Mechanism of goals setting for the subsidiaries of economic conglomerates

Abstract

This study solves the problem of translating global corporate goals and values to the all levels of the corporate hierarchy, which is relevant for economic conglomerates, integrated enterprises and other multilevel business entities. The subject of research is the methods of effective formation of the goals of economic systems with a multilevel organizational structure. The goal of this study is to synthesize an effective mechanism for forming the goals by subsidiaries of economic conglomerates, which ensures the effectiveness of goal-setting at all levels of organizational and economic structure. This study is based on some specific and general scientific methods, such a conception of goal-driven management and the principles of S.M.A.R.T, which have been expanded and supplemented to ensure the coherence of goals at different levels of the corporate organizational structure. The study also uses elements of the methodology of reflexive management and the principles of a Systems theory and Systems analysis. To achieve this goal, the article proposes an extended goal structure, which is presented through a combination of parameters that specify the result, resources, time, priority rank, the relationship with the goals and values of higher levels. Companies and their subsystems within the corporate structure, it is proposed to consider as homogeneous elements of the goal-setting system. These assumptions allowed us to develop a universal mechanism for goal setting using the principles of reflexive management. It allows us to take into account: input goals, goals of one-tier structures, available resources, intention and exogenous pressure on the decision-maker. The results of the study can be used to improve the goal-setting system of business entities with a multilevel organizational structure, as well as their associations. Conclusions: the implementation of mechanisms for the goals setting as a part of decision support system will increase the efficiency of business entities, as well as the effectiveness of whole its management system.