THE FEATURES OF ENTERPRISE PERFORMANCE MANAGEMENT IN UKRAINE’S ECONOMIC CONDITIONS
Journal Title: Держава та регіони. Серія: Економіка та підприємництво - Year 2018, Vol 4, Issue 103
Abstract
The enterprise performance management is an integrated management approach that combines various activities of the enterprise, including strategy, personnel management, operations management, planning, analysis, accounting and control, appropriate methods, models, systems, and software to ensure the sustainable growth of the enterprise performance. Scientists identify two ways of performance management: 1. performance development, which promises motivation in the workplace and professional training of employees; 2. performance measurement, which makes employees responsible and estimates their contribution to the general product of the enterprise. The basic principles of enterprise performance management include: 1. measurement of the enterprise performance and its individual divisions, provides for the development of performance indicators and determination of the goal to improve efficiency; 2. assessment of the enterprise performance, it provides for the determination of the actual efficiency of the enterprise, its comparison with the goals of efficiency, and identification of reserves for its growth; 3. implementation of management activities, which involves making decisions that contribute to improving the work efficiency, that is, for each of the identified reserves, solutions are developed to approximate the actual value of the indicator to the objective value; 4. performance monitoring, which involves supervision over the decisions’ implementation and information collection, necessary to further measure the enterprise performance. The general principles of the organizational structure formation of enterprise management provide for the creation of two types of management centres – hierarchical and organic. The hierarchical type of enterprise management structures provides for the movement of management decisions and information flows clearly vertically, in which the lower management body is subordinated and controlled by the higher. The organic type of enterprise management structures is characterized by the lack of hierarchy with full responsibility of the heads of the formed units for the final results of activities. The performance management system should be organically integrated with the general management system of the enterprise since the adoption of management decisions in any field of activity of the enterprise directly or indirectly affects the profit level, which is also the main source of financing for the enterprise development and the income growth of its owners and employees.
Authors and Affiliations
M. V. Kovalenko, Ya. V. Fonina, K. А. Deineko
Keywords
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