Tip 1: How to evaluate the effectiveness of management

Tip 1: How to evaluate the effectiveness of management



Need for performance evaluation Management organization occurs in several cases. This may be the crisis situation of the organization, the need for investment, or the reorganization of the company and the need to unify its system Management. An evaluation is a study of an organization that involves the setting of goals, detailed analysis, and the development of practical recommendations for improving efficiency Management.





How to evaluate the effectiveness of management


















Instructions





1


Set goals and objectives, pursued by the assessment of the effectiveness of the system Management. Goals should be clearly spelled out with an indicationthe time limits, after which they can be subjected to verification. The task will be to find weaknesses in the functioning of the organization. To do this, indicate what deviations from the norm in the organization's activities exist, with which they can be related.





2


Check if the objectives of the organization are defined andwhether they are accepted by all members of the management team. This is necessary so that you are not like "swan, cancer and pike" in joint decision-making and during performance analysis Management enterprise.





3


Determine the model for diagnosing effectiveness Management. It can be mechanistic orhumanitarian, and differs in the subject of diagnosis. The mechanistic model considers the organization as a set of factors of production - structures, means, raw materials and labor, designed to solve the tasks of the organization and, accordingly, seek out failures in system management. The humanitarian model regards the organization as an aggregate of human resources and represents important motivations, communication, participation of team members in decision-making. Therefore, this model pays attention to operational management, managerial and personal effectiveness of managers. Often, when evaluating management effectiveness, both models are used.





4


Choose tools, assessment techniques, based onthe adopted diagnostic model. It can also be computer modeling, allowing to assess the organizational structure in terms of expediency and practicality. Use for this purpose special software. This can be the use of psychological testing, interviewing, interviewing and other techniques, with the purpose of assessing business qualities, the growth potential of managers.





5


Analyze the composition of structural links, theirsubordination, real workload. Analyze the distribution of basic functions by unit, determine their adequacy, feasibility, both economic and psychological. Check whether the functions of the departments are being performed, to what extent they correspond to their structural divisions, whether there are contradictions or duplications in terms of functions within or between departments. Be sure to note the weak links, shortcomings, which you need to pay attention to.





6


Analyze the style of leadership, businessquality of managers and their job responsibilities. Pay attention to assessing the growth potential of managers, evaluate their experience and the complexity of the tasks performed, and also pay attention to the unity of the teams in the divisions.





7


Based on the data obtained, make recommendations for improving the system Management, suggest several optimal optionschanges in the organizational structure, displacement of specific individuals. Be sure to comment on the results, which will lead to those or other changes. Take them to the court of all stakeholders, the so-called "stakeholders". Perhaps, in the course of general discussion, an optimal, synthetic model of an effective Management for a particular organization.




























Tip 2: How to evaluate the effectiveness of management decisions



Management decisions directly affect theproductivity, production or management. Based on these indicators, it is possible to assess whether this or that decision taken by the head was correct.





How to evaluate the effectiveness of management decisions







What criteria affect the evaluation of effectiveness

The adoption of a management decision isIntermediate stage between the immediate solution and the impact, i.e. implementation of this decision. Its effectiveness is assessed in conjunction with the effectiveness of the development of the solution and its implementation. An accurate formula for calculating efficiency is quite complex, it takes into account more than sixty economic indicators. Profitability, labor productivity, payback of financial investments, the ratio of the growth rates of the average salary and labor productivity, turnover of funds - these are the most basic of them. One can evaluate efficiency from the point of view of the work of the administrative apparatus of the organization as a whole, and from the point of view of a separate solution. The main criterion for such an assessment is the ratio of the costs of organizational and technical measures taken as a result of the decision and the results, that is, profits. In order to reliably estimate the effectiveness of the administrative apparatus, it is necessary to keep separate records of the income and expenses of the organization for each commodity group. In practice, such accounting is difficult to perform, therefore, efficiency analysis is carried out on the basis of more general indicators: an increase in the volume and speed of turnover, a reduction in the amount of commodity stocks allow us to draw the right conclusions. In the end, the goal of any management solution is to minimize costs and increase the organization's income.

