Introduction of KPI method into the system of financial security ensuring at the enterprise

Economic Annals-ХХI: Volume 146, Issue 11-12, Pages: 69-72

Citation information:
Orekhova, K. (2014). Introduction of KPI method into the system of financial security ensuring at the enterprise. Economic Annals-XXI, 11-12, 69-72. https://ea21journal.world/index.php/ea-v146-17/

Kateryna Orekhova
PhD (Economics),
Associate Professor,
Kharkiv Institute of Banking of the University of Banking of the National Bank of Ukraine (Kyiv)
55 Peremohy Ave, Kharkiv, 61174, Ukraine
kate.orekhova@mail.ru

Introduction of KPI method into the system of financial security ensuring at the enterprise

Abstract. The author resolves important scientific and practical tasks on development of the methodological approach to the evaluation of personnel as the basis of financial security. Key findings and recommendations are as follows.

It is determined that the evaluation of staff is a procedure that is performed to identify the extent to which professional, business and personal qualities of the employee, quantitative and qualitative results of its work correspond to certain requirements of production and the enterprise.

22 staff assessment methods are revealed – they are descriptive method of valuation, classification method, the method of assessment of work regulation, the method of questionnaires and comparative questionnaires, tests, comparison method, the method alpha-numeric scale, interviewers, structured behavioral interview, committees method, «360 degrees» method, method of independent judges, ‘assessment center’, method of business games, a method of management by objectives, management of achievements, the method of the standard benchmarks, the method of crucial situations, the method of rating behavioral settings, a method of the behavior observation scale and a method of specified distribution.

It is proved that today acceptable method of staff evaluation is key performance indicators method (KPI), as it combines global goals with the goals of the enterprise and individual employees. This helps to improve the quality and efficiency of the staff of the company as well as the performance of the organization. Based on the comparison of actual performance achieved with defined KPI the achieved results of an employee are derived. This allows you to reward him for the work. The advantages of using the KPI method is that the employee bonus depends on the performance of his personal KPI; for each employee there is the assigned responsibility for a particular area of work; an employee is aware of its contribution to achieving the common goal of the company; KPI method focuses on staff motivation.

Application of KPI method in ensuring financial security of the company will improve the quality and efficiency of the staff of the company.

Hence, if the financial director of the company fulfills the plan of the key performance indicators of 100%, he will receive the planned salary according to the established norm of labor payment fund.

Keywords: Enterprise; Financial Security; Staff; Staff Estimation Methods; KPI Method

JEL Classification: M12; J30; J31; J38; J39

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Received 07.11.2014