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Formation of strategy of entrepreneurial universities

The article gives an understanding of the strategy and of the strategic planning. Described the features of strategic planning in higher educational institutions. Analyzed the features of the entrepreneurial universities' strategy on the foreign experience basis.

Posing of the problem. In Kazakhstan the reform of the education system is implemented. In these circumstances, the role of strategic planning as in the whole system, and in individual educational institutions is greatly increased. To the growing expectations and requirements of the state and society in the field of higher education could be embodied in practice, we need appropriate mechanisms that ensure appropriate interaction between universities and interested parties in their services. And strategic planning is belongs to such mechanisms.

Higher education institutions, guided by the legislative acts regulating the rules of their activities, and based on the situation prevailing in the educational market, independently develop strategies of their organizations.

Analysis of recent researches and publications. Studying issues related to strategic planning involved many foreign authors. These are A.D. Chandler, J. Child, H. Mintzberg, D. Faulkner and J. Johnson, I. Ansoff, H. Mintzberg, J.B. Quinn, S. Ghoshal, P. Drucker, J. Keller. Russian authors are also exploring issues of strategic planning: O.S. Vihansky, A.I. Ilyin, L.P. Vladimirov, L.E. Basov, V.P. Gruzinov, T.P. Lyubanova, L.V. Myasoedova, Y.A. Oleinikova, E.A. Utkin, V.I. Lyasko, P.Shults, Burton R. Clark are also engaged in researching of entrepreneurial universities.

Sorting out the unsolved aspects of the problem. Current market conditions pose a in front of the higher education institutions a variety of tasks that define their operating principles. In such circumstances, universities are developing their own strategies. They do this based on the available resources and external environment analysis, identifying the main stages of development, justifying priorities for action, as well as forms of interaction with as partners and customers, as well as competitors. Universities forced by a system of flexible planning form strategic methods achieving the most economical goals. Resources , including economic, mostly limited and strategic planning allows them to concentrate in a certain direction, and thereby increase the benefit of stakeholders. In this case, students, employers, professionals, funders, as well as internal stakeholders, such as faculty members and staff. But in order for it to be successful it is necessary to build up a system of strategic planning.

The purpose of the research is in considering of a strategy of forming entrepreneurial universities.

Basic results of research. Strategy - is powerful tool with which higher educational institutions can secure from ever-changing conditions and even thrive in them.

A.D. Chandler author of one of the first works in the field of strategic planning defines strategy as "the determination of the basic long-term goals and tasks of the company and the development of courses of action and allocating resources needed to reach these goals" [1, p.17].

About the role of competitive advantage in formation of the strategy say D. Faulkner and J. Johnson. They write that: "The strategy is associated with the elaboration of long-term direction and the scope of activities of the company. It is also closely related with the positioning the organization in relation to environmental conditions and particularly to competitors... The task of strategy - to generate the highest possible sustainable competitive advantage by not tactical maneuvering, and through the adoption of long-term sheathe" [2, p.7].

Significant development of the concept of strategy in the works of G. Mintzberg, considers the strategy as a unity of "5Р":

  • - strategy as a plan - a kind of conscious and intentionally developed the sequence of actions;
  • - strategy as a specific maneuver trick order to deceive a competitor;
  • - strategy as a pattern that is a principle of behavior, a steady scheme of action;
  • - strategy as position - the ratio of the organization with the external environment;
  • - strategy as a perspective or main way of activity of the organization [3, p.40-45]. Thus, Mintzberg emphasized the multidimensional nature of this economic category.

Famous Russian scientist of strategic planning professor O.S. Vihansky thinks it is possible give two main definitions of strategy. First "strategy - a concrete long-term plan to achieve specific long-term goal, and develop a strategy - it's finding the target and making long-term plan". Secondly: "The strategy - a long-term direction of defined qualitatively organization concerning the scope, means and forms of its activity, the system of relationships within the organization, as well as the organization's position in the environment, leading the organization toward its goals" [4, c.87-88].

