Assessment of management effectiveness in the hotel business: dynamic approach

The peculiarities of the management assessment theory include its connection to the company’s performance results. These results include profit, capitalization, income and other quantitatively measurable indicators. This increase in relative or absolute terms for two adjacent periods is attributed to the results of the activities of both the company as a whole and its managers. This approach is not justified in market conditions. The main reason lies in the possible presence of more successful competitors and the macroeconomic impact on the industry. In this way, when demand within the national market decreases profits will most likely decrease and this is not the fault of the managers. The author of the paper proposes to assess management using macrostatistics data and open sources on the operation of hotels. This approach reflects such a trend as the formation of corporate governance: the separation of business ownership rights from management rights. And as a consequence, there is a need for external consumers of information to assess the effectiveness of hired management. The purpose of the study is to develop a scientific method for assessing the management effectiveness in market conditions. The methodology of the research is based on a critical analysis and synthesis of approaches to assessing the company management as a whole. The scientific novelty lies in inclusion of a dynamic element in the assessment of management and macroeconomic data. The methodology is proposed to be tested using the example of the activities of large hotels in Irkutsk.