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Test: Management efficiency. Indicators of economic efficiency of management Evaluation of the effectiveness of personnel management

In assessing management, the greatest difficulty is understanding its result. It is possible to evaluate resources, it is easy to measure time, it is difficult to evaluate the result.

There is an end result in which management is manifested only indirectly, and one can name the immediate result, which is inherent in any kind of human activity.

The direct result of management can characterize a set of criteria and performance indicators.

Efficiency criterion- a sign on the basis of which an assessment, definition or classification of something is made; measure of judgment, evaluation.

Efficiency criterion- a sign on the basis of which an assessment, definition or classification of something is made; measure, standard of judgment, evaluation.

The criterion of management efficiency is determined not only by the optimal functioning of the management object, but also by the quality of personnel work, social efficiency.

Let us first consider the performance criteria related to the control object. Modern science identifies general, local and qualitative criteria for management effectiveness.

General criterion– economic results of the activity of the managed subsystem as a whole, i.e. implementation by the enterprise (or organization) of its mission at the lowest cost.

A group of more specific local criteria:

The cost of living labor for the production of products or the provision of services;

Cost of material resources;

Costs of financial resources;

Indicators of the use of fixed production assets;

Accelerating the turnover of working capital;

Reducing the payback period of capital investments.

Group of qualitative criteria:

Increasing the share of products of the highest quality category;

Ensuring environmental cleanliness;

Release of products needed by society;

Improving the working and living conditions of employees;

Resource and energy saving, etc.

The criterion of management efficiency, in addition, under certain conditions, may be the maximum output of products or the maximum of services.

All these criteria should be reflected in a certain system of indicators of economic efficiency, which we will consider in the second question.

Performance indicator- a quantitative characteristic of the enterprise, characterizes the effectiveness of management.

Such performance indicators as labor productivity, material intensity, capital productivity of fixed production assets, turnover of working capital, return on investment can be conditionally combined into a group of private or local indicators.

In addition, there are generalizing indicators: profitability and liquidity. They reflect the result of economic activity and management in general, but do not fully characterize the efficiency and quality of management of labor processes, production assets, material resources.

The indicators that characterize the work of the management apparatus are the strategic effectiveness of management and the timeliness of the adoption and implementation of management decisions.

When evaluating the effectiveness of management, it is necessary to use the entire system of generalizing and particular indicators in an integrated manner.

The effectiveness of management activity in relation to the subject of management can be characterized by quantitative (economic effect) and qualitative indicators (social efficiency).

Economic efficiency indicators

At the level of individual enterprises in various sectors of the economy, various groups of indicators of economic efficiency are used. However, each enterprise evaluates the economic efficiency of the use of material resources, fixed assets and working capital, capital investments, personnel activities, and also calculates a general indicator that characterizes the economic efficiency of the enterprise as a whole.

1. An indicator of the efficiency of the use of material resources. Reducing the material consumption of products is one of the main directions for increasing efficiency in industry and construction, since the costs of materials account for 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.

2. The indicator of the efficiency of the use of fixed production assets. The main production assets include: means of labor (industrial buildings and structures, machines, machine tools, equipment, vehicles, etc.) that are involved in production. The most important areas for improving the efficiency of the use of fixed assets are: increasing the shift ratio of the enterprise, reducing the loss of equipment working time, etc.

3. An indicator of the effectiveness of capital investments. As you know, the optimal payback period for capital investments should not exceed two years.

4. An indicator that characterizes the effectiveness of the personnel. An 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 quantity, etc.

Material intensity, capital productivity, return on investment are indicators characterizing the economic efficiency of the use of individual resources. Meanwhile, at each enterprise it is necessary to determine a generalizing indicator that allows evaluating the efficiency of the enterprise as a whole. In market conditions, such an indicator is profitability, as the ratio of profit to costs.

Profitability qualitatively characterizes the work of the enterprise and reflects the comparison of profits with all costs. In various industries, at the level of individual enterprises, there may be specific features.

The given indicators of economic efficiency of management are static.

The reliability of performance indicators increases if the analysis of forms of management efficiency takes into account its dynamic aspect.

In this regard, it is advisable to consider management performance indicators in dynamics by registering and comparing changes over two or more periods.

5. Dynamic indicator of management effectiveness. 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 management efficiency.

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. Evaluation of the real relationship between specific management performance indicators and the listed characteristics of the management system allows diagnosing the management system, revealing its potential, and determining ways to improve.

Social performance indicators

Assessment of social efficiency reflects the social result of managerial activity and characterizes the degree of use of the potential capabilities of the team to achieve the mission of the company, its social significance.

Indicators of social efficiency of management are characterized only by the resulting components, the main ones are:

· raising the scientific and technical level of management;

· increasing the level of integration of management processes;

· professional development of managers;

raising the level of validity of decisions made;

formation of an adequate mission of the organization of organizational culture;

Improvement of the controllability of the system;

increase in the degree of job satisfaction;

gaining public trust;

strengthening the social responsibility of the organization;

· improving the environmental impact of activities, etc.

Improving the performance indicators of the organization's activities is possible as a result of the development and implementation of organizational and technical measures that comprehensively reflect the ways of increasing the economic efficiency of management.

The following classification of activities related to the growth of the result and the reduction of resource costs is proposed: technical, organizational, socio-economic.

· Technical measures are aimed at improving technologies, equipment, modes of processing raw materials, the quality of the resources used.

· Organizational measures are aimed at improving the organization of accounting, production and labor, reducing the production cycle, repair and saving resources.

· Socio-economic measures are aimed at improving working and leisure conditions, applying incentives and responsibility measures, motivating the growth of labor quality and productivity, developing a corporate spirit in the name of the organization's goals.

LECTURE 6. MANAGEMENT EFFICIENCY

Lecture plan

Criteria and indicators for assessing management effectiveness

Methods for assessing and analyzing management effectiveness

Factors for improving management efficiency

As far as management is effective in a society, the society is so prosperous.

In modern conditions of increasing complexity of production and the economy as a whole, the increasing role of scientific and technological progress, increased competition, the need to take into account in the management process factors related to the use of raw materials and energy resources and the impact on the environment, the final results of the company's activities depend on the rationality of the structure and efficiency management processes in all its elements and subsystems.

Evaluation of management effectiveness is of paramount importance for many aspects of management, since it determines the correctness, validity, and effectiveness of the manager's work.

Is it possible to determine whether this or that leader is effective? And by what parameters, indicators or criteria can one judge this? Perhaps, according to the number of orders and instructions issued by the head? Or by the number of decisions he made? Or maybe how early he comes in and how late he leaves work?

