Value approach to the evaluation of managers’ work effectiveness

The problem of evaluation of the effectiveness and quality of work of managers arises from the fact that the owners community of the Russian business starts to feel ready for the transfer of management functions to employees. These trends are complicated by many reasons, among of which we should highlight the lack of objective methods of evaluation of managers’ work effectiveness. At the same time, there are rather reliable methods of evaluation in foreign practice, based on the objective financial data. In this regard, there is a need to adapt the tools and methods to the activities of Russian enterprises developed by foreign scientists and used by practices. And as is the customary in modern management, the main purpose of management of the company is the increase of its value and, as a result, the shareholders' welfare, calculation of the cost is becoming one of the main tools for the evaluation of the quality and efficiency of the managers’ work. In this paper, the technique of using one of the methods is given, which is based on the determination of the intrinsic cost of the business with the purpose of business management and control over the activity of managers.