About effectiveness measuring of defined objects (components) of the company

by Juraj KUBIŠ


JEL classification

  • Multiple or Simultaneous Equation Models: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
  • Model Evaluation, Validation, and Selection
  • Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity


Efficiency, monitoring of contribution of object, particular parts (components, objects) of the company, sale of services


This contribution solves the decomposition of value added (Value Added) of unit (company) to defined economic objects. The aim is to solve following tasks: the company has planned values of sales and real values of sales, capacity utilization of consultants. How can we find out, how big is the share of productive departments on achieved company’s results? Company is here decomposed to following objects: human resources, projects and sales. Solution was created by the synergy of several methods: economical cybernetics, flows in the network and the efficiency indicators. Each type of object and also the unit has defined behavior. From results of objects outcome the result of the unit: the contribution of each object is transparent. This contribution contains the diagnostic method of company’s efficiency, that allows quantitative measurement and secondary allows increasing of effectiveness of management of the companies.