Volume 2, Number 2 (2015)

O. Ye. Kuzmin
Doctor of Economics, Professor,

O. H. Melnyk
Doctor of Economics, Professor,

O. V. Mukan
PhD of Economic Sciences, as. prof.,

M. Ye. Adamiv
PhD of Economic Sciences,
Lviv Polytechnic National University


Abstract. The article analyzes the national legal and regulatory framework in the field of socio-economic diagnosing of the major parameters and operation directions of the objects being diagnosed such as financial conditions, the threat of bankruptcy, solvency (credit status), and investment attractiveness. Based on the results obtained there are singled out, generalized and justified the key contradictions of national regulations governing principles of assessing the priority sectors of these objects operation. The importance of further development of the national legal and regulatory support of socio-economic diagnosing towards its unification in modern conditions of European integration is proved.
In terms of revitalization of European integration processes in Ukraine and globalization processes in the world the importance of socio-economic diagnosing at all levels of national and international economies is increasing. In fact, successful establishment and further development of relationships between domestic and foreign partners at different levels (state authorities, financial, credit and insurance institutions, rating agencies, securities market participants, investors, intermediaries, contractors, businesses) require accurate, representative and objective database obtained through target diagnosing. Recently stakeholders have been primarily interested in socio-economic diagnosing of such aspects of particular entities as financial conditions, threat of bankruptcy, solvency, investment attractiveness etc. Target diagnosing is based on various techniques developed by the legislative authorities of Ukraine that are still being used to form special methodological guidelines for evaluating priority operation areas of the diagnosed objects. Obviously, the methodological provisions reflected in the current national legal and regulatory framework should be standardized and unified for all users in both domestic and international environment to ensure exclusive regulation of key principles of socio-economic diagnosing and unified interpretation of the diagnostic results. Unfortunately, at present in the national legal and regulatory framework there are many problems associated with discrepancies, inconsistencies and contradictions of certain diagnostic methods. Considering all the above, there arises the necessity to study current national legislation and regulatory materials to identify existing conflicts in the area of socio-economic diagnosing.
Key words: socio-economic diagnosing, European integration, legal and regulatory framework, contradictions, methods, indicator, criterion.

References 10

O. Ye. Kuzmin
Doctor of Economics, Professor,
Lviv Polytechnic National University

O. Telishevska
Postgraduate student,
Lviv National University of Veterinary Medicine
and Biotechnology named after S. Z. Gzhytskiy


Abstract. The development of Ukrainian economics observed in the last years and its orientation towards the integration into the world economics community, as well as large-scale introduction of market relations require the radical structural changes of economic potential of subjects of entrepreneurial activity and adequate policy directed towards the increase in the efficiency of their economic activity. The improvement of the management of material flows, flows of funds and information flows contains the considerable potential of growth of efficiency of enterprise activity as a result of application of new progressive methods and approaches. Among such approaches the main place is occupied by logistics which begins to develop dramatically in Ukraine.
The modern nature of market, target orientation of production and the distribution of products according to consumers’ requests determine the necessity of searching extra possibilities for decreasing expenditures and product costs, as well as improving service levels for the enhancement of the efficiency of enterprise activity.
For domestic enterprises of different branches logistics costs make up the considerable part of general costs. Logistics costs are the expenditures created as the result of information flows, flows of funds and material flows. It is no exaggeration to say that logistics is a comprehensive process in business, since every movement, search or bargain is cost-based, without regard for logistic characteristics.
With the help of logistic calculations it is possible to 1) determine the expenditures on the purchase process, transportation, warehousing; 2) predict the budget of future periods; 3) compare and analyze the characteristics of logistics activity.
In the conditions of transient economics, that is, fierce competition, financial volatility and spread of the corrupt practices, the problem of the optimization of the enterprise expenditures arises. So, the reduction of logistics costs is the top-priority activity aimed at the stable operation of the enterprise.
The necessity of the appropriate response of management processes to changes in the functioning conditions and improvement of delivery and marketing causes the stable interest of domestic manufacturers in the process of maintenance supply and production distribution as important constituents of enterprise activity. Taking into account the fact that the production program of the enterprise and, naturally, the results of its economic activity depends on the efficient organization of supply and marketing, we can state that the entire investigation of these processes is extremely urgent.
Key words: enterprise, method, logistic procure¬ment charges, party of delivery, strategic decisions, export-import operations.

