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An indicator characterizing the effectiveness of labor in the field of management. Indicators and criteria for management effectiveness

To assess the effectiveness of management, the concepts of "efficiency in the broad sense" and "efficiency in the narrow sense" can be used. 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 particular indicators of economic and social efficiency are used to characterize efficiency.

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); among them are profitability, turnover, return on investment, capital intensity, capital productivity, labor productivity, the ratio of wage growth and labor productivity, etc.

General indicators 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.

private indicators social efficiency are:

Timeliness of order fulfillment;

Completeness of order fulfillment;

Provision of additional services;

After-sales service, etc.

The economic efficiency of management (E y) in the narrow sense is characterized by the following indicators:

1. General indicator:

where D is the income of the organization;

3 - the cost of maintaining the management apparatus.

2. Partial indicators:

The share of administrative and management expenses in the total cost of the organization;

The share of the number of managerial employees in the total number of employees in the organization;

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

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

1) reducing the complexity of processing management information;

2) reduction of managerial staff;

3) 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.

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 a management decision, 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 methods for determining the effectiveness of management. Due to the complexity of assessing the effectiveness of managerial work, methods for assessing the effectiveness of individual activities have been developed to a greater extent.

ty than management in general. Thus, methods are known for assessing the effectiveness of the introduction of new technology, automated control systems, etc.

The most typical definition economic efficiency of measures to improve management is the accrual of the annual economic effect obtained from their implementation, and comparing it with the costs of these activities. The coefficient of efficiency of management improvement is determined by the formula

where E year - the annual economic effect obtained as a result of the activities; C 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 normative coefficient of efficiency.

For an approximate assessment of the effectiveness of ongoing measures to improve management, the indicator of the coefficient of overall efficiency of the KE is also used (similar in its meaning to Кe - the coefficient of efficiency of improving management):

where DE is the total savings resulting from the implementation of measures to improve management, rub.; 3 „ - total costs for improving management.

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 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 of the population, maintaining and strengthening human health, facilitating and increasing the content of his work.

The calculation and analysis of the dynamics of the above indicators not only allow us to assess the effectiveness of the organization, but

and identify those aspects that are its weak point, directing efforts to solve its priority problems.

Improving the performance indicators of the organization is possible as a result of the development and implementation of organizational and technical measures that comprehensively reflect the efficiency factors. In this regard, you can use the classification of efficiency factors at the organization level, presented in Fig. 15.1 (p. 220). An analysis of approaches to determining the most important areas for improving the efficiency of an organization's activities allows us to combine them into two groups 1:

1) activities related to the growth of the result of the organization's activities;

2) measures related to the reduction of resource costs (resource saving, 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 management improvement projects (efficiency assessment) can be carried out in accordance with the Guidelines for evaluating investment projects and their selection for financing, approved by the State Construction Committee of Russia, the Ministry 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.

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

Budget performance indicators reflecting the financial implications for the federal, regional and local budgets;

Economic efficiency indicators that take 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 for cost measurement.

The basis for evaluating the effectiveness of projects is the definition and correlation of costs and results from their implementation. When evaluating 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

Rice. 15.1. Classification of efficiency factors

account assignment) of indicators to the value of the moment of comparison, since cash receipts and expenses in different time periods are not equivalent.

Thus, the effectiveness of management is the effectiveness of the actions of people in the process of achieving the goals of the organization.

test questions

1. What is management effectiveness?

2. What is management efficiency?

3. What is the relationship between the concepts of "management effectiveness" and "management efficiency"?

4. What is the criterion for the effectiveness of managerial work.

5. What are the difficulties in quantifying the results of managerial work?

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 efficiency.

9. Name the ways of growth of economic efficiency of management.

WORKSHOP

Chapter 1. Essence, stages of development and characteristic features of modern management Questions for discussion

1. Management as a kind of human activity.

2. 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 (there may be several in each test). The correct answers should be circled, and in the tables - ticked.