In summary, we can describe the strategy as a benchmark of what the organization wants itself to see where it wants to go and how, in general terms, they will do that. In this strategic planning - is the process of setting goals and objectives of the organization in terms of its capabilities, and aimed at the long term.

Understanding of strategy as a process of directing the organization toward the final state coincides with the opinion of P. Drucker, which states: "No matter how wise, visionary or bold decisions and actions have been taken earlier - they will be caught off guard by new events ... Events do not happen as you expect, the future is always different" [5, p.17]. That is, he points out that strategic planning in a changing situation is always the freedom of choice. In strategic planning, the future is regarded variably in both positive as well as negative directions of the development of events. Therefore, strategic planning key role given to the analysis of prospects for the organization, internal and external factors, the elucidation of the dangers and opportunities that are able to change current trends. In addition, strategic planning planned horizon is not limited by time and the pace of development of the organization and the sphere in general.

In this vein J. Keller interested in the position of J. Keller, which says about conscious academic strategy as an appropriate response to shocks [6, p.79]. At the same time strategic planning gives an opportunity to university, college, department and administrative unit to plan its own course and determine their own future.

The strategy of the university - a comprehensive, long-term plan of action and the system as a reality based on a comprehensive study of all regularities, external and internal circumstances, goals and objectives that ensure the effectiveness of the institution of higher vocational education. It includes, on the one hand, the study of patterns and conceptual foundations of higher education in the context of community development, the analysis of external and internal conditions, forecasting trends and possible options, the definition of the objectives tree and consequent distribution of tasks, the development of techniques, methods, organizational forms, capable of providing progress towards the goals. On the other hand, the strategy of the higher education institution involves multidimensional, long-term, thoughtful, active, persistent and corrected, if necessary, action management and all staff providing phased effective solution to problems, goals, to fulfill the mission of the higher education institution [7, p.19].

The strategy of the university represents set of methods and techniques of planning, organizing educational activities management continuity processes, the implementation of which provides growth of the quality of education and sustainable development of organization. Higher educational institution - is a complex system, focused on the implementation of several strategic directions and so the strategy described by a function of several interrelated goals. The success of the development strategy of higher education institutions is largely determined by the possibility of matching the strategic, operational and tactical management.

Strategic planning in high schools affects all fundamental decisions taken at the highest level of management of the organization, and answers the following questions:

  • - what activity of the university is currently;
  • - what is its global goal;
  • - what will be the activities of the university in the future;
  • - what measures should be taken to high school has become what it is seeing in the future?

The modern paradigm of the economy based on knowledge, involves the formation of a qualitatively new, ever-changing market of intellectual labor. Universities need to respond adequately to the challenges of the external environment, simultaneously satisfy the social needs of society and the demands of the market. Their response to the growing demand for higher education and the increasing demands of the labor market to the quality of training in budget cuts is the formation and development of them as subjects of market relations.

In the last decade, European universities have lost a significant part of state funding and had to introduce a partial tuition fee. In this state control over the expenditure of funds allocated to them, on the contrary, became more rigid. This loss (20-30%) is quite high, so in Europe were not uncommon closing individual faculties at the universities of considerations savings.

European states are also unable to maintain the proper level of material base of universities for scientific researches. It's weakening leads to a loss of the leading positions in scientific researches of universities, and the center of applied researches increasingly moves to larger firms. Increased competition for the universities from the private sector, and here there is the problem of "brain drain", luring young talent who, due to a higher level of wages go to the transnational corporations.

Not the last role played by demographic processes in industrialized countries: the aging of populations are forcing governments to switch their costs to the needs of the older generation. The competition within the education system is escalates - the problems of the classical universities are become more complicated by the appearance of new educational institutions, non- traditional providers of higher education (eg, virtual universities), actively explore new areas of knowledge. Universities even more often limited only general education and general professional training.

Serious problem is the key market pressures dictating substantive changes in demand for education - focus on the practical application of acquired knowledge, education and training throughout life and the scale of higher education.

