Indicators and criteria of management efficiency. Basic generalized indicators and assessment of the efficiency of the production management system Determine the overall level of management efficiency
At the level of individual enterprises in various sectors of the economy, various groups of indicators are used economic efficiency... However, at each enterprise, the economic efficiency of using materials, fixed assets and working capital, investments and labor resources, and also a generalizing indicator is calculated that characterizes the economic efficiency of the enterprise as a whole.
To assess and analyze the economic efficiency of production, differentiated and generalizing efficiency indicators are used. The efficiency of using any one type of costs and resources is expressed in a system of differentiated performance indicators. These include: labor productivity or labor intensity, material efficiency or material intensity of production, capital productivity or capital intensity, capital productivity or capital intensity. Differentiated performance indicators are calculated as the ratio of output to certain types of costs or resources, or vice versa - costs or resources to output.
To assess the economic efficiency in the whole country, region, enterprise, generalizing (complex, integral) performance indicators are used. These indicators allow more fully and in interrelation to take into account many factors and components that affect the level and dynamics of efficiency. At the heart of the formation of generalizing indicators are two conditions: taking into account the final, qualitative result and reflecting the total amount of costs and resources (for example, production and circulation costs, the total value of production assets). The main general indicators of economic efficiency include the following: national income (NI), gross national product (GNP) per capita; the productivity of social labor, the coefficient of overall efficiency, the cost per ruble of marketable output, profit, profitability of production and profitability of products.
The most important indicators of economic efficiency social production are labor intensity, material intensity, capital intensity and capital intensity.
The economic efficiency of the use of material resources is characterized by the consumption of materials. The indicator of material consumption of products (Em) is usually calculated as the ratio of material costs (without depreciation) to the cost of manufactured products according to the formula:
Em \u003d MZ: VP,
where MZ is material costs, VP is the cost of manufactured products.
The ratio of material costs is the ratio of the actual amount of material costs to the planned, recalculated to the actual volume of production. This indicator characterizes how economically materials are used in production, whether there is an overspending in comparison with the established norms. The overrun of materials is evidenced by a coefficient of more than 1, a coefficient of less than 1 indicates savings.
The material consumption indicator is more analytical, it really reflects the level of material use in production. Material consumption of products russian enterprises on average 30% higher than abroad. One percent reduction in material costs brings more economic effectrather than reducing other costs.
The main analytical indicator characterizing the use of materials in production is:
- - material consumption of all marketable products;
- - material consumption of individual products.
Calculation and analysis of particular indicators of material consumption allows to reveal the structure of material costs, the level of material consumption of certain types of material resources, to establish reserves for reducing the material consumption of products.
Analysis of the structure of material costs is carried out to assess the composition of material resources and the share of each type of resource in the formation of the cost and cost of production. In the course of the analysis, the possibilities of improving the structure of material costs through the use of new progressive types of materials, the use of substitutes (cermets, etc.) are identified.
Reducing the material consumption of products is one of the main directions for increasing efficiency in industry and construction, since the cost of materials accounts for more than half of the costs of manufacturing products in these industries. Each enterprise has its own reserves for reducing material consumption. Usually, these reserves are associated with the introduction of new resource-saving technologies, replacement of expensive materials with cheap substitutes.
The economic efficiency of using fixed assets is usually determined by the indicator of their capital productivity. Fixed production assets (or fixed capital) include means of labor that participate in the production process repeatedly and, without changing their natural form, transfer value to newly created products not immediately, but in parts, as they wear out. Fixed production assets include industrial buildings and structures, machinery, machine tools, equipment, transmission devices, vehicles, etc. Fixed production assets are subdivided into active and passive parts. The active part covers that part of the funds that directly affects the subject of labor: machines, machine tools, equipment, etc. The passive part creates conditions for production - these are factory and factory buildings and structures, engineering communications. The rate of return on assets (Ef) is determined by the ratio of the value of created products to the value of fixed assets:
Ef \u003d VP: OF,
where OF is the cost of fixed assets.
The efficiency of the use of industrial fixed assets is characterized by the ratio of the growth rates of output and the growth rates of fixed assets, as well as indicators of capital productivity, capital intensity, capital-labor ratio and labor productivity.
In the calculations of the plan for economic and social development, the return on assets is calculated based on the volume of production in comparable prices and average annual cost production fixed assets (own and leased), except for funds that are in conservation and in reserve, as well as those leased. Fixed assets are recorded at their full carrying amount (without deduction of depreciation).
The return on assets can be determined on the basis of the output of products in value, natural and conditionally natural indicators.
Most correctly, the efficiency of the use of fixed assets reflects the rate of return on assets, calculated on the basis of output in kind. However, the scope of this indicator is limited to enterprises producing one type of product.
In most industries, the return on assets is calculated on the basis of cost indicators.
Application of the indicator products sold for calculating capital productivity is impractical, since this indicator in dynamics over a number of years will reflect volumes in different estimates.
Some economists consider it appropriate to determine the return on assets based on the residual value of fixed assets. Such a proposal cannot be considered legitimate, since the residual value does not characterize the costs of reproduction of fixed assets. At the same time, it turns out that at enterprises with old, obsolete and physically worn out assets, the level of capital productivity will be higher than at similar new enterprises with new technology and more productive equipment.
The return on assets can be calculated both in relation to the total value of production fixed assets and to the value of machinery and equipment. This makes it possible to trace the efficiency of using the most mobile and decisive part of fixed assets - equipment.
However, regardless of the basis for calculating the rate of return on assets, its content is not devoid of a number of shortcomings that must be taken into account in the practice of management and economic analysis. The rate of return on assets is incommensurable in time, since the numerator includes the annual (quarterly) volume of production, and the denominator indicates funds, individual elements of which have different service lives, but in all cases exceed the annual period of time.
A decrease in the level of capital productivity is to a certain extent caused by a large increase capital investmentsaimed at improving working conditions, protecting the environment, accelerated industrial development in certain regions of the country, shifts in the sectoral structure of industry and other objective factors. A decrease in capital productivity is also largely influenced by such reproduction factors as the rise in the cost of a unit of capacity, an increase in the estimated cost of construction and installation work, an outstripping growth in equipment prices over an increase in its productivity, shortcomings in the use of existing funds.
