Efficiency is measured. How is the efficiency of the enterprise measured? The system of indicators of the economic efficiency of production

Economic efficiency

Economic efficiency (production efficiency) is the ratio of the useful result and the cost of factors production process... For quantitative determination economic efficiency the efficiency indicator is used, it is also the effectiveness of the economic system, expressed in relation to the useful end results of its functioning to the resources expended. It develops as an integral indicator of efficiency at different levels of the economic system and is the final characteristic of the functioning of the national economy and obtaining the maximum possible benefits from available resources. To do this, you need to constantly correlate benefits (benefits) and costs, or, in other words, to behave rationally. Rational behavior is that the producer and consumer of goods strive for the highest efficiency and for this they maximize benefits and minimize costs.

In the field of business, the concept of the effectiveness of an investment project is used.

Notes

Links

Wikimedia Foundation. 2010.

See what "Economic efficiency" is in other dictionaries:

economic efficiency - The degree to which results exceed costs. [STO Gazprom RD 2.5 141 2005] economic efficiency 1. The ability of the system (not only the economic system, but also another, for example, technical, social) in the process of its functioning ... ... Technical translator's guide

Economic efficiency - 1. The ability of a system (not only an economic system, but also another, for example, technical, social) in the process of its functioning to produce an economic effect (potential efficiency) and actual creation ... ... Economics and Mathematics Dictionary

economic efficiency - The most rational use in the production of limited natural resources. Syn .: production efficiency ... Geography Dictionary

Modern encyclopedia

Production efficiency, relationship between results economic activity and labor costs. Private indicators of the economic efficiency of production, labor productivity, capital productivity and material consumption of products. IN… … Big Encyclopedic Dictionary

Effectiveness economic activity, economic programs and activities, characterized by the ratio of the received economic effect, the result to the costs of factors, resources that led to the receipt of this result; achievement ... ... Economic Dictionary

Economic efficiency - ECONOMIC EFFICIENCY, production efficiency, the relationship between results and costs of economic activity. An important indicator of economic efficiency is labor productivity. On a social scale, the indicator ... ... Illustrated Encyclopedic Dictionary

The relationship between the results of production, products and material services, on the one hand, and the cost of labor and means of production, on the other. Under socialism, the increase in e. E. the most important indicator economic development (see ... ... Great Soviet Encyclopedia

The effectiveness of economic activity, economic programs and activities, characterized by the ratio of the obtained economic effect to the costs of factors, resources that determined the receipt of this result. * * * ECONOMIC ... ... encyclopedic Dictionary

Economic efficiency - ECONOMIC EFFICIENCY Production of a certain amount of products at the lowest cost of resources. In a broader sense, economic efficiency is identified with the efficiency of allocation of limited resources in the country's economy. It… … Dictionary of Economics

Books

• Economic efficiency of information systems, K. G. Skripkin. Information Systems every day it is more and more difficult, and the issue of return on them becomes vital for the enterprise. But how exactly do you calculate this return? Where are the sources of income? How is it ...

Western management lays the value approach in the basis of business management, which says: “Everyone should bring value. He who does not bring value eats it up. " Thus, KPIs (Key Performance Indicators) are mainly
designed to measure the performance of each department or employee.

What is the purpose of the KPI?
The difference between this system and our usual performance indicators is that each specific business has its own KPIs. Consequently, negative indicators effective work of one enterprise may well be positive for another, if they are in different conditions (different market, stage of development of the enterprise, personnel, level of management training, etc.). Besides, specific goals and the tasks for one enterprise are a long passed stage, and for another, on the contrary, a distant prospect.
Consequently, the concept of efficiency ceases to be absolute and turns into a critical factor for this particular business at this particular stage of the enterprise (or one of its divisions).

How does it look in practice?
Before you start developing indicators that determine the performance of a department or employee, you should answer the main question: what are the critical factors for your business? In other words, when you develop and approve the organizational structure of an enterprise, create divisions, you ask the first question: why do you need this or that department, workshop, division, employee? That is, what are your managerial expectations from their work? After answering the first question, the second immediately arises: how to measure the quality of work, its effectiveness?
And here the system comes to the rescue economic indicators KPI designed to evaluate the performance of everyone, and not only in the context of what has been achieved positive result, but also from a critical standpoint.
At the same time, for each performance indicator, a certain matrix is \u200b\u200bcreated that describes the indicator itself, the object of reflection, the frequency and purpose of the calculation. An example of such a matrix is \u200b\u200bshown in Table 1.