The purpose of the lecture is to identify criteria, indicators and factors of management efficiency.

Question 1. Criteria and indicators for evaluating management effectiveness

The importance of determining the effectiveness of management attracts the attention of scientists and practitioners, including Z.P. Rumyantsev, R.A Fatkhutdinova, V.N. Parakhin and L.I. Uvitsky, whose works are summarized in this lecture.

In management theory, the qualitative side of the result obtained is denoted by the term efficiency criterion(a distinctive feature, a measure on the basis of which an assessment of each phenomenon is given), the quantitative side of the result obtained - performance indicator.

Consideration of the effectiveness of management should be preceded by an appeal to the general concept of efficiency, covering various areas of human activity. This approach is dictated not only by methodological considerations, but also by the fact that this general concept has not yet received an unambiguous interpretation. Literally "effective" (from the Latin "effectus") means efficiency, effectiveness, productivity. Generally speaking, any interaction that has some result has an effect, and in this broadest sense, the effect can be considered as an absolute property of any interaction or process that characterizes the result. Despite the proximity of the categories "effect" and "efficiency", they do not coincide with each other. Efficiency is not inherent in every interaction, but only purposeful; therefore, this category is of a managerial nature and reflects, first of all, the degree of achievement of the goals pursued. Thus, unlike the effect, efficiency is always a certain ratio (of the result and goals or the result and the cost of obtaining it), i.e., a relative value. This starting position also determines the understanding of management efficiency.

A comprehensive set of criteria for the effectiveness of the management system is formed taking into account two areas for assessing its functioning:

According to the degree of compliance of the results achieved with the established goals of the organization;

According to the degree of conformity of the process of functioning of the system with objective requirements for its content, organization and results.

Management efficiency is a relative characteristic of the performance of a particular management system, reflected in various indicators of both the management object and the management activity itself (management subject). Moreover, these indicators have both quantitative and qualitative characteristics. In other words, the effectiveness of the management system should be expressed ultimately through the performance indicators of the managed system, although it may have its own particular characteristics.

The criteria for management effectiveness are closely related to the goals of the firm. The specificity of management is that the development of goals is a function of management itself, and their implementation is carried out both within the framework of the functioning of the subject of management, and within the framework of the managed object. Therefore, to determine the effectiveness of management, criteria such as:

firstly, the actual managerial efficiency;

secondly, economic efficiency;

thirdly, social efficiency.

Let's consider them. So, the first criterion for the effectiveness of management is managerial efficiency, that is, effectiveness, understood as the achievement of the goal.

Management efficiency reflects the effectiveness of ensuring the socio-economic development of the enterprise. In this regard, the effectiveness of management is manifested in the achieved performance indicators of all activities of the enterprise.

An organization exists to achieve certain goals, and if these goals are achieved, then this organization can be considered successful, and its leader an effective manager.

most common index managerial efficiency:

E ex. = result 100%

Also, management efficiency can be expressed and evaluated not only by the final results of the work of the entire company, but also by such parameters as the speed of decision-making and the implementation of specific steps, the return on the implementation of the decision, measured in cost terms. To determine the effectiveness of a particular solution, you can compare the planned and actual "inputs" and "outputs" and measure the return on the decision, that is, the ratio of "output" to "input". In this case, the effectiveness of the intra-company management system is defined as the economic effect of making managerial decisions.

Since the control is informational in nature, the information also represents the result of the action, and therefore, is the "output" of the control system.

In addition, the effectiveness of management is determined by the effectiveness of the functioning and use of each element of the management system - the rationality of the structure, the use of scientific, advanced management methods, the speed, completeness of information services, the qualifications of management personnel, their ability to creatively approach solving specific management problems.

The second criterion of management efficiency is economic efficiency, which characterizes the ratio of results to the costs necessary to achieve them.

Economic efficiency indicators:

E ex. = result 100%

E ex. = actual costs 100%

planned costs

Economic efficiency as a performance indicator involves the comparison of costs with the result and is always a relative value. It should be borne in mind that there is no and cannot be a universal indicator of economic efficiency, since a large number of factors determine it. As a result, profit can be considered as the final result of the activity, and as costs - the main production assets and working capital or production costs.

An organization can only survive through efficiency and cost-effectiveness. Consequently, these two criteria for management efficiency are closely interrelated and interdependent.

An important quantitative characteristic of economic efficiency is productivity.

Productivity is the ratio of output units to input units.

This indicator of economic efficiency reflects the complex effectiveness of the use of all types of resources (labor, capital, technology, information).

Among the economic performance indicators of an organization are usually called: stability (production, structure, position in the market), growth (growth rates of production, number of employees, number of innovations), the organization's ability to adapt to changes in the external environment (the relationship between indicators of the external environment and the organization's activities). All these indicators must be analyzed not in absolute terms, but in dynamics, that is, in comparison with previous periods.

The effectiveness of an organization largely depends on its ability to plan its activities on a long-term scale, to predict future changes. This allows, to a certain extent, to minimize the risk in an unstable economy. Thus, the effectiveness of management directly depends on the efficiency of production as an element of the system. All other aspects of the organization's activities also require effective management: these are marketing, personnel management, innovation management, strategic management. Moreover, the control subsystem should ensure effective management of all functional units (Table 1). 1).

The main task of any manager is effective management. Performance criteria allow you to assess in detail the quality of the manager's work in order to make appropriate adjustments. Evaluation work should be carried out regularly in order to identify strengths and weaknesses, followed by timely adjustments.

The essence of the concept

Management effectiveness is an economic category that demonstrates the contribution of the manager and his environment to the overall performance of the organization. Many researchers invest just such a meaning in this concept. In this case, the management efficiency criteria are presented as the results of activities and the degree of implementation of the goals and objectives that were set for the current period. Profit is the main indicator.

It should be noted that the effectiveness of management is one that characterizes management as a whole or its separate subsystem. For this purpose, various integral indicators are used, which give a more accurate numerical definition of the results.

It should be noted that a significant part of the economically active population with an appropriate level of education and qualifications is involved in the management process. Since a large amount of time and money is spent on training such personnel, a lot of attention is paid to assessing such a parameter as management efficiency. Efficiency criteria allow for a more in-depth look at this issue.

In theoretical studies, the following varieties are distinguished:

economic efficiency is the ratio of production and management costs, as well as the results obtained;
social efficiency is the satisfaction of different categories of consumers with the range and quality of goods and services.

