Abstract

A new tendency aimed to optimize and change the management structure of German colleges and universities has recently been gaining more and more significance. Innovations concern not only the general style of university management, but also changes in separate lines of college business. In almost every activity of the college methods of traditional business management have been introduced, be it creation of an international image, usage of marketing strategies in the process of positioning the college on the market of higher education or creation of funds. This article´s goal is to describe the Principal-Agent theory and the possibilities of its introduction into a very specific market of higher education. It gives a general overview of such topics as motivation theory of academic staff and control of the professor’s performance. The motivation theory presented in this article considers the specific characteristics of professors in terms of Human Resources such as the fact that it is almost impossible to motivate these people only with monetary incentives. It helps to develop certain methods of influence on the professor’s performance in the university as well as it describes positive and negative effects of performance-based compensation and benefits and disadvantages of the piece wage incentive system. Furthermore, the possibility to compare the characteristics and differences of methods of motivation in high school in Germany and Russia can give the reader an insight on how the high school management can develop in the future.

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