PROCESS MANAGEMENT TO ENSURE ENTERPRISE EFFICIENCY

Abstract

Ensuring performance efficiency is the primary objective of any business. In the context of the evolution of market environment, economic activity of enterprises, which contributes to gaining competitive advantages and ensuring the stability of their market positions, depends on the timely and sound strategies for enterprise efficiency management. The purpose of this article is to provide a reasoned argument to enhance the nature and the concept of enterprise performance management. Based on the research findings, the study presents a model for assessing the enterprise performance efficiency, identifies the key approaches to assessing performance efficiency along with suggesting promising areas for enhancing enterprise efficiency management. To attain the research objectives, the following research methods have been employed, in particular, the method of logical generalization, and the systemic and substrate approach – to build a model for assessing the enterprise performance efficiency. The synthesis of all measures to improve the enterprise efficiency offer an opportunity to group them into three areas: 1) cost management policies: use of resources that encourage enterprises to manage stocks; increasing productivity and cutting wages; reducing resource intensity; 2) measures to develop and improve production efficiency encouraging enterprises to boost the implementation of the results of research, technology and innovation; harnessing forms and methods of organizational management, its planning and internal motivation to further developing, increasing product quality and competitiveness, etc.; 3) measures to enhance the enterprise management system that contribute to mobilizing internal and external resources. In this context, it should be noted that enterprise efficiency is measured by a range of absolute and relative performance indicators that triggers a need to identify and specify the areas for action and use of internal and external factors to increase the enterprise efficiency with due regard to: technology, equipment, material resources, finished products, staff, organization and systems, working procedures, management style, national economic and social policy, infrastructure, structural transformations in society, etc. It is argued that only by thorough consideration of the whole range of impact factors, businesses can increase their efficiency, competitiveness and gain competitive advantages. The research findings results demonstrate that addressing the issue of enhancing enterprise efficiency, a company has to ensure the maximum possible outcome per each unit of labor, material and financial cost. It has been proven that an integrated criteria and indicators framework is a valid and reliable tool to provide in-depth analysis and perform an integrated assessment of the enterprise efficiency. This approach should facilitate better use of available resources based on a set of socioeconomic indicators, contribute to identifying the areas for improving enterprise efficiency and encourage businesses to employ the identified reserves. Implications for further research suggest efforts to build an effective organizational and economic mechanism for managing the enterprise efficiency and ensuring pathways to increase efficiency.