We remember that KPIs are not just performance indicators of each structural unit and enterprise as a whole, but also a system of indicators reflecting the critical points of a particular business.
As you can see, the indicators themselves, indicated in the table and proposed for use to measure the performance of departments and officials, are not performance criteria in themselves. So, for example, EBIT (profit remaining after taxation, interest and dividends), like any profit, is not in itself an indicator of the performance of an enterprise, since the latter can make a profit, but not be effective. The same applies to the profitability (profitability) of sales, since profitability is an economic indicator, in the calculation of which profit is used, which in itself does not reflect efficiency.
However, if your enterprise operates in the field of low-profit production (a bakery or the sale of newspapers and magazines), then in these conditions the availability of profit can be considered critical for this business factor and be part of a comprehensive assessment system.
It should be noted that the rate of staff rotation can hardly be attributed to performance indicators, since staff turnover can be a positive factor. In general, setting the indicator of the dynamics of layoffs in the numerator contributes to the placement of parameters of efficiency of use labor resources (such as, for example, an indicator of labor productivity) within the boundaries that ensure the productivity of their application. Thus, it will be impossible to determine the role of the number of dismissed employees in isolation from the present indicators of the efficiency of the use of labor resources.
But if you think that the number of dismissed (resigned) employees negatively characterizes the work of the HR director (given that his duties, on the contrary, include keeping people at the enterprise in all possible ways) and is critical for the operation of your enterprise, then, of course, for service personnel this will be an indicator of the effectiveness of the entire unit. The rate of employee turnover is a critical factor, for example, in construction, where today the delay in wages - It is normal (since the opening of financing for an object often lags behind the start of work on a construction site) and staff turnover, as a result, is in the order of things.
However, if we talk specifically about measuring the efficiency of the use of labor resources, then the main thing here should still be the indicator of labor productivity.
The average sales volume in physical terms also does not evaluate the effectiveness of sales separately from the comparison with the costs of these sales. But if you have just entered the market and are in the expansion stage, then the positive dynamics of sales growth in physical terms can play the role of a critical factor for your company in a specific time period and reflect, for example, the effectiveness of the marketing department's strategic developments at this stage of business development.
Of the entire table, perhaps only the last column - the turnover indicator - can be attributed to the efficiency parameters.
How to get started developing and kPI implementation? In my opinion, you can use two options here.
Option 1. Based on the organizational structure of the enterprise, answering the question about the goals (they must be spelled out in the Regulations on departments, divisions, etc.) for each division.
For example, in the Regulation on the commercial department (sales service) commercial enterprise the goal was determined: "Growth of sales volumes provided that the turnover of accounts receivable remains at the level of 38 days." Consequently, at least two indicators will serve as critical factors in assessing the work of this department:

Since my blog is called "Effective Governance", it’s probably time to talk about what is effective management and, most importantly, how to measure this notorious efficiency? We will start with brief overview modern approaches to assessing effectiveness.

Currently, "effectiveness" belongs to one of the common categories, which is widely and variedly used in different areas organizational activities. The appeal to improve efficiency becomes a key element in the operation of any modern organizational systems.

My analysis of the literature devoted to the problems of effectiveness showed that there are several methodological approaches to assessing the effectiveness of an organization. At the same time, the specificity of a particular methodology is determined mainly in the difference in the vision of the organization itself, understanding of its place and role in the social and natural environment.

In accordance with the earliest approach to assessing the effectiveness of the organization is seen as a purposeful system created to achieve specific goals for each organization.

The effectiveness of an organization with this approach is considered as the degree to which its goals are achieved.

In another approach to assessing performance, the latter is defined as the ability of an organization to use the environment to acquire rare and valuable resources. According to the authors of this concept, the higher the organization's ability to use the environment to obtain the necessary resources, the higher its efficiency.

The third approach to assessing effectiveness is based on the study of internal processes in the organization. Within the framework of this methodology, an organization in which there is no tension between departments and between employees, the members of the organization are united, the internal functioning of the organization is stable, complies with generally accepted norms, information is transmitted without distortion in various directions, etc. will be considered effective.

