Performance-based Funding of Universities

📖 The Scoop

A government-commissioned study in Australia investigated the experiences of a number of countries with performance-based funding of universities and examined the potential for its application in Australian higher education. The study found various forms of performance-based funding in different countries (England, Scotland, Germany, Netherlands, Sweden, Denmark, United States, Chile), which used both teaching/learning outcomes and research productivity as performance measures. The Australian form of performance-based funding for distribution of substantial research funds was examined, and it was concluded that this approach could skew faculty attention away from teaching. Considerations in establishing teaching/learning-based indicators and implementing a new performance-based funding system using them are discussed. Recommendations include making a gradual rather than sudden, transition to such a system and conducting a number of trials and pilot studies to avoid disruption of systems, services, and confidence. Substantial study-related documentation is appended. (Contains 23 references.) (MSE)

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