making at the university has many features,
12
24.0
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.
2 Suggestions and feedback of primary units on principal
19
38.0
issues are not well reflected 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.
3 Do not know/No response
19
38.0
Total
50
100
Table 4.2

restructuring process: finance and organizational
structure
No Responses
1 Organizational structure is sufficient. Organization of
13
26.0
activities is well structured.
18
36.0
2 The situation of administration staff is complicated and
although the Academic Affairs offices 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-defined and assigned
accordingly.
Young professors lack experience.
MUST single treasury expenditures should be made
transparent.
3 Do not know/No response
19
38.0
Total
50
100
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Table 4.3

restructuring process: student-related
No Responses
1 Students core background, discipline, activity, learning
16
32.0
and motivation to study is not adequate; whereas
material consciousness and foreign language-learning
ability is poor.
2 Wide use of tests produces engineers with poor speech
10
20.0
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.
3 Students have enough ability to make decisions
4
8.0
individually. Need to find ways to improve students
motivation to learn.
4 Due to lack of students abilities to pay, it is necessary
3
6.0
to enhance mechanisms for payment of tuition fees.
5 Do not know/no response
17
34.0
Total
50
100
Table 4.4

restructuring process: procurement procedures
No Responses
1 Due to the need to strengthen university facilities and
27
54.0
material support, schools lack training and research
facilities. There is a lack of capacity to provide training
classes and lecture halls.
There is an insufficient supply of published textbooks,
books and computers. It is necessary to search for
additional financial sources other than tuition fees to
solve procurement problems.
2 The State Single Treasury Account system has an
1
2.0
adverse impact on decision-making on procurement
procedures.
3 Decision-making on procurement procedures is
3
6.0
independent for MUST schools.
4 Do not know /No Response
19
38.0
Total
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 satisfied 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 satisfied with the effectiveness of restructuring
measures, and 33 per cent highly praised such changes. However,
3 per cent were not at all satisfied 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
Administrative
Directors
and support staff and chairs
University autonomy
17.4
15.8
13.8
14.4
Restructuring curriculum
15.2
15.3
Academic staff
management and
11.8
14.7
assessment
11.8
13.7
corporatization
Admissions and student
13.2
11.6
management
13.2
10.3
Any other
3.8
4.2
Total
102
100
Academic Students
staff
20.1
20.3
12.1
7.8
20.6
21.1
7.4
15.0
12.1
11.8
15.6
10.8
9.4
2.7
100
6.4
6.8
100
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Table 4.6
Some comparative indicators of MTU and MUST
MTU in 1990s
Institute has just recently
obtained status of a university.
3,021 students and
323 faculty members.
Organizational structure consisted
of faculties, centralized management
and framework of university-facultydepartment.
Had qualified academic staff.

However, young faculty members
comprised only 10.8 per cent of
total academic staff. Retraining of
faculties was organized once every
five years in Russian Federation.
Supply of textbooks and training

materials getting
worse with limited availability to
publish new ones.
MUST in the new millennium

Confirmed status of a university and has
expanded. Dedicated to achieving its mission
to become one of the largest universities in
North-East Asia.
18,595 students and 830 faculty members.
Has obtained an independent school
structure; authority has been delegated to
lower levels of management. Currently
introduced framework of University-SchoolChair. There are 17 schools and 128 chairs
at the university. Internal management is
democratized; Faculty Senate and Students
Union are operating independently.
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.
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.
Narrow scope of research

did not provide post-graduate
training programmes.
International cooperation ties

related mostly to certain Russian
and Chinese institutes. Ties were
specific to a certain period.
Training curriculum was structured
on Russian models.
Evaluation of faculty members
work performance was poor with
employees leaving the university
to join the private sector.
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.
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.
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.
The credit-based system has been studied and
introduced into training. The Internet network
is maintained for wide use in academia and
research.
Academic staffs 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 MUST

Over the last decade, MUST has become one of Mongolias 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.
2.
3.
4.
The reform process at MUST took place at the beginning of the

countrys 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.
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.
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.
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.
2.
There was conflict 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
defined by a learning democracy and was all about the market
economy.
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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3.
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.
Strong government support for public universities is absent.
Even though the government wishes to extend its control over
public universities, financial 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 years

1.
2.
3.
4.
5.
6.
7.
8.
9.
Verify the status of the universitys autonomy and carry out

academic freedom to its fullest meaning.
Introduce multifaceted measures to enhance the quality of
training.
Restructure training methodologies and technology, and introduce
advanced methods and creative thinking.
Develop and carry out electronic technology training with a
combination of traditional methods of training.
Support innovation and creative thinking focused on carrying out
research with suitable mechanisms for implementation.
Put in place mechanisms for the wide functioning of technology
transfer and implementation activities with collaboration from
companies and enterprises.
Significantly improve English proficiency of academic staff,
students and graduates.
Offer joint training programmes for improving the quality of
training.
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 universitys 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 MONGKUTS 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 identifies internal and external influences 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 Mongkuts 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, efficiency, 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, efficient 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 Mongkuts 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.
9.
Banterng Suwantragul is Associate Professor at King Mongkuts Institute of Technology Thonburi

