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Improving the Quality of Corporate Management Through Management by Results

Abstract

This study is aimed at comparing two methods for organizational management recognized in global management practices: management by objectives (MBO) and management by results (MBR). Aim. This study aims to identify the advantages and disadvantages of MBO and MBR as well as their applicability in contemporary economic contexts. Tasks. This study determines the scope of application of management methods; analyzes their advantages and disadvantages; defines the benefits of the MBR method; proposes modern methods for describing the functioning of MBR; and illustrates the efficiency of the practical application of MBR under Russian conditions. Methods. This study uses the ontological engineering method based on soft computing theory. The proposed method allows using the knowledge base in situational management. Results. It is proven that management by objectives (MBO) is not applicable in situational management in a stochastic environment subject to varying risks. A new approach, management by results, is proposed based on dynamic management models centered around the ideas of ontological engineering and functioning through the knowledge base (KB). A means of providing information support for the functioning of MBR using CLADO software is presented. Conclusion. Operationalizing MBR based on ontological engineering involving soft computing concepts makes it possible to manage corporate objectives and resources efficiently across various organizations with due regard to the human factor. Practical implementation of MBR in various Russian organizations proves the potential of the proposed approach supported by CLADO software.

About the Authors

Yuliya A. Antokhina
St. Petersburg State Universityof Aerospace Instrumentation
Russian Federation


Artemiy G. Varzhаpetyan
St. Petersburg State Universityof Aerospace Instrumentation
Russian Federation


Remir I. Sol’Nitsev
Saint Petersburg Electrotechnical University “LETI”
Russian Federation


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Review

For citations:


Antokhina Yu.A., Varzhаpetyan A.G., Sol’Nitsev R.I. Improving the Quality of Corporate Management Through Management by Results. Economics and Management. 2016;(11):49-55. (In Russ.)

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ISSN 1998-1627 (Print)