The economic efficiency of capital investments reflects the use of investments. The most generalizing indicator of economic efficiency is the payback period of capital investments to the increase in profits that they cause:
Ep \u003d K: DP,
where K is the volume of capital investments, DP is the increase in profit caused by these capital investments for the year.
It is well known that the optimal payback period for capital investments should not exceed two years. In modern conditions in the Russian Federation, the scope of the capital investment efficiency standards regulated by the state has sharply decreased, but the scope of individual efficiency standards that take into account the interests of private investors has been significantly expanded; the approach to accounting for the time factor is radically changing, which is increasingly linked to the density of capital investments and the price of the firm.
An important place in the system of indicators of economic efficiency belongs to the turnover of working capital. Working capital (or working capital) is the cost of raw materials, supplies, fuels, energy, work in progress and labor costs. Reserves are financed from working capital finished products, as well as commodity stocks in trade. The efficiency of using working capital is characterized, as a rule, by the indicator of their turnover in days, which is calculated by dividing 365 days (taken for the billing year) by the number of turnover of the company's working capital for the year. Acceleration of the turnover of working capital is considered to be an important reserve for increasing economic efficiency. The most important area here is the reduction and optimization of stocks of raw materials, materials, semi-finished products, components, etc.
The indicator characterizing the economic efficiency of personnel activity is labor productivity, which is determined by the production output per unit of time. At the level of the enterprise (organization) as a whole, the labor productivity indicator (Et) can be calculated as the ratio of the volume of products produced to the number of workers employed at the enterprise, according to the formula:
Et \u003d VP: CR,
where CR - average annual number workers employed at the enterprise.
The growth of labor productivity means the saving of labor costs (working time) for the manufacture of a unit of output or an additional amount of output per unit of time, which directly affects the increase in production efficiency, since in one case the current costs of production of a unit of output are reduced under the item "Wages main production workers ", and in another - more products are produced per unit of time.
A significant influence on the growth of labor productivity is exerted by the introduction of the achievements of scientific and technological progress, which is manifested in the use of economical equipment and modern technology, which contributes to saving living labor (wages) and increasing past labor (depreciation). However, the increase in the value of past labor is always less than the economy of living labor, otherwise the introduction of the achievements of scientific and technological progress is not economically justified (the exception is an increase in product quality).
In the conditions of the formation of market relations, the growth of labor productivity is an objective prerequisite, since there is a diversion of labor into the non-production sphere and the number of employees is reduced due to demographic changes.
All the indicators discussed above characterize the economic efficiency of using individual resources.
Meanwhile, at each enterprise it is necessary to determine a generalizing indicator that allows assessing the efficiency of work as a whole. In market conditions, such an indicator is profitability, which allows you to correlate the profit received with costs. Estimated profitability (Er) is calculated by the formula:
Er \u003d P: S 100%,
where P is the estimated profit, i.e. profit remaining at the disposal of the enterprise, C - costs associated with the creation and replenishment of fixed and circulating assets.
Profitability qualitatively characterizes the work of an enterprise (organization) and reflects a comparison of profit with all costs. At the same time, in various industries at the level of individual enterprises, specific features may occur in the methodology for calculating economic efficiency indicators.
Evaluation of the effectiveness of the system of management of the organization
Annotation: Measuring the quality, level and effectiveness of the organization's management system.
Abstract: Measurement of quality, level and efficiency of the management system of organizations.
Keywords: efficiency, management system, assessment.
The keywords: efficiency, management system, evaluation.
Today, the place allotted to the process of managing the organization takes a leading position. This is primarily due to the conditions of the modern functioning of business entities in a market economy. With economic freedom and almost absolute responsibility for their activities, organizations are forced to attract auxiliary material, labor and financial resources to the management system. For the head of each organization, both the amount of funds spent on management and the results obtained as a result are of paramount importance: an increase in staff productivity, strengthening of competitive positions and an increase in the social importance of the organization. In other words, the most important measure of the results of management activities is the degree of efficiency of the managed object.
The effectiveness of the organization's management system is the development of appropriate conditions for achieving the goals and objectives of the organization with the least loss of time, as well as the resources used, but with the highest results of quantitative and qualitative indicators. The degree of management effectiveness as a socio - economic aspect of an enterprise is assessed by the level of use of labor, financial and material opportunities. The effectiveness of the management system from a functional point of view expresses the level and possibilities of development of the qualitative and quantitative aspects of this process.
Effectiveness as a measure of effectiveness involves the comparison of costs with results. The effectiveness of an organization's activities consists of the degree of identification and implementation of its market resources with the full use of the existing potential. The organization's management system is more effective in achieving the main goal (mission), subject to the minimum use of resources, which, as a result, is reflected in the performance criteria. It is also necessary to pay attention to the fact that efficiency is a very uncertain and variable indicator. The choice in favor of one or another criterion of management efficiency is explained by certain conditions of activity, purpose and policy of the organization. Consequently, each criterion and performance indicator has its own position and role in assessing the management system. Obtain the most complete and reliable information on the effectiveness of the state of the management system in specific organization it is more expedient to apply them together.
In the event that the current management system is not consistent with the goals of the organization's existence, it turns out to be a significant factor hindering development, reducing competitiveness and negatively affecting the entire life of the organization. If the organization is on a course to develop and expand its activities, as well as its priority areas are access to new territories and sales markets, then it will inevitably meet stronger rivals. In such conditions, the issue of improving the management system is especially important. Consequently, when a situation arises to assess the effectiveness of the organization's management system, then first it is necessary to identify the goals to which it seeks, and then analyze the existing management system for compliance with the tasks.
To obtain a holistic view of the management efficiency system, it is necessary to consider the organization from various positions of its functioning. The system of effective management of an organization consists of productive management of each individual subsystem - financial resources, human capital, production process, organizational structure, and so on.
A comprehensive assessment of the effectiveness of the management system should begin with an analysis financial condition organizations. This assessment model most accurately identifies the strengths and weaknesses of the organization's management by the end results of its activities. The analysis of the technical and economic indicators of the enterprise is carried out by assessing the composition, structure, movement and condition of assets and liabilities of the organization, assessing the indicators of production, revenue and profit, as well as assessing the indicators of the number of personnel and wages.
