Improvement of ownership relations as a key direction of management mechanism reformation

Lysevich, Sergey and Лисевич, Сергій Григорович and Лисевич, Сергей Григорьевич and Melnikova, Iryna and Мельникова, Ірина Євегіївна and Мельникова, Ирина Евгеньевна (2018) Improvement of ownership relations as a key direction of management mechanism reformation. Інтернаука (6 (14)). pp. 58-65. ISSN 2520-2057

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Abstract

The investigation states that the established management mechanism in the country after decentralization and privatization of state property is inefficient both at the national economy and enterprise levels. This resulted in deterioration of innovative activity of enterprises, labour conditions, main assets, standard of living, and financial proceeds of enterprises. One of the reasons of management mechanism inefficiency is established ownership relations of production funds. Having analyzed foreign practices it was concluded that in the developed countries property conveyance to staff and its indulgence in business management is rather common. This promotes their competitiveness and respectively increases efficiency of these businesses. It is stated that the competition level in the country has decreased over the past years. It doesn’t motivate businesses to reform ownership relations. It is suggested to apply foreign experience in management mechanism improvement at the national economy and enterprise levels. To implement this, the role of the state in the economy should be facilitated considering crisis overcoming practice of the USA, Germany, Japan and modern China, along with the competition level by adapting required legislation. The methods suggested are targeted at elimination of negative trends in the national economy; facilitation of the state’s role in the national economy management; improvement of ownership relations which become a base for management mechanism reformation at the national economy and enterprise levels.

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