Methods for evaluating the effectiveness of activities is a complex concept applicable to different areas of human activity. Investors, marketers, sociologists and teachers have certain approaches. The personnel service uses methods for evaluating the effectiveness of personnel, managers analyze the effectiveness of the management mechanisms they use. Such control allows you to successfully solve any task. Those who resort to the most effective methods evaluation of system efficiency. Consider the current scope of applicability of such techniques.
Money - analysis
Perhaps, the methods of evaluating the effectiveness of investment projects are the most curious for a wide range of people in our time. The investor is interested in investing in a profitable, promising business, subject to minimizing risks. Success is achieved only by those who are able to calculate in advance the amount of dividends and the length of the period of profit. To obtain correct, accurate information, it is necessary to use reliable methods for evaluating the effectiveness of investment projects. On the basis of the result obtained in such an analysis, it is possible to make a managerial decision regarding the prospects for the use of money.
There are fairly transparent projects for which analytics can be compiled in just a couple of minutes, and there are difficult situations when obtaining the correct result turns into a long, laborious process. Much in the methods of evaluating the effectiveness of the project depends on the complexity of the object under study. For simple situations, easy-to-use economic, technical calculation methods have been developed, and the cost of services for such an analysis when contacting third-party experts can be equal to the amount invested in the idea, so it is preferable to manage on your own. But when considering major project evaluation methods economic efficiency become an important aspect, since many needs seem to be overestimated, which affects a positive result. Many project authors request from investors additional funds to obtain financial freedom, and it is a qualitative analysis that allows us to determine how justified the requirements are in a particular case.
Evaluation: first decide, then do
Correct methods for evaluating the effectiveness of an enterprise make it possible to understand whether it is worth investing in a project. The decision always lies with the entire responsibility of the investor, so it is important to take into account the maximum parameters. Investing involves the refinement of some indicators, including the additional amount of invested funds.
When analyzing the project, it is assumed that the work will be stable for a certain period of time. For this period, methods for evaluating the effectiveness of investments suggest calculating the value cash flows. Based on the information received, it can be concluded how large the dividends will be, what profits to expect. By the time of completion life cycle methods for evaluating the effectiveness of investments allow you to clearly calculate the performance indicators of the project. Analysts make up comparative analysis, taking into account the results of each of the stages of the calculation.
Before and after
Methods for evaluating efficiency involve making calculations at the stage of deciding whether it is worth investing in a project of interest. At the same time, the yield is compared with bank rates on deposits. Collaboration only makes sense if the target is exceeded financial structure. If the efficiency assessment methods show comparable parameters or the investment project gives a lower level of profitability, it is unreasonable and inefficient to work with it.
The task of the investor is to calculate how much the project depends on inflation, what percentage of profitability will be “eaten up” by it. If profitability shows indicators comparable to inflation, investing in this option is inefficient and unreasonable. If there are several project options, performance evaluation methods are applied to all possible ones in order to compare and collect the correct analytics. The estimated amount of invested funds, the duration of each of the projects and performance indicators from the point of view of the economy are taken into account.
Result: how to evaluate?
Methods for evaluating efficiency based on the results of calculations provide a set of interrelated indicators. How harder project, the more quantities to be calculated. First of all, they analyze how much the investment can affect social sphere, ecology, the potential of the company's technologies in particular, the country as a whole. Methods for evaluating efficiency involve the calculation of a commercial component that reflects the impact on financial position company, and economic, within which they calculate how strong the impact on the legal entity and the country as a whole will be. Finally, they calculate the budgetary efficiency, within the framework of which they analyze what the impact will be in the implementation of the plan in relation to the state, region, locality.
Some projects need to be evaluated by considering their impact on the level of independence of the state. Certain investment ideas can help bolster a nation's defenses, making them more valuable than others.
What matters most?
For each individual investor, management efficiency assessment methods are the most relevant as a tool for providing information on the economic component of the project. With the correct calculation of indicators, it becomes clear how logical and justified it is to invest money in a project that interests you. To make an intelligent decision, you need to have data on several interrelated indicators.
What to look for?
Modern methods for evaluating efficiency provide two options for indicators that allow you to evaluate a project: dynamic, static. The first show how the effectiveness of the plan changes over time. It is taken into account that specific dates are chosen for calculations, to which the parameters are given. Static ones give information about the cut in relation to a given moment. In some cases, the calculation is made without taking into account the time factor at all.
