Why Universities Are Adopting Market Oriented Management Practices?

Abstract

Universities all over the world have come under increasing pressures to respond to the rapidly changing market environment. The unprecedented growth, complicacy and competitiveness of the global economy along with its consequential socio-political changes have been creating pressures on higher education institutions for adopting market-oriented initiatives. Further the expansion of university education without proportionate government budgetary support is creating acute financial pressure and universities are looking toward market for revenue generation. This transformation of the university from a government funding to market-orientation is affecting various aspects of production and transmission of knowledge, which are bound to create a series of conflicts. The advantages, disadvantages and scope of conflicts arise due to market oriented management practices are discussed in the paper.