A fourth approach looks at efficiency through the lens of the satisfaction of major customers and customers. An organization is as effective as it meets the requirements and expectations of major customer groups, or the degree of satisfaction of these groups.

The fifth approach involves considering the organization as a natural socio-technical system. Increasing the efficiency of an organization is ensured by improving the structure and minimizing the cost of processing resources into products.

Some experts in the field of management propose to approach the definition of the concept of efficiency descriptively, defining it as a qualitative characteristic. For example, the author of the book "Seven Habits of Highly Effective People" Stephen Covey, the concept of efficiency is considered from the standpoint of good management, as well as the development of mental, emotional, leadership and managerial potential of the individual. It sounds beautiful, but it is not clear what “good governance” and “emotional potential of a person” are and, most importantly, how they affect efficiency.

Traditional ideas about efficiency (for socio-economic systems) are mainly reduced to the ratio of the volume of the product released and the costs incurred for it. From this we can conclude that there are two ways to improve the efficiency of the organization: the first is to increase the volume of product output, and the second is to reduce the cost of its production. In this case, efficiency actually becomes synonymous with profitability. But is it possible to draw a conclusion about efficiency through profitability? Try, using the criterion of profitability, to answer the question: “Who is more efficient? Small bakery with 40% profitability or oil company from 15%.

Thus, the profitability indicator is absolutely not suitable for us as a measure of efficiency.

One of the synonyms for efficiency is success. Where can we see success most clearly? In war and in sports. Winning a battle is a success. He ran faster than others, jumped higher, etc. - also a success. But what is business success? Probably the same as in any other kind of activity - the achievement of the set goal. However, the question arises: how to measure success? Since in business, as in war or in sports, the main thing is to achieve a result, the first measurable indicator of success will be performance, that is, a measure of achieving a goal. Agree that jumping a hole 100% or only 95% are two big differences. The general Pyrrhus won the battle, the result is evident. But at the same time he uttered one rather strange phrase: "Another such victory, and we are lost." If you won, i.e. is absolutely effective, then what does death have to do with it? As it turned out, the victory went to Pyrrhus too dearly and the condition of the winner was no better than the defeated one. This is where the expression "He won the Pyrrhic victory" came from - at the cost of unjustified losses. Therefore, we need another performance indicator.

There is victory, the goal has been achieved, but what is the price of victory. The second dimension of success appears - the price of victory. To be successful (read effective), it is necessary not only to achieve a result, but to do it at the lowest possible price.

Therefore, the second dimension of success, called profitability, is the level of the price paid to achieve it.

Any goal assumes its achievement, and the ability of a person or organization to achieve a set goal is called performance. Performance can be measured by the percentage of goal achievement.

Thus, the performance formula will look like this:

PERFORMANCE \u003d actual result value X 100%

target value of the result

However, the achievement of the goal also involves the consumption of resources. Thus, the result always has a price to achieve it. The ability of an organization or a person to spend the resources necessary to achieve a goal in a minimum way is called economy. Thus, efficiency is always the ratio of the resources spent to the result obtained. Efficiency is measured as a percentage or in a unit of resource per unit of result (then without multiplying by 100%).

The economy formula will look like this:

ECONOMY \u003d resource consumption X 100%

result value

We now have two dimensions of success, from which we can formulate a definition of effectiveness. Efficiency is an indicator of a system's ability to be both efficient (i.e. able to achieve its goals) and economical (i.e. spend as few resources as possible).

EFFICIENCY \u003d efficiency X 100%

achieved efficiency

The performance indicators we have derived (efficiency and economy) have another useful property. Using them, we can produce comparative analysis any systems (people, departments, organizations, etc.). We will do this using the performance matrix:

In the resulting matrix, only those systems that are in square 1 can be considered effective. The rest either have insufficient efficiency with the achieved efficiency, or insufficient efficiency with the achieved efficiency. Thus, efficient and economical means successful, i.e. achieving their goals at a given level of resource consumption. In a word, effective.

Practical task:Assess the effectiveness of your business using the performance-efficiency criteria. What square does your organization fall into? Is she 100% achieving her goals? Are resources, including managerial ones, economically spent? If the organization is not included in the box number 1, what are the reasons for this? Discuss this with your management team.

