Strategic performance management system and corporate sustainability concept - Specific parametres in Slovak enterprises

Nowadays, a well-performing enterprise can be considered the one that is able to use many opportunities, to adapt to continual changes in the environment, to achieve better performance. Business performance is often seen as an indicator of the enterprise’s results and effects. In the area of business performance and strategic performance measurement system, many studies have been realized which identify the major factors affecting the performance of the company itself. The paper is focused on the analysis and identification of specific factors in the form of localization, turnover of enterprise and others which may have a potential impact on performance. Current trends are focused not only on the performance, but also the consequences of corporate activities of environment. This leads to better competitiveness of companies. In this context, attention is drawn to the orientation of enterprises on particular dimensions of corporate sustainability concept and factors such as company size or capital structure in relation to its application.Ministry of Education of Slovak Republic grant project VEGA [1/0537/16

Ekonomika inovácie ako súčasť zvyšovania výkonnosti firmy

Základom dobre nastavenej inovácie je jej správna ekonomika, teda znalosť prietoku hodnoty, participujúcej v rôznych etapách na tvorbe inovácií a komplexnom inovačnom procese firmy. Prietok hodnoty má zásadný význam pre ekonomiku inovácie v tom, že na základe optimálne definovaných inovačných metrík dokáže identifikovať reálne ekonomické vstupy a výstupy a priamo poukázať na inovačný potenciál firmy a jeho úspešnosť z hľadiska zvyšovania budúcej výkonnosti firmy.The basis of a well balanced innovation is its right economy, that is so the knowledge of the value throughput, participating in the various phases of creating the innovation and of a complex innovation process of the company. Value throughput has an essential importance for the innovation economy there, where on the basis of optimally defined innovation metrics can be identified real economical inputs and outputs and directly the innovation potential of the ompany and its success from the point of view of the increase of its future efficiency

Strategic management of business performance based on innovations and information support in specific conditions of Slovakia

Business performance management and measurement is a relatively complex and difficult process, which is currently undergoing significant changes in terms of both theory and practice. Previously used indicators, methods and models, largely based on financial indicators and methods of financial management, have been gradually modified and improved to provide owners and managers with a sufficient true and fair view of business performance. Despite the efforts for continuous improvement, it appears that the traditional management of enterprise performance based primarily on financial management hits its limits and companies around the world are beginning to promote new non-traditional indicators, methods and models, based primarily on non-financial, strategic and often qualitative indicators. We recommend that enterprises apply the selected methods and models of strategic business performance management in different industries of the Slovak Republic. By applying the selected strategic methods and models such as BSC, BI, strategic planning and controlling, innovations and others, a higher performance of companies can be achieved

From quality to quantity and vice versa: How to evaluate performance in the budgetary control process

According to modern management theory, the performance evaluation based entirely on objective indicators within an organization is not considered to be an effective tool. The research objective of this paper is to suggest a contemporary model for evaluation in the budgetary control process of the organization. The model is based on a modern evaluation approach and a complex toolkit of management science and mathematical theories of fuzzy sets and fuzzy logic. In this model, subjective evaluations of the responsibility centres' achievement and performance in budgetary control are generated by fuzzy techniques based on a combination of quantitative and qualitative indicators. The model also allows for an immediate transformation of quantitative into qualitative evaluations and vice versa both in fuzzy and crisp types. The proposed model is an appropriate tool for the subjective performance evaluation of objective results from the organization's budgetary control process under uncertainty. This model was tested in a Bulgarian enterprise for unique wood furniture manufacturing in July 2018 and was applied to five cost centres, with the results demonstrating its applicability. According to our study, the model provides a modern solution to a management problem that is unresolved in the scientific literature and is important to the budgetary management practice of organizations. We believe that the further improvement and implementation of the model will contribute to more effective management and thus to the enhancing competitiveness of the organization

Business performance and participation of foreign capital

This paper analyzes business performance based on the return on equity indicator, and reveals certain common aspects for companies with better business performance. The results of statistical testing proved positive dependences between turnover, performance and foreign ownership as well as the importance of foreign capital origin for companies. Certain signs typical for companies with participation of foreign capital against local firms are identified. © Martina Merkova, Rastislav Rajnoha, Jan Dobrovic, 2016

From financial measures to strategic performance measurement system and corporate sustainability: Empirical evidence from Slovakia

Today’s world brings in many new pulses for enterprises not to focus on well established performance management tools used in the past. There is an obvious need to use new methods of performance management within strategic-oriented management. A good example here is also the concept of corporate sustainability. This concept is focused on company’s performance in the long term, whereby the company essentially follows not only profitability, but also takes into account the process and results of all activities in relation to surrounding community and environment. The main aim of this paper is to analyse different phases of measuring and managing business performance, and also to measure the impact of the selected measurement tools of performance management on the overall business performance of Slovak enterprises, as well as to highlight the relation of the composite index of sustainable development with business performance. The results show the very important link between business strategy and system for measuring and managing corporate performance, which is positively reflected in the achievement of the overall performance. Also confirmed is the relationship with the composite index of sustainable development. © 2016, Centre of Sociological Research. All rights reserved.Ministry of Education of Slovak Republic [1/0537/16

