Evaluation of the effectiveness of managerial decisions on the basis of the program of sustainable development of the enterprise

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2020-07-03 02:30:12

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Sustainable development of the enterprise (economic organization) is considered as a quality of functioning when it is able to retain its economic integrity and independence and to achieve their goals in terms of objectively existing periods of growth, maturity and decline, in accordance with its life cycle.

From a formal point of view in system view sustainable development and improving the effectiveness of management decisions are based on the interaction of processes ensure the local stability of the system in each period of its functioning and formation of development goals. An objective assessment of the effectiveness of management decisions involves the use of a certain conception of sustainable development of economic systems in practice. And this, in turn, requires the achievement of state-level balance of the system. Obviously, methods of evaluating the effectiveness of management decisions,  as businesses themselves, differ in the level of development and degree of stability. It is advisable to allocate three of the initial level of equilibrium: nonequilibrium state, low-level and high-level equilibrium, designating them respectively as levels C, b and A.

Level — this is the unsatisfactory working of the enterprise (systematically unprofitable or experiencing serious difficulties). They are characterized by violations of production processes and the inability of the organization of the normal reproductive process. Reproduction is not ensured due to irretrievable losses of resources. The priority here – first of all, a comprehensive and objective assessment of the effectiveness of management decisions, the establishment of simple reproduction by improving the organization of production and management in the framework of the adopted strategy of production (the production program); the main criterion is the optimization of costs and production volumes in the current period. The process of improving the existing structure has its limits, so if it is impossible to obtain satisfactory results in the short term should be a deeper change using the processes of system design.

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At the level presented In satisfactory operating companies (“peasant” with stable performance within a small deviation from the break-even point). They are characterized by a situation where revenues cover costs, there is a simple reproduction. The challenge is to provide expanded reproduction through the selection and optimization of the production program for the medium term, carrying out priority measures to improve production; criterion - optimizing costs and revenue in the medium term.

Companies which have a good performance (industry leaders), represented by A. They are characterized by the most favorable condition of internal processes, the main effort is aimed at the analysis of prospects of development and the choice of long-term strategy. This involves the development, evaluation and selection of development programs on a competitive basis, the selection criterion is capital growth and strengthen market position in the long term, the implementation method – permanent monitoring and assessment of the effectiveness of management decisions in the current mode.

Given the low level of efficiency of some enterprises, their transition to sustainable development is not possible without the stage of rehabilitation, i.e. without the development and implementation of measures aimed at their financial improvement, providing production of competitive products (services) and efficiency, which is actually preceded by an adequate assessment of the effectiveness of management decisions. Changes in the rehabilitation process is usually associated with the restructuring. As restructuring objects in the enterprise can be: legal form, management system, manufacturing, business, HR, Finance. In addition to the items it is advisable to allocate the required levels of restructuring with certain bond with the initial level of economic sustainability of the enterprise.

In the case of diagnosing the initial state as non-equilibrium or low-level equilibrium program for enterprise restructuring should include additional measures to eliminate unstable state and transition to the high-level equilibrium. Because of this, the recommended intervention program  is a General framework that implements the proposed framework for the sustainable development of the economic system and, thus, obligatory for all business entities regardless of their status, and expansion of specific enterprises and their level of development. In the case of diagnosing the state of disequilibrium programme on enterprise restructuring should include the units of the measures of all three levels (A, b, C) oriented at different planning horizons, but having a single reference point - the present moment. The structure of the event groups, depending on the initial condition of the company:

The Content of restructuring measures.

Source urovni                                                   

Planning Horizon

Sustainability     Long   Short-termСреднесрочный

С      блок 1 (Т1)         блок 1 (Т2)         блок 1(ТЗ)

          блок 2(Т1)          блок 2 (Т2)        

          блок 3(Т1)         

В        блок 1 (Т1)         блок 1 (Т2)         блок 1(ТЗ)

          блок 2(Т1)          блок 2(Т2)

А       блок 1 (Т1)         блок 1 (Т2)         блок 1(ТЗ)

Несмотря на то, что организационные мероприятия блока 3 (Т1) относятся к сфере текущей деятельности, они одновременно готовят базу для начала работ по более глубокой реструктуризации предприятия. Таким образом, программа мер по обеспечению устойчивого развития включает мероприятия, ориентированные на разные горизонты планирования, но имеющие единую точку отсчета - настоящий момент. Одна из основных трудностей при реализации обозначенных мер - преодоление психологического барьера у руководства предприятия к началу среднесрочных и тем более долгосрочных изменений, поскольку текущая неразбериха отнимает у него все силы и время.

Итогом реструктуризации должно стать формирование независимо от исходного уровня устойчивости предприятия на момент начала проведения изменений. Таким образом, программа представляет собой многоуровневую систему развития адаптивного поведения предприятия в конкурентной среде, направленного на достижение предпринимательского успеха.


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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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