Significant influence on the formation of a new image of the western university renders the policy of states and the western community, aimed at equalizing of the levels of economic development of regions. On universities the state is assigned social responsibility for their region and stimulated their active cooperation with local authorities, non-governmental organizations and industry. University opportunities to develop the region are considered in three ways:

  1. contribution of the university as a major employer in regional development;
  2. technological development of industry in the region through the transfer of technology (technology parks, incubators, consulting);
  3. professional education and retraining, advanced training, etc. [8, p.13].

New pressure on the university from the market and power structures leads to the fact that higher education institutions are no longer special social institutions, they are more subject to the same rules that exist for the market of industrial and commercial enterprises. So the crisis of the modern university is escalated in the new socio-economic conditions of conflict between the three functions: costly scientific- research, required mass education of people and solutions to regional problems.

In the article "Entrepreneurial university: institutional development strategy" P.Shults indicates two ways to implement business functions of the university. The first direction is the preparation of future entrepreneurs, people willing to establish and be responsible for their own business. The second direction - business activities of the university. Creation of business incubators, technology parks, subsidiaries, etc. University should involve students and graduates in business, providing them with not only informating and consulting, but also resourcing help [9].

On a significance of such activities eloquently the following figures. When Oxford university, in particular, there are about 300 companies with a total annual turnover of $ 4 billion, of which the university receives about 1 billion [10, p.19].

Harvard university resource capital (endowment) - capital of the university, used for its business, is $ 18 billion, at George Washington university - about 500 million, and 280 colleges and universities and is more than $ 100 million [11, p.61].

At the same time it is not just about entrepreneurship and the creation of new enterprises. Based on its competitive advantages, universities produce primarily high-tech, innovative production. Entrepreneurial activities of universities not only aimed at obtaining financial results, but also has a central socioeconomic component - development and implementation of innovations. Institutional framework of these activities are the university business incubators and technology parks.

The most widespread business incubators received in the U.S. There they are part of the majority of scientific and technological parks. Overall, the date the United States has more than 160 business incubators. The first association of business incubators in the U.S. was created in 1985.

Today, it remains the largest and employs approximately 800 members from around the world. Similar associations have long been operating in virtually all countries of Western Europe.

In modern continuously changing conditions higher educational institutions are looking for innovative forms of educational and scientific activities, such forms that allow them to succeed. The most interesting in theoretical and practical level of approach to solving this problem is the so-called universitie's entrepreneurial organization.

Entrepreneurship constitute the following elements: organizational action, initiating change; cash income as a goal and criterion of success. Entrepreneurial action is characterized by a particular rationality associated with work in conditions known to be incomplete knowledge and active development of new information, which is closely connected with the intuitive principles. The innovative character of entrepreneurship is underlined in the works of L. Mises, Friedrich von Hayek, G. Schmoller, F. Taussig, J. Schumpeter, P. Drucker. So Schumpeter places the entrepreneur at the center of economic development, determines the entrepreneurship as the implementation of organizational innovation the purpose of profit and allocates specific business function - implementation of new combinations of factors of production. Emphasis on innovation as the main criterion of entrepreneurship is also present in W. Sombart (entrepreneur as a "petty bourgeois") and Weber (entrepreneur as a "bureaucrat"). Originally innovative (entrepreneurial) the nature of the manager, focus on the constant search for new and more effective ways of organizing activities underlines P. Drucker. Innovative content management activities related to the search, intensification, development and rational use of resources required for the organization. Other fundamental characteristics of entrepreneurial activity were finance, psychological and social risk (R. Hizrich) movement of economic resources from low productivity and profitability in the high profitability and productivity (J.B. Say), "the creation of the customer" (P. Drucker) action under conditions of limited awareness.

Under the "entrepreneurial organization" means an organization which includes the following traits:

  • - organization based in its activity on the target innovation and is able to work in conditions of risk and dynamic demand;
  • - cost-effective organization, engaged in profitable activity and relies primarily on its own capabilities;
  • - a liberal organization with flexible network construction;
  • - organization, in which the key factors are the people, groups, and their expertise, where people work is based on the balance of benefits and risks;
  • - organization whose management the first place is not planning and control activities of employees and their full support to the activities of the organization's strategy, for which leadership maximally delegated rights and responsibilities of executors;
  • - organization, which is turned face to the consumer and allows timely and flexibly respond to changing his demands [12, p.117].

