Other titles: IIEP Contributions; Vol. 28, 1998; African Regional Consultation Preparatory to the World Conference on Higher Education, WCHE Creator: Sanyal, Bikas C.; Martin, Michaela; UNESCO. IIEP Creators: Sanyal, Bikas C.; Martin, Michaela; UNESCO. IIEP Date: 1998 Keywords: higher education; educational planning; educational management; educational finance; educational financial resources; higher education institutions; Africa; Ghana; Nigeria; Senegal; Zambia; Netherlands; UK Coverage: Africa; Ghana; Senegal; Nigeria; Zambia; Netherlands Extent: 55 pages Abstract: Higher education is at the crossroads all over the world. Dramatic changes in the geo-political order, globalization of society and the economy and the technological revolution, especially in the domain of information technology, have affected the system of higher education tremendously. Loss of monopoly of the institutions of higher education in creating and disseminating knowledge and the diminution of public resources for higher education are subjecting the system to critical analysis and demands for transparence and accountability. In Africa the system is confronting more serious financial crisis because of the overall economic crisis and the imposition of structural adjustment programmes by the lending agencies. According to one study the system is in “an all pervading state of physical, managerial and intellectual dilapidation”. In spite of the crisis, the educational leadersof the region do believe that better utilization of existing resources through better management could go a long way in meeting the financial crisis. The review addresses this issue. It gives a historical overview of available management techniques. Starting with the now rejected Planning, Programming and Budgeting System (PPBS) it describes briefly the techniques of ‘Management by Objectives’ (MBO), ‘Zero-based Budgeting’, ‘Strategic Management’ and ‘Total Quality Management’ (TQM) and the way they can be applied to higher education management. The use of performance indicators is becoming increasingly popular for improving management. The different types of performance indicators applicable to higher education are provided in this section. It is argued that management practices are dependent on the government steering policies of the country. Four types of steering policies have been identified, ranging from complete autonomy to complete control by the state. These four types of steering Vil Management of higher education with special reference to financial management in African institutions policies have resulted in four types of decision-making models in the higher education institution, from the bureaucratic model to the entrepreneurial model. The context of financial managementis then discussed within the framework of the system’s/institutions’s mission and its organizational structure. Seven procedures of financial management have been identified for a given organizational structure. Five methods of government finance of higher education have been observed. This discussion is followed by a discussion of seven main functions of financial management, starting with acquisition or mobilization of finance and ending with the protection of finance. Ten sources have been identified for the institutions for funding themselves to reduce the state burden. Indicators related to the sources of income, financial strength of the institution and short-term liquidity and solvency are listed in the management function, production of financial indicators. Changes in the practice of institutional management in general and financial management in particular, introduced to improve utilization of existing resources, have been given from selected industrialized countries, e.g. Australia, France, the Netherlands and the United Kingdom. There are examples of good practices in certain universities of Africa, e.g. Botswana, Coéte d’Ivoire, Ghana, Kenya, Nigeria, and Senegal. Our list is not exhaustive, but the lessons learned from these good practices demonstrate that good management depends upon flexibility, transparency, accountability and autonomy with responsibility. Good information is essential for good management, and training of university managers and academic administrators in managerial skills is becoming increasingly important. Twelve lessons have been listed to conclude the paper. These are: the importance of management capacity in the institutions, the need for management expertise, the need to pool expertise at the international and/or regional level, the need for internal understanding and acceptance, analysis of management structures and procedures, better linkage between the institution and its environment, the need for accountability measures, financial planning and budget, consideration of the evolution of the financial management process, increasing efficiency, choice between centralization and decentralization and, finally, maintenance of the momentum for change. |
Management of higher education with special reference to financial management in African institutions