Management Efficiency: Necessity and Possibility of Assessing the Process and Result

Abstract

The practice and theory of modern management associates the assessment of efficiency with the results of the company's work or changes in the level of use of individual resources. The criteria are results such as profit, profitability, labor productivity, the level of financial independence and others. We judge about the effectiveness of management by changes in these criteria. The number of criteria varies, and the results often show opposite conclusions about the level of effectiveness. This approach is not relevant in market conditions since the external environment, in which the company operates, remains beyond the assessment zone: with a shrinking market, profit may decrease but this is not evidence of deterioration in management. The second methodological problem is the lack of assessment of the management process itself as a set of certain actions. The purpose of the study was to develop a scientific approach to assessing the effectiveness of management in a competitive environment. The article presents a methodology for assessing efficiency not only in terms of results (management efficiency) but also actions (process efficiency). The research methodology is based on critical analysis and synthesis of theoretical and practical approaches to management assessment. The unity of the assessment of the management process and its results is the scientific novelty of the proposed methodology. The methodology was illustrated by the example of the Irkutsk Oil Company.