APPLICATION OF QUALITY MANAGEMENT SYSTEMS AS A STRATEGIC TOOL IN PERFORMANCE EVALUATION

Quality management system according to international standard ISO 9001:2015 highlights the evaluation of performance. National and regional strategic documents define goals, priorities, measures and activities directed to encouraging sustainable economic growth, including rural development, for which funding are provided by national, regional and local budgets. Budgets of local and regional (territorial) administrations consists of general and specific part and plan of development programs as a third mandatory component prescribed by the Law. Plan contains descriptions of the program with performance indicators, goals and development priorities related to programming and budget organizational classification. Analysis of the program based on performance indicators are essential for argumentative business decision making. In other words, indicators confirm whether the program has achieved its purpose or not, i.e. whether the indicators were realistically and accurately defined. The lack of established business practices in application of performance indicators in business decision making on administration level, was the motive for the conducted research of scientific and technical literature, which deals with these issues. The goal is to notice problems of defining indicators and its application in analysis for business decision making. Whereby a logical conclusion imposed was the possibility of using ISO 9001:2015 as a tool for successful management.