Improving the Management of the Effectiveness of the Enterprise Functioning

Abstract

The article considers the issue of development of enterprise, its current status, and role of performance management of its activity. It is determined that the effectiveness of enterprise is measured through a number of certain indicators: the result (profit), achievement of the set goals, effective work according to a number of other indicators (fixed assets, current assets, etc.), that is, the achievement of high/sufficient indicators of functioning. Apart from this, the article does not aim to obtain the complete list of these performance indicators. The study moreover consisted in the development of modern recommendations for enterprises, as business units, to improve the management of the effectiveness of their functioning. More precisely, effectiveness can be achieved through effective management of the operating system, that is, financial, labor, material and other resources, based on a skillful current and strategic planning, forecasting, monitoring, diagnostics, analysis of activities, and making the right managerial decisions. Therefore, the article among managerial measures proposes the use of financial planning, which is a key prerequisite for achieving high results regarding the enterprise’s activities. It is also proposed to improve performance through a number of the following implementations/improvements: use of both traditional and novel communication approaches and technologies; introduction of quality management principles into the system of management of effectiveness of the enterprise. The next logical step to improve the proposed management is the development of a balanced management system, which should include the following main subsystems: strategic planning; monitoring the implementation of the strategic course; attraction of resources; use of organization resources; coordination of business processes; control in all areas of the enterprise’s activities; goal-orientation of the enterprise; decision-making; staff motivation; delegation and distribution of responsibility; evaluation of the enterprise’s performance; forecasting the enterprise’s activities; staff training. These systems are proposed to be updated periodically. The article proposes to introduce interim management, which is aimed at achieving a positive result in business.

Keywords

• result
• management
• effectiveness
• interim management
• financial planning
• principles of quality management
• improvement.