Management Of Private Colleges

As the complementarities of the public higher education institutions (HEIs), in the initial stage the private HEIs inevitably encounter many challenges such as the definition of the property rights, the insurance of the teaching quality, and the construction of inner operational mechanism. In the final analysis, the construction and perfection of the governance mechanism is the essential way to resolve the above-mentioned problems. Based on the economic theories, this paper studies the governance structure of Chinese private HEIs.At first, the governance institutions and their functions of the private HEIs are analyzed. It's found that a complete governance structure consists of two aspects: the inner and external governance mechanisms. The external governance is the restrictive frame of the inner governance, and the latter is the endogenous institutions arrangements of the former.According to the incentive, supervisory and decision-making mechanisms' requests, the inner organizations of HEIs should be adaptive. The evolvements of the inner organizations of HEIs are analyzed from an international perspective. Besides, the impact of the unique dual administrative-academic power structure on the governance mechanism is analyzed in detail. Furthermore, the principal-agent problems between the school board and president as well as the fiduciary duties of the administrative staffs are also studied.The external governance mechanism consists of four aspects such as the legal environment, the policy environment, the management environment and the economic environment. The government's role in the policy-making, the assessment inspection and the regulation of teachers' qualification are analyzed. Furthermore, the impact of the other stakeholders including the students, the parents and the society on the board's decisions, the president's management policy and the financial operation of the school are also studied.In chapter 6, the governance structures of HEIs are compared from an international perspective. It's found that the regulator's roles of the governments are carried out through legal institutions, while the decentralization and shared governance mode are the features of the inner governance structure. In chapter 7, this paper studied of Chinese private HEIs' governance experiences from two cases.In the last chapter, this paper studies some other important issues such as the definition of the property rights, the implementation of the governance mechanism and the choice of the governance mode. It's found that the "stakeholders shared governance" is the ideal governance mode for Chinese private HEIs.