The Necessity of Implementation of the So-called Non Cost Conceptualization of the Public Sector
Date
2016-03
Journal Title
Journal ISSN
Volume Title
Publisher
ДВНЗ «Київський національний економічний університет імені Вадима Гетьмана»
Abstract
Corporatization of public enterprises implies the conversion of public services into real companies, i.e. converstion of public enterprises into joint stock companies or limited liability companies, as
a form of business organization. This is no doubt a necessary precondition for increasing their business performance, because public companies manage state property, which is kept as the property of others, and used as their own. This way, public enterprises would operate just like any other company. Nevertheless, corporatisation is much broader phenomenon than simple transformation of public enterprises into some form of business organization. It involves change of management system, formation of management bodies and the regulation of their business through the charter,the method of forming a selling priceof public services and the
philosophy of economic use of resources.This is, apparently, a far more important element of corporatization because it shows that every form of property rights can be effective if entrusted to professional managers. This paper examines the issue of corporatization by determining the selling prices of public services on the basis of the ‘non-cost’ principle instead of the traditional concept of cost.
Description
Keywords
implementation, non-cost concept, public sector
Citation
Radosavljevic M. The Necessity of Implementation of the So-called Non Cost Conceptualization of the Public Sector / M. Radosavljevic, M. Andjelkovic, A. Cherpak // Стратегічні імперативи сучасного менеджменту : зб. матеріалів ІІІ Міжнар. наук.-практ. конф. (17–18 берез. 2016 р.) : у 2 ч. / М-во освіти і науки України, ДВНЗ «Київ. нац. екон. ун-т ім. Вадима Гетьмана» ; редкол.: С. М. Соболь (відп. за вип.) [та ін.]. – Київ : КНЕУ, 2016. – Ч. 1. – С. 157–163.