Measurement of impact of selected industrial engineering practices on companies’ economic performance

Industrial engineering (IE) represents a significant tool how to eliminate waste in both manufacturing and other areas of the enterprise. This helps reduce costs, increase production effectiveness and other characteristics, which can lead to better competitiveness and performance. Finding IE methods that have significant impact on overall business performance is the main purpose of this paper. Another objective was to determine whether the impact of industrial engineering methods applies to all industries in the Czech Republic or whether it applies only to selected industries. The data was obtained through an online questionnaire survey, the survey focused on a wide range of manufacturing companies (N=235) from different industries, different sizes and ages. For comparing the overall business performance among individual respondents, a ROE 1 (Return on Equity) indicator was selected. To measure this indicator from the impact of the tax, investment and credit policy, a modified ROE indicator (ROE 2 calculated first with EBITDA - Earnings before Interest, Taxes, Depreciation and Amortization and then ROE 3 calculated with EBIT - Earnings before Interest and Taxes) was used. The results show that the use of IE methods in manufacturing plants is limited to a few selected methods. Similarly, only a few industrial engineering methods are typically used in high performance firms and can therefore be said to be involved in increasing performance. The statistically significant relationship between specific IE method and the higher performance measured by ROE 1 or ROE 2 was observed only for standardization, 5S, JIT, APS and six sigma. Presented research also shows that this influence of methods does not apply to individual IE methods globally in all the sectors studied, but only in some of them.Internal Grant Agency of FaME TBU [IGA/FaME/2017/015]; GAAA - Grantova agentura Akademicke aliance Grant [GAAA 3_2/2016

Relationships Between Investment Effectiveness Controlling and Business Performance

We focused on business performance in companies and in scope of investment measurement and management we analyse using of investment effectiveness evaluation methods. Goal of our research at first was to detect what investment valuation methods apply companies in Slovakia in their management and what determinants cause it. Consequently, the aim was to find out if using of certain investment valuation method or some valuation approach consisted from several methods, has the positive impact into business performance. Analysed data were collected trough questionnaire. We defined several hypotheses and decided to apply two kinds of statistical methods appropriate for tested variables. Results of the research confirmed some assumptions and we state that use of investment valuation methods is limited by foreign ownership of company and certain methods caused better business performance

The use of industrial lean management methods in the economics practice: An empirical study of the production companies in the Czech Republic

Companies are encouraged to make changes and improve business processes to achieve performance and competitiveness. For these purposes, industrial engineering methods can be used in business practice. The main aim of this paper is to identify the most frequently used industrial engineering methods in Czech manufacturing companies. The secondary aim is to compare the use of individual industrial engineering methods in selected industrial areas. The necessary data were collected through online questionnaire (N=118). The results shows, that the most commonly used industrial engineering method are standardization, Material Requirements Planning (MRP I), Manufacturing Resource Planning (MRP II), 5S and Kaizen. This study confirms that the use of standardization, 5S, Kaizen, and MRP I depends on the type of industry in which the company operates; the industry focus does not affect whether or not TQM or MRP II are used.Firmy są zachęcane do wprowadzania zmian i ulepszania procesów biznesowych w celu osiągnięcia wydajności i konkurencyjności. W tym celu w praktyce biznesowej można stosować metody inżynierii przemysłowej. Głównym celem tego artykułu jest identyfikacja najczęściej stosowanych metod inżynierii przemysłowej w czeskich zakładach produkcyjnych. Drugim celem jest porównanie wykorzystania poszczególnych metod inżynierii przemysłowej w wybranych obszarach przemysłowych. Niezbędne dane zebrano za pomocą kwestionariusza internetowego (N=118). Wyniki pokazują, że najczęściej stosowaną metodą inżynierii przemysłowej jest standaryzacja, planowanie zapotrzebowania materiałowego (MRP I), planowanie zasobów produkcyjnych (MRP II), 5S i Kaizen. Badanie to potwierdza, że zastosowanie normalizacji, 5S, Kaizen i MRP I zależy od rodzaju branży, w której działa firma; koncentracja na branży nie ma wpływu na to, czy stosuje się TQM, czy MRP II.Internal Grant Agency of FaME TBU [IGA/FaME/2017/015

Business process performance measurement under conditions of business practice

The paper focuses on the presentation of selected research results related to business process performance measurement carried out in Czech and Slovak enterprises during the period of 2007-2014. There is an emphasis on intermingling and seeking out of mutual associations between theoretical presumptions, previously resolved projects, and realistic observations based on the outcomes of the research conducted and the methodology used. The theoretical part of the paper provides a detailed characterisation of the current state of affairs regarding the investigated performance measurement issue. The following part of the paper defines the basic research methodology and expected contributions of the study. The aim of the paper is also to analyse and synthesize findings regarding the chosen, mainly not traditional methods and models, which have started to be used for business process performance measurement in managerial practice recently. Alternatively, some of them are only been thought of being used in practice in the future. In the final part of the paper, results of the survey are introduced and confronted with those arising from professional studies carried out especially in Germany, Austria and the U.S.A. The results and outcomes of our research studies have confirmed the old saying "What cannot be measured cannot be managed". (C) 2015 The Authors. Published by Elsevier B.V