The term "entrepreneurial university" ("enterpreneurial university") is perceived in academia ambiguous. Nevertheless, it is firmly entrenched in the university management system of foreign countries. On this subject, published a number of works. The most famous of these research Burton R. Clark "Creating entrepreneurial universities: organizational directions of transformation" and "Sustaining change in universities. Continuity of case studies and concepts", set out five key elements by which entrepreneurial transformation of the universities occurs:

  1. Reinforced guiding core. Higher education institutions necessary to have such a core. It can take very different forms, but should include a central management teams and university departments. This should quickly agree on new managerial values with traditional academic.
  2. Extended peripherals of development. In enterprising universities observed growth of units, which more readily than traditional university departments are outside the old university boundaries and establish relationships with external organizations and groups. These units, on the one hand, are professionalized unit for external relations, which involved the transfer of knowledge, interaction with industry, intellectual property development, continuing education, fundraising and even maintaining relationships with graduates. On the other hand, one of them belong to the more common interdisciplinary project-oriented scientific-research centers. These centers have certain flexibility, as they are relatively easy to create and dissolve. Breaking the old boundaries, they act as intermediaries between the departments and the outside world. At the same university departments or faculties retain their significance.
  3. Diversified funding base. To gain new oriented on the changes of nature activities, the university usually need a lot of financial resources. It attracts them with the help of state support, advice on science, more strongly competing for grants and contracts, as well as commercial companies, local authorities and charities, revenues from services provided on a university campus, students for tuition fees and donations from graduates.
  4. Stimulated academic bulwark. To change occurred, departments and faculties have themselves become entrepreneurial units, establishing relationships with the external environment and launching new programs, as well as others seeking sources of revenue. Academic institutions have to admit that individuals and peer groups will have a greater influence on the management, from the central administration to the heads of departments and scientific research centers. In the entrepreneurial university this bulwark takes a modified system of values and sustainable concepts.
  5. Integrated entrepreneurial culture. Enterprising universities form the culture of activityoriented to changes. Beginning of this new culture can put a relatively simple idea of institutional change, and later grows into a collection of sustainable ideas, which after the dissemination internally within the bulwark becomes the university culture. Strong cultures based on strong practices. Because ideas and practices interact, cultural and symbolic aspect of the university is particularly important in the cultivation of institutional identity and special power [13, p.21-25].

Entrepreneurial universities accept the risks of new strategies still undeveloped behavior, the result of which is not yet clear. They are actively seeking to innovate. Want to significantly change the nature of its activities, in order to be in the future in a more favorable position. Their entrepreneurial spirit - these are the process and the result.

The connecting link between education, science, production, innovation on the one hand and the market, the commercialization of all activities on the other hand, are the university complexes created by higher education institution. The process of their formation is largely dependent on the type of a basic higher education institution.

Entrepreneurial activity of higher education institutions is manifested in all the activities, from the provision of educational services to ensure the efficient functioning of their own, involves the creation of an adequate organizational structure and management method. Necessary is the choice of the future direction of higher education institutions considering regional features, the development of the economic mechanism of transformation of the university in the "entrepreneurial organization", positioning itself in the region.

The conclusions from given research and the prospects of further developments in this direction. Thus, the relatively higher educational institutions can say that "entrepreneurial organization" is an organization that meets to the following characteristics:

  1. in its activities, it is based on innovation, able to work under conditions of risk and the dynamic demand;
  2. organization that responds flexibly to changing requirements of the market oriented to consumers;
  3. such an organization is engaged in profitable activity, relying primarily on its own capabilities, that is cost-effective organization;
  4. matrix organization with a project (or at least its elements) construction;
  5. it focuses on human capital, the quality and competence, while people work based on the balance of benefits and risks;
  6. it provides support of employees through the delegating their rights and responsibilities, and that planning and control activities of employees is not on the first place for leadership.