Bangmod (KMUTT), Bangkok, Thailand.
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 Monkuts University

of Technology
Introduction to King Mongkuts University
of Technology Thonburi
King Mongkuts 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 first 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 five-year programmes after Grade 12)
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King Mongkuts University of Technology Thonburi, Thailand
2.
3.
and technical instructors for technical colleges (through two-year

programmes after technician diploma) at Bachelor degree level.
Second decade: The university established a broader academic
programme in science and technology by offering bachelor degree
programmes in engineering and multidisciplinary technologies.
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 Mongkuts 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 Mongkuts University of

Technology Thonburi
(a) Physical facility

Thonburi
Bankhuntien
Rajaburi
Total
Land
52 acres
80 acres
460 acres
592 acres
Building
248,798 square metres
(b) Staff
Academic
Administrative and support
Temporary and other employee
Total
540
541
635
1,716
(c) Programme offered

Undergraduate
Graduate
Graduate diplomas
Masters
Doctorates
Total
33
8
57
22
120
(d) Number of students

Undergraduate
Graduate
Graduate diplomas
Masters
Doctorates
Total
8,357
22
3,782
292
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 first 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 first 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 first draft and unique to the university, was ready. Drafts of
supporting regulations and guidelines were also firmly 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 first
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 flexible 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 five years, which is the period of time given in the University
Act.

Initiation of restructuring at KMUTT
The 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.
2.
3.
The university management held meetings with staff at various

stages of development.
The KMUTT Lecturer Council took an active role in the
development of university autonomy. The Council also organized
public hearings within the university.
The university set up several task forces and working groups to study
the management of academic matters, university personnel and
financial matters that involved large groups of staff. Participation
in working groups helped staff thoroughly understand the concept
of university autonomy.
The new structure

The 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 final
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
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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
Commission on
Higher Education
Ministry of Education
Budget
Bureau
Office of
the Prime
Minister
Ministry
of
Finance
Stipulated by
the Government
for all civil servants
Prime
Minister
University
Civil Servant
Committee
University Council
Change of
itemized
budget
allocation
University
Civil Servant
Sub-committee
New curricula Setting up
not in 5-Year or dissolving
Plan
work units
Changes in
procurement
procedures
Changes in
financial
regulations
Changes in
salary
structure
Personnel
Administration
University
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 five-year
plan.
The university, being a public organization, was required to
follow the rules and regulations of the office 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 financial regulations was possible only when the
Ministry of Finance had such a policy that was also applicable to
all public organizations.
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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 difficult.
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 financial 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 financial matters are audited by the
Government Auditing Office.
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Figure 5.2 Autonomous university reporting diagram

Total amount
of budget
controlled
by Budget Bureau
Commission in Higher
Education/Ministry of Education
Has representation
in the University
Council
Government Auditing Office

examines compliance
with regulations
Submit agenda
concerning
University to
Council of Ministers
University Council
Change of
itemized
budget
allocation
New curricula Setting up

not in 5-Year or dissolving
Plan
work units
Changes in
procurement
procedures
Changes in
financial
regulations
Changes in
salary
structure
Personnel
administration
University
In addition, the university is audited by other agencies, such as the

Office for National Education Standards and Quality Assessment and
the Council of Engineers.
The Academic Council
The Academic Councils 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, firing 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.
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The Finance and Assets Management Committee
The main authority and duty of the Finance and Assets Management
Committee is to approve finance 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.
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.
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Figure 5.3 King Mongkuts University of Technology Thonburi

(KMUTT) administration chart
University Council
Adviser to the University
Internal Audit Unit

Adviser to the President
Faculty and Staff Senate
University Welfare Committee
Academic Council
University Promotion Committee
Property and Finance Committee
President
KMUTT Alumni Association

Foundation Committee
KMUTT Co-operative of Saving & Credit
Personnel Administration Committee
KMUTT Co-operative Service Limited

Senior Vice-President for Academic
Vice-President for Student Affairs
Vice-President
Academic Service Division
- National entrance examination
Institute for Scientific and
Technological Research
and Services
- Academic exhibition both
in and outside the university
and community
and rural areas services
Building and Ground Division
- In case of emergency in
the university, for safety of
properties and personnel of
the university, both during
and outside of office hours
Special project for specific
matter
Academic Service Division
Office of
the President
Student Affairs Division

Registration and Evaluation Division
Vice-President for Research and Information
The Graduates and International Office
Pilot Plant Development and Training Institute
Institute for Scientific and technological Research and Services
Industrial Park Center
Computer Center
KMUTT library
Faculty/Scool
Affiliated Institute/School/University Consortium
Darunsikkhalai School
The Joint Graduate School of Energy and Environment
Senior Vice-President for Administration Affairs
Vice-President for Human Resources
Administration Service Division
Human Resource Development Division
Health Care Service Section
Vice-President for Planning & Development
Planning Division
Building and Ground Division
Office of
the President
Public Relations Section

