Evaluation of economic effectiveness of higher school in improving the mechanism of management

Category: research article. This article analyzes the economic performance of higher education institutions network of the Kyrgyz Republic, and in particular, one of the largest universities in the Kyrgyz Republic from 2013 to 2016. The results of the analysis will be used to develop a change in the financial management mechanism of structural divisions. The planned research is presented in several stages - initially, conceptual documents on the development of education in the Kyrgyz Republic are analyzed, determining the vector of changes in the higher education system; the next stage is the consideration of the Kyrgyz National University statistics as the object of the research. The aim is to carry out a statistical analysis of the university faculties in order to make a decision on financial management of the university. The research results indicated that there are three groups of faculties: the first group of faculties has a salary fund below 50 %; the second group is between 50 % and 100 %; and the third group of faculties is 100 % of income. But the university cannot close down the loss-making faculties (Scientific faculties), primarily due to obligations to the students, and secondly these faculties have the basic scientific potential of the university. The qualitative composition of the natural science faculties is 80-90 %. To stimulate the improvement of economic indicators some specific measures are proposed for financial management of the university. University management should pursue a common financial policy in relation to all the faculties of the university, but at the same time, the university must carry out the differentiation of each faculty according to the total income contribution to the university. The originality of the article is that the author proposes to abandon the faculty system and change to the program management of educational process; and allow educational programs managers to form their own staff, which will attract leading scientists and experts to improve the quality of education. According to the results of the analysis the university may prefer the most cost-effective educational programs; and the programs that show low efficiency - the university may provide subsidies for a limited period of time and give a warning that at the expiration of this period, subsidies will cease, and teachers’ salaries will be calculated in accordance with the program proceeds. The results of the study will be used in the construction of economic and mathematical tools in the university management. The use of economic and mathematical tools in the university management will allow solving the following problems: - implementing scientifically based forecasting of changes in quantitative manifestations of environmental factors; - receiving a reasonable information base for planning the activity of the university; - connecting indicators of the university effectiveness mechanisms with the staff motivation from the perspective of achieving long-term goals of the university.