State Committee on Higher Education in Russia in 1993 adopted the Programme of small business support and new economic structures in science and scientific services for higher education. By 1997, the program was created 12 new major innovation centers, implemented over a thousand specific scientific and technological projects, involving more than 100 higher educational institutions and 300 small enterprises, 50 technology parks. Currently in Russia, according to the Association "Technopark", has been operating for more than 60 innovative technical centers and technoparks which operates more than 600 firms. In September 2011, was created by the Russian Association of entrepreneurial universities. It includes: National research university "Moscow physical and technological institute", National research technological university "Moscow institute of steel and alloys" ("MISAA"); National research nuclear university "Moscow engineering physics university", St. Petersburg national research university of information technologies, mechanics and optics, Tomsk state university of management and radioelectronics ("TUSUR"); "Skolkovo" Fund; National research Tomsk polytechnic university and the National research university "Higher School of Economics".

Established for decades as the organizational structure of Kazakhstani universities is a professional bureaucracy, which was effective in terms of the previous socio-economic system, but in the new conditions it requires a significant adjustment.

Development of new organizational principles of commercialization of education several delayed in their development as universities initially went by the usual extensive way. Expanded paid set on existing faculties and specialties, open up new, built on the principles of traditional organizational departments that provide training in the required specialty markets. However, in the second half of the 90-s, this approach has become ineffective. Traditional departments and faculties have exhausted their administrative resources. Dean's office of classical faculty, heads of departments traditionally responsible for implementing a wide range of educational, methodological and scientific activity. They are not quite able to do that dramatically increased the amount of additional administrative work, which also requires a full commitment to the self-financing and competition. Currently in Kazakh higher education institutions actively studied western literature, printed work on the theory and practice of technology transfer, create innovation and technology centers, small high-tech companies (spin-off), is the corresponding training of small enterprises in scientific and technical sphere. It is due to the need to ensure financial scientific researches university teachers accustomed to the system of competitive distribution of financial resources, including a competitive struggle for grants.

In the educational system of Kazakhstan entrepreneurial universities are not developed except at Nazarbayev University. Official status and appropriate institutional support in our country has received such organizational form as a research university. It is connected to the fact that in modern conditions is risky to build strategy of the university based on long-term interaction with business. There is only a small segment (IT-technology, oil and gas), where big business is interested in strong ties with higher education institutions. At the same time, relying on long-term government support, research universities can parallel develop elements of entrepreneurship in scientific and educational spheres. Remains a pressing the question of their financing.

Entrepreneurial universities around the world oriented to the variety of possible sources of funding. As basic of these can be distinguished:

  • - direct public funding of government: national and (or) regional;
  • - funding from other government agencies: in any western country can be called easily from 10 to 20, and even more similar structures;
  • - funding from government bodies of other levels, for example, provincial, state, county, region, city;
  • - funding from large business structures;
  • - cooperation with small and medium businesses;
  • - large and small charities;
  • - professional associations (for training in the field of professional development);
  • - attracting donations from graduates and other benefactors;
  • - tuition fees, students, undergraduates, doctoral students, and enrolled in programs Advanced studies and retraining;
  • - earned income from the campus to provide a variety of services related to the profile of academic activities, and other independent and self-financing services;
  • - income from scientific-research of activity, including patents and licenses for inventions, as well as intellectual property rights [14, p.291-293].

These same sources of funding can be targeted and Kazakh higher educational institutions. This should be things that the university will not do for any money and the things that it must do, even if it is not profitable. In entrepreneurial universities adjustment the balance of forces at various levels (covering central administrative staff, faculties and situated on a basic level departments and institutes) is actually a permanent problem. New beginnings are always associated with the emergence of new interest groups; aggressive (or more successful) departments may seek greater autonomy, which would allow them to press forward; central authorities take care of the integration of the university as a whole and to provide support to weak branches and activities. To make possible a constant balancing of opposing forces, requires the participation of academic staff in the central management committees.

