Pitfalls of Value Based Management (VBM)

• Authors: Pietrewicz L.
• Languages of publication: PL

Abstracts

EN

The paper evaluates the practice of value-based management (VBM). Two fields of potential weaknesses are studies: (1) implementation and (2) effects of VBM in the company. The author's findings show a number of pitfalls in applying VBM. The most relevant are: impossibility of objective determination of the best value measure, technical difficulties in implementation of value measures (related to identification of capital cost and value of capital employed), myopia and focus on effectiveness at the expense of creativity, what leads to a decrease of efficiency in the long term.

Keywords

EN

VALUE-BASED MANAGEMENT

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Instytut Organizacji i Zarządzania w Przemyśle „ORGMASZ”
• Journal: Ekonomika i Organizacja Przedsiębiorstwa
• Year: 2008
• Issue: 2(697)
• Pages: 83-88
• Document type: ARTICLE

Contributors

author

Pietrewicz L.

• L. Pietrewicz, Instytut Nauk Ekonomicznych PAN, ul. Nowy Swiat 72, 00-330 Warszawa, Poland

Identifiers

CEJSH db identifier

08PLAAAA04238241