Problems of assessing the efficiency of enterprise management

Strategic and Enterprise Planning

Nowadays, very few management tools are able to determine the contribution of management quality into the overall assessment of the firm performance. We propose the analysis of the existing situation with the current tools of management. The conducted analysis has shown  an insufficient consideration of this problem and the lack of interest from the scientific community. We have developed a new computational approach to obtain a formal quantitative assessment of the enterprise management quality. This article discusses some existing system approaches to assessing the quality of enterprise management. Mainly, they are indirect methods of assessment. There is an extensive list of verbal decorated approaches and requirements for effective management, such as the model «7-C» firm Mac Kinsey, model Scott De Cinca, Peters and Waterman. There are many other attempts to estimate the contribution of management to the results of its operation. All these attempts are rather the formulation of the basic principles of effective management. We believe that methods based on a formal framework are of great interest. They allow obtaining quantitative estimates. Today, there are few such techniques and we argue that it impedes the improvement of enterprise management systems. This article provides one of the existing methods of the management quality assessment. The article also proposes a new methodological approach to obtain quantitative indicators of management effectiveness. While developing this technique the authors have focused on the use of categories of effectiveness and efficiency of management. We offer the most appropriate definitions of the existing terms of the effectiveness and efficiency of management to understand the construction of models. A calculation example to determine the effectiveness of management while using the scoring model proposed by Professor A. N. Tsvetkov is of some interest.