The important actors influencing governance and management decisions in higher education are the state, the market, the households. The market led massification directly influence the external context and internal pressures to the governance and management of the sector. In the process of reforms many governments transferred part of their authority and responsibility to institutions of higher education in the form of increased institutional autonomy. Autonomy and financial management-resource allocation mechanisms and fund flow patterns-changed in many universities as a consequence of the increased autonomy granted to institutions. This chapter argues that core to all these reforms is a clear shift in the provision and management of higher education from state to market. Moreover the transition of higher education sector from elite to mass systems also experienced its evolution from simple informal into complex organization posing challenges to the existing forms and models of governance.