The following concepts should also be distinguished:

internal efficiency is the achievement of the organization's own goals at a constant level of costs;
external efficiency - compliance of the enterprise with the demands and requirements of the external environment.

The evaluation algorithm looks like this:

defining the purpose of performance evaluation;
selection of criteria and their detailed justification;
collection of initial data that will be used in the analysis process;
development of requirements for the resulting indicators;
development or selection of a methodology in accordance with which calculations will be made;
carrying out calculations and evaluation of the obtained indicators.

Every organization has specific goals. In the process of evaluating the final results, certain inconsistencies may be identified. Based on the results of the audit, a decision can be made to adjust the management process or to make changes to the plans.

Economic criteria for management efficiency

The main goal of management is the continuous improvement of the performance of the organization. Particularly important is management. Efficiency criteria can be general and particular. In the first case, the global aspect of performance results is considered. It is important to achieve the maximum result with the minimum expenditure of resources.

Particular indicators of management effectiveness are as follows:

the level of labor costs of workers employed in the production process;
rationality of spending material resources;
minimum costs of financial resources;
indicators characterizing the use and depreciation of fixed production assets;
the size of the cost of production (should be kept to a minimum);
indicator of profitability of production;
technical equipment of production shops (compliance with modern achievements of technical progress);
labor intensity of employees, which is determined by working conditions and organizational structure;
compliance with the cost rate while fully complying with all contractual obligations;
stability of the number and composition of personnel;
compliance with environmental standards at the same level of costs.

In order to evaluate the efficiency of the enterprise, first of all, economic indicators are used. The main one is the ratio of profit to total costs incurred in the reporting period. If deviations or unsatisfactory results were identified, a factor analysis is carried out in order to determine specific causes.

Components of efficiency

In the course of assessing the effectiveness of organization management, the following indicators can be used:

performance, which is manifested in the degree of achievement of the goals that were set by management;
the ability to economically spend material and financial resources, fully satisfying the needs of all structures and departments of the organization;
achievement of the optimal ratio of the obtained economic results to the costs that were carried out in the production process;
the degree of influence of direct or indirect factors on the final result.

Criteria groups

Criteria for evaluating the effectiveness of management are specific indicators that allow you to evaluate the feasibility and effectiveness of the implementation of certain activities. Modern economic science divides them into two groups:

private (local) criteria:

labor costs of workers involved in the direct production of goods or services;
expenditure of material resources for managerial and other purposes;
expenditure of financial resources;
indicators that characterize the use of fixed assets (purpose, depreciation, efficiency, etc.);
the speed of turnover of funds;
payback period of investments (its reduction or increase).

quality criteria:

increase in the output of products that belong to the highest category;
environmental responsibility of the organization, as well as the introduction of modern energy-saving technologies;
compliance of products with the urgent needs of society;
continuous improvement of working conditions of employees, as well as their social level;
saving resources.

It is worth noting that all management efficiencies must be accompanied by the maximization of output (or the number of services provided). There should also be an increase in profit levels.

Criteria and indicators of management efficiency

In order to evaluate the economic results from management activities or decision-making, appropriate methods are used. Thus, the criteria and indicators of management effectiveness are as follows:

general indicator of management efficiency (the ratio of profit for the reporting period to the costs attributed to management);
managerial personnel ratio (the ratio of the number of top managers and the total number of employees employed at the enterprise);
coefficient of management costs (the ratio of the total costs of the organization to the costs of management activities);
the ratio of administrative expenses to the volume of output (in physical or quantitative terms);
efficiency of management improvement (the economic effect for the year is divided by the amount of money spent on management activities);
annual economic effect (the difference between the total savings due to the implemented management measures and the costs multiplied by the industry coefficient).

Organization management efficiency

Economists distinguish the following criteria for the effectiveness of organization management:

organization of management entities, as well as the full validity of their activities;
the amount that is spent on solving certain issues that are under the jurisdiction of top management;
style of management activity;
the structure of the governing bodies, as well as the smoothness of the relationship between their various links;
the total costs that fall on the maintenance of the administrative apparatus.

Any organization seeks to obtain the maximum benefit. It should be noted that the increase in profit is one of the main parameters, according to which the effectiveness of management is determined. The criteria for the effectiveness of the organization in this context imply the end result of the work of the entire enterprise. This is due to the fact that the implementation of plans largely depends on the quality work of managers.

Basic approaches to performance evaluation

The most important indicator of the functioning of any organization is the effectiveness of management. Performance criteria can be defined and applied according to several basic approaches:

The target approach, as the name implies, is associated with an assessment of the degree of achievement of the planned result. At the same time, the action becomes much more complicated if the enterprise does not produce any tangible products, but is engaged, for example, in providing various kinds of services. It can also be about overlapping goals. Also, the criteria for evaluating the effectiveness of managing an organization quite often represent a set of formal goals that do not reflect the real state of affairs.
A systematic approach involves considering the management process as a combination of input, direct operation, and output. At the same time, management can be considered both at the highest level and at the middle level. Most often, the system is considered in the context of its adaptation to internal and external conditions, which are constantly changing. No organization can limit itself to just producing products and providing services, because it must act in accordance with market conditions.
The multidimensional approach aims to cover the interests of all groups formed in the organization.
The approach of competing assessments makes it possible to use such criteria for the effectiveness of enterprise management as a control system, as well as internal and external influences. At the same time, the leader quite often faces a mutually exclusive choice.

Evaluation of the effectiveness of personnel management

The criteria for the effectiveness of personnel management include the quality, timeliness, and completeness of the performance of certain work and the achievement of goals. The overall numerical indicator, according to which the performance of employees can be assessed, is the ratio of the achieved indicators to the labor costs for a certain period.

Evaluation of the effectiveness of personnel management is usually carried out in order to assess the feasibility and validity of the introduction of motivational mechanisms or personnel changes. At the same time, it should be borne in mind that personnel costs can be primary (wages) and secondary (social services and other costs provided for at the legislative level).

The work of employees must ensure the achievement of the goal. The criteria for the effectiveness of personnel management are, for the most part, specific indicators that are calculated per unit of production capacity or output.

Evaluation of the effectiveness of the management system

There are the following criteria for evaluating the effectiveness of the management system:

the complexity of the organizational structure and the justification for the expediency of the functioning of each of its links;
the speed of response to newly emerging situations and the adoption of appropriate management decisions;
strategy, in accordance with which the management of the organization as a whole and each of its individual subsystems is carried out;
the costs that fall on the maintenance of the administrative apparatus, as well as their relationship with the results obtained;
results of continuous monitoring of top management activities;
assessment of the impact of the management apparatus on the final result of the enterprise;
the numerical and qualitative composition of the management, as well as the ratio with the total number of employees.

