Classification and Evaluation of Internal Transaction Expenses Emerging during Conduct of Managerial Activities

Abstract

The purpose of this work is to develop theoretical and scientific & methodological provisions in the sphere of institutional management of industrial enterprises; the main task of the research is to determine and classify internal transaction costs of the process of management of industrial enterprise. The article offers the hypothesis that transfer of institutional theoretical concepts to micro-level - in particular, to the level of management - of industrial enterprise, with further specification and development, will allow perfecting the process of management and increasing its effectiveness. The research showed that there is no generally recognized classification of transaction expenses. As a result of the research, the authors offer classification of internal transaction expenses that emerge during the process of managerial activities. The given classification allows managers to see which transaction expenses are related to implementation of managerial functions, provide basis for development of the system of evaluations of internal transaction expenses of industrial company which allows simplifying evaluation of effectiveness of managers’ work and use of specific managerial tools, and allows managers to allocate the reserves for growth in the sphere of management of industrial enterprise. The set goal of the research work; requirements to final results of the research, to their precision and authenticity; limitations of resources, possibilities of research, and technical means used for the research predetermined the use of the following general scientific methods: logical analysis and synthesis during the study of opinions of various authors on classification of transaction expenses, functional approach during allocation of the most significant problems which appear during implementation of main managerial functions at industrial enterprises, ranking, grouping, expert evaluations, surveys during development of the list of criteria that reflect the most characteristic types of transaction expenses as to top-priority types of managers’ activities. DOI: 10.5901/mjss.2015.v6n6s4p376