Study On Operating Mechanism Of College In Chinese University In Perspective Of New Institutional Economics

The operating mechanism of University's Colleges is the inner power which enhances the competitiveness of Colleges. The reform of colleges is subjected to a variety of factors. Competition adjustment of colleges is the major internal problems. Why the competitive power is not so strong in China University? The key problem is not investment, talent and subject factors but lacking of good system resources. Competitiveness of colleges doesn't basics on how much talent it has, but on its operating mechanism. A good mechanism not only trains qualified talent continually, enable brilliant people outstanding and high production, but also translate those general staff into needed person. A college attracting, retaining and effective using of personnel focuses on whether it can build the mechanisms that make a person outstanding and the stage that one can display his talent. What it introduced from the labor market is a man with certain intelligence and creativity. Whether a college can play his inherent talents and creativity or not is entirely relying on its own institution and mechanisms.Looking from a New Institutional Economics angle, basing the supply and demand theory, property rights theory and the principal - agent theory, institutional change theory, using methods of comparative analysis, history and logic consistent, system analysis, the general to the specific abstract, and contacting the implementation of system in home and abroad University Colleges, the whole paper analyzes the main problems of the operation of present system in University College: the college's system and the agent system is not perfect that directly impacts on the formation of operation mechanism; internal administration mechanisms highlights increasing the social costs of the college organization; interaction mechanisms between government, market, university and college are missing, which reducing the efficiency of the organization transactions. The root cause is that the system of our countries'University College is out of today. According to this, the paper puts out some proposed countermeasure suggestions as following: Defining the principal-agent relationship of Government, universities and colleges, creating a good institutional environment; giving full place to the market system, promoting organic integration of universities, colleges and markets; highlighting the autonomy of colleges, building the positive self-development College running mechanism and so on.The research purpose of this paper is analyzing the operating mechanism of China University's college within the New Institutional Economics theory, and to attract the academics paying close attention to the problem in China's University College system, then promote deep study to the Operating mechanism of modern University Colleges.