It should be noted that the results of the organization's activities depend not only on the efficiency of the production staff, but also on how well the organizational structure is built. To do this, a periodic check is carried out in order to identify discrepancies, as well as to bring the parameters to modern requirements and standards (the criteria for the effectiveness of management systems are used).

Classification of methods for assessing management effectiveness

Criteria and indicators for assessing management effectiveness can be applied in accordance with the following approaches:

orientation to the definition of the initially set tasks in order to determine the degree of their implementation;
assessment of the effectiveness of the administrative apparatus, as well as the degree of provision of managers with information and other resources;
evaluation of manufactured products or services provided in order to determine the satisfaction of the end user;
involvement of professional experts to identify weak and strong points in the functioning of the organization;
comparative analysis of different points of view of managers or management systems;
involvement of all parties and participants in the management and production process to determine the degree of efficiency.

Evaluation activity can correspond to one of the following types:

forming:
- determination of the discrepancy between the desired and the actual state of affairs;
- assessment of the production process in order to determine the strengths and weaknesses;
- assessment of the degree of achievement of the set goals.
summarizing:
- determination of varieties of products and services that bring real economic benefits in order to eliminate irrational directions;
- study of changes in the well-being of employees and customers as a result of the organization's activities;
- assessment of the ratio of costs to actually achieved economic results.

conclusions

Management effectiveness is an economic category that demonstrates the manager's contribution to the resulting indicator of the organization's performance. The determining indicator here is profit (namely, a comparison of the indicator that was achieved and the one that was noted in the plan for the corresponding period).

Management efficiency is critical for several reasons. The first of them is that a lot of time is spent on training this kind of personnel, and their number is quite large. In addition, top management is characterized by the highest degree of remuneration in the enterprise, which should be economically justified.

Management efficiency can be both economic (recoupment of costs invested in production) and social (degree of satisfaction of the population with quality, quantity, as well as the range of products and services). It is also worth highlighting the internal and external performance separately.

One or more approaches can be used to evaluate the effectiveness of an organization's management. Thus, the target implies an assessment of the result obtained and its comparison with the planned one for the period. If we talk about a systematic approach, then we are talking about the perception of the work of the organization as a holistic process. Multivariate assessment affects all groups that are somehow connected with the activities of the enterprise or are interested in its results. It is also worth paying attention to the approach of competing estimates, which takes into account factors of the opposite direction.

In the course of assessing the effectiveness of management, a number of criteria are used, which can be used alone or in combination. So, the main indicator is the ratio of costs and profits. Also an important role is played by the optimal ratio of production workers and the number of regular management personnel, as well as the costs that are regularly assigned to management. The last indicator is important to correlate not only with the level of profit, but also with the actual volume of production (in physical or quantitative terms). Also, when calculating economic efficiency, it is important to adjust the indicators of the values of the industry coefficient.

It is important to understand that in achieving the success of an enterprise, the main role is played not only by the composition of the production personnel, but the criteria for the effectiveness of management quality are no less important. The correct organizational structure must be selected, which will ensure optimal interaction between all departments of the enterprise, as well as reducing time and communication.

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 at the 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 the broad sense (of the organization as a whole) (more than 60). Among them: profitability, turnover, return on investment, capital intensity, capital productivity, labor productivity, the ratio of wage growth and labor productivity, etc.

General indicators of social efficiency in a broad sense can be:

The degree of fulfillment of consumer orders;

The share of the company's sales in the market, etc.

Particular indicators of social efficiency are:

Timeliness of order fulfillment;

Completeness of order fulfillment;

Provision of additional services;

After-sales service, etc.

The economic efficiency of management (EU) in the narrow sense is characterized by the following indicators. General indicator:

Eu \u003d D / Z,

Where D - enterprise income; Z - the cost of maintaining the administrative apparatus.

Private indicators:

The share of administrative and management expenses in the total cost of the enterprise,

The share of the number of managerial employees in the total number of employees at the enterprise,

manageability rate (the actual number of employees per employee of the administrative apparatus), etc.

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 of management decisions, etc.

Particular indicators of social efficiency include: the degree of technical equipment of managerial work, the turnover of employees in the management apparatus, the qualification level of personnel, etc.

Private indicators that characterize the effectiveness of labor in the field of management also include:

1) reducing the complexity of processing management information;

2) reduction of managerial staff;

Reducing the loss of working time of managerial personnel by improving the organization of labor, mechanization and automation

3) labor-intensive operations in the field of management.

Indirect methods for evaluating the effectiveness of changes in the management system are possible. One of them, the ball point one, was proposed based on the analysis of the Felix-Riggs method.

To track the direction of development, the enterprise must keep a number of factors under control. The degree of approach to the planned state for each parameter will be the degree of achievement of a particular goal. The approach under consideration makes it possible to obtain a total final index by weighing individual indicators using expert assessments. The composition of such indicators is also determined by experts, based on the conditions of a particular enterprise.

If the state of the objects of management at the enterprise is given by the graph of "state indicators", reflecting the degree of achievement of the goals of the objects by their elements: "resources" - "production process" - "product". Then the production criteria selected as part of the controlled parameters in the methodology for assessing the effectiveness of management can be considered as a function of the change in the values of "state indicators":

K j = f (D p i), i = 1, r; j = 1, n

where K j - production criterion;

Dp i - change in the value of "status indicators";

i - index of the "state indicator";

r is the number of analyzed "status indicators";

j - production criterion index;

n is the number of controlled production criteria.

If, according to the Felix-Riggs method, the current value of the j-th production criterion can be displayed by its estimate Q kj, then the value of management efficiency (efficiency gain from improving management functions) can be defined as the difference between the total values of estimates that make up the index I t (at the time t after the introduction of measures to improve management) and the index I 0 (at the initial moment of analysis):

E \u003d I t - I 0

where E is the value of management efficiency.

Thus, the proposed approach to measuring the performance of managerial employees indirectly, through the parameters of the state of production, involves the formation of a system of indicators depending on the individual conditions of the enterprise.

Despite all the difficulties in evaluating the effectiveness of managerial work, theoretical, methodological and methodological techniques for evaluating the effectiveness of individual measures have been developed to a greater extent than management as a whole. Thus, methods are known for assessing the effectiveness of the introduction of new technology, automated control systems, etc.