Methods for evaluating the effectiveness for each group are different, they are divided into static, dynamic. The former involve calculating the payback period, which gives access to the duration of the time period for which the investment will return back to the owner. An equally relevant method involves the calculation of the efficiency ratio as the ratio of what was received from the project to what was invested in it for the duration of the company's existence. Another important parameter is net income calculated over the entire life of the investment. From the total amount, expenses under the taxation program, the supply of raw materials, materials, and other costs are deducted.
We evaluate correctly
Using static indicators, it is possible to evaluate the effectiveness of a particular project with fairly simple calculations. The results obtained by using such a technique are used as preliminary, but take into account that information is not always sufficient to assess the effectiveness of what was conceived in reality. When comparing different investment projects, examining only static indicators, one must remember that with equal values, risk parameters can differ greatly. There may also be differences in the project lifetime, which directly affects the efficiency, but is not taken into account in the static calculation method.
Dynamics to help the investor
This category of indicators includes the net present value, which reflects the value of the income component for a given time period, as well as the profitability index, calculated as the ratio of the net present value and the initial investment in the idea.
Another important parameter is the internal rate of return, which gives an idea of the maximum return expected from the project.
Calculate according to the rules
The dynamic methodology for evaluating efficiency involves taking into account the time factor against the background of assessing the value of financial investments. The discount rate must be taken into account. Usually, this indicator is taken as the average deposit percentage for banking structures. Another important parameter used in the calculations is the weighted average price of capital investments.
Thanks to the use of the discount rate, it is possible to immediately abandon projects whose internal rate of return does not reach the depositary offers of financial institutions.
Investment attractiveness
The evaluation of this parameter involves the analysis of all objects in terms of the prospects for cooperation with the project. In assessing this approach, one must take into account specific features enterprises. Analysts not only study the project itself, but the object of investment as a whole, as well as the economic environment in which it operates.
A foreign investor is obliged to analyze how convenient it will be public services conditions for investment. The method involves the assessment of taxation, the refinancing rate, the ability to freely transfer dividends. A comprehensive analysis of these factors allows us to conclude how attractive the state where the object of potential investment is registered. It is necessary to analyze whether all the resources required for daily activities are available, how heavy the tax burden is, whether there is access to a qualified labor resource.
Investment attractiveness of the company
This method of evaluating the effectiveness of investment activities involves the simultaneous use of tools developed to assess the financial condition, activities, profitability, and possible dangers associated with the activity of the organization. Investor with high level qualifications can often formulate a correct conclusion only on the basis of analytical information about the financial coefficients of the activity of a legal entity. This is enough to evaluate the property, the stability of the position, the liquidity of cash reserves, as well as entrepreneurial activity and profitability.
Economic analysis usually involves compiling financial analytics, at the same time collecting maximum information about the current state of the company. For this, fixed assets and the level of depreciation and workload are assessed. Analysts inspect production areas in order to determine how well the processes are organized. Before investing in a project, a responsible investor also evaluates how effective the company is management structure. Profitability will bring the investment of their resources only in a company that is well-formed, structured, within which there is a well-thought-out hierarchical ladder.
Risks and returns
The methodology for assessing these factors involves a comprehensive analysis of the activities of a legal entity. As part of the study, they examine how big the investor's risks are when cooperating with the project. As an investment risk, the possible loss by the investor of a certain amount is considered if he decides to invest in the project. Hazard assessment is a complex multi-stage task, within which a number of significant factors must be taken into account.
Assessing the dangers associated with investing is the stage before which you must first assess the attractiveness of the country as a direction for investing money, region, industry. Only after obtaining sufficiently correct and applicable information for further analysis, it is possible to work on possible dangers.
Why do I need it?
Modern methods for evaluating the effectiveness of investment projects make it possible to analyze how the danger of investing money in an enterprise is justified by the potential profitability associated with the object. At the same time, the risk premium is calculated. A responsible approach allows you to effectively implement the most profitable projects, knowing what you can get from them and what points should not be neglected, which is important in the first place.
A qualitative assessment of the effectiveness for a financial expert gives the correct, current list investment objects, distributed by rank, where the highest is inherent in the most promising project. Having chosen the direction of investing money according to this logic, you can calculate further steps to increase capital.
which are accepted by the company. They can be recorded in the appropriate position, which also governs the evaluation procedure. Each organization develops its own criteria, and therefore even the same positions in different institutions may have different requirements.
Evaluation of personnel performance
Evaluation of labor productivity and personnel costs is the need to identify the ratio of efficiency individual worker or collective to expenses. The main criteria in this analysis are current performance, as well as the cost of maintaining an employee or department.