After completing this task, evaluate your own managerial efficiency as an owner and as a leader. How effective are you? And what about the economy? Track your working day and determine what tasks you spent the most time on during the day? To what extent were these tasks prioritized? Did their decision move your business towards achieving your goal? Can these tasks be delegated to your subordinates?

Your business can do more!

P .S .S. If you think that this information will be of interest to one of your colleagues, friends or clients, can help him in business and in life - please send him a link to this post. You can also recommend this post at in social networksby clicking on the corresponding button.

The indicators used to measure and evaluate the effectiveness of organizations, it is advisable to consider separately according to the models of closed and open types. This will allow us to get a more complete picture of the additions to the methods and changes in the assessment system that have to be made by our domestic organizations, which are restructuring in connection with the market reform and are concerned about obtaining not only a short-term, but also a long-term effect.

Measuring and evaluating the effectiveness of closed organizationsis based on the analysis and calculation of indicators reflecting the use of internal resources used or used in the process of manufacturing products or providing services. IN first model focus is on release products or services produced by the organization (that is, at the so-called "outputs" of the production subsystem), and in the second - on internal processes, occurring in it and determining this or that productivity (and, consequently, efficiency).

In a centrally controlled economy, that is, in the 1920s-1980s, the conceptual basis for the functioning and development of domestic enterprises was the first model, and according to it there are recommendations developed by science and applied in practice regarding the assessment and measurement of efficiency.

The content of the concept of efficiency at the level of enterprises was limited to the framework in which they acted as constituent parts of public property. The state solved practically all issues related to determining the size of demand and production, the distribution of resources and products, prices and sales markets, capital investments and labor remuneration systems. Therefore, enterprises had to provide first of all efficient production, that is, to carry out the plans set from above with maximum savings on the funds allocated for this. In the center of their attention were the ways, methods and factors of increasing labor productivity, reducing costs, fulfilling the plan in terms of gross quantitative indicators. It was for these purposes that the efforts of the management system of enterprises were directed, and from these positions the efficiency of production management was assessed.

New approaches to the problem of efficiency, the methodology for its measurement and evaluation, necessary in connection with the transition russian enterprises to a market economy, based, firstly, on the rational use of the methodological baggage accumulated by domestic science and practice, and, secondly, on the study of experience foreign enterprisesusing a system of performance indicators developed for closed-type models.

At the same time, it is important to proceed from the actual conditions for the development of management in the country, which dictate fundamentally new models of enterprise behavior. Indeed, for many of them, the problem of survival is brought to the fore, which implies the need to simultaneously solve such problems as market positioning, investment activity, productivity, quality, finance, organizational culture, strategy, etc. Efficiency is predetermined by the ability of an organization to select priorities and consistently , step by step, to solve the assigned tasks, subordinating them to the main direction.

When using the first basic model, the focus is on the indicators characterizing the results obtained. Organizations are considered to be performing well if they have met their targets for the production of products or services. The focus is on internal efficiency, which characterizes output per unit of input and is determined by dividing output by input. This should ensure: high quality, meeting demand, low costs and prices, and efficient distribution of products or services. Achievement of these “output” parameters guarantees a sufficient return on capital, the survival and growth of the organization, and satisfaction of the consumer's demand for the firm's products and services.

Performance indicators usually calculated in relation to profit and characterize the profitability of using the resources of the enterprise. Return on total capital (rate of return or return on funds) is considered generalizingan indicator, since it reflects the structure and movement of all types of production and financial resources of the enterprise, the processes of converting resources into costs in the course of production and circulation, compliance with market demand for products or works (services) performed.

By comparing the sales volume and the costs of the resources used ( total capital) determine the indicator, which in foreign practice bears different names: productivity, turnover, turnover, resource efficiency. The degree of use of consumed resources (current costs) is determined by comparing costs with sales.

Since the first efficiency model is focused on obtaining maximum system outputs, organizations analyze the economic results in detail. production activity, comparing the volume of production (or services) with the use of production resources. The importance of these calculations for each company is determined by the fact that they analyze its competitiveness, achieved through the best use of resources. Efficiency certain types resources is estimated using indicators resource efficiency, determined on the basis of comparing the result with resources of different types.