In order to objectively assess the organization's management system, it is necessary to study in detail the organizational structure of the enterprise. The study of the organizational structure of the organization reveals both the strengths and weaknesses of the management process. First of all, the analysis of the organizational structure of management includes the definition or clarification of the goals and objectives of the functioning of the system, a detailed study of the existing organizational structure, the identification of the nature and scope of functions that it should perform, as well as the definition of methods and means of their implementation. In the course of this analysis, the role of each structural unit organization by studying the functions it performs, as well as its connections both inside and outside the systems.
It is possible to measure the quality, level and efficiency of the organization's management with the help of the personnel working at the enterprise. For this, a methodology for assessing the management system based on questionnaires is used. The list of questions in the questionnaire in this case touches upon such topics as: monitoring the fulfillment of official obligations, the state of the search system for the necessary documents and information, rational use of working time, the use of incentives and punishments, the existing level of corporate culture. The results of the questionnaire can provide significant assistance in assessing the organization of the management system and determining the main direction of action and measures to improve the management process in the organization.
Conclusions. Evaluation of the effectiveness of the management system is carried out according to many parameters. For an organization of any form of ownership and direction of activity, the set of evaluation criteria is the same, but has a different advantage depending on the level of influence of a particular parameter on the results of activities. In other words, there are no single irrefutable standards by which each organization has the ability to assess the degree of effectiveness of management activities. But, we can say with confidence that the management system should be so effective that with any changes and obstacles in the external environment, as well as changing, under the influence of any factors, working conditions within the organization itself, it always achieves its goals.
List of used literature:
- Kovrizhnykh, I.V. Analysis and assessment of the effectiveness of management in the organization [Text]: Study guide / I.V. Kovrizhnykh. - Barnaul: AF SibAGS, 2016.- 86 p .;
- Mishin, VM Research of control systems [Text]: textbook. allowance / V.M. Mishin. - 2nd ed. - Moscow: UNITI, 2015 .-- 527 p.
Introduction
1. Theoretical part
1.1 The essence of management efficiency
1.2 Criteria and indicators of management effectiveness
1.2.1 Quantitative performance indicators
1.2.2 Qualitative performance indicators
1.3 Economic assessment of management efficiency
1.4 The Impact of Culture on Organizational Performance
2. Practical part
Conclusion
List of references
INTRODUCTION
Traditional economic theory assumes that in the organization of work of any enterprise it is necessary to compare costs and results of work, to apply certain indicators. In this case, the criterion for the effectiveness of management in general is to maximize productivity and minimize costs. Moreover, this must be given the utmost attention when it comes to successful economic activity, about promoting in the market, about achieving superiority over your competitors.
Management efficiency is a complex, multifaceted category. It reflects characteristics economic, social and other phenomena. Analysis of the category of efficiency, the factors determining it allows us to conclude that groups of indicators of economic efficiency, which can act as a measure, a criterion of the organization's efficiency, are adequate to the content and forms of manifestation of efficiency. Analysis of the category of efficiency, the factors determining it allows us to conclude that groups of indicators of economic efficiency, which can act as a measure, a criterion of the organization's efficiency, are adequate to the content and forms of manifestation of efficiency. As a criterion for the efficiency of production and management, particular indicators of the use of certain types of resources are used: material resources, fixed assets, capital investments, labor productivity, which characterizes economic activity personnel, and summarizing indicators characterizing the final results. Improving the performance indicators of an organization is possible as a result of the development and implementation of ways to increase the economic efficiency of management.
1 THEORETICAL PART
1.1 The essence of management efficiency
The concept of management efficiency largely coincides with the concept of the effectiveness of the organization's production activities. However, production management has its own specific economic characteristics... The main criterion for the effectiveness of management is the level of efficiency of the controlled object. The problem of management efficiency is an integral part of management economics, which includes consideration of:
· Management capacity, i.e. the totality of all the resources that the control system has and uses. The managerial potential appears in material and intellectual forms;
· Costs and expenses for management, which are determined by the content, organization, technology and scope of work to implement the relevant management functions;
· The nature of managerial work;
· Management efficiency, i.e. the effectiveness of people's actions in the course of the organization's activities, in the process of realizing interests, in achieving certain goals.
Efficiency is the effectiveness of the functioning of the system and the management process as the interaction of the controlled and control systems, i.e. integrated result of interaction of control components. Efficiency shows the extent to which the governing body realizes the goals, achieves the planned results. Management efficiency is manifested in production efficiency, is part of production efficiency. The results of action, correlated with the goal and costs, are the content of efficiency as a managerial category.
A number of factors affect the effectiveness of a manager's activity: the employee's potential, his ability to perform a certain job; means of production; social aspects of the activities of personnel and the team as a whole; culture of the organization. All these factors act together, in an integrated unity.
Thus, management efficiency is one of the main indicators of management improvement, determined by comparing management results and resources spent on achieving them. The effectiveness of management can be assessed by comparing the profit and management costs. But such a simplified estimate is not always correct, since:
1) the result of management is not always profit;
2) such an assessment leads to an immediate and indirect result, which hides the role of management in achieving it. Profit is often an indirect result;
3) the result of management can be not only economic, but also social, socio-economic;
4) management costs can not always be clearly identified.
Of fundamental importance for assessing the effectiveness of the management system is the choice of a basis for comparing or determining the level of efficiency, which is taken as normative. One of the approaches of differentiation is reduced to comparison with indicators characterizing the effectiveness of the organizational structure of the reference version of control systems. The reference version can be developed and designed using all available methods and tools for designing control systems. The characteristics of this option are accepted as normative. Comparison with the performance indicators and characteristics of the management system selected as a benchmark that determines the acceptable or sufficient level of organizational structure efficiency can also be applied.
If management activity fully or partially solves the set task, is embodied in the expected result, and ensures its achievement based on the optimal use of available resources, then it is considered effective. In the first case, we are talking about external efficiency, in the second - about internal.
External efficiency is otherwise called profitability, and internal - efficiency, which shows the price that had to be paid for the result obtained (for this, it is related to the amount of costs). The more the result exceeds the costs, the more economical the activity.
However, often the main thing is not how many times the result is greater than the cost, but whether it is more valuable.
Management efficiency can be tactical and strategic, and they contradict each other. For example, the orientation of the company's management to obtain immediate benefits does not leave resources for its development in the future.
