FORMATION OF METHODS OF EVALUATION OF EFFICIENCY OF INDUSTRIAL ENTERPRISE ACTIVITY


Keywords: integrated indicator, evaluation, management, efficiency, personnel.

Abstract

Topicality. This article discloses vital aspects of improvement of state investment policy as the basis of implementation of innovative technologies on domestic enterprises. Each economic entity is obligated to clearly and accurately present its needs in financial, raw material, labor, intellectual resources, production facilities, sources of their obtaining. They must also be able to effectively use existing production and natural resources in the production process. They need to respond in a timely manner, rationally and quickly to the changes that take place in the business environment. It is important to minimize the risks to the environment and make products environmentally friendly. An important component of making managerial decisions to attract innovation and the validity of the implementation of an innovative strategy for the development of an industrial enterprise is the use of innovative methods for assessing the effectiveness of economic activity. The need to assess the effectiveness of the industrial enterprise is justified by the need to form new goals, principles and innovative principles of management, focused on maximum satisfaction of consumer needs and market requirements.
Aim and tasks. The purpose of the article is to systematize the views of domestic and foreign scientific society, which will identify key issues and provide recommendations for the formation of methods for evaluating the effectiveness of industrial enterprises.
Research results. To assess the effectiveness of the industrial enterprise in the dynamics of reporting periods, it is proposed to use the method of taxonomic analysis with additional consideration of the share of influence of each of the factors on the integrated indicator.
Given that the main factors influencing the efficiency of economic activity of industrial enterprises are labor, capital, fixed assets, objects of labor and staff skills, the definition of an integrated indicator by which it is possible to comprehensively assess the efficiency of economic activity of industrial enterprises is proposed to be carried out , average efficiency of use of fixed assets (return on assets), average efficiency of use of objects of labor (material return), average efficiency of use of capital (turnover of assets), level of qualification of personnel.

Conclusion. The proposed approach to assessing the efficiency of economic activity of an industrial enterprise will identify key indicators of impact on the level of its competitiveness. Based on the obtained materials, using the method of taxonomic analysis taking into account the share of the proposed factors, you can explore trends in the internal business environment of the enterprise, which will analyze the effectiveness of the chosen strategy of the entity. Also, the calculations will assess the efficiency of economic activity of the enterprise in comparison with the nearest competitors, and determine the place in the ranking in the relevant market segment. The results obtained to assess the effectiveness of economic activity will allow the management of the industrial enterprise to identify weaknesses in the production process and identify priority areas for innovation.

Author Biographies

S.M. MAKARENKO

Doctor of economic science, Assistant Professor
Kherson State University
27 Universitetska st., Kherson, 73000 Ukraine

N.M. OLIINYK

Ph.D (Technical), Assistant professor
Kherson National Technical University
Berislav Highway, 24, Kherson, Ukraine, 73008

S.A. RYBACHOK

PhD student
Kherson State University
27 Universitetska st., Kherson, 73000 Ukraine

References

1. Gerchikova, I. N. (2010). Menedzhment [Managament], Yuniti-Dana[in Russian].
2. Graboedov, E. V. (2009). Features of performance evaluation of industrial enterprises : Candidate of Economic Sciences Thesis, Faculty of Economics of enterprises, industries and business management, Baykalsky State University of Economics and Law [in Russian].
3. Kovalchuk, I. V. (2008). Ekonomika pidpryiemstva [Business Economics]. Kyiv, Znannya [in Ukrainian].
4. Krush, P. V. Podvigina, V. I., & Sediuk, B. M. (2007). Ekonomika pidpryiemstva [Business Economics]. Elga-N [in Ukrainian].
5. Lepetiukha, N. V., & Rudska, I. O. (2016). Intehralna otsinka efektyvnosti funktsionuvannia pidpryiemstva [The Integral Estimation Of The Enterprise Functioning]. Nikolaev National University of VA Sukhomlinsky. Business Economics and Management, vol. 14, pp. 424–429. [in Ukrainian].
6. Pokropivnyi, S. F. Belorus, O. G., & Fedonin, A. S. (1997). Ekonomika promyshlennogo proizvodstva [Economy of Industrial production]. Tehnika [in Russian].
7. Sharapa, I. V., Makarenko, S. M., & Oliinyk, N. М. (2011). Pidvyshchennia efektyvnosti vykorystannia intelektualnoho potentsialu yak holovnoho kryteriiu rozvytku silskykh terytorii [Improving the efficiency of the use of intellectual potential as the main criterion for the development of rural areas]. Economic scope: The collection of scientific works, 47, 146–152. [in Ukrainian].
8. Shvydanenko, G. O. Dmytrenko, A. I., & Oleksiuk, O. I. (2008). Biznes-diahnostyka pidpryiemstva [Business diagnostics of company]. KNEU [in Ukrainian].
9. Shegda, A. V. (2006). Ekonomika pidpryiemstva [Business Economics]. Znannya [in Ukrainian].
10. Formation of an Innovative Competitiveness Management System of the Enterprise: On the Case of Ukraine's Healthcare / S. Makarenko et al. Journal of Economics and Management Sciences. 2020. vol. 3, № 1, pp. 1–12. Retrieved from: https://doi.org/10.30560/jems.v3n1p1 [in English].
11. Makarenko, S., Oliinyk, N., & Kazakova, T. Improving the Method Approach to the Rating Evaluation of Employees as Professional Career Development. Baltic Journal of Economic Studies. 2018. Vol. 4, No. 5 December. P. 179–187[in English].
12. Tyukhtenko, N. A., & Makarenko, S. M. (2016). Economic and mathematic models for staff planning at enterprises of all ownership forms. Actual problems of economics, vol. 1, no 175, pp. 435–442. [in English].
Published
2021-08-20
How to Cite
MAKARENKO, S., OLIINYK, N., & RYBACHOK, S. (2021). FORMATION OF METHODS OF EVALUATION OF EFFICIENCY OF INDUSTRIAL ENTERPRISE ACTIVITY. Economic Innovations, 23(3(80), 214-220. https://doi.org/https://doi.org/10.31520/ei.2021.23.3(80).214-220