The system of general and particular indicators is usually supplemented by an analysis of technical and economic parameters and factors that affect efficiency, for example, the range of products or services, the use of means of production and working time, the dynamics of marriage and the cost of correcting it, etc. At the same time factors such as employee satisfaction and the organization's long-term readiness to adapt to changes in the external environment are often not taken into account.

Transition to the second model, as a rule, it does not mean abandoning the above approaches to measuring and assessing economic efficiency, but focuses on internal processes that allow achieving the set goals due to high labor productivity. The main thing in this approach is the use of the organization's human resources, therefore, such categories as the integration of activities, the satisfaction of team members, morality, social climate, etc. are important.This is reflected in the setting of the organization's goals, which can be formulated such as, for example: "To increase the level of mutual trust and to strengthen the moral climate by increasing the participation of workers in decision-making", "to form a coordination group to achieve a higher integration of the plans and actions of the teams", etc.

The effectiveness assessment methodology is based on on the human resource management system, including indicators of their formation, development and improvement of the quality of working life. In this regard, companies plan the need for employees, targeted selection and placement of personnel, development of wage and benefits systems, training and career guidance, labor assessment, as well as training of management personnel. When evaluating effectiveness, great attention is paid to quality of working life, which refers to the degree of satisfaction of important personal needs of members of the organization through their work in it.

Many research organizations are developing strategies for unlocking people's abilities in labor process... The UK Talent Intensification Organization has prepared guidelines that emphasize the need to:

• shared beliefs and values \u200b\u200bamong staff; formation of such organizational structureswhich, by providing sufficient control, would not stifle people's initiative and creativity;
• cultural development business relationshipin which mutual understanding in working groups, openness and trust, encouragement of invention and reasonable risk are prominent;
• attracting talented people to setting and solving long-term goals and objectives; developing a recruitment and selection strategy for talent, as well as their correct assessment.

At socialist enterprises, issues related to the assessment and creation of conditions for improving the organization's human resource were the object of social planning. It is known that it acquired complete forms in the 1960s, when, at the initiative of a number of production associations of Leningrad and the Leningrad Region, in addition to production plans, they began to develop and long-term plans for social development collectives. In the 1970s, these plans became an integral part of a unified plan for the economic and social development of enterprises and other sectors of the national economy.

In accordance with the Methodological Guidelines, they provided for the planning of social development in the following sections:

• social and qualification structure;
• cultural, technical and educational level of employees, working conditions;
• material well-being and living conditions of workers, social relations in a collective;
• socio-political and labor activity;
• education and development of the employee's personality.

Quantitative and qualitative indicators, reflecting the dynamics of the corresponding sections of the plan, were used to determine social component overall effectiveness enterprises.

In open systems (third and fourth models) measurement of the organization's effectiveness is made taking into account environmental factors that directly or indirectly affect its functioning and development.

Systems approach to measuring efficiency is characterized by the fact that the assessment focuses on the organization's ability to obtain all the resources necessary for the production of products and services from environment... This is a method for studying an organization as an integral entity, the goals of which are dictated by its constituent parts, structure, boundaries, processes, interaction of elements, connections with external environment and a general development concept.

Failure to carry out such activities is associated with low efficiency, since any organization, before starting to realize its goals, must acquire all the necessary resources for this. For instance, innovative company in the field of high technologies must form a start-up capital, and a shoe repair shop will not be able to fulfill its tasks if it does not provide everything necessary for this, including raw materials, materials, blanks, etc.

Assessing the effectiveness of an organization in terms of system resources requires, firstly, measuring the amount of resources acquired in the external environment, and, secondly, assessing the profitability of trade deals with firms - suppliers of resources. In accordance with this, the goals facing the organizations are formulated.

As examples, we can cite the following formulations of goals, according to the level of achievement of which the effectiveness of the organization is assessed:

• “To find investors with the help of whom it is possible to carry out technical reconstruction of the enterprise”;
• “To increase the stocks of materials necessary for the production of products and to ensure the continuity of processes in the conditions of unstable transport”;
• “Improve contacts with suppliers to ensure regularity of supplies”;
• "Include in the integration network of suppliers offering materials at different prices in order to reduce the cost of the supplied goods."

