New Reforms in the Management of the University: Transition from Centralized to Decentralized (University-Based Management) in Iran Y Mehralizadeh Faculty of Education & Psychology, University of Shahid Chamran, Khozestan, Ahvaz, Iran. E-mail: ymehr@hotmail.com This article focuses on new reforms in Iran’s higher education management system — Transition from centralized to decentralized (University-Based management — UBM). This is an important subject since Iran’s Ministry of Science, Research, and Technology (MSRT) has begun to introduce new reforms for the improvement and the enhancement of Iranian universities’ management and movement it toward an independent and self-regulated system. The article examines new management reform in three key areas: university financing, quality and operational performance, and organization or the university system. It may be interpreted within a framework of planned, political–dialectical model, and socio-cultural model. Does this mean a move from idealism to a realistic perspective in relation to the problems and issues of universities in Iran? In addition, enabling conditions and barriers involved in implementing the new reforms are discussed. Higher Education Policy (2005) 18, 67–82. doi:10.1057/palgrave.hep.8300073 Keywords: higher education; management; reforms; decentralization; Iran Introduction Changes in society, globalization, and technology place the management of higher education in a challenging situation (Lauder and Mehralizadeh, 2001; Mehralizadeh, 2001, 2003; Mehralizadeh and Naeli, 2002). The different models of decision-making in higher education by different countries namely, ‘collegial model, political model, bureaucratic model, and entrepreneurial model are indicators of the importance of changes in management’ (Sanyal, 1998). In addition, we see new policies and trends, which emphasize on reducing the power of the government and intervention and encourage universities to be independent in policy-making and accountability. Looking at such innovations as strategic management and the application of total quality management to higher education institutions puts higher education under pressure from different sources — new missions for the universities, new Higher Education Policy, 2005, 18, (67–82) r 2005 International Association of Universities 0952-8733/05 $30.00 www.palgrave-journals.com/hep