Contract management

Contract management comprises a form of management based on target agreements, which is currently mainly used in non-profit organizations. Contract management is to be used across all hierarchical levels and includes the agreement on performance targets (products / product catalogs, quantity and quality) within a certain period of time and the coordination of required budgets (budget of public administrations) and infrastructure for decentralized target achievement.
The term contract management refers to a management, planning and controlling instrument in which binding agreements are made between the management of an organizational unit and the management of a lower hierarchical level over a certain period of time. These agreements primarily relate to services to be provided by the contractor. Furthermore, the means to be made available for this purpose as well as the type of reporting with regard to the result or any deviations are to be agreed and, finally, clear responsibilities are to be defined. With a strong influence on the idea of decentralization, one of the main objectives of contracts is the delimitation of responsibilities - both between politics and administration as well as within the administration. The delegation of specialist and resource competence is intended to significantly support the necessary autonomy of the specialist areas, which leads to an increase in the provision of services.

Further intentions are based on the modification of hierarchical relationships. Cross-hierarchical cooperation takes the place of instructions that strictly adhere to the hierarchical organizational structures consequences and thus lead to insufficient adaptability to dynamic environmental structures. The resulting advantages are based on an increase in flexibility, motivation and awareness of efficiency. After all, hedging is agreed with contracts Duties to achieve what is to be achieved via clauses to be included, which have the exact description and determination of the consequences in the event of non-fulfillment or poor fulfillment of the set goals.

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