Non-financial Indicators of the Construction Business Management Effectiveness Evaluation

Abstract

The article deals with scientific approaches to understanding the concept of “efficiency” of an organization, in particular from a management point of view. The main problems that prevent the successful evaluation of the effectiveness of modern construction company management are highlighted. Authors proposed a methodology for evaluating the effectiveness of management activities that can be implemented in modern Ukrainian construction company. It is shown that although the problem of performance evaluation has been studied in various Ukrainian studies, the scientific results do not have certain instructions that could be implemented in the practical directions of today. The set of partial financial and non-financial indicators, which should be measured, is generalized to form strong prerequisites for an objective and independent evaluation of the activities of construction company executives. The performance evaluation of the management subsystem includes the effectiveness assessment of management personnel, the effectiveness of management technology, the effectiveness of management organizational structure of. Among the indicators for assessing the effectiveness of management as an integrated set of management and managed subsystems are indicators: the effectiveness of organizational culture, the effectiveness of managing operational activities, personnel, financial activities, marketing, investment and innovation activities. It is proved that financial indicators are the overwhelmingly significant part of the performance evaluation indicators of modern construction company. Non-financial indicators receive less attention even at the theoretical level, although they remain an integral part of a comprehensive management assessment. Among the reasons for the unpopularity of non-financial indicators, the authors identified: the lack of quantitative non-financial indicators of a uniform dimension; the blurry and uncertainty of information support, sources for calculating non-financial indicators; complexity of obtaining initial data; failure to fulfil part of the non-financial indicators of the criterion function, which leads to ambiguity in the interpretation and evaluation of the results. The value of non-financial indicators is seen not only in supplementing the financial in creating a more objective picture, but also in exposing the root causes of obtaining the ultimate construction company financial results.