Effectiveness of Use of MCDM Methods in the Terms of Local Self-Government

Abstract

The public administration perceived as executive action of the state, i.e., basic statutory subject in the Slovak Republic consists of two parts—state administration and self-government. The basic unit of self-government is the municipality. The basic unit of government is the municipality. The municipality is an economic entity and basic self-governing unit of local self-government, which manages its own property under the Law, disposes with own financial resources, and prepares its own budget. Municipal indebtedness significantly determining its action constitutes a single criterion laid down by law for evaluating its financial performance and necessity to establish a recovery mode or receivership in the municipality. The contribution discusses the selected methods of multi-criteria decision making, which are based on determining of the ranking according to the identified criteria which have a direct impact on the overall result. On the basis of previous utilization of describing methods in the various fields of the economy, the contribution explores the possibility of their use in the evaluation of the management of municipalities, i.e., the application in terms of local self-government. By choosing the right methodology it is possible to evaluate the quality of municipalities management and provide a way for a more efficient use of public funds. This analysis provided the space for comparison of these methods and confirmed their possible use in local self-government in the evaluation of management of municipalities.