Strengthening Economic Subjects' Internal Capacities : improvement of decision-making process

Stevanović, Slavica and Belopavlović, Grozdana (2012) Strengthening Economic Subjects' Internal Capacities : improvement of decision-making process. In: Managing structural changes : trends and requirements. Coimbra : Faculty of Economics, Coimbra, pp. 552-564. ISBN 978-972-9344-06-0

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Abstract

Corporate restructuring is the essential of many economic subjects in the modern society. By choosing the appropriate strategies and techniques for company restructuring, the performance could be improved, and additional value for the shareholders could be created. Adverse changes in the capital and product markets, competition strengthening and insufficiently successful management, are common reasons for undertaking numerous activities aimed to basic changes in corporate structure. Changes in management structure, and the forming of a competent leading team impact on decision-making process improvement, and consequently, on strengthening the quality of corporate governance. The aim of this chapter is to analyse the managers' competence and modern information systems, as tools to improve decision-making process. This chapter emphasize the importance of professional and ethical values to improve the effectiveness of decision-making process, giving special attention to the mechanisms of managers’ control. Mechanisms of professional and independent supervision, along with ethic codex and proper motivation system allows the creation of partnership environment where managers, conducting business in the interests of company owners and other stakeholders, keep working in their favour. The rest of the chapter highlights the need for information system that provide promptly respond to the managers’ requirements with relevant information, giving particular reference to the decision support system and BSC system. The separate part of the chapter presents a contribution of cash flow analysis to improving decision-making process, by analysing cash flow performance measures and cash flow analysis in function of individual decision-making.

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