Management efficiency can also be talked about as potential or real. Potential efficiency is assessed in advance, while the real is determined by the degree of achievement of the goals themselves, the results obtained in practice. Since different methods are used in management, it is legitimate to assess their effectiveness as well.
It should be noted that there is no one-to-one correspondence between economy and profitability. Highly economical management can be ineffective in terms of achieving the goal itself, lead away from it, and effective - uneconomical if the goal is achieved at too high a cost.
Therefore, in practice, a certain compromise must always be reached between these two approaches, taking into account the requirements of a particular situation.
A change in a more favorable direction in the relationship between the results obtained and the costs associated with them is called economizing activities. In practice, it is far from always possible, and it is often stabilized and even reversed.
The very economics of management is achieved in several ways:
1) cost reduction with the same results;
2) an increase in the result with a lower increase in costs;
3) increasing the result while reducing costs (the most favorable option);
4) a decrease in the result with an even greater decrease in costs.
Thus, the economization of management is not always associated with an increase in profitability, since the absolute result may even decrease. Therefore, the criterion of profitability is taken into account only when assessing the achievement of a specific management goal, outside of connection with other tasks.
Management efficiency can be measured in general view or in relative values, for example, as the ratio of the goal and the result obtained (the degree of the goal realization), the result obtained and the resources used to obtain it, the economic effect and costs, the need and its satisfaction, or in absolute values, say, in the mass of profit.
In practice, management efficiency can be measured both by general indicators characterizing the work of the company (labor productivity, profitability, growth in production volumes, etc.), and specific (cost savings due to streamlining information flows, reducing the proportion of managers in the staff, reducing the number of management levels etc.).
Good governance is consistent with the purpose and strategy of the organization.
Effective managerial activity must be timely, which requires choosing the most appropriate moment to start it, the optimal sequence of individual stages, the elimination of unjustified interruptions and loss of time. It is difficult to overestimate the importance of taking these circumstances into account in the context of the constant complication of business processes.
The most important conditions for effective management today are the use of the latest information and management technologies, maximum automation and computerization of business processes. They allow you to free a person not only from hard work, but also from performing routine operations that constrain his creative possibilities.
A significant increase in the effectiveness of management activities is achieved when members of an organization identify its goals with their own, actively participate in management, and this is possible only at a high stage of maturity, both individually and the team as a whole.
Effective management also requires the formation of reliable communications that allow timely provision of all participants in the management process with the necessary information, maintain an appropriate level of exchange of it, a favorable moral and psychological climate.
To assess the effectiveness of management, it is important to determine the conformity of the management system and its organizational structure to the object of management. This is reflected in the balance of the composition of functions and management goals, the correspondence of the number of employees to the volume and complexity of work, the completeness of providing the required information, the provision of management processes with technological means, taking into account their nomenclature.
1.2 Criteria and indicators of management effectiveness
Analysis of the category of efficiency, the factors that determine it, the content and results of managerial work allows us to conclude that groups of indicators that can act as a measure, an efficiency criterion, depending on the purpose of the organization and the conditions of its functioning, are adequate to the content and forms of manifestation of efficiency. Each variant of the control system corresponds to a certain value of the efficiency criterion, and the control task is to find such a control variant in which the corresponding criterion takes the most advantageous value.
The indicators of profit and profitability most fully characterize the final results of activities, respectively, and the effectiveness of management. At the same time, the influence on profit of factors not related to the activities of this economic link should be excluded. Generalizing indicators reflect the result of economic activity and management as a whole, but do not fully characterize the efficiency and quality of management labor processes, production assets, material resources. For this, private indicators are used. So, to assess the increase in the efficiency of the use of labor resources, the indicator of the growth rate of labor productivity is used, the increase in the efficiency of the use of material resources is characterized by indicators of the material consumption of products, and the efficiency of using fixed assets - by the indicator of capital productivity. When assessing the effectiveness of management, it is necessary to use the entire system of generalizing and particular indicators in a comprehensive manner. The effectiveness of management activities in relation to the subject of management can be characterized by quantitative (economic effect) and qualitative indicators (social efficiency).
1.2.1 Quantitative performance indicators
Quantitative indicators of the management system include:
Complex labor indicators - economy of living labor in the field of management (number, reduction of labor intensity of management processes), etc .;
· Financial performance indicators of the management system (reduction of management costs, etc.);
Indicators of time savings (reduction in the duration of control cycles as a result of implementation information technologies, organizational procedures).
1.2.2 Qualitative performance indicators
The indicators of social efficiency of management (qualitative) are of particular importance:
· Raising the scientific and technical level of management;
· The level of integration of management processes;
· Professional development of managers;
· Increasing the level of validity of the decisions made;
· Formation of organizational culture;
· Controllability of the system; job satisfaction;
· Gaining public confidence;
Strengthening social responsibility organizations;
· Environmental consequences.
If, as a result of rationalization of management, it is possible to achieve high level of the above indicators, then there is a positive shift in the organization of the management system and an economic effect is achieved.
Due to the fact that improving the management of an organization, the introduction of computer information technologies require certain capital investments, investments, the economic efficiency of projects for improving management (efficiency assessment) can be carried out in accordance with the "Methodological recommendations for the assessment investment projects and their selection for financing ", approved by the Gosstroy of Russia, the Ministry of Economy of the Russian Federation, the Ministry of Finance of the Russian Federation, the State Committee for Industry of Russia on March 31, 1994. (No. 7-12 / 47).
According to the Methodological Recommendations, when evaluating the effectiveness of investment projects, the following are applied: commercial (financial) efficiency, which determines the financial consequences of a project for its direct participants; budgetary efficiency, reflecting the financial implications of the project for the federal, regional and local budgets; economic efficiency, taking into account the costs and results associated with the implementation of the project, which go beyond the direct financial interests of the participants in the investment project and allow a cost measurement. The basis for assessing the effectiveness of projects is the definition and correlation of costs and benefits from their implementation. When assessing the effectiveness of investment projects, it is necessary to bring the indicators to the cost of the moment of comparison, since cash receipts and costs in different time periods are unequal.
