Formation of methodical approaches to managing the performance of enterprises activity

Larin Igor
master`s student, Odessa national economic university. E-mail:odecit5@gmail.com

Karpenko Julia
Candidate of Economic Sciences, Associate Professor, Odessa national economic university. E-mail:uliauliavk@gmail.com

Cite this article:

Larin I., Karpenko J., (2018) Formation of methodical approaches to managing the performance of enterprises activity. Ed.: М.D. Baldzhy (ed.-in-ch.) and others [Systema pensiinoho zabezpechennia Ukrainy ta yevrointehratsiini protsesy; za red.: М. D. Baldzhy (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 10(262), pp. 146-161.

Abstract

The article examines the main scientific approaches to the definition of the concept's essence of "performance management". It was established the absence of a consensus on its interpretation. It has been revealed performance management is understood as effective personnel management in the framework of the first approach. It has been established that within the framework of the second performance management approach, it is interpreted as a concept that combines the establishment of activity goals and indicators that measure them, the organization of activities to achieve them, step-by-step control of performance, as well as analysis of the performance of individual employees and structural divisions. A methodical approach to managing the performance of an enterprise is proposed. It is contained the steps of identifying key success factors for business processes, developing of key indicators for business processes, checking business processes to identify problematic aspects of their implementation and inconsistencies, eliminating inconsistencies with using of the Deming cycle. According to the results of the research, it was determined that there are two scientific approaches to performance management. The first is that performance management is understood as effective personnel management. As part of the second approach, performance management is interpreted as a concept that combines the setting of goals and indicators that measure them, the organization of activities to achieve them, the step-by-step control of implementation, as well as the analysis of the effectiveness of individual workers and structural units. Dividing the views of the representatives of the second scientific approach, we proposed a methodical approach to the management of the performance of the enterprise, formalized using a logical scheme. In accordance with it, the main stages of the management of the performance of the enterprise are as follows: the definition of key factors of success in business processes, the definition of key indicators for business processes, verification of business processes in identifying the problem aspects of their implementation and inconsistencies, eliminating discrepancies using the Deming cycle.

Keywords

enterprise, enterprise activity, performance management, business process, target, Deming cycle.

JEL classification: D210

UD classification: 336.018

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