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THE FORMING PRINCIPLES AND MECHANISM STRUCTURE OF THE MANAGEMENT OF ENTERPRISE SUSTAINABLE DEVELOPMENT

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Author(s): I. Smachylo

Journal: Economics of Development
ISSN 1683-1942

Volume: 67;
Issue: 3;
Start page: 79;
Date: 2013;
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Keywords: sustainable development management | basic index | levers of mechanism | extensive and intensive processes | mechanism of enterprise sustainable development management

ABSTRACT
The management of enterprises’ sustainable development implies the objective determination of its current and future status, management of enterprises’ resources, administrative decision-making to provide steady development. In particular, it can be adjusted and represented as the formed integral mechanism. For example, the mechanism of enterprises’ stable development management of can be presented as a complex of successive and concerted methods and tools of management, applied by the agents of management. Namely, it is the integral system of interrelated elements displaying the corresponding management measures related to steady development of enterprises.Therefore, the management mechanism should comprise principles essential both for a productive process and supervision, i.e. purposefulness, epimorphism, intercommunication and correlation, flexibility, compatibility, complexity. Adherence of these principles within an enterprise’s functioning is the essential condition of effective management. Concerning the mana­gement process (perfection, improvement) the embodiment of these principles is nothing but the formation of management mechanism.The first block of management mechanism embraces agents of management, who are persons, making administrative decisions and taking corresponding measures to control all the stages of the management process of steady development of enterprises.The second block of mechanism embraces the control object which stands for indexes of sustainable development.The third block of a mechanism presents the management process of sustainable development of an enterprise by means of the following methods: retention of the existing strategy of sustainable development, its security and intensity control. The management methods based on mentioned approaches are applied in enterprises’ activity. However, until now they were not applied for sustainable development management.The processes of sustainable development are represented by the great amount of indexes of external and internal influences. Such amount of indexes of the mechanism of steady development management makes it bulky and ineffective. It is suggested to replace them with a base index, which represents the possibility of an enterprise to produce goods that are in solvent demand. From a quantitative side, the base index will be basis for the calculation of indexes the steady development, which represent the influence of structure charges on the increase of production taking into account solvent demand. The high-quality analysis of this index will represent management effectiveness, and comparison of different enterprises will display adaptation to the market and possibility to extend a production in accordance with solvent demand.The steady development of an enterprise is based on insignificant changes of internal and external influences: the fall-off of any index will result in bankruptcy of an enterprise, and any sharp increase isn’t determined by stable development, but absence of competitors and groundless increase of product price.The practical levers of mechanism are factors of: time, management levels hierarchy, dialectics of extensive and intensive processes.The structure mechanism of enterprises’ sustainable development management has been proposed on the basis of successive description of objects, aims, criterion, factors, methods, marks. It is focused on possible ways to realize an enterprises’ possibilities, so that to provide stable development and survival of an enterprise in the period of post-transformation economy.
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