Assessment of Target-Oriented Management in the IT Sector Companies in Latvia

Andra Zvirbule-Berzina

Abstract


Historically, balanced (target-oriented) management has been an efficiency evaluation system of corporate activities; however, it has gradually become a self-sufficient strategy introduction system enabling measuring the development as to the set aim through financial and non-financial management parameters. The research topicality is based on theoretical and practical aspects that the application of target-oriented management in companies enhances general corporate activities and promotes corporate competitiveness. The largest providers of mobile communication services in Latvia like LMT, BITE, and TELE2 were chosen for research purposes as representatives of the IT sector, since the target focusing of these companies allows comparison and encompasses both financial and non-financial targets.

The research aim is to study target-oriented management and to provide its assessment in companies representing the IT sector in Latvia. Research tasks are to summarise theoretical aspects on target-oriented management; to assess the companies under research by drawing up target maps and studying target-oriented management; and to evaluate correlation between factors of target-oriented management. Research results confirm that all the companies under research have defined targets and built their activities on the principles of target-oriented management. The coherences among the customer number dynamics of companies under research; revenue dynamics and attitude towards the selection, achievement and management of targets were ascertained to identify more precisely the correlation among the factors of target-oriented management. The companies under research achieve the joint target differently – the leading company follows the fulfilment of the plan, subordinates activities to the achievement of target and jointly solves problems. A lagging-behind-company (a company with the smallest number of customers and lowest revenues) focuses on aversion of deviations to achieve the target.

The development of weight ranging allowed ascertaining how the selection of the target and factors affecting it structure target-oriented management for every company and the largest providers of mobile communication services in Latvia in general.

Keywords:

Target-Oriented Management, Mobile Communication Services
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