Modeling of production processes in rural areas: management and development effectiveness

Abstract

In the modern economy, the process of studying independent and alternative approaches to studying a business (organization) is happening more and more. Such alternative approaches of today include: “neoclassical theory”, “theory of transaction costs” (theory of specific assets), “theory of incomplete contracts” (theory of property rights), and also “agent theory” (theory of incentives). Such integrated systems and approaches of economics and management as “resource theory”, “knowledge theory”, “strategic theory”, “entrepreneurial theory”, “network theory”, “theory of resource dependence”, “theory of institutional isomorphism”, “theory of situational choice", "The theory of strategic choice" is currently promising and relevant. The article discusses the basic model of neoclassical theory. The main superiority of this theory is expressed in the fact that it predetermines the technological component as a whole as an economy in the broad sense of the understanding and depends on the scale of activity of the economic entity. Moreover, this theory provides for the reflection of savings in the activities of an economic entity, taking into account the scale of activity and business processes (factors) that characterize the volume of production and turnover of organizations. In the framework of the approach under consideration, a certain macrostructure is determined that incurs costs of economic resources: fixed assets, the number of employees that affect the turnover of organizations. The rational management task that the Udmurt Republic encounters is to determine the forecast for the turnover of organizations for given resources and in calculating the fixed assets necessary for its value and the number of employees. It was revealed that the rural economy of Udmurtia has a negligible effect on the scale of resources, since with a simultaneous increase in labor and capital by 1%, the turnover of organizations increases by 1.82%, and the final product is most dependent on the state of the workforce, as the current state the equipment used is in critical condition in terms of wear and efficiency.

Development of a methodology for determining the financial security of rural areas

“…The starting point here can be the system of Monitoring and assessing the quality of municipal finance management, which is aimed at creating prerequisites for increasing the efficiency of local government bodies by creating incentives for the development of the level of financial management in public law formations of local importance (Mukhin and Mukhin, 2018;Mukhin et al, 2020). These prerequisites are tasks, the solution of which is provided by the system for monitoring and assessing the quality of financial management (Figure 1).…”