ასოცირებული პროფესორი, ეკონომიკისა და მენეჯმენტის ფაკულტეტი, ალეკსანდრე სტულგინსკის უნივერსიტეტი, კაუნასი, ლიტვა
მაგისტრი, ეკონომიკისა და მენეჯმენტის ფაკულტეტი, ალექსანდრე სტულგინსკის უნივერსიტეტის ეკონომიკის ინსტიტუტი, კაუნასი, ლიტვა
Application of the Balanced Scorecard in Assessing the Efficiency of Farmers’ Farming Activities
(ბიზნესის ფინანსური უზრუნველყოფისა და მართვის აქტუალური საკითხები)
Introduction and aim: The concept of efficiency assessment is used in various fields of science, including the economy. However, it should be noted that the difference between the traditional business and the farmer's business requires different measures and methods for the assessment of the efficiency of the activity. The scientific analysis reveals that the issues of the activity of farmers' farms are analyzed in various aspects, therefore it is important to identify the criteria for the evaluation of the efficiency of farmers' farms. The purpose of the research is to identify the main methods for assessing the efficiency of the activity and to justify the most suitable evaluation of the efficiency of the farmer's business.
Research methodology: Systematic literature review, logical analysis and synthesis.
Results and implications: For the past 35 years, various methods for assessing the efficiency of the activity have been formulated and proposed. The choice of their use depends both on the size and activity of the entity, as well as on the objectives pursued and the expected future prospects. When assessing the efficiency of a farmer's business, based on the complexity provision, the Balanced Scorecard (BSC) System would be best suited. The choice of the above method is conditioned by the fact that, in the context of the changing economic development of a farmer's economy, the evaluation of efficiency should not be limited only by financial indicators. It is necessary to take into account the internal, usually indeterminable factors that characterize the farmer's farm potential, as well as the activity prospects. These goals, as a whole, allow for the achievement of a system of balanced scorecard, which, in 1992, was proposed by R. S. Kaplan and D. P. Norton (1992). Based on a balanced scorecard system, the efficiency of a farmer's business can be evaluated according to four criteria:
Finance. By distinguishing financial criteria, the question is formulated: "How is an entity assessed by shareholders or other stakeholders?" In order to answer this question, it is necessary to conduct a financial analysis of the farmer's economy. First of all, it is necessary to find out how the farmer's farm's accounting is carried out and what real financial indicators can be measured and evaluated.
Domestic business. In distinguishing the domestic business criterion, the following question is formulated: "What is an entity obliged to stand out?". The farmer sells products on a market that has a certain specificity. Attention is drawn to the fact that, in the course of their activities, farmers not only produce agricultural products. They often process or sell products directly to consumers. In this context, it becomes evident that it is necessary not only to know the market in which the farmer works, but also to be able to distinguish oneself from other farmers offering similar products. It is important to note that farmer's entrepreneurship is one of the key factors determining the efficiency of his farm's activities.
Clients. By distinguishing clients’ criterion, the question is formulated: "How is an entity seen by customers?" Due to the specificity of the activity, farmers' relations with customers are unusual. Trading in the market is not acceptable to everyone and can not guarantee the growth of production; therefore, in dealing with product marketing and customer search issues, most farmers join agricultural cooperatives. It can be assumed that in order to assess the efficiency of farmers' farms from the customer side, it is appropriate to consider the cooperative as a farmer's customer.
Innovations. By highlighting the innovation criterion, the question is formulated: ""Can the farm continue to develop and create added value?"" Attention is drawn to the fact that an important precondition for improvement can be seen as a farmer's desire to learn, to raise qualifications and apply innovations in the farm, which would increase production efficiency and thereby increase the effectiveness of farm activity. Agriculture still has a low labour cost indicator, which shows that there is a lack of professional farming and farm management, which is very unwillingly recognized by farmers themselves. On the other hand, farmers who are constantly learning and qualifying make optimal decisions for successful farming, which also have an impact on the economic efficiency of farms.
Summarizing the analysis of the efficiency evaluation criteria, purified according to the model of balanced scorecard, it can be stated that the efficiency of the farmer's farm activity can be evaluated on the basis of two main aspects: economic and social. The economic aspect of the analysis is described by the financial indicators, while the social criteria include domestic business, customers and innovations.
Conclusion: The evaluation of the efficiency of the farmer's farm activity is significant in that it allows the farmer to see the efficiency of his efforts and, once he has discovered the mistakes made, to adjust the actions accordingly in the future. Farmer farms' activity efficiency is not limited to analyzing financial indicators. Various researchers suggest applying different indicators. Their choice is determined by the specificity of the farmer's farming activity and the objectives of the analysis. The efficiency of farmers' farms activity must be evaluated in a complex way, using a special assessment method, model or system. A system of balanced indicators is recommended for the evaluation of the efficiency of farmers’ farms activity, which was proposed by US researchers R. S. Kaplan and D. P. Norton in 1992. The system consists of four criteria: finance, domestic business, clients, innovations.
Keywords: balanced scorecard, farmers’ work efficiency