Determined by the formula:

Where K e- coefficient of efficiency of management improvement;

E year- annual economic effect obtained as a result of the activities;

W- expenses for measures to improve management.

Thus, the economic effect is understood as the absolute value of the result of the economic activity of an entrepreneur (entrepreneurial structure). In its most general form, the economic efficiency indicator can be expressed as follows:

The difference between the resource and cost approaches lies in the fact that with the resource approach, the economic effect is correlated with the value of the acquired resources, and with the cost approach, with that part of the cost of resources that is included in the costs in the period under review. As it was already revealed above, there is no universal indicator characterizing the economic efficiency of entrepreneurship. To assess it, it is advisable to use a system of indicators, including generalizing and partial indicators that characterize the effectiveness of various aspects of entrepreneurial activity, which are systematically presented in Table. 1.

Table 1 - Indicators of economic efficiency of entrepreneurship

Index	Content	Calculation procedure	A comment
Economic indicators
Cost level	Costs for core activities attributable to 1 rub. proceeds	The ratio of the cost of goods sold (products, works) to sales proceeds	Characterizes the efficiency of the business structure
Revenue per employee	Shows how many rubles of revenue fall on 1 employee	The ratio of sales revenue to the average annual number of employees	This is an indicator of labor productivity, which characterizes the efficiency of the use of labor resources
Return on assets of the active part of the OPF	Shows how many rubles of income the use of the cost unit of the active part of the OPF gives	The ratio of sales proceeds to the average annual cost of the active part of the OPF	Characterizes the efficiency of using the active part of fixed production assets
Indicators of financial stability
Debt to Equity Ratio	Shows how much borrowed funds are attracted per 1 ruble of own funds invested in assets	The ratio of all liabilities of an entrepreneurial structure (credits, loans and payables) to equity (equity)	The ratio value must be less than 0.7. Exceeding this limit means dependence on external sources of funds, loss of financial stability
Equity ratio	Availability of own working capital necessary for financial stability	The ratio of own working capital to the total amount of working capital	The lower limit is 0.1. The higher the indicator (about 0.5), the better the financial condition of the business structure
Debt ratio	This indicator reflects the level of financing of assets at the expense of borrowed funds	The ratio of debt financing to the balance sheet currency	The higher the value of the indicator, the higher the level of debt financing and, consequently, the higher the financial risk.
Liquidity indicators
Overall solvency ratio	Sufficiency of working capital that can be used to pay off its short-term obligations	The ratio of current assets (current assets) to current liabilities (short-term liabilities)	From 1 to 2. The lower limit is due to the fact that working capital should be enough to cover their short-term obligations.
Quick liquidity ratio	Forecasted payment possibilities of the business structure subject to timely settlements with debtors	The ratio of cash and short-term securities plus the amount of funds raised in settlements with debtors to short-term liabilities	1 and above. Low values indicate the need to work with debtors in order to ensure the possibility of converting the most liquid part of working capital into cash for settlements with their suppliers (contractors, customers)
Business Activity Indicators
Accounts receivable turnover ratio	Measures how many times accounts receivable can be converted into cash during the analyzed period	The ratio of sales proceeds to the average value of receivables	An increase in the ratio means an increase in the quality and liquidity of receivables. The low value of turnover may be caused by the lengthening of the period of settlements with consumers.
Accounts receivable turnover period	Characterizes the average period of accumulation (the average number of days of receipt of funds for debts)	The number of days in the analyzed period divided by the receivables turnover ratio	If the average period of collection exceeds the period stipulated by the terms of sale, this means that buyers are not paying bills on time
Accounts payable turnover ratio	Measures how many times accounts payable are drawn during the analyzed period	The ratio of sales proceeds to the average cost of accounts payable	The optimal ratio is close to unity. A significant excess of receivables over payables creates a threat to financial stability
Profitability indicators
Gross operating profit ratio	Efficiency of costs for the production and sale of products of the main activity	The ratio of gross profit from operating activities to sales revenue from operating activities	The dynamics of the coefficient may indicate the need to revise prices or strengthen control over the cost of the main products
Return on sales based on net profit	Characterizes the specific value of residual cash in total revenue	The ratio of net profit to sales revenue	Average - 3.2%
Return on assets (ROA)	Determines the efficiency of asset use, estimates the rate of return on investment	The ratio of net profit to the average value of assets	The growth of the indicator indicates an increase in the production efficiency of the business structure.
Return on equity (ROE)	Determines the effectiveness of the use of own funds	The ratio of net profit to the average cost of equity	It is necessary to compare the dynamics of this indicator with the dynamics of ROA. If ROE grows and ROA remains unchanged, then this means an increase in the financial risk of the entrepreneurial structure.
Market indicators
Basic earnings per share	Shows how much earnings per share	The ratio of basic earnings to the weighted average number of ordinary shares outstanding	This indicator affects the market value of shares. In the general case, an increase in the indicator can provoke an increase in the stock price.
Diluted earnings per share	This ratio shows the maximum possible degree of profit reduction (loss increase) attributable to one ordinary share	The ratio of diluted earnings to the weighted average number of ordinary shares outstanding
P/E ratio	Shows the amount that investors are willing to pay for each ruble of net profit	The ratio of the market price of 1 ordinary share (OA) to net profit per 1 OA	In general, the growth of this indicator can be interpreted as a positive attitude of the market towards the prospects of the company

Topic 12. MANAGEMENT EFFICIENCY: WAYS TO INCREASE.

Lecture 20

Management efficiency

Efficiency- a complex concept (there is no clear, generally accepted definition of this term), described by such characteristics as expediency, effectiveness, quality, usefulness, etc.

Efficiency in a systemic sense - characterization of the system in terms of quality, effectiveness and timeliness of achieving its goals, development of the system in the planned direction, subject to the fulfillment of certain criteria indicators and restrictions.In more narrow sensesystem efficiency characterizes the ratio of costs (in the broad sense of the costs of certain resources) and the results of the functioning of the system.

Management efficiencyrepresents a relative characteristic of the performance of a particular management system, which is reflected in various indicators of both the object of management and the actual management activity (subject of management), and these indicators are both quantitative and qualitative.

The effectiveness of management as a control system in a broad sense- this is the expediency and quality of management, aimed at the best performance of the managed system - organization, implementation of goals and strategies, achievement of certain qualitative and quantitative, economic results.

Management efficiency- the effectiveness of management activities, determined by the goals of the organization.

Productivity is an important quantitative characteristic of efficiency. Performanceis the ratio of the number of units in the output to the number of units in the input. Productivity reflects the complex effectiveness of the use of all types of resources (labor, capital, technology, information).

