EFFICIENCY OF ENTERPRISE MANAGEMENT, APPROACHES AND METHODS FOR ITS EVALUATION
Journal Title: Проблеми системного підходу в економіці - Year 2018, Vol 5, Issue 67
Abstract
The activities of enterprises in modern economic conditions are characterized by the need for the efficient use of all available resources, which makes it possible to achieve progressive development and improve its performance indicators. The purpose of the paper is to study the main approaches to the definition of the concept of the effectiveness of enterprise management, approaches and methods for its evaluation. Given the advantages and disadvantages of different approaches to formulating the efficiency of management, it is proposed to consider its essence on the basis of an integrated approach, according to which the efficiency of management is an economic category that reflects the contribution of management activity to the effectiveness of the management system and is characterized by various indicators, as an object of management, and its own management activities (the subject of management). It is noted that leading Western firms in the field of management consulting are actively used in practice and develop management methods that among the most important criteria for the success of management activities at its various levels consider the achievement of possibly greater market value added of the enterprise or its individual units (VBM-management, VBM-Value Based Management). It is recommended within the framework of VBM-Management to use the criterion of economic value added (EVA) to assess the effectiveness of enterprise management. With the help of the modified formula of economic added value, it is proposed to determine the efficiency of enterprise management by increasing (decreasing) the level of enterprise capitalization, the coefficient of inflationary risk, which characterizes the level of dependence of the enterprise on the negative impact of the external environment of the operation of the enterprise, the weighted average cost of capital, which determines the degree of optimality of the structure of the functional capital and investment opportunities of the enterprise, coefficient of profitability of own capital Lu characterizing the efficiency of its use. The generalizations have shown that the definition of the effectiveness of enterprise management is important both scientific and practical value, since it allows not only to assess the effectiveness of enterprise management, to analyze the overall effect of its various structural units and activities, but also to determine the strategy of development, to develop a forecast and plan of action on perspective, to establish the results of the use of expended resources and the level of capitalization.
Authors and Affiliations
S. T. Piletska, T. Yu. Korytko
Keywords
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- EP ID EP562263
- DOI 10.32782/2520-2200/2018-5-17
- Views 115
- Downloads 0
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