APPRAISAL AND COMPENSATION OF THE ACADEMIC STAFF IN ESTONIAN PUBLIC AND PRIVATE UNIVERSITIES: A COMPARATIVE ANALYSIS

Abstract

The performance appraisal and compensation aspects in the public and private universities are increasingly important. Even publicly funded universities have to seek for additional resources from private market and thus monitor and develop their performance accordingly. In public universities, the number of state-funded students has been decreasing rapidly, and the share of tuition fees has increased. Thus, public universities have been exposed to market pressures that require dynamic approaches similar to the changes implemented in private universities. The purpose of this study is to compare performance appraisal as well as compensation policies and systems in Estonian public and private universities in order to determine the possible differences. The results indicate no major appraisal or compensation differences between these two groups of universities. Yet, private universities seem to value student feedback and other market-driven appraisal aspects slightly more than public universities, who value more development interviews.