Security and Safety Management Section
Vice-President for Property and Finance
Treasury Division
Benefits and Property Management Section
Commercial Resource Development Section
Vice-President in charge of Bangkhuntien and Rajaburi
KMUTT (Bangkhuntien)
Rajaburi Campus
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5.5 Constraints on the implementation of restructuring measures

Difficulties faced during the implementation stage
Difficulties faced during the implementation stages included:
1.
2.
The transition of KMUTT occurred after the economic crisis of

1997. The university found it difficult to obtain an extra budget
to top up the salary and provide funds and staff benefits. It took
17 months to settle this matter with the government.
The status of university employee was unrecognized by government
agencies, who only recognized statuses related to government
bureaucracy and state enterprises.
Resistance from staff

There 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 difficulties

All difficulties were overcome through negotiations and
explanations. Mr. Paron Issarasena, the first 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 benefits 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.
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Perception of the university community on
restructuring
Survey 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 satisfied 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
Item
Total
Average age (years)
Average experience in KMUTT (years)
Gender: male (%)
Gender: female (%)
Status university employee (%)
15
48.7
16.7
86.7
13.3
100
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Table 5.3

areas effected by institutional restructuring
Item
1. On university autonomy
2. On staff management and evaluation
3. On decision-making structure
4. On academic programmes
Table 5.4

the level of autonomy
1. Student evaluation
procedures
2. Decision-making structure
at the institutional level
3. Decision-making structure
at the faculty/department
level
4. Staff recruitment
5. Introducing new study
programmes
Table 5.5
Percentage
100
73.3
60.0
60.0
60.0
Total
High degree Limited
autonomy of autonomy autonomy
(%)
(%)
(%)
26.7
53.3
13.3
No
autonomy
(%)
6.7
26.7
33.3
40.0
26.7
33.3
40.0
20.0
13.3
40.0
46.7
33.3
33.3
6.7
6.7
Senior management in the university: opinion on

1. Academic programmes
3. Staff recruitment
procedures
5. Autonomy of academic
staff
No benefit
(%)
Moderate benefit
(%)
6.7
6.7
0
40.0
40.0
40.0
Significant
benefit
(%)
53.3
53.3
46.7
13.3
13.3
40.0
40.0
46.7
46.7
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Perception of teaching staff
Questionnaires were sent to the academic staff of 20 departments,

five for each department. The academic staff surveyed:
Table 5.6
Teaching staff: general information
Item
Total
Average age (years)
Gender: male (%)
Gender: female (%)
Status university employee (%)
Civil servant (%)
Table 5.7
57
40.0
15.6
68.4
31.6
56.1
43.9
Teaching staffs opinion on the effect

Item
3. On financial management and corporatization
5. On admissions and student management
6. On administrative procedure
Percentage
100
94.7
77.2
68.4
63.2
63.2
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Table 5.8

1. Restructuring enabled
development of innovative
curriculum
2. Restructuring
enabled development of
employment-oriented
courses
3. Restructuring
enabled development
of multi-disciplinary and
multi-skill courses
4. Restructuring has
strengthened links between
research and teaching
strengthened academic
programmes
Table 5.9
Strongly
disagree
(%)
Disagree
(%)
Agree
(%)
Strongly
agree
(%)
3.6
28.6
58.9
8.9
5.5
32.7
54.5
7.3
5.6
29.6
59.3
5.6
3.6
47.3
38.2
10.9
9.3
38.9
46.3
5.6

increased academic
workload
increased monitoring and
control of resources
increased accountability
measures of staff
increased administrative
workload
Strongly
disagree
(%)
5.3
Disagree
(%)
Agree
(%)
17.5
56.1
Strongly
agree
(%)
21.1
3.6
17.9
58.9
19.6
5.4
25.0
55.4
14.3
2.0
21.6
62.7
13.7
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Table 5.10 Teaching staffs opinion on the benefits

2. University decision-making
structures (management structures)
4. Cost-saving measures
No benefit
(%)
9.1
13.5
Moderate
benefit
(%)
54.5
50.0
Significant
benefit
(%)
29.1
25.5
16.4
33.3
13.5
52.7
40.7
46.2
23.6
20.4
19.2
Dual system
Table 5.11 Teaching staff: civil service opinion

Item
1. Satisfied with civil service status
2. Planning to apply for university status
in the near future
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
4. Satisfied with civil service salary
5. Agree with the university policy that working
performance should be assessed with the same
evaluation procedure
Agree
(%)
80.0
22.7
Disagree
(%)
20.0
77.3
50.0
50.0
54.2
45.8
45.8
54.2
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Table 5.12 Teaching staff: university employee opinion