References 14

O. S. Lemishovska
PhD of Economic Sciences,
Lviv Polytechnic National University


Abstract. There are analyzed the conceptual and methodical principles of accounting described in the fundamental accounting literature in general and there is made the direct comparison of methodical arsenals in works of L. Pacholi and Ja. Ympyn. The relationships between these works on accounting are defined and the the major provisions described in them are compared.
In any sphere of activity, there always exists the first (basic, fundamental) published work, which represents the scientific and applied nature of a certain subject area of knowledge. It is considered that in the sphere of accounting such work is the development related to the organization of accounting by L. Pacholi presented in his book “Treatise on Accounts and Records”.
The book of L. Pacholi contained rather exhaustive description of all ways of accounting of all kinds of trade operations, which caused its impact on the results of scientific work of many authors in the sphere of accounting and bookkeeping. Almost all adherers to the compliance with the methodological principles and organization of accounting provided in the work of L. Pacholi, saw his main achievements in the detailed compilation of the accounting practice of that period, which he formulated in 17 basic rules of accounting. According to the research of C. Keil, Italian authors of works on bookkeeping to the middle of the 17th century were completely under the influence of L. Pacholi’s works [1, p. 52], remaining on the position of personification. Thus, it is considered that contribution of these authors was generally connected with specification and development of separate provisions of L. Pacholi. In general, in the area of historical research into formation and development of accounting there are provided many arguments on the fact that at that time there were many research and development works on accounting, in which lots of valuable and independent provisions were formulated, in spite of the fact that they were based on the Treatise.
A Netherlandish scientist Ja. Ympyn became the most famous follower and distributor of L. Pacholi’s ideas. His work published in Flemish and French in 1543, contained the basic ideas disclosed by L. Pacholi. Despite the relationship of the basic foundations of both works, researchers differently interpret their compa¬rative aspects. This fact makes such component of historical research as formation and development of the scientific principles of accounting relevant.
Key words: history of the accounting, develop¬ment of the accounting, accounting literature.

References 8

N. A. Mamontova
Doctor of Economics, Professor,

A. F. Novak
PhD of Economic Sciences, as. prof.,
The National University of Ostroh Academy


Abstract. In the article the essence and importance of management accounting in higher education were investigated. The main reasons for the need to actively search for effective methods of organization and management accounting and the peculiarities of its main components were defined. We described the sequence of actions on the implementation of management accounting in higher education and the organization of educational process in accordance with the new methods of decision-making. The functions of the main departments of higher educational institution and their powers under the new conditions of registration have been defined. The strengths and the implementation of management accounting system of principles that should guide the work of the University to the implementation of the educational process was easy and efficient were described. We carried out the analysis of the information and analytical support of accounting in higher education and identifies the advantages and disadvantages of the latter.
In the course of its core activities public institutions use the funds of state and local budgets and own revenues to purchase equipment, materials and other resources to ensure their continuous and effective work. Analysis and control over the formation and using of financial resources of budgetary institutions provides accounting system.
Reforming accounting of budgetary institutions has been going on for about 10 years, and are constantly significant changes that facilitate the work of the latter. Anchored by the Cabinet of Ministers of Ukraine from 16.01.07 № 34 “On approval of the Strategy of modernization of the accounting system in the public sector of Ukraine for 2007–2015. 'Directions and objectives are implemented according to plan to build a modern financial accounting subsystem subjects of accounting in the public sector in general and in particular budgetary institutions [1]. Considering the recent innovations in the public sector accounting we should pay more attention to the important accounting subsystem, such as management accounting. An importance of managerial accounting is due to the instability of the financial system of Ukraine and the characteristics of different kinds of budget institutions. To specify the aims and objectives of management accounting and its implementation the subject to research will be universities, as a kind of latter. The aim of this study is to determine the characteristics of the organization of management accounting in public institutions, aimed at improving the quality of education needed for further development. The development of such information system may be based on the organization and develop¬ment of management accounting, designed to provide the necessary objective and operational information all levels of government universities.
Key words: management accounting, the cost of educational services, financial and economic activities, documentation, inventory, management reporting.