Other approaches to assessing the effectiveness of management are also being developed, in particular, a resource-potential approach to assessing the effectiveness of a management system. In it, the absolute efficiency of management is represented by the ratio of the potential of production with the actual value of its use. Relative efficiency is defined as the ratio of the overall management effect to costs.
1.3. Economic assessment of management efficiency
Economic efficiency indicators
In general terms, the effectiveness of management activities (E) is expressed by the following formula:
where R - the result of the functioning of the control system (resultant component);
3 - costs of management activities or the amount of resources used (cost component).
At the level of individual enterprises in various sectors of the economy, various groups of indicators of economic efficiency are used. However, at each enterprise, the economic efficiency of using material resources, fixed production assets and working capital, capital investments, personnel activities is assessed, and a generalizing indicator is calculated that characterizes the economic efficiency of the enterprise as a whole.
Indicator of the effectiveness of the use of material resources (E m) characterizes the material consumption of products:
where: МЗ - material costs; VP - the cost of the manufactured products.
Reducing the material consumption of products is one of the main directions for increasing efficiency in industry and construction, since the cost of materials makes up more than half of the costs of manufacturing products in these industries. As a rule, this is achieved by introducing new resource-saving technologies, replacing expensive materials with cheaper ones.
The indicator of the efficiency of using fixed production assets (E f) is usually determined by the indicator of their return on assets.
where: OF - the cost of fixed assets; VP - the cost of the manufactured products.
The main production assets include: means of labor (industrial buildings and structures, machines, machine tools, equipment, vehicles, and the like) that are involved in production. The most important directions for increasing the efficiency of using fixed assets are: increasing the shift ratio of the enterprise, reducing the loss of working time of equipment, etc.
Capital investment efficiency indicator (E n) is the payback period of the capital investment.
where: K is the volume of capital investments; ∆П is the increase in profit caused by these capital investments for the year.
As you know, the optimal payback period for capital investments should not exceed two years.
An indicator characterizing the effectiveness of personnel (E t), is labor productivity. At the enterprise level, it can be defined as a relationship.
where: CR - the average annual number of employees employed at the enterprise.
In addition, labor productivity is determined by the output per unit of time.
The increase in labor productivity depends on a number of factors: the technical level of production, the qualifications of workers, the quality and availability of materials in the required amount, etc.
Material intensity, capital productivity, return on investment are indicators that characterize the economic efficiency of using individual resources. Meanwhile, at each enterprise it is necessary to determine a generalizing indicator that allows assessing the efficiency of the enterprise as a whole. In market conditions, such an indicator is profitability, as the ratio of profit to costs:
,
where: P is the estimated profit, i.e. profit remaining at the disposal of the enterprise; C - the costs associated with the creation and replenishment of fixed and circulating assets.
Profitability qualitatively characterizes the work of the enterprise and reflects the comparison of profit with all costs. In different industries at the level of individual enterprises, specific features may occur.
The given indicators of economic efficiency of management are static.
The reliability of performance indicators increases if, when analyzing the forms of management effectiveness, its dynamic aspect is taken into account.
In this regard, it is advisable to consider management efficiency indicators in dynamics by registering and comparing changes over two or more periods.
The dynamic indicator of management efficiency can be represented as follows:
Coefficient E md shows how many rubles for the period under consideration the final indicator (profit) changes when management costs change by 1 rubles. It reflects the dynamics, growth rates of management efficiency.
The dynamics of the economic efficiency of management is also characterized by a comparison of these indicators for two or more periods, which gives an indicator of the relative change in the efficiency of management, expressed as a percentage:
,
where: E 1 and E 2 - economic efficiency of enterprise management, respectively, in the base year and the given year.
It is advisable to calculate the given dynamic indicators also when implementing fundamental changes in the organization's management system, when comparing various options for improving the management system. Assessment of the real relationship between specific indicators of management efficiency and the listed characteristics of the management system allows diagnosing the management system, revealing its potential capabilities, and determining ways to improve.
1.4 The Impact of Culture on Organizational Performance
Organizational culture is of great importance for the effective operation of an enterprise. The culture of an organization usually refers to the atmosphere or social climate in the organization.
The concept of "culture" of an organization includes ideas, beliefs, traditions and values \u200b\u200bthat are expressed in the dominant management style, in the methods of employee motivation, the image of the organization, etc. It is known that organizations differ in atmosphere, methods of work performance, degree of activity, individual goals - and all these factors depend on the history of the organization, its traditions, its current position, production technology, etc. In this sense, the culture of the factory is different from the culture of the bank and the culture of the trading company. The fact that people can get along better in the organization or even predict the behavior of its members, if they understand its culture, speaks volumes about the usefulness of defining the culture of an organization. It is not always easy to grasp the culture of your own organization. One approach to understanding the culture of an organization is to consider: its origin, which may explain its current state; type of property; technologies that determine the production and management structure of the enterprise and the various characteristics of specialists (blue collars / white collars, skilled, unskilled workers); bright events in the life of the organization, which become its folklore.
IN last years interest in the culture of the organization increased dramatically. This is due to the fact that there has been an increased understanding of the impact that the phenomenon of culture has on the success and effectiveness of the organization. Numerous studies show that successful companies have a high level of culture, which is formed as a result of deliberate efforts to develop the spirit of the corporation for the benefit of all stakeholders in its activities.
An economic organization is a complex organism, the basis of life potential, which is organizational culture: that for which people became members of the organization; how relationships are built between them; what stable norms and principles of life and activities of the organization they share; what, in their opinion, is good and what is bad, and much more that relates to values \u200b\u200band norms. All this not only distinguishes one organization from another, but also significantly predetermines the success of the functioning and survival of the organization in the long term. Organizational culture is carried by people.
From a management perspective, the culture of an organization is the way work is done and the way people deal with people in the organization. Culture is often the only predictor of an organization's long-term behavior, a reflection of its values \u200b\u200band beliefs, strengths and weaknesses.
There is usually no universal approach to developing a common organizational culture. Modern theories, which have emerged in more dynamic conditions, emphasize a situational approach to choosing the type of organizational culture rather than prescribing ready-made recipes. This involves aligning the culture and structure of the organization with other variables - people, tasks, environment, technology. There is a definite connection between culture and structure.
2. PRACTICAL PART
Let's evaluate the management efficiency of CenterTelecom OJSC.
