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Organization of Integrated Management of Forest Industry Performance

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M.A. Khvesik, A.M. Shubalyi

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In a market economy, it is important to develop new approaches to the management of forest industry performance based on the integrated approach at all levels of economic management. The study aimed to substantiate theoretical and methodological aspects of organization of integrated management of forest industry performance during market instability. The study was based on the methods of the classical theory of performance management, as well as systems and integrated approaches to the organization of the subject-object relations in forest industry. We have justified the steps of forming a system of forest industry performance management, which includes a number of theoretical and methodological procedures: the choice of targets, scope, processes, methodological framework for assessment, information support and software. On the basis of the systems approach, we have formed a structure of integrated management of the forest industry and substantiated the peculiarities of the relationship between its elements. The modern system of integrated management of forest industry performance should be based on a new institutional framework that will promote partnership between the state, permanent forest managers and business structures. Institutional challenges should be overcome through the transformation of the institutional and legal framework of the forest industry. We suggest a scheme describing how the system of integrated management of forest industry performance functions. This scheme involves attracting available resources, use of industry-specific regulatory and guidance materials that form a support sub-system. This will form the basis for the management, functional and manageable sub-systems for the development and implementation of new decisions and measures. Especially challenging and important is the functional sub-system which should provide an optimal combination of the principles, functions, methods, instruments and tools for management of the forest industry performance. All of this will result in a target subsystem – a set of performance indicators reflecting the degree of target achievement. Integral parts of this system are the direct communication and feedback with the elements of external environment, which will also make an indirect assessment of the achieved results of performance management of the forest industry. The developed system of integrated management will allow us to, in a most efficient way, use the resource and production potential of the forest industry, while increasing the efficiency of its functioning.


1M.A. Khvesik, Doctor of Economics, Professor; 2A.M. Shubalyi, Candidate of Economics, Associate Professor

Institute of Environmental Economics and Sustainable Development, National Academy of Sciences of Ukraine,  Bulvar Tarasa Shevchenko, 60, 01032 Kiev, Ukraine, E-mail: 
Lutsk National Technical University, Lvovskaya, 75, 43018 Lutsk, Ukraine, E-mail:


1Institute of Environmental Economics and Sustainable Development, National Academy of Sciences of Ukraine 2Lutsk National Technical University


forest industry, system, control system, performance, performance management, mechanism of management, integration.


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