Abstract:

Globalization has introduced a paradigm shift in the role of higher education from a traditional organization for scientific inquiry to a more entrepreneurial organization based on knowledge economy. Strategic management is arguably the most important management activity in higher education reform in view of the current turbulent political, social and economic changes brought about by globalization. Major changes in the strategic management of higher education today are influenced by the management practices of the business sector. The focus of universities is increasingly more on aggressive marketing competition, a forceful leadership and accountability for allocation of resources. The ultimate goal of strategic management is to increase the performance of the organization. This can only be achieved by successful strategic management practices that acknowledge human beings as the major key players in the organization. For strategic management of higher education to be more effective, it must be capable of planning, allocating, coordinating and monitoring its investment, production and distribution of resources. However, specific challenges are inherent as higher education moves towards the desired goals. This paper will discuss the challenges of strategic management in higher education in terms of: (a) allocation of resources, (b) staff support, (c) identifying effective models, and (d) citing the example of a private university in Malaysia.

Keywords:

Strategic management, higher education, challenges, private university.