Item
1. Satisfied with university employee status
2. If possible, want return to government
service position
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
4. Satisfied with university employee salary
Agree
(%)
90.0
27.6
Disagree
(%)
10.0
72.4
76.7
23.3
70.0
80.0
30.0
20.0
Perception of administrative and support staff
Questionnaires were sent to the administrative and supporting

staff of 20 departments and to the office of the President, 100 in total.
Table 5.13 Administrative and supporting staff:
general information
Item
Total
Average age (years)
Gender: male (%)
Gender: female (%)
Not specified (%)
Status: University employee (%)
Civil servant (%)
93
38.1
12.6
32.3
66.7
1.1
58.1
41.9
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Table 5.14 Administrative and supporting staffs opinion on

Item
3. On financial management and corporatization
Percentage
100.0
89.2
83.9
76.3
63.4

2. Student fees
No effect
(%)
Moderate
effect
(%)
34.1
31.9
22.7
32.2
41.7
6.6
3.3
11.4
10.0
1.2
Significant
effect
(%)
59.3
59.3
58.0
57.8
50.0

Not much
benefit
(%)
5.9
Some benefits Significant

(%)
benefit
(%)
37.6
49.4
12.6
8.7
12.8
13.8
34.5
43.5
32.6
40.2
47.1
46.7
45.3
44.8
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Dual system

civil service opinion
Item
1. Satisfied with civil service status
2. Planning to apply for university status
in the near future
3. Agree with university policy that for the same
should be assigned work with the same
job description
4. Satisfied with civil service salary
performance be should assessed with the same
Agree
(%)
94.9
25.7
Disagree
(%)
5.1
74.3
48.7
51.3
76.9
30.8
23.1
69.2

university employee opinion
Item
1. Satisfied with university employee status
2. If possible, want return to government
service position
3. Agree with university policy that for the same
should be assigned work with the same
job description
4. Satisfied with university employee salary
Agree
(%)
88.0
27.5
Disagree
(%)
12.0
72.5
78.0
22.0
76.9
82.7
23.1
17.3
Perception of students
The questionnaire was sent to final year undergraduate students in

20 departments, 10 for each department.
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Table 5.19 Final year undergraduate students:

general information
Item
Total number
Average age (years)
Average experience in KMUTT (years) (architecture)
Average experience in KMUTT (years) (other)
Gender: male (%)
Gender: female (%)
177
21.5
5
4
65.0
35.0
Table 5.20 Final year undergraduate students opinion on

Item
Percentage
79.7
76.8
57.6
40.1
39.0
Table 5.21 Final year undergraduate students opinion on

institutional restructuring process
1. Introduction of
employment-oriented
courses
2. Restructuring curriculum
3. Changes in student
evaluation procedures
4. Changes in admissions
procedures
5. Changes in fee structure
Strongly
disagree
(%)
0
Disagree
(%)
Agree
(%)
1.1
28.2
Strongly
agree
(%)
69.5
1.1
2.9
8.0
18.9
59.7
56.6
29.0
12.6
3.4
28.8
46.3
10.2
22.6
48.6
19.2
7.3
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Table 5.22 Final year undergraduate students opinion on the

benefits of institutional restructuring
1. Access to Internet facilities
2. Availability of library books or
journals
3. Teaching facilities
4. Infrastructure facilities
5. Interaction with staff members and
students
No
Moderate
Significant
improvement improvement improvement
(%)
(%)
(%)
10.3
47.4
40.6
6.9
54.3
36.0
19.4
10.9
28.6
61.7
70.1
53.1
18.3
17.2
12.6
Impact of restructuring on university functions

The 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 fifth 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

Oct
1997
University employees
Civil servants
Permanent employees
Temporary and others
Total
Cumulative number
of civil servants
converted to university
employees
Cumulative number of
civil servant retirees,
early retirees, transfers
and employees who
left
Percentage of
to permanent
employees
Percentage of civil
servants converted to
Percentage of civil
servant retirees, early
retirees, transfers and
employees who left
Oct
1998
Oct
1999
Oct
2000
Oct
2001
Oct
2002
Oct
2003
July
2004
0
39
103 300 406 458 558 672
899 893 790 634 548 499 413 370
899 932 893 934 954 957 971 1042
214 330 328 457 494 559 568 604
1,113 1,262 1,221 1,391 1,448 1,516 1,539 1646
0
39
119
223 301 345 424 463
23
4.18
11.53 32.12 42.56 47.86 57.47 64.49
4.18
12.77 23.92 32.30 37.01 45.49 49.68
2.47
75
8.04
83
8.91
88
9.44
95
99
10.19 10.62
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Figure 5.4 Percentages of university employees/permanent staff

70
Percentage
60
50
40
30
20
July 2004
Oct. 2003
Oct. 2002
Oct. 2001
Oct. 2000
Oct. 1999
Oct. 1998
Oct. 1997
10
Source: KMUTT Annual Reports, 1997-2004.
Figure 5.5 Percentage of civil servants converted to university

employees
70
Percentage of retired staff and others
Percentage of converted staff
60
Percentage
50
40
30
20
Source: KMUTT Annual Reports, 1997-2004.