At the same time, organizations strive to get the maximum effect from their relationships with the external environment, and this is reflected in the composition of indicators for assessing system performance. In the practice of foreign companies, for these purposes, as a rule, four groups of indicators are used:

• economic efficiency;
• internal integration and coordination;
• adaptability and response to external influences;
• use of human capital.

Despite the fact that there is no complete coherence and unified focus between these indicators, they should ultimately ensure maximum system efficiency.

Abroad, much attention is paid to the development of the so-called balanced scorecard. It was originally developed by Robert Kaplan (professor at Harvard Business School) and David Norton (head of Renaissance Strategy Group in Lincoln). The system is designed to translate a high-level vision and strategy into goals and actions in four dimensions:

financial goals (earnings per common share, earnings on net assets, income, etc.);

consumer goals (market share, percentage of repeat requests, number of complaints and returns, etc.);

operational objectives (lead time, product development cycle time, unit cost, etc.);

process goals (training goals and innovation in terms of the future capabilities of the company, that is, the percentage of jobs filled with internal reserves, the number of trained employees, the period of rotation in the workplace, etc.).

Such a system of indicators is considered as the "backbone" of the plan of transformations and the "control panel" by them (Guiyar F. Zh., Kelly J. N. Organization transformation. M., 2000, pp. 95-96).

Evaluation of the effectiveness fourth model is based on the choice of values \u200b\u200band the determination of the political orientation of the organization. It requires linking one's own interests with the interests of business partners, as well as bringing socio-cultural policy into conformity with the norms and values \u200b\u200bof the collective and society as a whole.

The effectiveness of an organization is measured by the degree to which the expectations and needs of all stakeholder groups are met. external in relation to the organization and internal, that is, within the organization itself.

Number external variables across all stakeholder groups tend to be quite significant, and companies are often forced to tackle the problem of managing their interests one at a time, "lubricating the wheel that squeaks the most."

Accordingly, the goals of the organization are formulated, which reflect the priorities of a certain stage of its development. For instance:

• "To increase the support of our enterprise from local authorities";
• “Increase dividends during the planned period”;
• “Do not ignore any customer complaints about the quality and level of service”.

Interest management is no less difficult. internal groups, which can be both individuals and personnel employed in departments, services and group teams of the organization. Availability in the composition large enterprises functional subsystems (marketing, innovation, personnel management, etc.) means that they have their own target settings, in accordance with which the work is organized and evaluated.

Achieving a balance between these goals (and, consequently, interests) is laborious work that requires coordinating positions and making compromise decisions that suit members of different groups as a whole.

The role and importance attached to different goals reflect not only temporary priorities, but also the peculiarities of the national culture.

For example, in Germany (as well as in Denmark, Holland and partly in Belgium) the emphasis in the assessment is made more on the value of the turnover of goods and services than on the rate of return, and first of all, not the interests of shareholders are taken into account, but the interests of the personnel working in the organization.

In France profitability is rated higher than turnover, and employee compensation is given more attention than investor income.

English companies value profitability over turnover, and balance compensation between employees and investors in favor of the latter.

In Japan in the first place is the indicator of sales volume, in the second - profit; the implementation of long-term goals is estimated here higher than the fulfillment of the tasks of the operational plans.

IN USA the profit indicator is in the first place (it is considered as an alternative to turnover), and more attention and efforts are paid to the implementation of short-term goals compared to long-term ones. Therefore, the interests of investors, maintaining the share price and the level of dividends are constantly in the center of attention of the top management of companies.

Summing up the consideration of the changes that have occurred over the past few decades in approaches to the parameters of assessing and measuring the effectiveness of organizations, the following external and internal factorsthat had the greatest impact on these processes (Table 7.5).

Table 7.5

Factors influencing approaches to measuring organizational performance

As you know, the national income is the value newly created in the branches of material production. In other words, it is that part of the gross social product that remains after deducting the raw materials, fuel, energy and other means of production consumed in the production process. The national income is calculated as the sum of the net production of all branches of material production. In turn pure production a separate industry is defined as the difference between gross output and material production costs. economics efficiency measurement

In certain branches of material production, productivity is calculated in terms of gross output. When comparing the growth rates of social labor productivity, it is necessary to maintain the comparability of indicators. In this case, the national income should be calculated at comparable prices.