To evaluate the effectiveness of work, it is necessary first of all to identify the main criteria for business evaluation of personnel. According to them, methods are developed - those actions and activities, the results of which form an opinion about the employee and his value to the organization.
Criteria and indicators for assessing the results of personnel work
The main criteria for evaluating employees are the following aspects:
- professional qualification— Possession of the necessary skills, knowledge and experience that are required for this position;
- competence- personal characteristics that are used to apply existing knowledge in practice;
- psychological and moral characteristics - skills that help to adapt to changes and stressful situations, to take root and work in a team;
- additional specific indicators - these may include job requirements related to personality, such as health or attitude to work.
In assessing the performance of personnel, it is customary to allocate indicators in accordance with the methodology used. For example, the matrix method involves the creation of an ideal profile with a set of relevant characteristics. According to these values, the employee is compared.
Methods for assessing the performance of employees
Improvement of the methods used is carried out on the basis of existing experience. To improve performance, joint seminars and trainings are held with similar institutions. When exchanging experience, it is important to pay attention to its adaptation to own organization. Not all techniques can be equally effective and show the best results.
The effectiveness of the system of incentives and evaluation of personnel work
Evaluation of the effectiveness of the organization of labor of personnel is based on those indicators that are found as a result of evaluation activities. The main criterion in this case will be their effectiveness. In practice, it looks like this.
Based on the measures taken, a conclusion is made and recommendations are made that are aimed at improving the work of an individual employee or a team as a whole. After their completion, after a certain period of time, an additional assessment is carried out. Based on its results, conclusions are drawn about the effectiveness of the overall system.
An important aspect of this is the encouragement to labor activity and motivation of employees. If there is a desire to improve and improve performance, then the effectiveness of the actions taken increases by an order of magnitude.
Approaches to assessing the effectiveness of personnel work
To assess the effectiveness of labor, the following approaches can be distinguished:
- evaluation of performance at the level of the company as a whole, structural unit and an individual specialist;
- the desire to effectively use the potential of staff as a resource for successful development organizations;
- identification of those employees who show the greatest success; encouraging and including them in the personnel reserves;
- the use of levers of motivation and the establishment of a close relationship between labor efficiency and wages.
These approaches are the main aspects in which the management service operates. The ultimate goal is to create conditions that help unlock the potential of each individual employee for the benefit of the organization.
Indicators for assessing the effectiveness of personnel work
Labor efficiency is a separate component of the organization's success. Its indicators can be distinguished in the following list:
- productivity of labor activity and its fluctuations;
- quality values of the work;
- professional qualifications of employees;
- the ratio of the cost of maintaining an employee and its effectiveness;
- rationality in the organization of working conditions, as well as optimization of existing processes.
With a general analysis, we can conclude that the effectiveness of labor activity consists in higher rates at lower costs. It is by this criterion that the effectiveness of the staff is evaluated.
Evaluation of labor results is one of the functions of personnel management, aimed at determining the level of efficiency of work performance.
Evaluation of labor results is an integral part of the business evaluation of personnel, along with an assessment of their professional behavior and personal qualities, and consists in determining the compliance of the employee's labor results with the set goals, planned indicators, and regulatory requirements.
The indicators of the final results of the work of employees, as well as its content, are influenced by a combination of various factors
Classification of factors taken into account when assessing labor productivity
| Factors | The content of the factors |
| natural biological | Gender Age State of health Mental abilities Physical abilities Climate Geographical environment Seasonality, etc. |
| Socio-economic | The state of the economy State requirements, restrictions and laws in the field of labor and wages Qualification of workers Labor motivation Standard of living Level of social security, etc. |
| Technical and organizational | The nature of the tasks to be solved The complexity of labor The state of the organization of production and labor Working conditions (sanitary and hygienic, ergonomic, aesthetic, etc.) The volume and quality of the information received The level of use of scientific and technological achievements, etc. |
| Socio-psychological | Attitude to work Psychophysiological state of the employee Moral climate in the team, etc. |
| Market | Development of a diversified economy Development of entrepreneurship Level and volume of privatization Joint-stock companies Competition Independent choice of wage system Price liberalization Inflation Bankruptcy Unemployment, etc. |
Evaluation of the results of work of different categories of workers (managers, specialists, other employees, workers) differs in their tasks, significance, indicators or characteristics, and the complexity of identifying results.
