Abstract:

Effective governance is essential for sustaining health and aligning higher education institutions (HEIs) goals with their stakeholders. Existing research on HEI governance highlights two key factors: autonomy and accountability. Autonomy encompasses academic, institutional, and financial aspects. Academic autonomy empowers faculty members to operate freely, fostering intellectual wealth and quality. Institutional autonomy involves operational freedom and the ability of constituents to make decisions independently. Financial autonomy allows HEIs to raise and allocate funds based on priorities and internal rules, ensuring effective resource utilization for knowledge creation and dissemination. For publicly funded institutions, autonomy is coupled with societal accountability, necessitating a balance between stakeholders' needs, societal demands, and autonomy.

Regardless of autonomy, all organizations, including higher education institutions, are accountable to stakeholders and society. Governance models used by HEIs based on differences in ownership are analyzed. In 2017, the Indian Institutes of Management (IIM) Act was enacted by the government of India to enhance the autonomy of these prestigious HEIs, aiming for global excellence in management, research, and related knowledge areas. However, within five years, the same government introduced an amendment to the act, reducing autonomy and emphasizing accountability for these institutions. This study examines the changes in the governance model introduced by the 2017 act and analyzes its implications, leading to the subsequent amendment.

Keywords:

Governance, Higher Educational Institutions, India.