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VOLUME 2, No. 1, 2016
access to the KPI. KPI’s (Key Performance Indicators) came to us
together with the American
and Western European companies, where it has been used successfully for decades. KPI is a
tool that helps to analyze the performance of certain activities, as well as the level of the set
goals achievements.
Researchers show that about 80% of Russian executives are dissatisfied with existing systems
in their companies performing the evaluation. Using existing algorithms, they do not see the
connection
between plans, performance, result and motivation. Implementation of KPI helps
to change the picture completely. KPI allows to control the business activity of employees,
departments and the company in a whole and to bring the enterprise to a new level. In Russia,
KPI is translated as a key performance indicator. In fact, this is not entirely true. It would be
more correct to call it “a key indicator of results activities”, as the English word performance does
not include only the concept of efficiency, but it also is the concept of performance. Despite the
apparent
closeness of these terms, they have a significant difference: the efficiency expresses
the relationship between the results achieved and the resources invested and it defines the
company’s ability to realize their goals and plans with a given quality level, expressing certain
requirements: time, cost, degree of achievement.
Effectiveness is an ability of the enterprise to focus on the result (degree of the planned
results achievement) [7].
It should be noted that these kpi-indicators should be focused on the local administration.
Firstly, this is due to the difference in powers of the municipality head and the head of the local
administration. Secondly, the heads of municipalities for the efficiency
purpose of its activity
shall be guided by the Russian President by the norm of Decree from the 28 of April 2008 No.
607 “On the estimation of the efficiency of the activity of the local governments of the city
districts and municipal areas”. The development kpi-indicators are the current trend in the
municipalities activity.
So, Vologda region Government in 2015 decided to evaluate the City-managers kpi-
performance, where one of the most successful municipalities in the area was selected as an
experiment.
In the Smolensk region a similar decision was made, the main indicators were the investment
attractiveness, the development of agriculture,
a small business support, etc.
Thus, it must be concluded that the trend of the kpi-performance implementation geographically
is expanding. But this development of KPI occurs spontaneously taking into account the
preferences of the region. In this case, the most correct is to use a systematic approach to the
development of indicators. The indicators should be formed according to a presidential decree
“On the evaluation of the effectiveness of the local government districts. But, at the same time,
differentiated indicators should be developed in connection with the division of powers,
depending
on the type of the municipality. This distinction can be represented as follows:
Also, it is necessary to introduce regional specificity, where the executive body of the subject
will be able to introduce the problem and the relevant spheres of interaction.
It is necessary to use the “360 degree” method According to these indicators. Often this
method is used for assessing personnel data. But in the practice of assessing the heads of
the local administrations, this method is necessary for the teaching of objective data. The
evaluation of “360 degrees” is getting data about human activities in real work situations and
manifested their business qualities. Thus the information was obtained from the people who
has communicated with that person at the different levels. in the
case of the evaluation of
the heads of the local government performance the information must be obtained from the
different social groups, that is the subject of the selected authority – the head of the subject
of the region, the regional government (ministers), the colleagues (municipal employees), the
heads of rural settlements (on the specifics of the type of municipality) population, public
organizations, the business community.
110
CONTEMPORARY PROBLEMS OF SOCIAL WORK
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Figure 1.
Performance of Evaluation of the Heads of Local Administration
The
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Figure 2.
Subjects Interaction of the Mayor
Thus, the introduction of the legislative practice of the system must be taken into account
that it is typical and within the making decision representative authority it shall be taken as a
basis, while having the opportunity to supplement it, to adjust according to the specific area.
The most important condition for the attainment of the social ideas and the main characteristic
of modern municipal service is professionalism. This characteristic is fixed in the federal law,
and, in fact, it is the main quality of the new innovative system of the executive power. The
condition for the effective work of the executive authority in
the local government system
is the municipal service professionalization, where the key element is the “city manager”. In
the connection with the reform of the local self-management sector, the scientific community
and public needs to combine the efforts to develop scientific and practical models indicators
to assess the effective implementation of the city manager activity. The model should be