Evaluation of the results of the work of managers and specialists characterizes their ability to directly influence the activities of any production or management link. In the most general form, the result of the work of an employee of the management apparatus is characterized by the level or degree of achievement of the management goal at the lowest cost.
The result of the leader's work, as a rule, is expressed through the results of production, economic and other activities of an organization or departments (for example, the implementation of a profit plan, an increase in the number of customers, etc.), as well as through the socio-economic working conditions of subordinate employees (for example, the level of remuneration, staff motivation, etc.).
The result of the work of specialists is determined based on the volume, completeness, quality, timeliness of the performance of their assigned duties.
In practice, when evaluating the performance of managers and specialists, along with quantitative indicators, i.e. direct, indirect ones are used, characterizing the factors influencing the achievement of results. These performance factors include:
Efficiency of work
Tension, labor intensity
The complexity of labor, the quality of labor, etc.
In contrast to direct indicators of labor results, indirect estimates characterize the worker's activities according to criteria that correspond to ideal ideas about how to perform official duties and the functions that form the basis of this position, and what qualities should be shown in connection with this.
Evaluation of the results of workers is carried out quite simply, since the quantitative and qualitative results of their work are expressed in the quantity of products produced and their quality. By comparing with the planned task, the result of their work is evaluated.
The performance appraisal procedure will be effective subject to the following mandatory conditions:
1. Establishing clear "standards" of labor results for each position (workplace) and criteria for its evaluation;
2. development of a procedure for evaluating the results of work (when, how often and who evaluates, evaluation methods);
3. provision of complete and reliable information to the appraiser on the results of the work of the employee;
4. discussion of the assessment results with the employee;
5. making a decision on the results of the assessment and documenting the assessment.
Various methods are used to evaluate the results of labor:
| Method name | a brief description of method |
| Management by objectives (most common) | It is based on an assessment of the achievement by the employee of the goals set jointly by the manager and his subordinates for a specific period of time. Provides for a systematic discussion of achieved and not achieved goals. Requires quantification of goals and deadlines for achieving them. Expensive method. Used to evaluate managers and specialists |
| Graphic Rating Scale Method | It is based on putting down an appropriate assessment (from 4 to 0) for each character trait of the assessed employee: the amount of work, the quality of work, initiative, cooperation, reliability, etc. The assessment corresponds to the rating. To improve the effectiveness of the rating scale, more clearly demarcated descriptions of the completeness of the manifestation of a particular character trait are compiled. |
| Forced choice | It is based on the selection of the most characteristic characteristics for a given employee, corresponding to effective and inefficient work (for example, “works a lot”, “does not expect problems”, etc.). Based on the point scale, the efficiency index is calculated. Used by management, colleagues, subordinates to assess the performance of employees |
| Descriptive Method | The evaluator describes the advantages and disadvantages of the employee's behavior according to the criteria: quantity of work, quality of work, knowledge of the work, personal qualities, initiative, etc. using a graphic rating scale, using pre-compiled performance standards |
| Estimation method by decisive situation | Based on the use of a list of descriptions of the "correct" and "wrong" behavior of the employee in certain situations, the so-called decisive situations. The evaluator maintains a log in which these descriptions are categorized according to the nature of the work. Used in assessments made by management, not peers or subordinates |
| Method of Questionnaires and Comparative Questionnaires | Includes a set of questions or descriptions of employee behavior. The appraiser puts a mark next to the description of the character trait that, in his opinion, is inherent in the employee, otherwise leaves an empty space. The sum of the marks gives the overall rating of the profile of this employee. Used for evaluation by management, peers and subordinates |
| Method of the scale of rating behavioral attitudes | Based on the use of decisive situations (5-6), from which the characteristics of labor productivity are derived (from 6 to 10). The evaluator reads the description of some criterion (for example, engineering competence) in the rating questionnaire and puts a mark in the scale in accordance with the qualification of the person being assessed. Expensive and time-consuming method, but accessible and understandable to workers |
| Behavior Observation Scale Method | Similar to the previous one, but instead of determining the behavior of the employee in the decisive situation of the current time, the appraiser fixes on the scale the number of cases when the employee behaved in one or another specific way earlier. The method is laborious and requires material costs |
TO A comprehensive assessment of personnel, including both the diagnosis of the personal qualities of candidates in the selection for the "growth reserve", and the analysis of the results of work, the characteristics of the labor behavior of employees, are resorted to today by a few structures: only some enterprises use certain types assessments (most often when selecting applicants for vacant jobs).
