INDICATIVE PLANNING AS A MANAGEMENT TOOL OF SOCIAL AND ECONOMIC DEVELOPMENT OF MUNICIPAL ENTERPRISES

M.R. Tymoshchuk

Abstract


Development of local government as one of the main attributes of the democratic process of governance leads to enhancing the role of local government agencies to ensure their effectiveness. The problems arising in the process of development can be solved using the advantages of such strategic management tool as indicative planning on the bases of development and implementation of the system of effective indicators of social and economic development into management practices of municipal associations. The purpose of the study is to outline controversial aspects of the problem, namely the formation of conceptual principles of development and methodological aspects of the formation of a coherent scoring system of management of socio-economic development of municipal enterprises in order to improve the life of population in the area. In the course of the study some theoretical and methodological provisions on the possibility of the introduction of indicative planning are considered. Methodological aspects and conceptual framework for designing a coherent system of indicators are revealed; the system of indicators of socio-economic development management of municipal enterprises in order to improve living standards in the region is suggested. As for requirements to indicators that form the system, it is necessary to note the following requirements: relevance, accuracy, focus, reliability, availability, measurability, unambiguity, efficiency and rationality. The principles of development of the system of indicative planning and indicative plans, on which the system of indicators is based, are substantiated. We consider it appropriate to distinguish four groups of indicators, each of which will contain appropriate subgroups and basic indicators: a group of indicators of social responsibility; economic performance; financial performance; operating performance. To conclude, the use of developed system of indicative planning enables the evaluation of economic, financial, industrial and social development of municipal enterprises. The proposed system will provide an objective consolidated assessment of company development and, accordingly, evaluate the effectiveness of its management, identify factors that affect the efficiency of municipal enterprises management.

Keywords


indicative planning; municipal enterprises; social and economic development; indicators; system of indicators

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References


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DOI: https://doi.org/10.15421/40270232

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