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July 2004
Oct. 2003
Oct. 2002
Oct. 2001
Oct. 2000
Oct. 1999
Oct. 1998
Oct. 1997
10
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
Undergraduate
Graduate diplomas
Masters
Doctorates
1998
0
0
5
6
1999
1
0
0
1
Academic year
2000 2001
4
1
0
1
0
2
2
0
Total
2002
1
0
4
0
2003
2
0
8
2
9
1
19
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 financial 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 financial

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
1)
2)
Administrative and support staff are evaluated based on:

job description: quantity, quality and outcomes;
personality: teamwork, continuous improvement, and so on.

Why did restructuring succeed in KMUTT?
The restructuring succeeded in KMUTT due to:
1.
2.
3.
strong leadership on the part of the University Council and the

past and present Presidents of the university;
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;
most of the KMUTT staff being dedicated, loyal and hard working.
University unity is very strong.
Lessons learned from the restructuring process

The lessons learned from KMUTT are the following:
Success in transition must be internally driven, not externally
driven.
1.
2.
3.
The university Lecturer Council should have a positive impact on

the development of university autonomy.
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.
The university should set up several task forces and working
groups to study the management of academic matters, university
personnel and financial 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.
5.
6.
7.
Government should allow a university to run with a dual-track

employment system. Otherwise the transition will be delayed.
At KMUTT, the number of university employees is more than half
of the total after five years of transition. Both civil servants and
university employees are satisfied with their choice.
At KMUTT, students are satisfied with the changes but are worried
about fee increases.
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-defined. 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 affiliated 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 difficult 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 modified 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
proficiency, in order to remain informed of first-hand information from
various sources in their fields.
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 identified 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
financial 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 model
The educational innovations mentioned above were introduced as
the countrys 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 finally selected Hue University to serve as the
pilot for the university restructuring process. The reason for the choice
was that Hue University satisfies 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 flexible training activities required of the university.
Its leaders and staff, as well as the affiliated 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 unification of the country, it had
five 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 unification (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-fledged
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 first 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 five 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 Moi11

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 Presidents office;
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 financial activities are managed by a common office, 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 fields, for the development of the
country in particular, the provinces in the central region. At present,
Hue University offers 63 programmes leading to a Bachelors degree,
54 to a Masters 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 five 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 unified organization comprising five 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 unification

in 1975, these five 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 final 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 certifications and approving national
research projects.
With regard to financial 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 fixed 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 officials, 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 restructuring

From 1994 to 1998
Regarding operation mechanisms, the administration of Hue

University consists of two levels: Hue University and affiliated
colleges. Hue Universitys 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.), scientific research (approving national
and ministerial research projects, giving finance, 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 scientific
research, while transferring technologies, appealing for investment from
aid projects, opening international training courses, etc.). At the level
of affiliated 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 affiliated colleges can no longer work separately
but exist under a common organization, Hue University.
One achievement during the first five 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 first two academic years within a framework of seven
different programmes, corresponding to specific fields chosen by
students as their speciality. The advantage of the College of General
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Education was that students could use the certification from this school
to apply for any specific field 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 find 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
five-year trial period.
From 1998 to 2003
After five 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 affiliated colleges in
its present form.
The first 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 affiliated
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, affiliated colleges are partly responsible
for their own academic activities, financial 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 affiliated 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 affiliated colleges. As a result,
research is done more conveniently. Research projects at the university
level are checked and taken over by universities. Affiliated 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.

Legal and administrative constraints
It 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 beneficial for
the change in question. Moreover, because education, politics and
legal systems share a close relationship, there are no significant 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 first 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
scientific 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 affiliated 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 difficulties because of the
additional and new tasks involved.
Financial constraints
The first constraint comes from the new financial mechanism.
At the university level, the Office of Planning and Finance manages
all financial activities within the university. This office is in charge of
making financial plans for affiliated colleges. After collecting comments
from all colleges and the presidential board, plans are elaborated and
implemented. Hue Universitys administrative offices do not have their
own budget, but receive part of the budget from affiliated 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 office. From a financial aspect, affiliated colleges do not
want to work under the leadership of an intermediary office, 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 financial 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 affiliated 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 find a way to solve
this problem.
The third constraint is the mode of decentralization for distributing
and controlling the budget. Affiliated colleges are funded from the
MoET through Hue University. Hue University is then responsible
for distributing funds to its members. Money collected from affiliated
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colleges is reported to Hue University and also controlled by it. This