In our opinion, this is due to the incompetence of some managers, who consider personnel management issues to be secondary, not affecting the competitiveness of the enterprise; a small number of managers and specialists with modern knowledge and assessment techniques; discredit in the eyes of leaders integrated assessment personnel as a result of non-systematic use of its fragments; relatively large expenditures of time and money for the assessment procedure in comparison with other methods of personnel management.
A comprehensive assessment of personnel is aimed at obtaining an economic (achieving high economic indicators) and social (coordination and implementation of the interests of subjects and objects of assessment) effect. Before proceeding directly to the analysis of its effectiveness, it is necessary to highlight the essential features of the object of study, namely, the assessment of the organization's personnel. In general, such an assessment is a multi-stage, sequential process of studying the individual qualities, abilities, behavior and performance of an employee. Meet requirements high efficiency only systemic evaluation is possible.
The personnel assessment system combines two groups of components determined by the internal structure (a set of interrelated elements created or attracted by the system itself and ensuring the achievement of its goals) and the external environment (a set of elements through which the scheme interacts with the external environment).
The first group includes actually involved subjects and objects of assessment, a set of benchmark and actual indicators, assessment criteria, selected methods and tools, etc.
For the second group:
- assessment system input - personnel, potential subjects of assessment, modern technologies and methods, equipment and machinery for the implementation of the assessment, incoming documents, etc.;
- the output of the assessment system - the results of the assessment; documents containing information about the assessment and directions for its use; oral and written information, etc.;
- communication with the external environment - information and documentary flows between the assessment system and the external environment for coordinating actions (the connection can be direct and reverse: direct - transferring the results of the assessment to the employee; reverse - information about his reaction, proposals for assessing, improving it, etc.).
The external environment should be distinguished from the external environment of the rating system, i.e. factors or elements in which it is located and with which it has direct or indirect links. The external evaluation environment, in our opinion, must be considered depending on the systems of which it is an element or subsystem.
Accordingly, we can distinguish:
- nearest external environment or microenvironment - that part of the environment with which the assessment system is in direct interaction and on which the content and effectiveness of the assessment depend (the personnel management system acts as the closest environment);
- macro environment - a part of the environment that indirectly or indirectly, through the personnel management system, affects the specifics of the assessment system.
The macroenvironment, in turn, is subdivided into intraorganizational and external, consisting of the elements \\"target environment of the organization\\". The main factors of the internal organizational environment include the development strategy of the enterprise, the stage of its life cycle, the corporate culture, leading management methods and styles, etc. The factors of the target environment that have the greatest impact on the assessment of personnel are the state of the labor market, the sectoral and professional structure of supply and demand work force, personnel policy in the field of hiring, attracting and evaluating competing enterprises, social and labor values and norms existing in society, etc.
Assessment as a system has its own structure, including many components that are in certain relationships, and its content (a set of objects and subjects of assessment as carriers of individual specific qualities, interests, needs), as well as technologies and methods, a description of a set of specific competencies, etc. In other words, the content of the assessment system shows what components it includes, what quality they are and what their essence is.
An analysis of the activities of organizations allows us to conclude that the principles of systemic construction of personnel assessment are often ignored: when choosing the types and methods of assessment, only certain factors are taken into account, the assessment being implemented is not combined with other elements of the personnel management system, as well as with the development strategy of the enterprise. There is also a contradiction in the goals, methods, indicators of evaluation, their inconsistency with the specifics of the object and subject.
Therefore, it is so important to master the methodology and methodology for determining the effectiveness of personnel assessment. Currently, the effectiveness of any socio-economic system is assessed using either cost models (and is calculated as the ratio of results to costs) or cost-free models (defined as the ratio of results to needs, goals, etc.).
It is only partially possible to adhere to the principle of economic efficiency in relation to the personnel assessment system (not all results and costs can be quantified; there is no rigid correlation between costs and effect, etc.), and the use of the term \\"efficiency\\" suggests that, in addition to the traditional proportion in cost form, there are others. Therefore, it seems appropriate to move on to combining complementary forms of expressing efficiency and to analyze from the target, need and economic positions.
Need efficiency expresses the degree to which the needs are reflected in the goal and (or) as a result. That is, if the needs of subjects and objects of assessment are taken into account in the targets of the personnel assessment system, and the needs of all its elements are realized in the results of the system, then it can be considered effective.
The need form is associated with the concept social efficiency, which is ensured by the implementation of systemic measures aimed at meeting socio-economic expectations, and provides for an analysis of the degree of satisfaction of staff needs.
