Jussi Kivistö

The Government-Higher Education Institution Relationship: Theoretical Considerations from the Perspective of Agency Theory.

Abstract This article introduces the agency theory to the field of higher education research. By applying agency theory to the inter‐organisational relationship between government and higher education institutions, it is possible to illustrate general problems facing control and governance in a more theoretical and analytical way. The conceptual arsenal provided by the agency theory may benefit various research settings that are related to government‐higher education institution relationships. In addition to its descriptive elements, agency theory also provides theoretical explanations for e.g. the establishment of quality assurance systems and performance‐based funding procedures.

Interests, Information, and Incentives in Higher Education: Principal-Agent Theory and Its Potential Applications to the Study of Higher Education Governance

How do governance structures impact university actions? Why does it matter if a governance structure is centralized or decentralized? How does an institution respond to a governor and legislature with differing higher education agendas? Why are some campus activities politically significant while others go unnoticed? Is a university more responsive to a government that provides annual appropriations or students who are paying an increasing portion of university expenses? While some scholars (e.g., Lowry, 2001; Nicholson-Crotty & Meier, 2003; Payne & Roberts, 2004; Toma, 1986, 1990) have provided evidence that suggests the way in which governance structures are organized can impact policy outputs, theoretical explanations for this finding have been modest. Indeed, the study of the relationship between higher education institutions and governments has long lacked a systematic and theoretical foundation (McLendon, 2003). In part, scholarship of higher education politics has given little attention to understanding how the external political bureaucracy that governs colleges and universities actually operates and how that operation influences institutional activity. Of late, however, a small set of researchers have been integrating principal-agent theory (aka agency theory, principal-agency theory) into the study of higher education governance, accountability, and oversight (e.g. Kivisto, 2005, 2007; Lane, 2003, 2005, 2007; Nicholson-Crotty & Meier, 2003; McLendon, 2003; McLendon et al., 2006; Payne, 2003; Payne & Roberts, 2004). Principal-agent theory (PAT) provides common assumptions for investigating the role of individual and organizational interests, information flows, and incentives in higher education administration

An assessment of agency theory as a framework for the government–university relationship

The aim of this paper is to use agency theory as the theoretical framework for an examination of the government–university relationship and to assess the main strengths and weaknesses of the theory in this context. Because of its logically consistent framework, agency theory is able to manifest many of the complexities and difficulties that governments face in their attempts to govern universities. Agency theory also offers unique explanations for the governments choice and use of certain governance procedures, low performance by universities and cost growth in the higher education sector.

Tuition Fees for International Students in Finland Where to Go From Here

Recent Finnish policies have encouraged Finnish higher education institutions to develop a market-oriented approach to international higher education by implementing fee-based educational programmes for students from outside the European Union (EU) and the European Economic Area (EEA). From the Finnish government’s perspective, higher education is no longer merely a public service but it is also a private good, as the government is starting to consider international higher education as a means of generating extra revenue. Although the intention of the reforms in this area is apparent, concrete implementation strategies remain unclear. This article discusses what the Finnish government, higher education institutions, and other stakeholders should take into account when considering strategies for implementing tuition fee policies, based on international experience. It also provides a picture of one aspect of the recent reform of international higher education in Finland as well as other challenges related to the reform.

Information as a Regulative Element in Higher Education Systems

The existence of information asymmetry has ascended to a significant role in higher education systems. The article makes an attempt to conceptualise the interaction of universities with their environment, stakeholders, and the state by paying special attention to the role and substance of information asymmetry. The existence of information asymmetries has spurred a range of actions by external stakeholders of universities to overcome information asymmetries. The article specifies the nature of these actions and analyses their impact and potential for the reduction of information asymmetry.

Management and academic profession: comparing the Finnish professors with and without management positions

ABSTRACT Management is one of the most studied phenomena in higher education. Most of these studies are conducted in the framework of higher education policy, academic work and quality of education and research. The management is often seen as an independent variable explaining the changes in higher education in the context of New Public Management and managerialism. In many studies, it is often forgotten that, the managers of academic organisations are academicians, not actors working for the government and funding bodies for implementing their agendas. Typically, management positions are employed by the professors. In our paper, we are interested in (1) who the managing professors are and (2) how their perceptions on performance-related issues differ from their colleagues who are not holding management positions. Our study is based on a survey conducted in 2015 in Finland and representing the entire population of Finnish professors.

Recruitments in Finnish universities : practicing strategic or pathetic HRM?

Recruitment is a core instrument in the academic labour market. This article takes the perspective of the organisation − here, the university − on recruitment. Universities’ personnel policies and practises are shifting from legally oriented personnel administration to more strategic human resource management (HRM). In Nordic countries, this shift is partly driven by the changing status of higher education institutions from state-governed bureaus to more autonomous institutions. This article provides insight into this transition, using Finland as a case example of higher education systems that have undergone drastic reform, moving from a civil servant model to autonomous personnel policy. Data were collected in 2015 for the Evaluation of the Four-Stage Career Model in Finnish Universities project. Based on the analysis of the evaluation data, it can be concluded that, despite the legal reform, old practices continue to matter in the personnel policies and management of universities. Permanent positions (formerly public posts) and the funding sources for academic work still define the nature of the HRM practices aimed towards individuals in the new universities. Some groups might call these HRM practices strategic, while for others, the better word would be pathetic.

The influence of performance-based management on teaching and research performance of Finnish senior academics

Despite the widespread use of performance-based management in higher education, empirical research on its actual impact has remained scarce, particularly in Europe. With agency theory as a framework, our study utilised survey data collected from Finnish universities in order to explore the influence of performance management on perceived teaching and research performance of senior academics. Our findings suggest that, although academics hold a quite positive view of performance measurement as such, this attitude does not correlate with perceived high performance in either teaching or research. Moreover, our results suggest that perceived high performance among academics still relates primarily to acknowledgement from the academic community and academic achievement rather than to measurement and financial incentives.

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

Abstract 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.

Latest Reforms in Finnish Doctoral Education in Light of Recent European Developments.

ABSTRACT Doctoral education as a policy field is an important link between educational, research and innovation policies. It is gaining importance in European and national policy discussions. Doctoral education policies are increasingly formulated at the supranational level, even though the European Commission does not possess formal competence in terms of authority over the educational policies. Consequently, policy steering is mostly performed at the national level. In this article, we examine Finnish doctoral education from the steering perspective in a European context. We describe the development and steering of Finnish doctoral education, as well as the current doctoral education policies and instruments used to implement it. We analyse the main steering documents of Finnish doctoral education policy and provide insights into the implementation of the European doctoral education agenda through a case study from the University of Jyväskylä. We argue that directing policy in terms of information is the most important instrument for developing doctoral studies. Furthermore, we conclude that the supranational steering directly affects Finnish higher education institutions.