Basic concepts of management effectiveness are:

· labor efficiency of employees of the administrative apparatus;

· efficiency of the management process (functions, communications, development and implementation of management decisions);

· effectiveness of the management system (taking into account the management hierarchy);

· the effectiveness of the management mechanism (structural-functional, financial, production, marketing, social, etc.).

Distinguish external and internal efficiency.

Externalmanagement efficiency determines the effectiveness of management, characterizes the degree to which the organization achieves its goals, reflects the level of compliance of the organizational system with the requirements and constraints of the external environment, as well as efficiency in terms of using external opportunities.

Internalmanagement efficiency is economy, i.e. the ability to distribute and use the available resources in the best (optimal) way to achieve the goals dictated by social needs by the organizational system. It shows how the satisfaction of these needs affects the dynamics of the own goals of the organizational system and individual groups of its participants, while reflecting the effectiveness in terms of the use by the organizational system of all components of the internal environment, including production, financial, investment, human resources, etc. This the indicator also characterizes the effectiveness of the leadership style, type of management, business etiquette and ethics, organizational and corporate culture.

Overall efficiency -efficiency as a composition of its two components: internal and external efficiency;

In economic theory there are two kinds of efficiency: economicAnd social.

Economicefficiency is determined by the ratio of the result obtained to the costs.

Socialefficiency expresses the degree of satisfaction of the demand of the population (consumers, customers) for goods, services.

The effectiveness of an organization is always evaluated in comparison with other organizations.

efficiency quality control management

Signs of the effectiveness of the organization (example)

Sphere (region)Main goalsProduction1. High and uniform capacity utilization 2. Cost minimization 3. Optimum warehousing 4. Minimum staff turnover Finance1. Short-term and long-term profit maximization 2. Low debt 3. Self-financing 4. High interest on capital 5. Ensuring high dividends Sales1. Positive reputation 2. Constant growth 3. High quality 4. High market share 5. Constant readiness for delivery 6. Fastest order fulfillment 7. High turnoverSocial sphere1. Satisfied employees 2. Continuity in employment

Management efficiency factors. The principles, functions and methods of management considered above make it possible to single out the following main factors of management effectiveness:

· timely and constantly adapting to the conditions of the external environment, the mission, goals and strategy of the organizational system;

· strategically oriented, optimal, adaptive structure of the organizational system and all its subsystems;

· in highly qualified, developing, optimally interacting personnel aimed at the effective achievement of the goals of the organizational system;

· and systematic actions of the organization, its management as a mechanism that includes optimized methods, principles, technologies, processes, procedures based on modern information and communication technologies to achieve the desired end states or goals;

· in a high organizational culture, including management style, treatment of people, attention to the client, concern for quality, attention to innovation, etc.

The above factors are general directions for improving the efficiency of management and business.

. Human Resources. Effective management that ensures survival and The long-term success of an organization in a competitive market requires a focus on a person: in terms of the external environment - to the customer (consumer, client, buyer), in terms of the internal environment - to the staff. In modern management, labor resources are considered from the standpoint of human capital. Human capital wisely used for production activities to create products and services, increases the income of a person, enterprise, society.

When considering the problems of management efficiency in terms of human capital, labor resources can be expressed quantitatively, for example, in the form of absenteeism, lateness, number of complaints, loss of working time due to illness, treatment and rehabilitation, hours of vocational training, intelligence assessment tests, erudition, indicators of the intensity of the use of intellectual property, estimates of controlled capital. However, the quantitative assessment of qualified personnel does not reveal the whole picture necessary for effective management, their quality is much more important.

Knowledge.Due to the fact that any knowledge becomes obsolete, it is necessary to constantly analyze the knowledge specialized for a particular business that an organization has. The conclusions of the knowledge analysis should be compared with the marketing analysis data. This allows you to identify missed marketing opportunities, as well as determine the need for new knowledge or to improve existing ones.

Material resources- this is fixed and working capital, including buildings, equipment, technology, materials, financial capital, etc.

Qualified personnel, working capital are the most mobile resources, they can be managed and redistributed in the course of work in the short term. This gives rise to the danger of their incorrect and inefficient distribution. The main principle in relation to scarce, scarce resources and, above all, highly qualified personnel is the maximization of resources. Such specialists should be sent to those areas where the greatest return is likely for each unit of work done. The decision to allocate staff to appropriate capabilities is key to ensuring effective management. The most favorable business opportunities are always realized with the help of the most qualified specialists attracted for this purpose by the management of organizations. Scattering first-class personnel, and not concentrating them on the most promising goal for the company, is unacceptable.

Information. Information commodity markets and markets for intellectual products in a post-industrial society begin to cover all elements of the management infrastructure. In the modern economy, material resources are inferior to information resources. The features of the modern revolution in the innovation sphere, associated with the transformation of intellectual products and information into a commodity, ensure a consistent transition to the information society, in which information becomes the most important resource for effective management. Management is impossible without information about the internal and external environment. Its significance is enormous. The final information about the activities of the organization is a prerequisite and basis for the subsequent comparative measurement of management costs, as well as management results and obtaining appropriate ideas about its effectiveness. To divide their relationship and location on the territory of the firm. The presence of this resource serves as the basis for determining the composition of the fixed capital, service methods and spatial planning of the organization. The possession of this resource is a necessary condition for creating industrial associations, expanding and reconstructing enterprises, diversifying and changing the specialization of production. The space occupied by workplaces should ensure the naturalness of labor actions and techniques, the rational loading of workers and equipment, etc., be sufficient for workers to be able to make all the necessary movements and movements when performing production operations. When there is a lot of it, they usually do not think about it and spend it inefficiently. When it is not enough, the question of efficiency of use rises sharply. Space as a resource largely determines the internal environment of the organization.

Competitive success is largely determined by what spaceeach state creates and maintains for the sectors of the national economy. The unity of the economic space, provided by the state, creates equal conditions for competition and effective management. The division of the single economic space according to the circle of sellers, on a territorial basis, the introduction of restrictions on the import and export of goods, works, services, material and labor resources, the establishment of administrative, economic, organizational, and financial barriers require an improvement in business strategy. Analysis of the business space (macro- and microenvironment of the organization) is an indispensable component of the strategic analysis carried out in order to:

· constant monitoring of the place and position of the organization in the market;

· in determining areas for improving management and business;

· avoidance of crisis situations.

