Performance Management of Public Enterprises in Business Environment Deregulation Conditions

Niš : [Z. Jokić]

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Umnoženo za odbranu. Univerzitet u Nišu, Ekonomski fakultet, 2014. Abstract. Napomene i bibliografske reference uz tekst. Bibliografija: listovi 194-199.

Given the fact that public enterprises in the Republic of Serbia have, above all, public function and that, in the conditions of deregulation, liberalisation and globalisation, there are inevitable changes in business environment where all subjects operate, it is necessary to change the attitude of public enterprises towards their business activities. Thus, there is an imposing need to change legal frame in which public enterprises operate in order to be able to participate in capital market and eliminate political and administrative resource management. Considering the significance of public enterprises in social welfare in the Republic of Serbia, a great caution is needed during the reform and deregulation of mentioned areas. So far, providing the consequences of privatisation process in Serbia, the importance of certain public enterprises, which can be regarded as natural monopolies, is essential in order to consider all their specific qualities, prior to decision making. The reform of public enterprises necessarily includes finding the way for the improvement of their business efficiency and the advancement of their business success. It is a fact that the improvement of operating efficiency in public sector, by its nature, represents a highly complex, demanding and time-consuming process. More efficient business activities of public enterprises require decrease in budget deficit and Performing more efficient business activities of public enterprises requires decrease in budget deficit and public debt, making opportunities for reduction, i.e. rationalisation of state consumption, establishing sustainable social functions of the state, more qualitative management, more productive and profitable resources usage and its depolititization, through public sector privatisation process. All the above implies the necessity for more efficient and effective performance management of public enterprises in order not only to adequately monitor, control and enhance it, but also to perform adequate allocation of resources and identify key factors disabling the increase in business efficiency of these enterprises and influencing social standard and public services quality. The aim of the researches in the dissertation is to indicate the need in public enterprises for respecting the influence of economic rules and laws and thus eliminate all flaws of actual ownership method and management of these enterprises and to enhance their efficiency, especially considering their importance and specific business activities. Consequently, it is very important to adequately determine business performances of public enterprises and efficiently manage them, respecting operating particularities of public enterprises in the economy of the Republic of Serbia.

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