EN
Globalization has been producing a radical new environment for institutes of higher education as well. The relations between universities, the state and the knowledge market have changed, which has caused universities in the developed countries to change as well. The changes in higher education reached Hungary at the turn of the millennium. The spread of mass education has produced organizations so complex and massive that the old models of governance no longer apply. New philosophies and forms of administration have appeared, applying to the specific conditions of higher education models of power distribution already existing in other fields. The study examines the environment changes and responses to them and the new management model for administering a modern university, with special regard to issues of institutional reform in Hungary.