Examples of an organization's dependence on space include obtaining resources from other countries. These resources, being more profitable in terms of prices, quality or quantity, in the long run can cause an increase in environmental factors such as fluctuations in exchange rates or political instability. The most striking example of the constant need to consider space as an important resource and to ensure that the size of the business corresponds to this resource is the wave of mergers and acquisitions, bankruptcies that swept Europe as a result of the emergence of the European Economic Community. The European Union has created a significant imbalance in business size and economic space for many medium-sized firms well suited to meet the needs of their country's limited market. The discrepancy between the size of the business and the space revealed that these firms, in the intensified competition, lack managerial personnel, capital, and marketing resources.

Leaders should keep in mind that the size of an organization radically changes its managerial properties. As a result, management methods and mechanisms that ensure the efficiency of a small enterprise are not suitable for a large organization. Consequently, there is not and cannot be a single effective management, since everything is situational.

P. Drucker singled out seven performance categories management:

) efficiency- the degree of achievement of the organization's goals, i.e. degree of completion of the required work; reflects the result of comparing what they planned to do with what they actually achieved;

) performance- the ratio of the number of units at the output to the number of units at the input; shows the complex effectiveness of the use of resources (labor, capital, technology, information). Productivity is the amount of products produced per unit of time;

) economy- the degree to which the organization uses the necessary resources, i.e. the ratio of the required and actual consumption of resources;

) profitability- the ratio between income and total costs. The criterion of profitability is replaced by many economists with the indicator "efficiency", which characterizes the ratio of results and costs of the organization's activities, i.e. the higher the result (for example, income, profit), the better this or that organizational system works

) quality products- conformity of characteristics of products (services) with standards and requirements of consumers. Product quality determines the totality of properties or characteristics of goods, works or services that give them the ability to satisfy stipulated or implied needs;

) innovative activity- the process of creating, distributing, implementing and using innovations in various (functional) areas of the organization's activities, which provides the organizational system with competitive advantages;

) the quality of the working life of employees - the working conditions of employees, which are manifested in the reaction of the organization's personnel to the socio-economic (psychological, social and economic) working conditions created in it, i.e. represents the degree to which important personal needs of employees are met through activities in the organization.

Considering the problems of effective management, it is necessary to add to these categories such an indicator as management quality, which reflects the ability of the subject of management to meet the needs of the managed system in achieving its best performance in its core activities.

Quality. As an economic category, quality reflects a set of essential properties that characterize the certainty of an object, by virtue of which it is a given, and not another object, and differs from other objects. It is connected with the existence of the object, is inseparable from the object, covers it entirely, reflects the essential features of the purpose of the object or phenomenon, their main function. The essence of this concept is applicable to any activity, including production, economic and managerial. The category of quality is associated with the concepts of "consumer value", "utility", "satisfaction of needs".

In a market economy, quality is determined by demand, which determines the achievement of consumer properties that ensure the satisfaction of needs with the most productive use of the resources available to the organizational system. Thus, a measure of the usefulness of an object or phenomenon should be considered a socially necessary quality.

· in the quality of the final states resulting from the transformation and processing of inputs, including the quality of products (goods, works, services);

· in the quality of work;

· and quality of the main activity of the organizational system;

· management quality.

The interdependence and subordination of these concepts lies in the fact that the quality of labor determines the quality of the main activity of the organizational system, which affects the quality of products. The socially necessary quality of the final states, which are the result of the transformation and processing of inputs, is one of the goals of the main activity of the organizational system. Ensuring this goal becomes a management function, and its implementation is carried out by a management system that is adequate to the goals set. The degree of compliance of the management system with the needs of the managed system in achieving its best performance in its core activities reflects the quality of management.

Quality control. It significantly depends on the internal potential of the organization and shows the effectiveness of its management system, including the level of production, personnel, logistics and marketing systems, the optimal structure of business processes and organizational structure, the degree of adequacy of the functioning of all systems and subsystems of the organization to its goals and objectives, the possibility these systems to improve. The quality of management is evaluated according to the following main parameters:

speed of making important decisions. The course of time usually determines the possibility of a prompt response of the management system to a change in the market situation. Decisions should be made and put into practice as long as the information and assumptions on which decisions are based remain relevant and accurate. In business, there are cases when, due to slow decision-making, the desired action is delayed, which leads to the loss of communication with partners, the loss of lucrative contracts, etc.;

justification for making important decisions. An effective decision is a balanced, reasonable and rational choice of an alternative. It is carried out on the basis of the diagnosis of the problem, determination of the essence of the restrictions and decision-making criteria, evaluation of alternatives. This provides a significant part of the success of the organizational system. Otherwise, the result is often expressed as a waste of resources. Restrictions vary and depend on the situation and individual leaders. Most often, insufficiently informed decisions are made in the areas of advertising, personnel selection and business projects, in which every manager considers himself a professional;

real delegation of authority. The management system works effectively if the subordination relationships between people and organizational units are clearly defined, coordinated and established, i.e. horizontal and vertical interaction of all links has been established. Delegating a significant amount of authority to the lower levels of the hierarchy is the main process by which leaders establish the formal relationships of people in the organization. With such interaction of all links, the long absence of the top leader does not slow down the activity of the organizational system;

- the possibility of delegation of authority. The assessment of the ability of top management to delegate authority is due to the fact that the limits of authority are expanding towards higher levels of management of the organization. Much of the authority of the manager is determined by the traditions, mores, cultural stereotypes and customs of the society in which the organization operates. At the same time, there are many different restrictions on powers. This circumstance indicates that there may not be real delegation at a particular stage of the development of the enterprise, but it may be required during further development. At the same time, it must be taken into account that there are a number of reasons why managers may be reluctant to delegate authority, and subordinates may shy away from additional responsibility. Some of these reasons are deeply rooted in human behavior and are the result of individual psychology. The possibility of effective delegation is ensured through a clear exchange of information, the implementation of the principle of correspondence between powers and responsibilities, as well as the use of positive incentives;

- - control of implementation of decisions. Since the manager has the opportunity to choose decisions, he is responsible for their implementation. The adopted decisions are submitted to the executive bodies and are subject to control over their implementation. In the process of monitoring the progress of the implementation of the decision, the necessary adjustments are made and an assessment of the result obtained from the implementation of the decision is given;

- system of rewards and punishments. It is designed to improve the efficiency of personnel activities aimed at achieving the goals of the organization. In order to effectively motivate their employees (i.e., create an internal drive to act that results from a complex set of ever-changing needs), a manager must determine what those needs really are and provide a way for employees to satisfy those needs through good performance. The system of rewards and punishments significantly affects the psychological climate that exists in the organization;

