The purpose of the article is to develop theoretical and methodological principles of institutionalization of economic and non- economic interactions and carry out a scientific substantiation of ways and means of forming institutions of productivity’s manage- ment in the agrarian sector of the economy. Research methods. In the research process the following methods have been used: abstract and logical, comparison, mono- graphic, problem, graphic, economic evaluation and systematic structural analysis, and methodological generalization. Research results. The assessment of institutional development of productivity’s management in the transformation period in Ukraine, in particular, in the agrarian sector of the economy, has been assessed. This allowed us to consider the institutional theory that provides the two-way character of relationships between the institutional environment and economic behaviour of a person, reveals the further deepening of the labour differentiation and positive changes in the social structure of society in the European community. However, the same scientific principles indicates deindustrialization and formation of so-called “shadow forms of em- ployment” in Ukraine, as well as aggravation of the problems of unemployment and degradation of the industrial sector of the economy. The elements of scientific novelty. Scientific novelty of the article lies in the system-conceptual approach to formation of in- stitutions and creation of an institutional environment for effective management of productivity on the basis of developed causal links. In the productivity’s management have been highlighted the main factors of quality of education and work in accordance with EU standards. Practical significance. The necessity of creation of national and sectoral productivity centres, national and branch centres of professional qualifications, analytical centre for formation and monitoring of indicator systems of productivity and competitiveness has been substantiated. Tabl.: 2. Figs.: 2. Refs.: 14