FRAMEWORK FOR MEASURING THE MANAGEMENT PERFORMANCES - PROBLEMS, CONTROVERSIES AND SOLUTIONS

Abstract

This paper is aimed to the problem of external measurement of management performances. The measurement is considered in terms of the needs of public and commercial development institutions, researchers and other development actors. The basic objective is to obtain a coherent set of indicators for external analysis of the problems and processes of business development, as well as monitoring the progress of reforms and the allocation of development resources according to the criteria of the open market economy (in particular, analysis of the effectiveness of public support for R&D activities, subventions and subsidized loans to finance production for exports from the aspect of broader socio-economic objectives). The presented matter is in addition to an introduction and conclusion divided into four parts. The first part is oriented to the research of management performances indicators structure in the context of the need of external control to more efficiently support the development of the manufacturing sector of tradable goods according to the criteria of an open market economy. The focus of the second part is on the criteria and defining the principles for the methodology of measuring management performances. The basis is a holistic approach to solve this problem. In the third part is presented the author's view of the set of indicators and problems and challenges of their implementation and accordingly establishing rules by which should be guided a various public and commercial development institutions in assigning the subventions, loans and providing technical support. In the fourth part is given a critical evaluation of quality and reliability of their implementation. The key finding is that the framework for external measurement of management performances should be put into operation of: (1) improving the competitiveness and (2) increasing the social responsibility. The conclusion is that the main barriers in the external measurement of management performances for the needs of public and commercial institutions are of cultural nature (development of the cultural pattern in which the priorities are: confidence, accuracy, giving a great importance to the work as the main source of existence of the individual and family, in terms of adequate rewarding the waiver of consumption in the present at the expense of productive investment in new businesses).