- permeability of information "down". This is the effectiveness of inter-level communications in the organizational system. Information moves within the organization from level to level within vertical communications. The quality and quantity of information transmitted downstream, i.e. from the highest levels to the lowest, determines the effectiveness of the execution of management tasks at all levels of the hierarchy. In this way, the subordinate levels of the control system are informed about current tasks, changes in priorities, specific tasks, recommended procedures, etc. (in practice this is not always the case). This ensures the conscious execution of instructions by the staff on the basis of their own ideas about the goals of the received tasks, increases the likelihood of achieving a positive result. Staff always have their own ideas about the purpose of the assignment, but how accurate they are depends on the information coming “down”;

- permeability of information "up"". The transfer of information within the framework of vertical communications from the lower levels of the hierarchy to the higher levels significantly affects performance. Upward communication is feedback that serves to alert the "top" about what is being done at the lower levels. In this way, management learns about current or emerging problems and suggests possible options for correcting the situation. With the complete absence of feedback, the control is helpless, with serious restrictions, it loses quality;

- personnel policy. This is a system of rules and norms that have developed in the organizational system and are aimed at ensuring harmonious and effective (in the interests of the organizational system and personnel) inclusion of employees in the life of the organization;

- quality of activity planning. It reflects the effectiveness of the consistent actions of all members of the organization aimed at achieving the overall goals of the organizational system, including actions to implement strategic, current or operational planning and develop targeted programs. The planning function involves deciding what the goals of the organizational system should be and what its members should do to achieve these goals, and also determines where the organizational system is currently located, where it wants to go, how it is going to do it;

leadership. This is the perception by the staff of the top manager as a leader worth following; the ability of the manager to carry the workforce along with him in the direction of achieving the goals of the organization. To a large extent determines the possibility of innovation.

. Quantifying Efficiencymanagement in many ways difficultdue to the specific features of managerial work.

One of the famous approaches to performance evaluationmanagement consists in using 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, generalizing indicators and a system of private indicators of economic and social efficiency are used to characterize efficiency.

The most typical way to determine the economic efficiency of management improvement measures is to calculate the annual economic effect obtained from their implementation and compare it with the costs of these measures. Justification of the economic efficiency of improving the management of enterprises should be supplemented by an assessment of their social efficiency.

The methodology for calculating the economic effect depends on what activities are carried out and which subsystem of the management system they belong to - "input", "transformation process" or "result".

Investment efficiencycalculated according to the indicators summarized in the system. These include:

indicators of commercial (financial) efficiency, reflecting the financial consequences of the project implementation for its direct participants;

indicators of budgetary efficiency, reflecting the financial implications for the federal, regional and local budgets;

indicators of economic efficiency, taking into account costs and results.

Improving performance indicatorsactivities of the company is possible as a result of the development and implementation organizational and technical measures, which comprehensively reflect efficiency factors that can be combined into two groups:

measures to increase the result of the organization's activities;

measures for more economical use of resources (resource saving, cost reduction of the company).

To determine the effectiveness of management, specific approaches and techniques are needed, so their basics are outlined below.

Indicators of management efficiency and approaches to their determination.

To assess the economic efficiency of management in a broad sense, summary indicators. Until recently, to characterize the economic efficiency of the management system at the 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.

Private indicatorsthe economic efficiency of management in the broad sense (of the organization as a whole) is very high (more than 60). Among them: profitability, turnover, return on investment, capital intensity, capital productivity, labor productivity, the ratio of wage growth and labor productivity, etc.

General indicators of social efficiency in a broad sense can be:

the degree of fulfillment of consumer orders;

share of the company's sales in the market, etc.

Private indicators of social efficiency are:

timeliness of order fulfillment;

completeness of the order;

provision of additional services;

after-sales service, etc.

Economic efficiency of management (Eat) in a narrow sense, characterize the following indicators:

summary indicator

E At =D/Z,

Where D- income of the enterprise;

Z - the cost of maintaining the management apparatus;

private indicators :

the share of administrative and management expenses in the total cost of the enterprise,

the share of the number of managerial employees in the total number of employees at the enterprise,

manageability rate (the actual number of employees per employee of the administrative apparatus), etc.

TO private indicators, characterizing the efficiency of labor in the field of management, also include:

reducing the complexity of processing management information;

reduction of managerial staff;

reducing the loss of working time of managerial personnel by improving the organization of labor, mechanization and automation of labor-intensive operations in the field of management.

General indicators social efficiencyin the narrow sense are: the share of decisions taken at the suggestion of the employees of the labor collective; the number of employees involved in the development of a management decision, etc.

TO private indicators of social efficiencyinclude: the degree of technical equipment of managerial work, the turnover of employees in the management apparatus, the qualification level of personnel, etc.

Let's take a closer look at options for determining a generalizing indicator of the economic efficiency of managerial work.

Classic method determination of economic efficiencyincludes the ratio of economic results of labor to labor costs . Since the direct assessment of labor results in management is limited, an indirect assessment is used, including the determination of the specific contribution of employees to the final performance indicators of the management apparatus, implemented in the final results of the managed object.

The indicator for a comparative assessment of management efficiency reflects the following ratio:

Eat= Pat/ Uh

Where Eat - management efficiency;

Rat - effectiveness of management;

At3 - unit management costs.

As the first component of the management effectiveness indicator, we can recommend two indicators: growth (growth) of labor productivity and the ratio of growth rates of labor productivity and capital-labor ratio.

When comparing control systems, preference is given to a system with a higher efficiency indicator.

Of particular interest is approach to the indicator of the effectiveness of collective managerial work(E)which is a modification of the main method given earlier:

E \u003d W / W pl + F vol + E * F os

Where IN -volume of final products, rub.;

WT - the cost of paying employees, rub.;

F o6 - current costs for working capital, rub.;

Fand - cost of fixed industrial and production assets, rub.;

E -coefficient of efficiency of production assets (normative can be used).

Private methods for determining the effectiveness of management.

Management Improvement Efficiency Ratio

Ke = Eg / Zu

Where EG - annual economic effect obtained as a result of the activities;

Wat - expenses for measures to improve management.

The annual economic effect can be calculated using the formula

E G = C - Zu * E n ,

Where WITH- annual savings from measures to improve management;

EAnd - industry normative coefficient of efficiency.

Justification of the economic efficiency of improving the management of enterprises should be supplemented by an assessment of their social efficiency.

Social efficiency is 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 and life of the population, maintaining and strengthening human health, facilitating and increasing the content of his work.

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