Equity management of the enterprise and its divisions based on economic methods

In the old framework of production management, the concept of strengthening economic management methods at the level of internal production units included the desire to use business models and management of the capital structure of the enterprise, which operated at the enterprise level in relation to structural units. The use of market elements is completely new, both for the enterprise and for its divisions. In solving this problem, the researcher's attention is focused on the following issues: economic independence, characterized by the presence of a personal account; obtaining loans; choosing the method of distribution of income received, how is the improvement of working capital management. There is a need to study the feasibility of using purely market elements of business: profit, price, ownership at the level of internal production units. In such circumstances, the management of the enterprise’s own capital should take into account the fact that the desire to make a profit makes people who have the right to own a new product, service or idea more motivated than the actions of simply hired employees of state enterprises.

Considering structural units in the aspect of strengthening economic management methods, it is necessary to solve a number of issues. How to organize the most effective management of the company's own capital in these conditions? Is there a possibility of increasing the organizational independence of internal production units? Is it possible to evaluate the activities of all departments of the enterprise using the profit indicator? Should all departments of the enterprise enter a settlement and personal account? Who should give out loans? Who should establish the rules for their issuance? What is the attitude of the enterprise units to its property?

The initial theoretical premise of improving the management system of enterprise units is the use of economic models used for commercial enterprises.

Of course, it is impossible to use the model used for enterprises unchanged for them, but many elements of the latter can be borrowed.

The analysis shows that previously used in the practice of divisions of the model of economic calculation proved to be insufficiently effective, and the management of the company's own capital did not bring the expected results. They did not solve its main problem either: providing economic incentives for the work of performers, as a result of which overall production indicators worsened and costs increased. The main reason for the low efficiency of the known self-supporting models is that they did not provide the necessary economic independence to the production units within the enterprise.

It seems appropriate that the management of the company's own capital in relation to structural units should harmoniously combine administrative and economic management methods. It is a misconception that with the development of economic management methods, administrative management methods are practically canceled. There should be a certain optimal docking. The way out of this situation should be the development and implementation of a system of economic management of the internal production units of the enterprise using the budgetary management method, which ensures the required production efficiency. This system is not an analogue of a foreign one and at the same time is fundamentally different from the existing one in the country.

The solution to the problem of market relations between the enterprise and its divisions is extremely difficult due to the lack of precedent. The experience of foreign enterprises indicates that the structural divisions of enterprises β€” workshops, sections, brigades β€” practically do not have a direct implementation of the form of private property and market relations. They work in a rigid system aimed at ensuring the production tasks of the main divisions. In the west, the administrative system works in conjunction with economic methods and models. Compared with them, we do not have a sufficiently rigid administrative system, which is also not supported by economic methods.

The task is to find a balance between administrative and economic management methods.

Source: https://habr.com/ru/post/A13077/

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