Entrepreneurial universities based on business departments - dynamic structures that attract tutors, students and those who provide financial support. Basic departments are not disappear, but on the contrary, become more important with the growth and intensification of knowledge. It involves the simultaneous coexistence of functional and project structures in organizations.

In entrepreneurial universities are new interdisciplinary and transdisciplinary research centers for a variety of large-scale social problems, from global warming to the development of public administration, the development of third world countries to upgrade urban infrastructure. In addition, there are many subdivisions of additional educational programs - training and retraining, lifelong learning, distance education, etc.

In general, entrepreneurial universities offer a new form of development based on autonomy, which is achieved by:

  • income diversification;
  • reduce dependence on the state;
  • development of new structural subdivisions to establish ties with the external environment;
  • persuasion of academic departments that they can also act independently, to raise funds, to actively choose between specialties and explore an entrepreneurial approach;
  • development scientific-research structures;
  • to develop common representations of regarding behavioral strategies in a changing environment;
  • development of guidelines for directing abilities big decisions to help higher education institutions to focus.

Transformations of entrepreneurial character that occurred in western universities in the last 15-20 years, were gradual. Actions by their leadership were supported by faculty members and staff. Changes in subdivisions on the periphery and at the center occurred in different ways. As well said David Leslie, opposing linearly rational notions of strategic planning: "Changes in the colleges and universities take place when they are committed in the "trenches", then what will be an educational institution depends on the actions of students and tutors. Change does not happen only because a committee or rector push a new idea" [15, р.110].

Focusing on strategy of entrepreneurial universities, higher education institutions of Kazakhstan should consider foreign experience and own specificity, with the focus not only on the external environment, but also on the internal environment, the support of their employees, faculty members and students, not limited only the development of research universities but on the whole to be directed in its development for entrepreneurship as a strategy.

 

List of references:

  1. Chandler A.D. Strategy and Structure. - MIT Press, Boston, MA, 1962. - 480 p.
  2. Faulkner D., Johnson G. The Challenge of Strategic Management. - Kogan Page, London. - 1992. - 215 p.
  3. Минцберг Г., Куинн Дж.Б., Гошал С. Стратегический процесс / Пер. с англ.- СПб.: Питер, 2001. - 543 с.
  4. Виханский О.С. Стратегическое управление: Учебник. - 2-е изд., перераб. и доп. - М.: Гардарика, 1998. - 296 с.
  5. Друкер П. Эффективное управление. Экономические задачи и оптимальные решения. - М.: ФАИР-ПРЕСС, 2002. - 288 с.
  6. Keller G. Academic Strategy. The management revolution in higher education. - The Johns Hopkins University Press, 1983. - 211 p.
  7. Плаксий С.И. Стратегия развития российских вузов // Знание. Понимание. Умение. - 2006. - №4. - С.15-22.
  8. Князев Е.А. Глобальные тенденции в высшем образовании и их влияние на институциональный дизайн // Развитие стратегического подхода к управлению в российских университетах. - Казань: Унипресс, 2001. - С. 10-16.
  9. Schulte P. The entrepreneurial university: a strategy for institutional development // Higher education in Europe. V.29. - P. 187-193.
  10. Предпринимательские университеты в инновационной экономике / Под общей редакцией профессора Ю.Б. Рубина. - М.: ООО "Маркет ДС Корпорейшн", 2005. - 402 с.
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  13. Кларк Б.К. Создание предпринимательских университетов: организационные направления трансформации / Пер. с англ. А. Смирнова. - М.: Высшая школа экономики, 2011. - 240 с.
  14. Кларк Б.К. Поддержание изменений в университетах. Преемственность кейс-стадий и концепций / Пер. с англ. Е. Степиной. - М.: Высшая школа экономики, 2011. - 312 с.
  15. Leslie D.W., Fretwell Jr. E.K. Wise Moves In Hard Times: Creating & Managing Resilient Colleges & Universities. - San Francisco: Jossey-Bass, 1996. - 243 p.

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