References 12

A. Y. Mohylova
Doctor of Economics, as. prof.,
Oles Honchar Dnipropetrovsk National University


Abstract. Based on the cyclical nature of company’s capitalization, the paper proves that the productive capital is of high priority in achieving the strategic goal – the growth of company’s value. The directions for the growth of company’s own capital are determined, and the best of them are identified in terms of organizational constraints in the implementation by the company’s owners and economic expediency. The sources of company’s own financial resources for the increase of capitalization are analyzed, and the directions for providing company’s capitalization in the real sector of the economy are offered.
Key words: capitalization, company’s value, industrial production, own capital, real sector of economy.

References 12

N. Y. Podolchak
Doctor of Economics, Professor,

G. R. Kovalchuk, O. I. Savchyn
Lviv Polytechnic National University


Abstract. It has been elaborated the method for quantitative evaluation of level and structure of the interpersonal management conflicts that prevail over the other conflicts in the machine-building enterprises functioning. According to the reasons of appearance investigated interpersonal management conflicts were divided into the following types: informational, behavioral, structural, conflicts of relationships and values. The method was developed due to the usage of conjoint analysis that allows to evaluate simultaneously both the structure of the conflict and its level according to the priorities system, which has increased the credibility of gained results. Calculated values have shown that the prevailing conflicts in the structure of machine-building enterprises management conflict are informational ones that are related to poor information support of companies’ administrators. The behavioral and relationship conflicts are also rather significant. They have different appearance nature and require special methods for their solution.
Dynamics of the environment, complexity of organization and communication structures, increase of the competition level, uncertainty in a number of market spheres, growth of the negative crisis outcomes, struggle between countries for markets and resources, active political confrontation especially in the developing countries are causing the general increase of the number of conflicts and conflicts levels. All the stated above factors of conflicts lie beyond the limits of enterprises influence on them, which is why they require the constant monitoring and appropriate adjustment on the part of the organization. However, it is not less important to consider the subjective component of conflict appearance – lack of desire to see the mutual advantage of cooperation, possibility to avoid conflicts with minimal losses, confidence in the accuracy of one’s objectives, principles and convictions, asymmetry and monocentricity of corporate culture, managers indiffe¬rence towards the occurrence of conflict situations, which leads to irreversibility of negative effects and significant losses caused by conflicts activity.
Hereby the task for enterprises managers is to identify the potential conflict situations actively, sometimes to provoke their appearance in order to resolve the management problems, to evaluate their level, to influence their course and to try to receive functional results.
Key words: interpersonal management conflicts, machine-building enterprise, conflict identification, conflict evaluation.

References 11

I. Yo. Yaremko
Doctor of Economics, Professor,

L. M. Pylypenko, O. I. Tyvonchuk
PhD of Economic Sciences, as. prof.,
Lviv Polytechnic National University


Abstract. Dynamic development of modern entities in information and knowledge economy is associated with the usage of intangible factors of functioning. It is components of intangible capacity that form information and intellectual resource of the enterprise, determine its competitive position in the market and are the key to efficient operations and the main factor in the formation of its value. However, many components of these informational and intellectual resources often cannot be clearly identified and objectively measured. For this reason, the existing accounting principles provided by almost all systems of standardization, do not imply the recognition and reflection in accounting and financial reporting of significant amount of information and intellectual assets, mainly internally generated.
These arguments largely explain the gap between the market and the book capitalization of modern companies, especially high-tech ones.. For public companies whose stocks are quoted on equity markets, the value of unidentifiable intellectual assets (capital) can be set by assessing the value differences determined on the basis of market mechanisms. For other operating entities it is impossible to formalize the internally generated information and intellectual capacity in any way. This is achievable only in cases of merger, acquisition or takeover of a business (the so-called M&A agreements), when the difference between the market value of a business and its book value is taken by the buyer on its balance sheet in the form of goodwill. In fact, goodwill has appeared to be almost the only mechanism of recognizing the value of unidentified information and intellectual assets (capital) in enterprise’s value formalized in public financial reporting. The need for public representation of internally generated information and intellectual capacity of companies determines the timeliness of the research related to modern developments in accounting.
Key words: goodwill, intellectual capital, financial reporting, approaches to assessing goodwill, methods of accounting for goodwill

