PRACTICAL ASPECTS OF EVALUATING THE EFFECTIVNESS OF THE INDUSTRIAL ENTERPRISE MANAGEMENT SYSTEM

Abstract

It is necessary to differentiate when considering the effectiveness of the organization’s management system: the organizational structure of management as a formalized descriptive scheme for the distribution of tasks and responsibilities and the organizational management system as approaches, methods used in the relationship between the object and the subject of management. The article provides assessment tools in the case of considering the efficiency of the functioning of the managed system as a whole or its elements: comparison of the market value of the organization and the book value of its assets or equity; comparison of the amount of revenue, net profit, industry average profitability indicators and indicators of a particular organization; comparison of non-financial indicators, for example, market share, labor productivity, employee satisfaction, etc. It is shown that index and coefficient methods are used to assess the effectiveness of management in the narrow sense as the effectiveness of the actual management activity. The method for assessing the effectiveness of an organization’s management system is proposed. The results of practical research on the proposed method are shown on the example of domestic and foreign industrial enterprises.

Keywords

• organizational structure
• organizational design
• control system
• efficiency
• assessment methodology
• management activities
• management personnel
• industrial enterprise