1 . The following are a number of definitions of management. Choose what
which most fully reveals the content of management
and 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 goals, using
zuya work, intellect, motives of behavior of other people;

d) management is the performance of the functions of planning, organizing
zation, 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) staff training;

b) interaction of people;

c) ensuring effective and efficient work of personnel
to achieve the goals of the organization;

d) finding the forms and methods of managing the rational use of all the resources of the organization?

3. The schools of management are listed below. Specify them chrono
logical order:

a) administrative school of management;

b) school of scientific management;

c) behavioral school;

d) school of human relations;

e) quantitative school of management;

f) modern approaches to management.

4. Which of the following characterizes the features of
temporary management:

a) a person is considered as one of the factors of production;

b) people are considered as the main resource of the organization;

c) the firm is considered as a closed system;

d) the firm is viewed as an open system;

e) the focus of the organization's work 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
imagining scientific ideas and results and perceived practice
tick control?

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) transition to a polycentric economic system;

d) a combination of market and administrative methods of management
public sector enterprises;

e) self-government of non-state sector organizations as
open socially oriented systems?

Exercise

Give examples confirming the position that management is a profession. On specific examples, show the differences between managerial work and other types of work.

Chapter 2. Organization as an object of management Issues for discussion

1. Organization is an open system.

2. The internal environment of the organization.

3. The external environment of the organization.

4. Life cycle of the organization.

Tests

1. Which of the following characterizes an 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 changing environmental factors?

2. Which of the listed organizations are commercial
skim:

a) limited liability companies;

b) limited partnerships;

d) joint-stock companies;

e) public organizations;

f) production cooperatives;

g) state and municipal unitary enterprises?

3. Which of the following applies to the internal environment of an organ
tions:

a) the management structure of the organization;

b) technical progress in the industry;

c) the purpose of the organization;

d) organization personnel;

e) economic policy of the state;

e) objectives of the organization?

4. Which of the following factors is related to the environment
organizations of direct influence:

a) consumers;

c) competitors;

d) suppliers;

e) technical progress;

e) shareholders?

5. Which of the named factors of the external environment of the organization from
rush to factors of indirect influence:

a) state policy;

b) legal environment;

c) infrastructure;

d) natural and geographical conditions;

e) financial and credit policy;

e) commercial enterprises?

6. Compliance with which of the following conditions helps with
maintain the normal functioning of the organization and reduce
sew the risk of bankruptcy:

a) avoid being overly optimistic when things seem to be going well
successfully;

b) develop and implement quality plans for the brand
tingu with clear goals;

c) constantly expand the scale of production;

d) systematically make sound cash forecasts;

e) keep pace with market needs;

e) timely identify critical points that may
pose a threat to the business?

Exercise

Try to do a life cycle analysis of an organization you know.

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.

Private indicators characterizing 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 control objects 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.

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.

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 evaluate it, it is advisable to use a system of indicators, including generalizing and particular indicators that characterize the effectiveness of various aspects of entrepreneurial activity, which are systematically presented in Table. one.

Table 1 - Indicators of economic efficiency of entrepreneurship

Indicator	Content	Calculation procedure	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 asset financing from 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 receivables can turn 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 collection period exceeds the period stipulated by the terms of sale, this means that buyers are not paying their 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 the use of assets, estimates the rate of return on investments	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.

An analysis of the category of efficiency of the factors that determine it, the content and results of managerial work allows us to conclude that adequate content and forms of manifestation of efficiency are groups of indicators that can act as a measure, a criterion of efficiency, depending on the purpose of the organization and the conditions of its functioning. Each variant of the control system corresponds to a certain value of the efficiency criterion, and the task of control is to find such a variant of control in which the corresponding criterion takes the most advantageous 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 private indicators of the use of certain types of resources - labor, fixed assets, investments.

Indicators of profit and profitability most fully characterize the final results of activities, respectively, and management efficiency. At the same time, it is necessary to exclude the influence on profit of factors not related to the activity of this economic unit. Generalizing (general) indicators 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. To do 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 intensity of products, and the efficiency of the use of fixed assets - by the indicator of capital productivity.

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

Quantitative performance indicators of the management system include:

A set of labor indicators - saving 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 management cycles as a result of the introduction of information technologies, organizational procedures).

