ENTERPRISE PERFORMANCE MANAGEMENT: CONCEPTION, MODEL AND MECHANISM - Polish Journal of Management Studies

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ENTERPRISE PERFORMANCE MANAGEMENT: CONCEPTION, MODEL AND MECHANISM

Abstracts > Vol 4

ENTERPRISE PERFORMANCE MANAGEMENT: CONCEPTION, MODEL AND MECHANISM

Anatoliy G. Goncharuk

Abstract:

This paper is devoted to the development and methodological ground of a conception of making the mechanism of enterprise performance management. It describes a model of implementation of performance benchmarking  on the enterprise includes the sequence of operations, which enables to connect together several key management functions, and clearly divide the performance management process into several steps. It provides both direct and feedback to ensure continuity  of performance management process. Author proposes an organizational mechanism to reduce the time and resources to implement the process of enterprise performance management that consists in an organization of the branch and regional benchmarking agencies  (BBA and RBA). The BBA and RBA systems are functionally complement each other, and contribute to the accelerated development of various industries and regions: RBA increases the level of innovation development of efficient enterprises; BBA raises to this  level remaining, less-efficient enterprises of the industry.

Keywords: performance management; benchmarking; organizational mechanism; benchmarking agency; economic efficiency

Introduction

Impact of the global financial crisis and other external and internal factors revealed the inability of the existing market mechanisms to ensure effective functioning of industrial production. New business environment is characterized by falling demand  and a lack of investment resources that forces to seek new mechanisms to ensure effective business development. Under the reduction in output and resources saving, efficiency becomes an important object of the management process, which requires the participation  of not only the managers of company and its employees, but also the government, whose function should be to help businesses in managing its efficiency.
The aim of this study is the development and methodological ground of the conception of making an adequate mechanism of enterprise performance management.
The study was performed in accordance with the gran
t of the President of Ukraine on the theme "Formation of a mechanism for estimation and management of performance of the industrial enterprises" (approved by Decree of the President  of Ukraine  336/2008 from 16.12.2008).

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Conclusions

During making of the mechanism of enterprise performance management we have offered:
a model of implementation of performance benchmarking on the enterprise includes the sequence of operations, which enables to connect together several key management functions, and clearly divide the performance management process into several steps.  It provides both direct and feedback to ensure continuity of performance management process. We included a possibility to apply an international benchmarking and formulated economic criteria of its economic efficiency;
an organizational mechanism to reduce the time and resources to implement the process of enterprise performance management that consists in an organization of the branch and regional benchmarking agencies (BBA and RBA). The BBA aims to implement two stages  of performance benchmarking - data selection, and estimation and analysis. The scheme of work with the BBA not only facilitates the operations of enterprises for performance management, but also significantly reduces the time and resources for its implementation.  Organization of the RBA aims to assist enterprises in implementing a functional benchmarking. Accumulating knowledge and data on the best national and foreign practices in different areas, the RBA should eliminate a number of costs of the region enterprises  that associated with the implementation of functional and international benchmarking. The BBA and RBA systems are functionally complement each other, and contribute to the accelerated development of various industries and regions: RBA increases the level  of innovation development of efficient enterprises; BBA raises to this level remaining, less-efficient enterprises of the industry.


References

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TWORZENIE MECHANIZMU ZARZADZANIA WYDAJNOSCIA PRZEDSIEBIORSTWA

Streszczenie:

Niniejsza prace poswiecono rozwojowi i metodologicznym podstawom koncepcji tworzenia mechanizmu zarzadzania wydajnoscia przedsiebiorstwa. Opisuje model wdrazania analizy porownawczej wydajnosci przedsiebiorstwa, ktory zawiera sekwencje operacji, co umozliwia  polaczenie kilku kluczowych funkcji zarzadzania i jasno dzieli proces zarzadzania wydajnoscia na kilka krokow. Dostarcza bezposrednie i zwrotne informacje w celu zapewnienia ciaglosci procesu zarzadzania wydajnoscia. Autor proponuje organizacyjny mechanizm  redukcji czasu i srodkow wdrazania procesu zarzadzania wydajnoscia przedsiebiorstwa, ktory polega na organizacji oddzialow i regionalnych agencji badan porownawczych (BBA i RBA). Systemy BBA i RBA sa funkcjonalnie komplementarne i przyczyniaja sie do  przyspieszonego rozwoju roznych galadzi przemyslu i regionow: RBA podnosza posiom rozwoju innowacyjnosci wydajnych przedsiebiorstw; BBA podnosza do tego poziomu mniej rozwiniete przedsiebiorstwa przemyslu.

 
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