CenterTelecom OJSC is the largest fixed-line telecommunications company operating in the Central Federal District, where more than 20% of the Russian population lives. The company provides people and organizations wide range telecommunication services, including services of local and intra-zone telephone communication, high-speed Internet access using xDSL technology, data transmission, wire and air radio broadcasting, provides broadcasting of cable TV programs, and also provides connection services and traffic transmission services to other telecom operators. The quality management system of CenterTelecom OJSC is certified for compliance with the requirements state standard GOST R ISO 9001-2001 ( international standard ISO 9001: 2000). The company is actively developing broadband multi-service backbone networks and subscriber access networks based on the most modern telecommunication technologies.
As a starting point, let's take an excerpt from the company's 2007 annual report (Table 1).
Table 1.
Let's calculate the indicators for 2007:
Let's calculate the indicator of the efficiency of using material resources:
Material resources were used by 6%.
Let's calculate the indicator of the efficiency of using fixed production assets:
Basic production assets were used by 97%.
Let's calculate the indicator characterizing the effectiveness of the personnel:
This indicator characterizes labor productivity.
Those. revenue exceeds costs by 35%.
Let's calculate the indicators for 2006:
those. material resources were used by 7%.
The main production assets were used by 90%
Let's calculate the generalizing indicator of the company's activity:
Those. revenue exceeds costs by 33.9%.
Let's compare the management efficiency indicators for 2006 and 2007:
In 2007, compared to 2006, the use of material resources was reduced by 1% due to resource-saving policy.
The capital productivity in 2007 was higher than in 2006 by 7%, i.e. in 2007, the main production assets were used most effectively.
The personnel performance indicator shows that in 2007 the labor of employees was used most effectively, one employee accounts for a larger percentage of the profit. And the number of staff has decreased compared to 2006.
The summarizing indicator of profitability indicates that in 2007 the company performed the best quality than in 2006, because the profitability indicator is higher.
Let's calculate the growth rate of management efficiency:
where: P o, P b - the final indicators (profit) of the enterprise, respectively, in the given and base years; R about, R b - costs, respectively, in the given and base years.
Coefficient E md shows how many rubles for the period under consideration the final indicator (profit) changes when expenses change by 1 rubles. It reflects the dynamics, growth rates of management efficiency.
That is, with an increase in expenses by 1 ruble, the profit will increase by 1.45 rubles.
Conclusion: on the basis of the above calculations, management in CenterTelecom OJSC can be considered efficient.
Conclusion
The effectiveness of management, as a socio-economic category, is the effectiveness of this activity, the degree of optimal use of material, financial and labor resources. Management efficiency is formed under the influence of a number of factors that can be classified according to the following criteria: duration of influence; the nature of the influence; degree of formalization; dependence on the scale of influence; content; form of influence.
The economic efficiency of management can be determined using the main indicators: the economic efficiency of the use of material resources, production assets, capital investments, personnel activities, as well as generalizing and dynamic performance assessment indicators.
The main measures to improve the economic efficiency of management are: technical, organizational and socio-economic.
Assessment of social efficiency reflects the social result of management activities and characterizes the degree of use of the potential of the team for the implementation of the organization's mission.
List of references
1. Ansoff I. Strategic management: Per from English. - M .: Economics, 1989.
2. Management: Textbook for universities / М.М. Maksimtsov, A.V. Ignatiev, ed. M.M. Masimtsova, A.V. Ignteva. - Banks and exchanges, UNITI, 1998.
3. The effectiveness of the organization's management. Tutorial. - M .: Russian business literature, 1999.
4. The effectiveness of managerial work: a political and economic study. Voronezh, Voronezh University Press, 1990.
5. Falmer R.M. Encyclopedia modern governance... T. 1-5. - M., 1992.
6. Internet resources: www.ctlf.lipetsk.ru - site of CenterTelecom OJSC.
Analysis of the category of effectiveness of the factors that determine it, the content and results of managerial work allows us to conclude that groups of indicators that can act as a measure, an efficiency criterion depending on the purpose of the organization and the conditions of its functioning are adequate to the content and forms of manifestation of effectiveness. Each variant of the control system corresponds to a certain value of the efficiency criterion, and the control task is to find such a control variant in which the corresponding criterion takes the most favorable value.
As a criterion for the efficiency of production and management, generalizing indicators are used that characterize the final results (production volume, profit, profitability, time, etc.), and particular indicators of the use of certain types of resources - labor, fixed assets, investments.
The indicators of profit and profitability most fully characterize the final results of activities, respectively, and the effectiveness of management. At the same time, the influence on profit of factors not related to the activities of this economic link should be excluded. Generalizing (general) indicators reflect the result of economic activity and management as a whole, but do not fully characterize the efficiency and quality of management of labor processes, production assets, material resources. For this, private indicators are used. So, to assess the increase in the efficiency of the use of labor resources, the indicator of the growth rate of labor productivity is used, the increase in the efficiency of the use of material resources is characterized by indicators of material consumption of products, and the efficiency of using fixed assets - by the indicator of capital productivity.
When assessing the effectiveness of management, it is necessary to use the entire system of generalizing and particular indicators in a comprehensive manner.
Quantitative indicators of the management system include:
A set of labor indicators - saving live labor in the field of management (number, reduction of labor intensity of management processes), etc.;
Financial performance indicators of the management system (reduction of management costs, etc.);
Indicators of time savings (reduction in the duration of management cycles as a result of the introduction of information technology, organizational procedures).
The indicators of social efficiency of management (qualitative) are of particular importance: increasing the scientific and technical level of management; the level of integration of management processes; professional development of managers; increasing the level of validity of decisions made; organizational culture formation; controllability of the system; job satisfaction; gaining public confidence; strengthening the social responsibility of the organization; environmental consequences.
If, as a result of rationalization of management, it is possible to achieve a high level of the above indicators, then there is a positive shift in the organization of the management system and an economic effect is achieved.
Among the issues, the solution of which is required today by the organization of economic activities of enterprises in market conditions, it is necessary to highlight the problem of effective system management taking into account changes in the external and internal environment. At present, a lot of works are devoted to the study of this topic. However, a number of issues related to the organizational and economic mechanism for the creation and functioning of the management system of primary production links, taking into account the market concepts of the organization, still remain unresolved. It should be noted that the formation of a management system at domestic enterprises relies more on experience, analogy, standard solutions and intuition than on a rigorous methodology and methodology based on scientific methods and principles of management and marketing. This approach leads to negative phenomena and irreversible processes that adversely affect the efficiency of the enterprise management system.