Of particular importance are indicators of the social effectiveness of management (qualitative): raising the scientific and technical level of management; level of integration of management processes; professional development of managers; increasing the level of validity of decisions made; formation of organizational culture; system manageability; job satisfaction; winning public trust; strengthening the social responsibility of the organization; environmental consequences.

If, as a result of management rationalization, 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 today requires the organization of economic activity of enterprises in market conditions, one should single out the problem of forming an effective management system, taking into account changes in the external and internal environment. At present, quite 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 units, 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 strict 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 that the enterprise, in a competitive environment, achieves 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.

Absolute efficiency, calculated for each analyzed object, characterizes the total effect that results from the improvement of the production management system. Comparative efficiency makes it possible to determine the advantages of one option compared to another, as well as the degree to which the selected option approaches the optimal one.

In the most general form, the effectiveness of a control system is the ratio of the effect obtained as a result of its improvement to production costs. Therefore, the main task of economic analysis in enterprises is to identify the effect, which should be determined primarily 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 the economic and social effect can be given a natural or cost estimate. 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 phenomenon being assessed, be universal and easy to use, give an unambiguous and complete assessment. Taking into account the specified requirements, the indicators characterizing the management system include:

* coefficient of rhythm of production;

* coefficient of efficiency of the control apparatus;

* coefficient of quality of performance of managerial functions;

* coefficient of operational efficiency of the control apparatus;

* frame stability factor.

Along with general efficiency criteria, it is also necessary to identify particular criteria that would help at various stages of designing a management system to determine the most effective directions for the development and implementation of measures to improve it. These indicators include:

* coefficient of use of working time;

* coefficient of use of qualification;

* coefficient of working conditions.

At the same time, all the above indicators should not exclude, but complement each other.

The choice of the best version of the management system is a complex task, which can be solved only through a deep organizational, technical and socio-economic analysis of production as a whole. Therefore, 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 is manifested 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.

Introduction

1. Theoretical part

1.1 The essence of management effectiveness

1.2 Criteria and indicators of management effectiveness

1.2.1 Quantitative performance indicators

1.2.2 Qualitative performance indicators

1.3 Economic evaluation of management effectiveness

1.4 Influence of culture on organizational performance

2. Practical part

Conclusion

Bibliography

INTRODUCTION

Traditional economic theory assumes that in the organization of the work of any enterprise it is necessary to compare the costs and results of work, to apply certain indicators. At the same time, the criterion for the effectiveness of management as a whole is maximizing productivity and minimizing costs. Moreover, this should be given the closest attention when it comes to successful economic activity, promotion in the market, and achieving superiority over your competitors.

Management efficiency is a complex, multifaceted category. It reflects the characteristic features of economic, social and other phenomena. An analysis of the category of efficiency, factors determining it allows us to conclude that adequate content and forms of manifestation of efficiency are groups of indicators of economic efficiency, which can act as a measure, a criterion for the effectiveness of the organization. An analysis of the category of efficiency, factors determining it allows us to conclude that adequate content and forms of manifestation of efficiency are groups of indicators of economic efficiency, which can act as a measure, a criterion for the effectiveness of the organization. As a criterion for the efficiency of production and management, private indicators of the use of certain types of resources are used: material resources, fixed production assets, capital investments, labor productivity, which characterizes the economic activity of personnel, and general indicators that characterize the final results. Improving the performance of the 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 effectiveness

The concept of management efficiency largely coincides with the concept of the efficiency of the organization's production activities. However, production management has its own specific economic characteristics. The level of efficiency of the managed object acts as the main criterion for the effectiveness of management. The problem of management efficiency is an integral part of management economics, which includes consideration of:

· Managerial capacity, i.е. the totality of all resources available and used by the management system. 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;

· Efficiency of management, i.e. the effectiveness of people's actions in the process 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 managed and control systems, i.e. integrated result of the interaction of control components. Efficiency shows the extent to which the governing body implements the goals, achieves the planned results. The effectiveness of management is manifested in the efficiency of production, is part of the efficiency of production. The results of the action, correlated with the goal and costs, are the content of efficiency as a managerial category.

