Home  Journals  International Accounting  21(363) - 2015 June

Rating the performance of employees and structural units of the university while stimulating their innovative and commercial activities

Available online: 19 July 2015

Subject Heading: THEORY OF ACCOUNTING

JEL Classification: 

Pages: 2-17

Object/ theme. Modern conditions of education development in higher education are focused on formation and establishment of a totally new level meeting demands of customers, employers, state and community as a whole. These transformative processes underway very difficultly and problematically due to variety of objective and subjective reasons. In this conditions the principle of self-reliance and own resources determines the way of formation and development of a higher educational institution.
     Aims/ Purpose. Thus, functioning of a higher educational institution and its effective development depend on professionalism and motivation of employees, that is why relations between economic interests of an institution, structural divisions and stimulation of employees to effective professional activity is still an issue.
     Methodology. The paper is devoted to developed, theoretically proved and tested in practice statements on the organization and implementation of the stimulating mechanisms and tools in pay systems of the higher school, statements of the modern theory of labour economics, and main points of scientific methodology in studying social and economic phenomena.
     Results. The article describes the structural and economic mechanism of distribution of the incentive payments on the profit centres in higher education institution on the example of faculties, chairs and teachers.
     Conclusion/ efficiency. The authors carried out a mechanism of the new pay system for the main divisions and all categories of employees in higher educational institution, and its implementation to higher educational institutions in the Russian Federation for distribution of the incentive payments and wage premiums aimed to encourage professional, commercial and innovative activities of all employees and divisions in particular and institution in general as a synergetic effect.

Keywords: pay system, centre, responsibility centres, profit centers, money flow, staff, incentive payments, ranking score, rating.

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