Autonomy of the University and the Professionalisation of its Organisation of Control

Professionalizing the system of control in a still public system implies that the university administration becomes an agent of the academic board of the university rather than serving the interests of the state as the principal. This induced organizational change alters the bargaining positions of the ministery and the university which both aim to maximize their rent share in the budget negotiations. In particular, bargaining with powerful universities then only concerns a fixed transfer. Moreover, academic effort may decrease and there will be unproductive activities. As a result the ministery may feel pressed to restrain the bargaining power of the university by law that reduces the degree of university autonomy in strategic and organizational decision making.