A number of factors influence the effectiveness of a manager's activity: the employee's potential, his ability to perform certain work; means of production; social aspects of the activities of the staff and the team as a whole; organization culture. All these factors act together, in an integration unity.

Thus, the effectiveness of management is one of the main indicators of improving management, determined by comparing the results of management and the resources spent to achieve them. It is possible to evaluate the effectiveness of management by comparing the received profit and management costs. But such a simplified estimate is not always correct, because:

1) the result of management is not always in profit;

2) such an assessment leads to a direct and indirect result, which hides the role of management in achieving it. Profit often acts as 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 evaluating the effectiveness of a management system is the choice of a basis for comparison or determining the level of efficiency, which is taken as normative. One of the differentiation approaches is reduced to comparison with indicators that characterize the effectiveness of the organizational structure of the reference version of control systems. The reference version can be developed and designed using all available control system design methods and tools. The characteristics of this option are accepted as normative. A comparison can also be applied with performance indicators and characteristics of the management system chosen as a benchmark that determines the acceptable or sufficient level of efficiency of the organizational structure.

If management activity fully or partially solves the 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 is called efficiency, showing the price that had to be paid for the result obtained (for this it is correlated with 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 more than the costs, 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 momentary benefits does not leave resources for its development in the future.

Management efficiency can also be spoken of as potential or real. Potential efficiency is estimated preliminary, while the real one 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 also legitimate to evaluate their effectiveness.

It should be noted that there is no one-to-one correspondence between profitability and profitability. Highly economical management can be ineffective in terms of achieving the goal itself, leading away from it, and effective management can be uneconomical if the goal is achieved at too high a price.

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 of the ratio between the results obtained and the costs associated with them is called the economization of activities. In practice, it is far from always possible, and often its stabilization and even the reverse process takes place.

The economization of management itself is achieved in several ways:

1) cost reduction with the same results;

2) an increase in the result with a smaller increase in costs;

3) increase in results while reducing costs (the most favorable option);

4) a decrease in the result with an even greater reduction in costs.

Thus, the economization of management is by no means always associated with an increase in profitability, since the absolute result can even be reduced. Therefore, the criterion of profitability is taken into account only when assessing the achievement of a specific management goal, regardless of other tasks.

Management efficiency can be defined in general terms or in relative terms, for example, as the ratio of the goal and the result obtained (the degree of 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 terms, say , in the mass profit.

In practice, management efficiency can be measured both by general indicators that characterize the work of the company (labor productivity, profitability, production growth, etc.), and by specific ones (cost savings by streamlining information flows, reducing the proportion of managers in the staff, reducing the number of management levels). etc.).

Effective management is consistent with the purpose and strategy of the organization.

Effective management activities must be timely, which requires the choice of the most appropriate moment to start it, the optimal sequence of individual stages, the exclusion of unjustified interruptions and loss of time. It is difficult to overestimate the importance of taking these circumstances into account in the conditions of constant complication of economic 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 hinder his creative possibilities.

A significant increase in the effectiveness of management activities is achieved when members of the organization identify its goals with their own, actively participate in management, and this is possible only at a high level of maturity, both individually and as a team.

Effective management also requires the formation of reliable communications that make it possible to provide all participants in the management process with the necessary information in a timely manner, maintain an appropriate level of exchange of it, and a favorable moral and psychological climate.

To assess the effectiveness of management, it is important to determine the compliance of the management system and its organizational structure with the management object. This finds expression in the balance of the composition of the functions and goals of management, the correspondence of the number of employees to the volume and complexity of work, the completeness of providing the required information, the provision of processes for managing technological means, taking into account their nomenclature.

1.2 Criteria and indicators of management effectiveness

An analysis of the category of efficiency, the factors that determine it, the content and results of managerial work allows us to conclude that adequate content and forms of manifestation of efficiency are groups of indicators that can act as a measure, a criterion of efficiency, depending on the purpose of the organization and the conditions of its functioning. Each variant of the control system corresponds to a certain value of the efficiency criterion, and the task of control is to find such a variant of control in which the corresponding criterion takes the most advantageous value.

