Management of the higher education systems and the financing mechanisms

Natia Tsiklauri

External conditions have an effect on the university by means of its financing sources and mechanisms. The more diverse the sources of financing are, the more independent the university is from the viewpoint of distribution of resources.

By switching from “resource dependant” to “output dependent” financial systems the university gains more rights, but its responsibility from the viewpoint of distribution of resources is also increasing. The financial, social and financial problems existing in the country have a negative effect on academic staff management and financing of new staff strategies. The demand for higher education causes a corresponding change in the demographic structure of any country. The alternatives that appear before education in conditions of increasing social demand are dependant on a more large-scale state policy. Legal basis, determination of such general rules as pension age, wage structure, the rules characteristic of the higher education system, e.g. determination of official responsibilities for each category of teachers, etc. The state rules can determine the status, degree, wage structure, professional duties and career promotion prospects of each category’s academic cadre. The system of cadres’ evaluation has become more dependent on the results of studies carried out both inside and outside the institute. The analysis of the sources and mechanisms of higher education’s financing gives an opportunity of optimal distribution of resources and finances and their effective use. As to the aspect of academic cadres’ management, it is necessary that certain regulatory mechanisms should exist, which would settle the relations between the state and the institutional structures. Systematic joint semi-annual cycles can be an example of this kind of mechanisms.