The most important indicators of economic efficiency social production are labor intensity, material intensity, capital intensity and capital intensity. As already noted, the level of productivity of social labor serves as a generalizing criterion of the economic efficiency of labor expended in the previous stages of social production and materialized in raw materials, materials, fuel, energy, and tools.

Labor intensity of production - the inverse of the indicator of the productivity of living labor, is defined as the ratio of the amount of labor expended in the sphere of material production to the total volume of production:

Where t is the labor intensity of the product;

T is the amount of labor spent in the sphere of material production;

Q is the total volume of products manufactured (as a rule, gross products).

The material intensity of a social product is calculated as the ratio of the costs of raw materials, materials, fuel, energy and other objects of labor to the gross social product. The material consumption of the products of the industry (association, enterprise) is defined as the ratio of material costs to the total volume of products produced:

Where t is the level of material consumption of products;

M - the total amount of material costs for the production of products in value terms;

Q is the total volume of production (usually gross production).

Reducing the consumption of materials is effective for the national economy of the country. In addition, in the production cost of the largest branch of the national economy - industry, almost 3/5 of the costs are for raw materials, basic and auxiliary materials, fuel and energy.

To a certain extent, the indicators of capital intensity and capital intensity of products are close to each other. The indicator of capital intensity of production shows the ratio of the value of capital investments to the increase in the volume of output determined by them:

Where Kq is the capital intensity of products;

K is the total volume of capital investments;

Q- increase in the volume of products. Capital intensity can also be calculated in relation to the increase in the national income produced.

The capital intensity of production is calculated as the ratio of the average value of fixed assets of the national economy to the total volume of production:

Where F is the average cost of fixed assets of the national economy;

Q is the total volume of production (usually gross production).

Market relations are the main form of communication between producers and buyers, that is, a mechanism for coordinating their actions. In the process of these relations, the effectiveness of all spheres of the economy, each enterprise is revealed.

Efficiency is the ratio between the results obtained and the costs of their implementation. The results can be considered:

• - profit (income);
• - services sold;
• - gross domestic product.

The costs can be considered:

• - the cost of human labor;
• - costs of material resources;
• - financial expenses

The generalizing criterion of the economic efficiency of social production is the level of productivity of social labor. The productivity of social labor is measured by the ratio of the national income produced average size workers employed in the branches of material production,

P total \u003d ND / Hm

Where P total. - Productivity of social labor

ND is national income.

Chm - the number of workers employed in the branches of material production.

In the market practice of management, there are a variety of forms of manifestation of economic efficiency. Economic and technical aspects of efficiency characterize the development of the main factors of production and the efficiency from use. Social efficiency reflects the solution of specific social problems (improvement of working conditions, environmental protection, etc.). Usually social results are closely related to economic ones, since their achievement is inseparable from the development of material production. In the economy of the enterprises of the industry, the efficiency of various aspects of the activities of enterprises can be calculated: the efficiency of specialization, concentration, cooperation, labor resources, location of production, etc. However, all these types of efficiency should ultimately contribute to the growth of the profitability of the enterprise.

Production efficiency is one of the key categories of a market economy, which is directly related to the achievement of ultimate goal development of social production as a whole and each enterprise separately. In the most general view the economic efficiency of production is a quantitative ratio of two quantities - the results of economic activity and production costs. The essence of the problem of increasing the economic efficiency of production is to increase economic results for each unit of cost in the process of using available resources. In market conditions, each enterprise, being an economically independent commodity producer, has the right to use any assessment of the effectiveness of development own production within the framework of state tax deductions and social restrictions

The methodology of complex analysis and assessment of the effectiveness of economic activity occupies an important place in management analysis. Its application provides:

• 1) an objective assessment of past activities, the search for reserves to increase the efficiency of management.
• 2) a feasibility study for the transition to new forms of ownership and management.
• 3) a comparative assessment of producers in competitive struggle and the choice of partners.

The effectiveness of scientific and technological progress is the degree of achievement of the goal of scientific and technological progress, measured by the ratio of the effect to the costs that caused it. In accordance with the goal of the scientific and technological progress, this efficiency is socio-economic in its content. Socio-economic efficiency is a set of relations regarding the achievement of the final social result - a more complete satisfaction of society's needs for products, services and information - in order to improve the well-being and all-round development of the individual. In the process of achieving this result, economic resources are spent, therefore, the interrelated economic and social aspects of efficiency can be considered separately.