Indicators of profit and profitability most fully characterize the final results of activities, respectively, and management efficiency. At the same time, it is necessary to exclude the influence on profit of factors not related to the activity of this economic unit. Generalizing indicators 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. To do this, private indicators are used. Thus, 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 intensity of products, and the efficiency of the use of fixed assets is an indicator of capital productivity. 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).

1.2.1 Quantitative performance indicators

Quantitative performance indicators of the management system include:

· a set of labor indicators - saving of living labor in the field of management (number, reduction of labor intensity of management processes), etc.;

· financial performance of the management system (reduction of management costs, etc.);

· indicators of saving time (reduction of the duration of management cycles as a result of the introduction of information technologies, organizational procedures).

1.2.2 Qualitative performance indicators

Of particular importance are indicators of the social effectiveness of management (qualitative):

· raising the scientific and technical level of management;

level of integration of management processes;

· professional development of managers;

raising the level of validity of decisions made;

formation of organizational culture;

system manageability; job satisfaction;

gaining public trust;

strengthening the social responsibility of the organization;

environmental consequences.

Due to the fact that the improvement of organization management, the introduction of computer information technologies require certain capital investments, investments, the economic efficiency of management improvement projects (efficiency assessment) can be carried out in accordance with the "Guidelines for the evaluation of investment projects and their selection for financing", approved Gosstroy of Russia, Ministry of Economy of the Russian Federation, Ministry of Finance of the Russian Federation, Goskomprom of Russia March 31, 1994. (No. 7-12/47).

According to the Guidelines, when evaluating the effectiveness of investment projects, the following are used: commercial (financial) efficiency, which determines the financial consequences of the 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 for cost measurement. The basis for evaluating the effectiveness of projects is the definition and correlation of costs and results from their implementation. When evaluating 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 not equivalent.

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 potential production possibilities to the actual value of its use. Relative efficiency is defined as the ratio of the total effect of management to costs.

1.3. Economic evaluation of management efficiency

Economic efficiency indicators

In general, the effectiveness of management activity (E) is expressed by the following formula:

where R - the result of the functioning of the control system (the resulting 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, 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.

The indicator of the efficiency of the use of material resources(E m) characterizes the material consumption of products:

where: MZ - material costs; VP - the cost of output.

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.

The indicator of the efficiency of the use of fixed production assets (E f) usually determined by their return on assets.

where: OF - the cost of fixed production assets; VP - the cost of output.

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.

Indicator of the effectiveness of capital investments (E p) is the payback period for the capital investment.

where: K - the volume of capital investments; ∆P 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 activities (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.

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 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 - estimated profit, i.e. profit remaining at the disposal of the enterprise; C - costs associated with the creation and replenishment of fixed and working capital.

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.

The dynamic indicator of management effectiveness can be represented as follows:

Coefficient E md shows how many rubles for the period under review the final indicator (profit) changes when management costs change by 1 rub. It reflects the dynamics and 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 management efficiency, expressed as a percentage:

where: E 1 and E 2 - economic efficiency of enterprise management, respectively, in the base and given years.

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. An 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, and determining ways to improve.

1.4 Influence of culture on organizational performance

Organizational culture is important for the effective operation of an enterprise. Organizational culture is usually understood as the atmosphere or social climate in an organization.

The concept of “culture” of an organization includes ideas, beliefs, traditions and values that are expressed in the dominant management style, in the methods of motivating employees, the image of the organization, etc. It is known that organizations differ in their atmosphere, methods of performing work, degree of activity, individual goals - and all these factors depend on the history of the organization, its traditions, its present position, production technology, etc. In this sense, the culture of a factory differs from the culture of a bank and the culture of a trading company. The usefulness of defining the culture of an organization is the fact that people can get along better in an organization or even predict the behavior of its members if they understand its culture. It is not always easy to understand 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 ownership; technologies that determine the production and management structure of the enterprise and the various characteristics of specialists (“blue-collar” / “white-collar”, skilled, unskilled workers); bright events from the life of the organization that become its folklore.