What allows to evaluate the effectiveness analysis

For an adequate assessment of the effectivenessmanagerial decisions are used economic and mathematical methods that allow you to look at the current tasks of the enterprise from a practical point of view. It becomes possible to develop a production plan and evaluate its possible benefits. The efficiency analysis may indicate the need for redistribution and optimization of the production program, equipment, resources. It may be necessary to revise existing standards, establish a new range of products, rationalize transport routes, assess the technical condition of the equipment and possible losses. Thus, the efficiency of the enterprise as a whole depends on the managerial decisions taken. Therefore, it is very important for the manager to possess the necessary theoretical knowledge and practical skills in the development and implementation of effective management solutions for each particular enterprise.









Tip 3: How to evaluate the effectiveness of the project



The definition of project effectiveness is necessaryan enterprise that develops an investment strategy and wants to assess its own financial viability. This will help him choose the most effective ways to manage the project.





How to evaluate the effectiveness of the project








Instructions





1


Use the conditional selection technique. Most of all, it is used when the project is physically separate from the organization and can be considered as independent. In turn, the project, which becomes a certain part of the company, is conditionally presented in the form of a separate legal entity with its own liabilities and assets, revenues and expenses. With this method, you can estimate efficiency business-project and the importance of its financial viability. At the same time, one question remains open: the financial state of the firm, which is carried out by the project itself.





2


Apply a way to analyze the changes. In this case, the analysis of the increment (change) is carried out. They must be entered in the data project, reflecting the activities of the enterprise. The technique becomes especially convenient, if the essence project is the expansion or modernization of current production. In this case, the goal project can be increased revenue from improving the quality ofproduction or increase in its volume and a decrease in operating costs. The main objective of this method is to compare the increase in the net income of the organization with the investments that are necessary to ensure this growth.





3


Use the unification method thatis based on an analysis of the financial soundness of the company implementing the project. This technique is most used when the project is comparable in scale to the scale of the current production. With the help of this analysis, you can develop a financial plan for the enterprise.





4


You can use the overlay method. First, consider the project using the conditional selection method, that is, separately. Analyze the financial soundness of the investment project, and then carry out an economic efficiency assessment. After that, develop the financial plan of the company itself without project, then, by the degree of financial reporting, try to compare the results of the current activities of the company with the results of the project.











Tip 4: How to conduct a production analysis



Analysis production allows to fully evaluate its effectiveness. The study of the main parameters of the company's work should be done not from time to time, but periodically, in accordance with the plan. As a result of the analysis, it is usually decided to introduce changes in the structure of production management.





How to conduct a production analysis








Instructions





1


Analyze the products. Estimate the volume of goods and services produced. Separate the line, select the size of the products sold. Count the number of unrealized finished goods stored in warehouses.





2


Apply the comparison of indicators when calculatingIssued in circulation products with the same parameters relating to the previous period. In this case, be sure to take into account the duration of a particular production cycle, and not the calendar time measurement.





3


Calculate the indicator of internal turnovercompany. If there is no transfer of products between the structural divisions of the enterprise that are in the stage of manufacturing and processing, the turnover should be equal to one.





4


Take into account in the calculations the share of output expressed in terms of gross output (the so-called marketability ratio). If there is an incomplete production the coefficient will also be unity. Otherwise, the product remains at the end of the analyzed period.





5


Carry out a study of the composition of the product usingavailability factor. If there is a tendency for a decrease in the indicator over the last several periods, it can be concluded that the share of semi-finished products in the total volume of marketable products increases. This state of affairs may require a change in the structure production.





6


At the last stage, analyze the plannedvalue of commodity costs. Include in the analysis of the article production costs, including the salary of employees employed in production; material costs; fare; the costs of conducting current and major repairs. Compare the amount of planned production costs to actual costs.