How do Higher Education Institutions Enhance their Financial Autonomy? Examples from Finnish Polytechnics

Numerous studies have addressed how state authorities and public funding bodies control, regulate, steer, supervise or oversee higher education institutions. There are fewer studies on how higher education institutions respond to the actions of the mentioned authorities. States have aimed at increasing the autonomy of higher education institutions. At the same time institutions are expected to generate social benefits and economic growth. There is an endless tension between a policy that will strengthen the autonomy and simultaneously retain a space for state steering. The Finnish polytechnic and university sectors have very different origins from which their financial autonomy takes its shape. This article sheds light on how six Finnish polytechnics aspire to enhance their financial autonomy. The polytechnics operate under two separate steering systems, the state and local owners, and both of these actors exercise their own steering. This article shows that polytechnics are willing and able to enhance their financial autonomy. They calculate their advantages and habitually engage with the Ministry of Education or their owners depending on the case in question. The financial autonomy of polytechnics does not culminate in a form of diversified funding sources, but as balancing between the two masters on whose resources they are heavily dependent.     

Scenarios of quality assurance of stakeholder relationships in Finnish higher education institutions

Although the role and significance of the external stakeholders of higher education institutions has grown in recent years, quality assurance of stakeholder relationships remains a new phenomenon in the management practices of higher education institutions and in higher education research. Based on interviews and expert panel data, this article analyses the internal and external stakeholders’ perceptions of scenarios of the quality assurance of stakeholder relationships in Finnish higher education institutions. It especially focuses on exploring how institutions can balance internal and external stakeholders’ perspectives with regard to quality assurance. The results show that an essential challenge for Finnish higher education institutions is to develop flexible quality assurance practices capable of balancing the academic goals of the institutions and the needs of the external stakeholders. This also requires seeking balance between the centralised coordination and the differentiated practices of disciplines and academic units inside institutions.     

Financial Autonomy and Challenges to Being A Regionally Responsive Higher Education Institution

This paper discusses some current problems and challenges of the Finnish AMKs (polytechnic institutions), and whether financial autonomy could contribute to finding solutions for some of these problems. It provides an overview of the current status of financial autonomy of polytechnics in 6 European countries, and finally attempts to find links from financial autonomy to the AMKs' role as regional boosters. The AMKs are still faced with some administrative and cultural traditions related more or less to secondary level vocational institutions. The new Polytechnic Act (2003), 351/2003, guarantees self-governance for the AMKs as regards with their internal issues. At the same time, the Act stipulates that budget power and strategic steering belongs to their public or private maintainers. This raises the question of to what extent institutions actually are autonomous. The essence of autonomy rests on independent decision-making processes. The study shows that the Finnish maintenance system reflects strongly on the area of financial autonomy compared with the similar institutions in other European countries. Financial autonomy may be a factor that strengthens a higher education institution in becoming an organisationally uniform, responsive and flexible entity.     

Financial autonomy and challenges to being a regionally responsive higher education institution

Abstract

This paper discusses some current problems and challenges of the Finnish AMKs (polytechnic institutions), and whether financial autonomy could contribute to finding solutions for some of these problems. It provides an overview of the current status of financial autonomy of polytechnics in 6 European countries, and finally attempts to find links from financial autonomy to the AMKs’ role as regional ‘boosters’. The AMKs are still faced with some administrative and cultural traditions related more or less to secondary level vocational institutions. The new Polytechnic Act (2003), 351/2003, guarantees self‐governance for the AMKs as regards with their internal issues. At the same time, the Act stipulates that budget power and strategic steering belongs to their public or private maintainers. This raises the question of to what extent institutions actually are autonomous. The essence of autonomy rests on independent decision‐making processes. The study shows that the Finnish maintenance system reflects strongly on the area of financial autonomy compared with the similar institutions in other European countries. Financial autonomy may be a factor that strengthens a higher education institution in becoming an organisationally uniform, responsive and flexible entity.     

Academic leadership and university reform-guided management changes in Finland

This article uses resource-dependence theory to analyse how academic mid-level leaders in Finnish universities respond to their changing post-reform management environments. The 2010 university reform and subsequent university-specific management reforms have created new positions and roles for academic leaders. By identifying critical resources, academic leaders recognise essential uncertainties and dependencies and design actions to ensure the continuity of their units’ academic functions. Mid-level academic leaders perceive internal and external uncertainties requiring different actions, reflecting their dual status and role. They use their new powers and respect academic values, while promoting their new management roles and competitive behaviour in academic functions. Academic leaders are intra-organisationally influential resource-dependent players. From the viewpoint of university reform implementation, therefore, it is important to know what they emphasise in their leadership role.     

An explorative study of the consequences of university autonomy in Finland and Brazil

This paper contributes to the analysis of impacts a university might experience with an increased degree of autonomy. Most autonomy studies have empirically considered the legal, political and financial relationships between state authorities and universities in different national contexts. Nevertheless, most of these studies focus on the changes experienced by European universities with increased autonomy. This paper argues that the focus on the Western European perspective limits the conclusions drawn from the relatively homogeneous policy context that frames the perspectives of university autonomy under investigation. This paper will advance research on autonomy and the understanding of changes produced by expanded autonomy in two concrete cases that occurred in contrasting policy frameworks: the University of Tampere, Finland, and the University of São Paulo, Brazil.