decentralization mode was applied in the first stage of restructuring
in Hue University. However, because of the difficulties with common
development caused by this mode, Hue Universitys affiliated 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 profitable 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 affiliated 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 Universitys offices.
One more constraint indirectly involved in financial 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 universitys greatest constraint. One problem caused by
the system of budget subsidies was a lack of qualified 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 specific solution has been found to this problem. It is expected
that the people affected will leave their offices 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 students
Resistance 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 specified training subjects. With
this structure, the university fulfills its teaching functions, despite its
limited development.
The foundation of Hue University created a latent resistance among
the members of affiliated 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 identified
by the managerial staff of Hue University. Consequently, overcoming
these constraints should not be very difficult.
Regarding administrative constraints, decentralization from
MoET to Hue University and from Hue University to affiliated 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
fields 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 affiliated
to the offices of the university.
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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, affiliated colleges have a
greater sense of self-control, and their resistance to Hue University is
also reduced.
Regarding financial constraints, there were many heated
controversies over financial policy during the first years of restructuring,
which helped Hue University actively find better solutions for its
financial affairs, and also improved financial relationships between
Hue University and its members. As time goes by, affiliated colleges
have more independent control over collecting and spending money.
Regarding the national budget, there is minimal controversy between
Hue University and its affiliated colleges as this depends on the number
of students. However, there are disagreements over the mobilization
of financial contributions for common activities in Hue University,
such as money for the presidential office staffs welfare, and for
other activities of functional offices. To resolve such disagreements,
Hue University proposed to MoET that each college be allowed to
control its financial affairs. The expenditure for common activities at
the university level (i.e. presidential offices) would be spent with the
agreement of all affiliated colleges. This solution was approved, and as
a result, disagreements between Hue University and affiliated 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 benefits
the restructuring brought about, and the difficulties 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
10%
25%
34%
31%
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; specifically,
there are seven times more male college leaders than female.
Chart 6.2
Percentage of male and female interviewees
12.8
100%
26
37.9
56.1
80%
60%
87.2
40%
74
62.1
43.9
20%
0%
Leaders
Academic
staff
Female
Support staff
Students
Male
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Findings and discussion
Our study has identified the areas where major changes have been
introduced as: academic programmes, autonomy of affiliated colleges,
admission and student management, and financial 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
Academic programmes
Autonomy of affiliated
colleges
Admissions and student
management
allocation
Staff management and
evaluation
Decision-making
structures
Others
Leaders Academic Support

(%)
staff
staff
(%)
(%)
82.4
86.0
87.8
65.6
71.0
78.0
Students
(%)
Total
(%)
71.4
60.0
80.0
66.3
60.0
64.0
70.7
65.0
63.8
68.8
62.0
70.7
36.4
56.2
52.8
56.0
53.7
33.6
47.0
52.0
47.2
44.0
32.0
51.2
51.2
27.9
25.0
41.6
36.2
28.0
17.0
24.4
30.0
25.6
The discussion is organized under the following areas:
Autonomy of affiliated colleges

The autonomy of affiliated 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 simplified.
This is partly due to the reform of the affiliated 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
Total
High degree Limited
autonomy of autonomy autonomy
(%)
(%)
(%)
Decision-making structure at
22.4
40.8
28.0
the institutional level
Decision-making structure at
13.6
36.8
44.8
the faculty/department level
Academic staff
16.0
41.6
28.0
Introducing new study
20.8
34.4
29.6
programmes
Staff recruitment
17.6
39.2
28.8
Allocation of budget to
15.2
19.2
32.8
departments
18.4
24.8
32.8
Student admissions
11.2
29.6
28.0
Determination of student fees
20.0
24.8
24.8
Student evaluation
32.0
33.6
19.2
procedures
No
autonomy
(%)
0.8
2.4
4.0
7.2
8.0
24.8
18.4
24.0
24.8
6.4
Restructuring should deal mainly with academic staff, because

they themselves play the decisive role in training quality. The affiliated
colleges experience some changes in the management of academic staff,
and enhance each teachers 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 affiliated 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 fields, 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 affiliated colleges meet many difficulties 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
financial situations and needs.
Decision-making process
Decision-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 definite fields. These would act as
the basis for defining each levels 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
affiliated 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.
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Chart 6.3

at the university/institutional level
Enlarged
Narrowed
37%
63%
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

at the faculty/department level
7%
49%
Enlarged
Unchanged
Narrowed
44%
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Financial management and allocation

Two groups were surveyed about financial 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 (%)
Your college allocates budget to every faculty or department.
42.4
It is easy to allocate budget to each faculty or department.
27.2
Budget allocation to faculty or department leads to activity in
58.4
financial management.
Table 6.4
No (%)
55.2
61.6
36.0
Administrative and support staff opinions on budget

allocation at the faculty level
Budget allocation at the faculty level

Your college allocates budget to every faculty/department.
It is easy to allocate budget to each faculty/department.
Budget allocation to faculty/department leads to activity in
financial management.
Yes (%)
46.3
39.0
51.2
No (%)
53.7
34.1
29.3
According to the people questioned, finance allocation to

departments helps units at the grass-roots level to be active in financial
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 finance 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, finance 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 financial management. More specifically,
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 financial allocation and
management. There are still many overlapping regulations. Therefore,
colleges need to have more freedom to use their budget and their own
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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 financial source for them.
Staff management and evaluation

There 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 candidates
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 scientific 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 service
examination
Leaders
ASS
Total interviewees
Can attract
competent members
Yes (%)
No (%)
62.4
37.6
65.9
31.7
63.3
36.1
Can correctly evaluate

staffs capacity
Yes (%)
No (%)
65.6
32.8
61.0
34.1
64.5
33.1
In terms of academic staff evaluation, most of the people

questioned thought that the present method of evaluation is not efficient
(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 efficient (15.2 per cent of
leaders, 17.1 of ASS). With respect to the above situation, evaluation
criteria should be quantified 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. Quantification
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 first 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 affiliated 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.
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Admissions and student management

