“Pay for Promise” in Higher Education: The Influence of NPM on Resource Allocation in German Universities

Michael Huber & Maarten Hillebrandt
Quantification as a way to govern by numbers has colonised all sectors of modern societies. In the German higher education sector, a Performance-Based Resource Allocation scheme (commonly referred to as Leistungsorientierte Mittelverteilung – LOM for short) has steadily been developed since the 1990s. In an organisational context characterised by increasing international competition and internal differentiation, universities and their regulators have embraced the notion of smart resource allocation through performance indicators. At the same time, the...
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