Considering that the “efficiency of the management system” is the result of its functioning, which ensures the enterprise in a competitive environment achieve its goals at the lowest management costs, it follows that the analysis of economic efficiency involves calculating the absolute and comparative efficiency of production costs.
The absolute efficiency, calculated for each analyzed object, characterizes the total value of the effect that is obtained as a result of improving the production management system. Comparative efficiency makes it possible to determine the advantages of one option over another, as well as the degree of approximation of the selected option to the optimal one.
In its most general form, the effectiveness of a management system is the ratio of the effect obtained as a result of its improvement to production costs. Therefore, the main task economic analysis at enterprises is to identify the effect, which should be determined, first of all, by the extent to which the production management system contributes to the achievement of the main goals of the organization. In this regard, the results of improving the production management system should be reflected in saving all types of resources, improving product quality, changing the nature and culture of work. Unfortunately, not all of the above elements of economic and social effect can be assessed in kind or in value. Therefore, when determining the effectiveness of the enterprise management system, along with quantitative indicators, it is necessary to take into account a number of qualitative ones. To determine the effectiveness, it is necessary to choose a criterion according to which one can judge whether the enterprise management system is effective or not, if so, to what extent. To quantify the effectiveness, the criterion must be characterized by a certain numerical expression and correspond to the evaluated phenomenon, be universal and easy to use, give an unambiguous and full assessment... Taking into account these requirements, the indicators characterizing the control system include:
* coefficient of production rhythm;
* coefficient of efficiency of the management apparatus;
* coefficient of quality of performance of managerial functions;
* coefficient of efficiency of the management apparatus;
* coefficient of stability of frames.
Along with general performance criteria, it is also necessary to identify specific criteria that would help to determine the most effective directions for the development and implementation of measures to improve it at various stages of the design of the management system. These indicators include:
* coefficient of using working time;
* utilization rate of qualifications;
* coefficient of working conditions.
Moreover, all the above indicators should not exclude, but complement each other.
Choosing the best option for a management system is a complex task that can only be solved through a deep organizational, technical and socio-economic analysis of production as a whole. Consequently, the effectiveness of the enterprise management system cannot be determined by any one indicator. It is necessary to develop a whole system of indicators, since the economic efficiency of the production management system manifests itself mainly in an indirect rather than a direct effect. It affects the improvement of the results of the enterprise due to a more rational organization of production and economic activities. At the same time, an increase in the level of organization of the management system creates favorable conditions for increasing the efficiency of production as a whole while reducing unit costs for the management apparatus.
To assess the effectiveness of management, you can use the concepts of "efficiency in the broad sense" and "efficiency in the narrow sense". In a broad sense, management efficiency is identified with the efficiency of the system as a whole. In a narrow sense, efficiency reflects the effectiveness of the actual management activities. In both senses, to characterize efficiency, generalizing indicators and a system of private indicators of economic and social efficiency are used.
To assess the economic efficiency of management in a broad sense, generalizing indicators are used. Until recently, to characterize the economic efficiency of the management system on state level among others, a generalizing indicator was used - national income (newly created value) for a specific period of time, at the industry level - an indicator of labor productivity, at the enterprise level - profit.
There are a lot of private indicators of the economic efficiency of management in a broad sense (of the organization as a whole); among them are profitability, turnover, return on investment, capital intensity, capital productivity, labor productivity, the ratio of wage growth and labor productivity, etc.
General indicatorssocial efficiency in a broad sense can be:
The degree of fulfillment of consumer orders;
Share of the company's sales volume on the market, etc.
Private indicatorssocial efficiency are:
Timeliness of order fulfillment;
Completeness of order fulfillment;
Rendering additional services;
After-sales service, etc.
The economic efficiency of management (E y) in the narrow sense is characterized by following indicators:
1. Generalizing indicator:
where D is the income of the organization;
3 - the cost of maintaining the administration.
2. Private indicators:
The share of administrative and management expenses in the total cost of the organization;
The share of the number of management employees in the total number of employees in the organization;
Controllability rate (the actual number of employees per employee of the administrative apparatus), etc.
The particular indicators characterizing the efficiency of labor in the field of management also include:
1) reducing the complexity of processing management information;
2) reduction of management personnel;
3) reducing the loss of working time of management personnel by improving the organization of labor, mechanization and automation of labor-intensive operations in the field of management.
Generalizing indicators of social efficiency in the narrow sense are: the share of decisions made at the suggestion of employees of the labor collective; the number of employees involved in the development management decision, and etc.
Particular indicators of social efficiency include: the degree of technical equipment of managerial labor, the turnover of employees in the administrative apparatus, the qualification level of personnel, etc.
Private methods for determining the effectiveness of management.Due to the complexity of assessing the effectiveness of managerial work, techniques for assessing the effectiveness of individual measures have been developed to a greater extent.
tii than management in general. So, methods for assessing the effectiveness of the introduction of new technology are known, automated systems management, etc.
The most typical definition economic efficiency of measures to improve managementis the accrual of the annual economic effect obtained from their implementation, and comparing it with the costs of these activities. The efficiency ratio of management improvement is determined by the formula
where E year is the annual economic effect obtained as a result of the activities; Z y - the cost of measures to improve management.
The annual economic effect can be calculated using the formula
E G0D \u003d C- Z y xE n,
where C is the annual savings from measures to improve management; E n - industry standard coefficient efficiency.
For an approximate assessment of the effectiveness of measures taken to improve management, the indicator of the overall efficiency coefficient of the CE is also used (close in meaning to K e - the coefficient of efficiency of improving management):
where DE is the total savings resulting from the implementation of measures to improve management, rubles; 3 „- total costs to improve management.
The justification of the economic efficiency of improving the management of the organization's activities should be supplemented by an assessment of its social efficiency.
Social efficiencyis determined by the ratio of indicators reflecting the social result to the costs necessary to achieve it. Social results are manifested in improving the living conditions of the population, preserving and strengthening human health, facilitating and increasing the content of his work.
