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Decision Making Mechanisms at University
[Механизмы Принятия Решений В Университете]


  • Panova, Anna (Панова, Анна)

    () (National Research University Higher School of Economics)


The decision making mechanism at university is one of important factors affecting university’s performance. Universities exhibit a wide range of governance mechanisms. In contrast with for-profit firms rank-and-file employees in universities take part in decision making and collegial bodies play an important role. We look for appropriate mechanisms in the case when clear criteria for effectiveness are missing and at the same time one can rely on professors’ knowledge. We study the situation when the university’s founder has to delegate decision making power and choose among several types of governance. The first type of governance is sharing governance; in this case the decision is made on the basis of majority voting. The second type is autocratic governance without rotation. The third type is autocratic governance with rotation, and finally we have governance when the decisions are made by a committee. If the founder cannot assess the preferences of professors and choose professors with specific characteristics, sharing governance gives the best results. This happens since the interests of all professors are taken into account which in turn decreases the moral hazard. The second best chose is to delegate the decision to a committee. Autocratic governance with or without rotations leads to weak performance. In this paper we obtain additional justification for implementation of sharing governance in universities.

Suggested Citation

  • Panova, Anna (Панова, Анна), 2017. "Decision Making Mechanisms at University
    [Механизмы Принятия Решений В Университете]
    ," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 2, pages 132-151, April.
  • Handle: RePEc:rnp:ecopol:ep1716

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    References listed on IDEAS

    1. Monica Paiella & Andrea Tiseno, 2004. "Stock market optimism and participation cost: a mean-variance estimation," Econometric Society 2004 Latin American Meetings 239, Econometric Society.
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    5. Delphine Blanke & Denis Bosq & Dominique Guegan, 1998. "Modelization and Nonparametric Estimation for a Dynamical System with Noise," Working Papers 98-57, Center for Research in Economics and Statistics.
    6. Hans Westlund, 2011. "Handbook of social capital: The troika of sociology, political science and economics – Edited by Gert Tinggaard Svendsen and Gunnar Lind Haase Svendsen," Papers in Regional Science, Wiley Blackwell, vol. 90(1), pages 240-241, March.
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    More about this item


    university; governance; committees; decision-making;

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • I29 - Health, Education, and Welfare - - Education - - - Other


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