References 18

H. M. Zakharchyn
Doctor of Economics, Professor,

N. P. Lyubomudrova
PhD of Economic Sciences,
Lviv Polytechnic National University


Abstract. This article discusses the motivational aspects of personnel creative potential in today's conditions, which is a driving force for innovation. Also the objective reasons that forced staff to develop creative potential of each company, in particular, the basic principles of formation of motivational policy for the development of creativity of staff are highlighted. The presented research shows the relationship between typology of staff work and the character of motivation, as well as determines the effectiveness of the enterprise staff creative potential motivation on the basis of various motivational tools.
The efficient processes of transformation will be successful only in case of the availability of creative potential of personnel able to produce innovative ideas, to support presence of the enterprise on the innovation market and to ensure its competitiveness through unconventional management solutions.
Creativity is a natural human characteristic, however, subject to certain circumstances; it is not always possible to utilize it as a driving power in innovative development of an enterprise. Because of the lack of proper motivational policy, creativity often remains just a personal condition, and there is only nominal development and use of its potential. Thus, a contradiction emerges between the objective need to implement the personal creative impulse and subjective obstacles to human development.
Key words: motivation, motivation policy, creative potential, creativity, innovativeness, stimulating.

References 10

Ja. Łuczak
Dr hab. inż., prof. nadzw. UEP,
Poznań University of Business and Economics (Poland)


Abstract. Process management has been increa¬singly popular for several years now, yet most frequently it is limited to fragmentary actions, at times even to decla¬rative activity. Few organizations have brought their mana¬ge¬ment systems in conformity with the idea of process management; more frequently some particular actions within the range of process approach may be observed.
Specialization allows efficient realizations of tasks; however, it separates individual organizational unities and amounts to an incentive for internal compe¬tition, in the result of which employees are antagonizingly focused on their positions and not on the organization’s business. Among numerous imperfec¬tions, or even patho¬logies caused by hierarchization within the organization, it is noteworthy to point at weak communication, isolation of structures, blurred respon¬sibility for the final result. Development of coordinating, supervising and monitoring systems, which are essentially not related to generating added value is also typical in this regard. These systems, however, are crucial for neutralizing negative outcome of the organization’s functioning within the system. (Rutka, 1996); (Borkowski, Siekański, 2004); (Deming, 2000). Therefore, Hammer and Champy proposed an alternative concept of managing organizations, Business Process Reen¬gineering, which initiated the discussion about the effectiveness and efficiency of management. (M. Ham¬mer, J. Champy 1993); (Womack, Jones, 2008); (Ohno, 2008).
Process management is used in the organization and aims at realizing given objectives. It may be meeting the key standard of ISO 9001 at the initial stage of imple¬menting the QMS. However, the motivation is frequently more ambitious as it is related to achieving proper results.
The processes ought to be mapped, modeled and optimized with the use of a renowned international notation – most frequently BPMF. Finally, we should achieve a comprehensive map in accordance with proper process architecture. The architecture should be based on 4–5 levels with the use of flow charts in the form of VACD (Value Added Chance Diagram) and EPC (Event-driven Process Change). The analyzed research problem is related to conscious use of process mana¬gement conception for realization of a wide range of improvement actions in management.
The leading management conception heavily relies on the functional orientation, in the range of which the predefined tasks are realized by executors on the basis of superior’s orders. Participants of an organiza¬tion perceive the structures through the realized functions, e. g. supply, production, designing. For the organizational objectives defined in this manner specific structural solutions are created (sections, departments, cells, positions). (Grajewski, 2004); (Kunasz 2010).
Process management is still more popular in research than in practice. There are few examples of complex usage of mapping, modeling and process improvement metho¬dologies; more frequent are partial examples of usage.
Despite the increasing popularity of the issues related to process management, or as may be named as a fashion in this regard, taylorian organization is based on division of labor and specialization in the frames of functional areas (Rummler, Brache, 2000), (Grajewski, 2004) (Gregorczyk, Ogonek, 2007); (Kunasz, 2011); (Gabryelczyk, 2000). Numerous titles devoted to process approach were not able to find appropriate manner of expression, which is hardly possible to link uniquely with tradition, conservatism or historic organi¬zational solutions. It is noteworthy to emphasize the risk which is recognized by managers during the implemen¬tation of process management conception, at least in its comprehensive, model form.
Process management is a conception, which, despite the significant depreciation of its original form (BPR), in some of its aspects plays a highly important role within numerous management conceptions, howe¬ver, frequently only to some limited extent. The aim of the present paper is to present the key results of research concerning process optimization of IT services realized for the Polish National Police.
Key words: process, process management, process mapping, efficiency, quality management

References 24

Syndicate content