Abstract

The aim of the article. The article presents the methodological approach to optimization of the choice of management actions in the sphere of corporate culture development from position of its economic efficiency. The author suggests four levels of corporate culture – high, heightened, medium and low in accordance with two management instruments – of evolutionary and revolutionary character. The results of the analysis. The author found that the cost of managing the development of corporate culture are derived from differentiation and development of personnel incentives. The amount and structure of the cost of management measure implementation depends on selected instrument of corporate culture. Finding of optimal value in terms of tangible and intangible incentives that provides a balance of economic interests of employees and managers is very important in this case. To assess the economic efficiency of corporate culture we offer an original model that consists of the following phases: assessment and determination of the current state of corporate culture at the enterprise; identifying of key directions of corporate culture development; planning of actual management costs dynamics; formation of mechanism of economic benefits calculating; the implementation of expert evaluating the impact of interventions using selected indicators; final calculation of economic efficiency of corporate culture improvement using two methods – the diagnostic and control and diagnostic search. The author indicated that at the present stage of domestic industries` development it is important to use diagnostic search in efficiency of corporate culture assessing. We believe that for the purpose of evaluating the effectiveness , it is appropriate to limit the application of methods aimed at determining the degree of deviation of actual results from potentially possible in the market, with appropriate adaptation to the specific conditions of carrying out in domestic industry. Conclusions and directions of further researches. Consideration of alternative measures in corporate culture development brings the proposed efficiency indicator of economic profit, which eliminates the shortcomings of traditional accounting performance and complies with the principles of value-based management. The methods of management development of corporate culture from perspective of its effectiveness can be used in industrial enterprises of any form of ownership.

Keywords: corporate culture, management development, material and non-material incentives, economic efficiency, foregone benefits

Cite as: Ovcharenko, M. (2013). Methodological approach to the optimization of management system selection in the sphere of industrial enterprises` corporate culture from position of its effectiveness. Marketing and Management of Innovations, 3, 129-136. https://doi.org/10.21272/mmi.2013.3-12

This work is licensed under a Creative Commons Attribution 4.0 International License

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