The need and opportunities for performance assessment in higher education

Motivating employees is one of the highly important areas of human resources management (HRM). As people are best motivated by their intention to satisfy their own needs, the task of HRM is to satisfy the employees’ need for remuneration in a fair and just manner. This can be achieved if an organization operates a formal and professional system of performance assessment. The importance of having such a system in place is further confirmed by the fact that six out of the seven large Hungarian corporations reviewed operate a global system of performance assessment. In areas where intellectual activity plays a dominant role, as is the case with higher education, omitting an evaluation of the performance of „white collar workers” is, of course, out of the question. Satisfying the employees’ need for fair remuneration in the public sphere, including higher education (HE), is essentially hindered by a lack of evaluating individual performance and, hence, performance-dependent wages and financial benefits derived from extra performance. Given the centrally determined and uniform wage schedule, there is almost no opportunity to differentiate between the performance of one person in a given wage category and another. This entails, at least for a large part of public employees and public servants, a lack of drive to perform better than average. These people could be forced to make greater efforts only by way of measuring their performance on an individual basis and applying a wage system that would rely on individual output and represent a system of wages that would be both differentiated and motivating. In the first part of my paper, I will present the performance assessment methods applied by the large Hungarian enterprises included in the investigation. The second part will deal with the issue of how all of this can be actually implemented in HE.