Managing a modern university: is it time for a rethink?

The corporate approaches introduced in the late 1980s and now prevalent in universities in Australia have led to irrevocable changes in the way universities are managed and academics work. The management approaches widely applied in Australian universities are largely based on a top-down corporate management model, with central control over policy and budget driven by the need to meet stringent external accountability requirements. This form of management rewards compliance and predictability. The economic environment over this period has changed drastically, becoming more global and uncertain. The prevailing management processes are not suited to the modern economic environment. A modern university is expected to operate more as an enterprise, but to do so effectively it needs flexible and responsive forms of management that are more inclusive of academics in the decision making process. This paper explores the organisational management literature and links it to the context in which universities operate. It considers the implications for managers and academics, as key stakeholders in a modern university, in this changeable environment.