The paper substantiates the necessity of improvement of university staff incentive system under the conditions of competition in the field of higher education, the necessity to develop a separate model for the evaluation of the effectiveness of the department heads. The authors analysed the methods for assessing production function of units. The advantage of the application of the methods to assess the effectiveness of border economic structures in the field of higher education is shown. The choice of the data envelopment analysis method to solve the problem has proved. The model for evaluating of university departments activity on the basis of the DEAmethodology has developed. On the basis of operating in Russia, Kazakhstan and other countries universities staff pay systems the structure of the criteria system for university staff activity evaluation has been designed. For clarification and specification of the departments activity efficiency criteria a strategic map has been developed that allowed us to determine the input and output parameters of the model. DEA-methodology using takes into account a large number of input and output parameters, increases the assessment objectivity by excluding experts, receives interim data to identify the strengths and weaknesses of the evaluated object.
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