Calculation and analysis of the dynamics of the above indicators not only allow us to assess the effectiveness of the organization's functioning, but
and to identify those parties that are its weak points, directing efforts to solve its priority problems.
Improving the performance indicators of an organization is possible as a result of the development and implementation of organizational and technical measures that comprehensively reflect the factors of efficiency. In this regard, you can use the classification of efficiency factors at the organizational level, presented in Fig. 15.1 (p. 220). Analysis of approaches to determining the most important directions improving the efficiency of the organization allows you to combine them into two groups 1:
1) activities related to the growth of the result of the organization's activities;
2) activities related to the reduction of resource costs (resource conservation, cost reduction of the company).
Due to the fact that improving the management of an organization, the introduction of computer information technologies require certain capital investments, investments, the economic efficiency of projects for improving management (efficiency assessment) can be carried out in accordance with the Methodological Recommendations for the evaluation of investment projects and their selection for financing, approved by the Gosstroy of Russia, the Ministry economy of the Russian Federation, the Ministry of Finance of the Russian Federation, Goskomprom of Russia March 31, 1994 No. 7-12 / 47.
Indicators of commercial (financial) efficiency, reflecting the financial implications of the project for its direct participants;
Indicators of budgetary efficiency, reflecting the financial implications for federal, regional and local budgets;
Economic efficiency indicators that take into account the costs and results associated with the implementation of the project, going beyond the direct financial interests of the participants in the investment project and allowing a cost measurement.
The basis for assessing the effectiveness of projects is the definition and correlation of costs and benefits from their implementation. When assessing the effectiveness of investment projects, it is necessary to bring (dis-
1 See: Fundamentals of control theory / ed. V.N. Parakhina, L.I. Ushvitsky. M.: Finance and Statistics, 2003.S. 530.
Ways to increase the economic efficiency of management
Activities related to reducing resource costs
Figure: 15.1. Classification of efficiency factors
accounting) of indicators to the cost of the moment of comparison, since cash receipts and costs in different time periods are unequal.
Thus, the effectiveness of management is the effectiveness of the actions of people in the process of achieving the goals of the organization.
1. What is management effectiveness?
2. What is management effectiveness?
3. What is the relationship between the concepts of "management efficiency" and "management efficiency"?
4. Name the criterion for the effectiveness of managerial work.
5. What are the difficulties quantify results of managerial labor exist?
6. What does management effectiveness in a broad sense include?
7. What indicators characterize the effectiveness of management in the narrow sense?
8. What are the indicators of social performance?
9. Name the ways of increasing the economic efficiency of management.
PRACTICE
Chapter 1. Essence, stages of development and characteristics modern management Issues for discussion
1. Management as a kind of human activity.
2. The main stages of management development.
3. Modern scientific approaches to management.
4. Development of management in Russia.
5. Features of modern management.
Tests
Choose the correct answers to the questions posed (there can be several of them in each test). Correct answers should be placed in a circle, and in the tables - ticked.
1
. A number of definitions of management are given below. Choose what
which most fully reveals the content of management
that as a process:
a) management - the activity of a group of people connecting their
efforts to achieve common goals;
b) management - the ability to achieve set goals, use
knowing work, intelligence, motives of behavior of other people;
d) management is the performance of planning functions, organizing
motivation, control and coordination necessary for
in order to formulate and achieve the goals of the organization;
e) management is a type of activity for leading people
in various organizations;
f) management is the science and art of management.
2. What is the task of management:
a) personnel training;
b) human interaction;
c) ensuring effective and efficient work of personnel
to achieve the goals of the organization;
d) finding forms and methods of management, rational use of all resources of the organization?
3. The schools of management are listed below. Indicate them chrono
logical order:
a) administrative school of management;
b) school scientific management;
c) behavioral school;
d) school human relations;
e) quantitative school of management;
e) modern approaches to management.
4. Which of the following characterizes the features with
interim management:
a) a person is considered as one of the factors of production;
b) people are seen as the main resource of the organization;
c) the firm is seen as a closed system;
d) the firm is seen as an open system;
e) the focus of the organization on achieving results?
5. What is meant by the management paradigm:
a) a set of scientific schools and approaches to management;
b) management practice;
c) a system of views on management, formed on the basis of
underlying scientific ideas and results and perceived practice
tick management?
6. Which of the named positions characterize the new system
views on management in Russia:
a) decentralization of the management system;
b) monocentric economic system;
c) the transition to a polycentric economic system;
d) a combination of market and administrative management methods
enterprises public sector;
e) self-government of non-state sector organizations as
open socially oriented systems?
The task
Give examples to support the statement that management is a profession. On specific examples show the differences between management work and other types of work.
Chapter 2. Organization as an object of managementIssues for discussion
1. Organization is an open system.
2. The internal environment of the organization.
3. The external environment of the organization.
4. The life cycle of the organization.
Tests
1. Which of the following characterizes the organization as
open system:
a) interaction with the external environment;
b) a source of energy (resources) within oneself;
c) obtaining resources from the external environment;
d) response to changes in environmental factors?
2. Which of the listed organizations are commercial
skim:
a) limited liability companies;
b) limited partnerships;
g) state and municipal unitary enterprises?
3. Which of the following applies to internal environment organ
zations:
a) the organization's management structure;
b) technical progress in the industry;
c) the goals of the organization;
d) personnel of the organization;
e) economic policy of the state;
f) the objectives of the organization?
4. Which of the following factors relates to the external environment
direct impact organizations:
a) consumers;
c) competitors;
d) suppliers;
e) technical progress;
f) shareholders?
5. Which of the named factors of the external environment of the organization from
are related to factors of indirect impact:
a) state policy;
b) legal environment;
c) infrastructure;
d) natural and geographical conditions;
e) financial and credit policy;
6. Compliance with which of the following conditions helps with
maintain the normal functioning of the organization and reduce
sewing bankruptcy risk:
a) avoid excessive optimism when it seems that things are going
successfully;
b) develop and implement quality brand plans
tingu with clear goals in mind;
c) constantly expand the scale of production;
d) systematically make reasonable forecasts for cash;
e) keep up with the needs of the market;
f) identify in a timely manner critical points that may
pose a threat to the enterprise?
The task
Try to do analysis life cycle an organization you know.