The performance indicator is a quantitative measure, the value of which ensures the effectiveness of innovations. New equipment and progressive technology make it possible to raise labor productivity and the quality of products to a higher level.

The generalizing criterion of economic efficiency of production is the level of productivity, which is understood as the ratio of costs (cost of input resources) to the total cost of income (cost of output).

Productivity is a measure of how specific resources are disposed of in order to meet targets in time, expressed in terms of quantity and quality of products. Productivity is directly related to technology and work design. Technology in modern conditions is the most important factor affecting performance. Effective job design contributes to increased productivity in conditions high level specialization, which requires the creation of flexible tasks and work rules. Performance management in modern conditions has become an important function of production management.

The performance management system includes: measuring and evaluating performance; planning control and improving performance based on information obtained in the process of measuring performance; implementation of control measures and performance improvement; performance evaluation, its measurement.

Evaluation and measurement of performance is of great importance in organizational and management activities... It is the process of measuring productivity that has a real impact on the effectiveness of management activities, since: it draws the attention of the management to the problem of increasing productivity and the factors that influence its level; the participation of workers in the process of measuring productivity motivates their creativity and the search for reserves for increasing productivity; quantitative assessments productivity make more specific analysis Problems.

To measure performance, certain factors and indices are established. Coefficients can be of three types: partial factors that take into account one cost element or one class of cost elements (labor, energy, materials, information); multifactorial, taking into account several classes; cumulative factorial, taking into account, if possible, all cost elements.

Indices are used to assess performance trends over comparable periods of time. For example, the Aerospace and Defense division of Honeywell uses more than 150 coefficients, and for each of them several indices.

In practice, three models of a performance measurement system are usually used, using methods: normative, multi-criteria, multi-factor.

Normative - shows the ratio of the actual labor costs for a certain amount of work with the labor costs relying on the norm, that is, it characterizes the degree of fulfillment of the production norm by the workers. The calculation of labor productivity by this method represents the amount of work, taking into account standard labor intensityper unit of time actually worked. When measuring labor productivity by the labor method, the standards of time for the production of a unit of output or the sale of a unit of goods are used:

Multi-criteria - Uses a single performance metric obtained by aggregating private metrics using ranking and / or weighting.

Multifactor - used to obtain a common, integrated performance meter for the firm; provide an analytical audit of the dynamics of productivity indicators; prepare financial statements; assess and measure the impact of shifts in productivity on profitability; evaluate the effectiveness of individual activities; measure the initial distribution of benefits from changes in productivity in the firm; assist in setting performance goals and strategic planning (capacity utilization, sales organization, cost and staff regulation, quality management, pricing, etc.).

When assessing performance, they are guided by the following concepts:

• - productivity - quantitative expression - the volume of production divided by the amount of resources consumed. In a broad sense - the relative efficiency and economy of the organization;
• - productivity - the actual output or the volume of products manufactured per unit of time worked;
• - labor productivity - the output of an employee or a group of employees per unit of time, usually in comparison with the established rate or expected output;
• - the productivity of the worker is determined by the qualifications and the intensity of the worker's labor under existing conditions. It is characterized by performance indicators or descriptive characteristics: high, medium, low;
• - assessment of the worker's productivity - comparing the actual productivity of the worker with normal productivity for specific values \u200b\u200bof a certain set of attributes. Various methods are used to assess the productivity of the worker, differing mainly in the criterion by which the comparison is made.
• - a scale for assessing worker productivity - a scale of descriptive and (or) quantitative characteristics, which is used for a more objective assessment and measurement of worker productivity;
• - index of worker productivity assessment - a numerical index expressing the ratio of the observed worker productivity to its standard level;
• - the standard level of worker productivity - a criterion or reference level with which the actual level of worker productivity is compared, which is necessary to complete the task for the time established by the norm;
• - the relative level of worker productivity - the ratio (usually in percent) of actual productivity to the standard, if both are calculated according to the same principle.

The term worker productivity is sometimes used instead of labor intensity. It reflects the intensity of work, taking into account such individual characteristics of a worker as dexterity, skill, qualifications, etc. Labor productivity for the company as a whole and for production units is calculated using mathematical methods and on the basis of computer technology.