Managing The Performance Of An Industrial Enterprise Based On The Kpi System

Abstract

Ineffective management is the most common internal reason that hinders Russian organizations in overcoming the crisis. An established, conservative management system gives positive results only up to a certain period of time, and in changing conditions its imperfections become obvious. This problem can be solved by increasing the efficiency of existing management models, as well as by looking for more effective organization management tools that meet modern requirements. The authors have carried out a comparative analysis of the use of the enterprise management system based on budgeting and the Key Performance Indicators (KPI) system. The article presents the results of the analysis of the management of OJSC "MMK-METIZ", operated on the basis of budgeting. The results of the study showed that the main disadvantage of the budgeting system in the budget planning and working assets management group of OJSC "MMK-METIZ" is the lack of interconnection between the strategic goals of the enterprise, its structural divisions and operating activities, as well as the lack of interconnection between budgets and indicators of bonuses for employees. The most effective method for solving these problems is the introduction of the Key Performance Indicators (KPI) system at the enterprise, which will help solve two key problems: to effectively evaluate the results of the enterprise's activities and implement the strategy. The authors developed a detailed algorithm for the implementation of the KPI system in study group.

The article is not prepared yet for the html view. Check back soon.

Copyright information

This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.

About this article

Cite this paper as:

Click here to view the available options for cite this article.

Publisher

European Publisher

First Online

25.09.2021

Doi

10.15405/epsbs.2021.09.02.235

Online ISSN

2357-1330