Proposed measures for the development of performance management system in domestic economic entities in terms of globalization

• Main Authors: Tadić Jelena, Komazec Ljubica
• Format: Article
• Language: English
• Published: University of Novi Sad - Faculty of Economics, Subotica 2015-01-01
• Series: Anali Ekonomskog fakulteta u Subotici
• Subjects: performance management system; food industry of the republic of serbia
• Online Access: https://scindeks-clanci.ceon.rs/data/pdf/0350-2120/2015/0350-21201534111T.pdf

The liberalization of markets, as one of the most striking features of economic globalization, leads, among other things, to the intensification of competition. The entry of foreign companies into the domestic market, as well as the participation of domestic companies in export, imposes an imperative need for modification of current management practices in local companies. In order to survive in the newly created global competitive environment, the local companies inevitably have to implement a series of measures aimed at developing the existing management systems. In this paper we will present a proposal of a set of measures aimed at developing performance management systems in local companies. Proposed measures are result of many years of studious research of both the level and quality of the existing practice of performance management in local companies. The research was conducted on a sample of two hundred (200) companies operating in the field of the Republic of Serbia food industry. To assess both the level and quality of performance management, a questionnaire has been developed, which was distributed to the local companies in the field of food industry. Respondents answered questions, structured in five sections, which logically followed the basic stages of the performance management system. In the paper we will present the results of the research on each of the five main phases of the performance management system: planning, execution, measurement, reporting and developing of the compensatory scheme. As a result of the eventual implementation of the proposed measures, it is realistic to expect an increase in efficiency, and on this basis, the increase of the competitive advantage of local companies.