College 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
Leaders
ASS
Total interviewees
Amount of work
Increase (%) Decrease (%)
77.6
15.2
92.7
7.3
81.3
13.3
Attract more good

students than ever before
Yes (%)
No (%)
76
16.8
80.5
14.6
77.1
16.3
Hue Universitys 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 define 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 defined 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 difficult than
graduating; this is now an unreasonable fact. This is partly due to
inefficient evaluation. Of those questioned, 48 per cent agree that
the most efficient 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
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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
reflects 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 programmes
Up 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 societys 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 fields, 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;
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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.
Benefits and effectiveness achieved in the restructuring

process
Three groups were surveyed and their opinions on the benefits of
restructuring are presented in Tables 6.8 and 6.9, respectively.
The restructuring process brings about considerable benefits and
effects. Affiliated 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 persons capacity.
Table 6.7
Leaders opinions on the benefits of institutional

restructuring
Aspects
of restructuring
No benefit Moderate Significant

Not
(%)
benefit
benefit applicable
(%)
(%)
(%)
Academic programmes
5.6
27.2
67.2
0
University autonomy
4.8
27.2
66.4
0
University decision-making structures
4.8
28.8
60.8
0
Autonomy of academic staff
8
32
56
4.8
Autonomy of departments
7.2
28.8
55.2
8
Staff recruitment procedures
6.4
40.8
45.6
4
Staff evaluation procedures
10.4
37.6
44.8
10.4
Allocation of budget/resources
4.8
46.4
44.8
4
Cost-saving measures
8
37.6
43.2
8
Student fees
5.6
45.6
43.2
0.8
7.2
43.2
42.4
5.6
Student support systems
4
47.2
40.8
3.2
Admissions procedures
5.6
48
36.8
4
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Table 6.8
Academic staff opinions on the benefits

Autonomy of academic staff in
choosing teaching methods
Staff evaluation procedures by
departments
Autonomy of academic staff in doing
research
University autonomy in allocating
budget
University autonomy in using human
resources
Autonomy of departments in finance
Autonomy of departments in choosing
assistants
Allocation of resources
Allocation of budget
Student fees
Staff evaluation procedures by Hue
University

Not
(%)
benefit
benefit applicable
(%)
(%)
(%)
4
15
78
1
2
0
14
21
78
73
2
1
16
72
3
3
18
32
70
59
0
5
31
57
4
2
6
1
31
35
34
16
56
53
48
44
1
2
10
3
8
8
15
4
17
29
45
41
42
27
40
39
23
20
17
6
2
4
3
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 fields,
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


Not
(%)
benefit
benefit applicable
(%)
(%)
(%)
University autonomy
2.4
24.4
70.7
2.4
Autonomy of academic staff
7.3
22.0
68.3
2.4
Academic programmes
4.9
24.4
65.9
2.4
Autonomy of departments
2.4
31.7
61.0
4.9
7.3
36.6
48.8
2.4
9.8
39.0
46.3
2.4
Staff evaluation procedures
9.8
36.6
46.3
7.3
University decision-making structures
2.4
31.7
43.9
7.3
(management structures)
Allocation of budget/resources
9.8
29.3
41.5
19.5
Student fees
2.4
39.0
41.5
2.4
14.6
39.0
31.7
12.2
14.6
39.0
26.8
4.9
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 significant benefits in teaching and
training students.
In terms of academic staff recruitment procedures, based on the
new laws, the restructuring process results in significant benefits (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 significant benefits (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 benefit. In general, only 37.5 per cent of staff stated that
the evaluation of academic staff achieves a moderate effect.
In terms of finance, restructuring results in many benefits.
Restructuring in allocation of the budget at Hue University brings
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about significant benefits (44.8 per cent of leaders and 41.5 per cent
of ASS). Affiliated colleges are now more active, especially in their
training programmes. However, allocation of the budget through
Hue University still encounters many difficulties 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
benefits, and 15 per cent thought it has no benefit at all. In contrast, at
the department and faculty level, income-generating activities result
in significant benefits (53 per cent of AS and 42.4 per cent of leaders).
To ASS, most said that income-generating activities result in moderate
benefits (43.9 per cent of ASS) and up to 14.6 per cent said they result
in no benefit. Colleges leaders were reasonably positive about the
changes in income-generating activities. For example, 43.2 per cent of
leaders thought there are significant benefits 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 benefits and others thought these are not
applicable (12.2 per cent ASS).
To departments, self-management of finance at the department level
results in moderate and significant benefits so that departments have
more freedom in purchasing necessary teaching equipment. However,
many departments do not benefit at all because self-management of
finance is not introduced. Departments then meet many difficulties,
are completely passive, and depend on the colleges budget. No
considerable changes in training are made.
Concerning students, the restructuring process brings about many
benefits 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 significant effects, which contribute to the first
successes of the restructuring process at the institutional level.
Difficulties and obstacles in the restructuring process

