The aim of the research is to identify options for developing performance management (PM) of the academic staff (AS) based on the example of Estonian universities (economics faculties). We want to find out more about PA and its interaction with other elements of performance – the effectiveness of teaching and research are studied. The analysis includes a review on how the PM system has developed over time, ascertaining special features with respect to the economic crisis. Methods included three questionnaire-based surveys of AS carried out in 2013, interviews with nine academic leaders and seven focus group interviews were conducted. Qualitative methods involved the analysis of documentation universities, interviews and participatory observations within a case study. A detailed PA system enables the AS to achieve higher results specifically during periods of restructuring and change at universities, but causes a negative impact for quality and motivation of AS in times of crisis. During the stage of further development of the faculties, it would be necessary to pay more attention to qualitative indicators and reduce the number of quantitative indicators. It is necessary to develop the PM to be applied in conjunction with other management instruments (qualitative management, personnel management).
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