In recent years, interest in the culture of the organization has increased dramatically. This is due to the increased understanding of the impact that the phenomenon of culture has on the success and effectiveness of the organization. Numerous studies show that thriving companies are characterized by a high level of culture, which is formed as a result of deliberate efforts aimed at developing the spirit of the corporation, for the benefit of all parties interested in its activities.

An economic organization is a complex organism, the basis of the life potential, which is the organizational culture: that for which people became members of the organization; how the relationship between them is built; 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 many other things that relate to values and norms. All this not only distinguishes one organization from another, but also significantly determines the success of the functioning and survival of the organization in the long term. People are the carriers of organizational culture.

From a management perspective, the culture of an organization is the way work is done and the way people in the organization are treated. Often, culture is the only predictor of an organization's long-term behavior, a reflection of its values and beliefs, strengths and weaknesses.

There is usually no universal approach to developing a common organizational culture. Modern theories, which have emerged in a more dynamic environment, highlight 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 certain relationship 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 the population and organizations with a wide range of telecommunication services, including services of local and intrazonal telephone communication, high-speed Internet access using xDSL technology, data transmission, wire and terrestrial radio broadcasting, provides broadcasting of cable television programs, and also provides connection services and services. for passing traffic to other telecom operators. The quality management system of CenterTelecom OJSC is certified for compliance with the requirements of the state standard GOST R ISO 9001-2001 (international standard ISO 9001:2000). The company is actively developing broadband multiservice backbone networks and subscriber access networks based on the most modern telecommunication technologies.

As initial data, let's take an excerpt from the company's annual report for 2007 (Table 1).

Table 1.

Let's calculate the figures for 2007:

Calculate the indicator of the efficiency of the use of material resources:

Material resources were used by 6%.

Let's calculate the efficiency indicator of the use of fixed production assets:

The main production assets were used by 97%.

Calculate the indicator that characterizes the effectiveness of the personnel:

This indicator characterizes labor productivity.

Those. revenue exceeds costs by 35%.

Let's calculate the figures for 2006:

those. material resources were used by 7%.

The main production assets were used by 90%

Let's calculate the general indicator of the company's activity:

Those. revenue exceeds costs by 33.9%.

Let's compare management performance indicators for 2006 and 2007:

In 2007, compared to 2006, the use of material resources was reduced by 1% due to the resource-saving policy.

The return on assets in 2007 was higher than in 2006 by 7%, i.е. in 2007 the main production assets were used most effectively.

The efficiency indicator of personnel activity shows that in 2007 the labor of employees was most effectively used, a larger percentage of profit falls on one employee. And the number of employees has decreased compared to 2006.

The generalizing indicator of profitability indicates that in 2007 the company performed better than in 2006; the rate of return is higher.

Calculate the growth rate of management efficiency:

where: P o, P b - final indicators (profit) of the enterprise, respectively, in the given and base years; R o, R b - expenses, respectively, in the given and base years.

Coefficient E md shows how many rubles for the period under review the final indicator (profit) changes when expenses change by 1 rub. It reflects the dynamics and 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 effective.

Conclusion

Management efficiency, 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 evaluation 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 managerial activity and characterizes the degree of use of the potential capabilities of the team to achieve the mission of the organization.

Bibliography

1. Ansoff I. Strategic management: Translated from English. - M.: Economics, 1989.

2. Management: Textbook for universities / M.M. Maksimtsov, A.V. Ignatiev, ed. MM. 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 of modern management. T. 1-5. - M., 1992.

6. Internet-resources: www.ctlf.lipetsk.ru – site of CenterTelecom OJSC.

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 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 work 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, and 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

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. An 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.

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 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 effectiveness of management.

Social performance indicators

Evaluation of social efficiency reflects the social result of managerial activity and characterizes the degree of use of the potential capabilities of the team to implement 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.

The following classification of activities associated with 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.

An indicator characterizing the effectiveness of labor in the field of management. Indicators and criteria for management effectiveness

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