Besides the benefits and effects achieved, the restructuring process
also meets with many difficulties and obstacles in various fields. Only
college leaders were asked about this issue.
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Chart 6.5
Leaders opinions on difficulties in the

implementation of the restructuring process
Number of persons
120
100
80
60
40
20
0
10
11
Difficulties
Legend:
Organizational structure
Decision-making process
Staff-related
Student-related
Budget-related
1:
2:
3:
4:
5:
6:
7:
8:
9:
10:
11:
Lack of legal corridor for regional universities

Cumbersome government structure
Overlap between Hue University and affiliated colleges
Hue University is not yet equal to its role
Balance between academic staff and students
Appropriate assessment of academic staffs capacity
Management of a large number of students
Defining fee levels
Allocation of budget to faculty/department
Low autonomy in financial control leading to inactivity
Troublesome procedure for receiving budget
In terms of organizational structure, the legal corridor for regional

universities is lacking, inefficient, and does not keep pace with the
development of a multi-disciplinary university like Hue University
(67.2 per cent). Hue Universitys organization is cumbersome and
consists of many levels, which results in many difficulties 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 affiliated 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 affiliated 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
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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 difficult (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 financial matters
and limits their activity in many fields 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 functioning
In 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
qualified teachers.
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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 fields 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 scientific research of both theoretical and practical
value.
Community services
Alongside training and scientific 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 affiliated college level

The autonomy of affiliated 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
influence on education quality. The autonomy in staff recruitment of
member colleges has improved significantly.
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Lessons on making decisions

The colleges rights to take decisions have changed remarkably,
and the rectors 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 defined 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 financial management

Thanks to financial allocation, departments are more active in
controlling their budget. However, there should be a more complete
financial 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 qualified teachers, colleges have applied many
methods of recruitment, among which civil service examination is
quite popular. The qualifications of academic staff have been improved
following the restructuring of teaching staff recruitment.
Lessons on student enrolment and assessment

An 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 significant amount
of money. However, some were of the opinion that each college should
actively organize this examination itself.
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Lessons on academic programmes

The restructuring process has fostered the implementation of
new academic programmes in key training fields 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 universitys 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 qualifications 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 qualified enough to contribute to the development
of society and of the country.
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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 issues
General studies global/developmental issues
Administration and management of education
Decentralization participation distance education school
mapping teachers
Economics of education
Costs and financing employment international cooperation
Quality of education
Evaluation innovation supervision
Different levels of formal education
Primary to higher education
Alternative strategies for education
Lifelong education non-formal education disadvantaged
groups gender education
Copies of the Catalogue may be obtained on request from:

IIEP, Publications and Communications Unit
info@iiep.unesco.org
Titles of new publications and abstracts may be consulted online:
www.iiep.unesco.org
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The International Institute for Educational Planning

The International Institute for Educational Planning (IIEP) is an international centre for
advanced training and research in the field of educational planning. It was established by
UNESCO in 1963 and is financed 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 Institutes aim is to contribute to the development of education throughout the
world, by expanding both knowledge and the supply of competent professionals in the
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Institutes 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.
Chairperson:
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USA.
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 Salmi
Education Sector Manager, the World Bank Institute, Washington DC, USA.
Diry 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 Yefimovna 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.
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LEST-CNRS, Aix-en-Provence, France.
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www.iiep.unesco.org
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, 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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Edited by N.V. Varghese

Gudmund Hernes, former Director of IIEP, for his guidance and

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Implementation of restructuring in the university

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Minister of National Education

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Average value of the response from department

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Teaching staff: general information

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Leaders opinions on the level of autonomy granted

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Restructuring and reorganization models of MUST

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to suit the requirements of market economies. Thirdly, some changes

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be slow. Indonesia faced an economic crisis in 1999 perhaps more

The impetus behind institutional restructuring was governmental

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from the state to universities. Their performance is monitored and

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of the university, with the Vice-Chancellor becoming Chief

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the academic community. In all instances, it is important to keep

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on the implementation of the restructuring process, the difficulties

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INSTITUTIONAL RESTRUCTURING OF HIGHER

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Higher education reforms

realities. Third, these changes resulted principally from the positioning

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Institutional restructuring of higher education in Asia: an overview

1.2 Compulsion for change in higher education

Pressure to manage the expansion of the system

According to UNESCO statistics, enrolment in higher education

Pressure to change due to globalization of the economy

Globalization has contributed to the increasing demand for

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Higher education reforms

development. The capacity to innovate is positively associated with

Pressure to change due to the higher rate of return for investment

International Institute for Educational Planning

Institutional restructuring of higher education in Asia: an overview

countries in the Latin American region and in countries of the Asian

Pressure to change due to the emergence of the private sector in

At the turn of the twenty-first century, private higher education

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Higher education reforms

some of the private institutions (Varghese, 2004b) indicates that they

Pressure to change due to reduced public funding