The assessment system is a multi-element formation, therefore, when analyzing its effectiveness, it is necessary to take into account the needs and interests of structural components: subjects (for example, managers) and objects (in particular, individuals), personnel management system, organization, external environment.
The effectiveness of the system can be assessed, firstly, from the standpoint of the needs of the enterprise that finances it. In this case, the assessment of the result, correlated with the costs incurred, comes to the fore. Secondly, from the standpoint of the personnel management service, when quantitative and qualitative indicators characterizing the scope of the work performed, the impact of the assessment results on the development and functioning of the entire personnel management system. Thirdly, from the standpoint of individual workers and managers. From the employee's point of view, the performance assessment will be based on the degree of achievement of personally significant goals, objectives and needs. For managers, the effect of improving the results of work and methods of managing subordinates is important. Fourth, from the position of indirect consumers of services (for example, a region). In this case, the effectiveness of the assessment is determined from the standpoint of the implementation of regional social and economic tasks(reducing tension in the labor market, regulating supply and demand for professions, etc.).
Based on the analysis of the degree of realization of the interests of the four named groups, the effectiveness of the assessment system is determined, but at the same time, the problem of choosing the priority of needs and their optimal combination may arise.
The required efficiency is closely related to the target one: more effective with other equal conditions there will be a system whose purpose reflects the needs of objects and subjects of assessment.
The ultimate goal of the assessment may be to build such a system that would respond in a timely manner to the dynamics of the tasks of personnel and enterprise management, and contribute to obtaining a socio-economic effect in the management of the organization's human potential. The benchmark for the system output state, for example, can be to obtain the most complete and reliable characteristics of the assessed subjects or to increase the validity of management decisions in relation to the subject on the basis of an adequate and detailed assessment of it. The goals can be very different, and their formulation depends on the role that the management of the enterprise assigns to the personnel management system and its assessment.
The economic efficiency of the system (a characteristic of the degree of actual implementation of objective opportunities to achieve the most useful result for given or minimal cost) is estimated using the traditional comparison of all obtained effects (economic, social, psychological, etc.) with the costs incurred for the construction and development of the system.
The general patterns of the functioning of evaluation systems at various enterprises are the gradual investment in evaluation,\\"deferred \\" nature of obtaining its results. Economic efficiency can only be determined locally. For example, the division introduces a current assessment of the work of employees with reference to their stimulation, and after a short period of time, changes in labor productivity indicators are evaluated, correlated with the costs incurred to carry out the assessment.
An obstacle to determining the economic efficiency of personnel assessment is also the difficulty of measuring effect indicators, ensuring their representativeness and quantitative certainty. Despite the relative ease of subjective judgments of effectiveness, objective assessments based on quantitative data are more preferable. Identification of efficiency with that part of it that can be directly measured can lead to the identification of high or low efficiency, without saying anything about the actual performance of the personnel evaluation system. Descriptive indicators will reflect the qualitative side of the results.
For a complete and comprehensive analysis of the effectiveness of personnel assessment, one should refer simultaneously to its three forms. The integral expression of the system efficiency category can be represented as follows:
If the goal of the personnel assessment system reflects the needs of all its subjects and objects, then the first ratio (need efficiency) is equal to one. Similarly, if the result fully realizes the goal, then the second relation ( target efficiency) is equal to one. Under these conditions, we get the traditional expression of economic efficiency - a comparison of the result and costs. That is, from the point of view of a comprehensive understanding of the essence of efficiency, the most productive system is the one that satisfies needs to the greatest extent at minimal (or given) costs.
The main idea of the described approach is that if there is an efficiency that cannot be quantified in terms of value and compared with costs, it is necessary to turn to the target and need forms of expressing efficiency.
The three-component model of efficiency can be supplemented with another variety - commercial. This type meets the interests of the enterprise in a competitive environment, as it shows a payback period equal to the period of time from the start of financial investments in the personnel assessment system until the moment when the investment is equal to the total depreciation net profit. The commercial effectiveness of personnel appraisals is often difficult to ascertain with precision. quantitative indicator. Both the cost of valuation and the profit from it are a non-separable element total costs on personnel and the total profit from the functioning of the personnel management system. However, it is necessary to make an approximate analysis of how long the investments in personnel assessment pay off.
E \u003d C / P R / C R / Z,
where E is the effectiveness of the personnel assessment system;
P - the purpose of the assessment;
