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Section:   en » Economic terms » Management      16 января 2015  
Management (management - administration, management, administration, management, the ability to master) - design and development, the most effective use, management and monitoring of socio-economic systems.

Management - a set of methods, principles, tools and forms of government economic organizations to improve their performance.

Principles and functions of management

The system of knowledge about how to manage organizations and socio-economic systems formed on the basis of various sciences. In political economy, law, psychology and many other sciences has sections related to the management. A number of specific scientific disciplines specifically studying specific functions of management: planning, accounting issues and decision-making, information processing, and so on. E., By generalizing experience and developing more advanced forms and methods to improve the effectiveness of management activities. Of particular importance in this connection acquire quantitative methods and decision-making model.

Management at any level - a complex integrated system. For example, for the industrial organization manager must constantly worry about market share, to anticipate customer requirements, to ensure accurate delivery times, to produce products more and more high quality set prices taking into account the conditions of competition in every possible way and take care of maintaining the company's reputation among consumers, at the same time within the organization - achieve productivity growth by improving the planning, more efficient organization and automation of production processes and at the same time take into account the requirements of the trade unions, to maintain its competitive position in the market, to provide dividends to shareholders at a level so as not to lose their trust, and leave us a sufficient volume of retained earnings to ensure its growth. An important task is to unite the management, integration of all parties and aspects of the organization's activities and sites, their private purposes, for the common goal of the system.

Control theory applies scientific methods of analysis in order to develop specific methods and recommendations for management practices. Effective application of these methods and recommendations based on the combination of specific circumstances, conditions. For example, the Japanese experience of using "quality circles" has not found wide application in the US industry because of differences of social relations in the workplace. Therefore, one of the important conditions for effective management (ie achieving the organization's goals at minimum cost) is a value (line) used methods of management of external and internal environment of the organization's functioning. Useless to apply in industry management practices adopted in the army and vice versa. Similarly, in a market economy does not provide the anticipated results that were used in the USSR, policy management techniques. Conversely, application of management and marketing in the Soviet economy would be of only academic interest.

The three main functions of management: business management to enhance its efficiency, control and management of managers and employees work - due to the complex nature of the business - the specifics of the profession manager is to perform these three functions simultaneously. In accordance with the goals and objectives of the company business management function is a central, unifying all the functions - to run a business - it means finding the optimal balance between its diverse needs and goals.

Complexity and adaptation of control systems

By definition, R. Ackoff systematic approach in the management based on the fact that every organization is a system composed of parts, each of which has its own objectives. Head for management decisions must come from the fact that in order to achieve the overall objectives of the organization needs to consider it as a single system. It should identify and evaluate the interaction of all its parts and combine them into a framework that will allow the entire organization to effectively achieve its objectives. However, the achievement of all subsystems of the organization - a phenomenon desirable, but almost always unreal. The need for a systematic approach for the management of the enterprise can be understood by considering two aspects of the head. First, it seeks to achieve a total efficiency of your organization and not to allow private interests of any one member organization damaged the overall success. Second, he must pursue this under the organizational environment that always creates conflicting objectives. Strategy, technology and economy - related elements of a common problem. The essence of the economic problem is to choose a strategy, including all equipment and other resources necessary to implement the strategic plan, which will either be the most effective (the most profitable solution of the problem with the available resources), or the most economical (the achievement of the task with the minimum cost).

The control system can be represented by a special type of machine based on the fact that each system performs any function that can be considered as a target machine. One of the main distinguishing categories of control systems is the difficulty. Any company has many conflicting objectives, and this is one of the decisive factors determining the need for description of a company as a very complex probabilistic system. The complexity of the system is determined by the number of its constituent elements and the possible links between them. The degree of complexity is measured by a variety of systems. Variety describes the number of possible states of the system. The fundamental principle of management, open W. Ashby, is the law of requisite variety, according to which the level of diversity management system should match the level of diversity of the controlled system. Hence, in particular, it follows that it is impossible to create a simple control system for the management of complex systems and processes. It follows that, as individuals and entire organizations are not able to cope with the problems, the complexity of which exceeds some certain level. When this level is exceeded, the control is no longer able to understand what is happening around and to develop an adequate strategy for managing the firm or country. Another reason for the increasing complexity of managing production rates associated with changes in the environment. The influence of the external environment is the determining factor when choosing a company to control. The speed of change in the external environment of the organization grows and grows accordingly the complexity faced by the organization problems. The more complex the problem, the more time it takes to solve them. The greater the rate of change increases, the shorter the life of the solutions of problems. By the time a solution is found the situation has changed and requires a fundamentally new solution. Organization may not be able to quickly and efficiently learn if this does not have the ability to guide her. In general, the law of requisite variety for the management of the firm determines that the successful confrontation environment, the complexity and speed of decisions in the company must comply with the complexity and speed of the changes occurring in the environment.

According to Art. Biru, any classification systems from the standpoint of cybernetics, provides two criteria - (a) the degree of difficulty: simple dynamical systems, complex systems indescribable (well-structured) and very complex systems can not be adequately analytical description (loosely structured) and (b ), the difference between deterministic and probabilistic systems. And to probabilistic systems are not the same knowledge that is not quite full at the moment, and probabilistic in nature that can not be unambiguously described in principle. The class is very complex probabilistic systems are firm, the brain and the economy. In accordance with the Law of Requisite Variety control system for the economy and the company should also be a very complicated probabilistic systems and industrial control systems (provided that they are effective) must be built as a cybernetic system. Cybernetics offers a feedback mechanism as a way out of the contradictions of probability managers and managed systems. Feedback controller guarantees compensation of disturbances not only a certain type, but any disturbances. In particular, it compensates for the effect of disturbances on the system, the cause of which is completely unknown. This is precisely the importance of the principle of feedback for the management of industrial production, which is a very complex system that does not yield detailed description.

Socio-economic functions and objectives of management

Evaluation of the place and role of management in social production and formulation of problems of economic development is a challenge not only the economy, but also a number of other social sciences (sociology, political science, and so on. D.). The theory of institutional economics, which arose at the intersection of economics, sociology, law, and history, is focused on the study of formal and informal rules that structure the interaction between individuals in different areas of daily activity. Awareness of the interdependence of the different aspects of social and individual production has led to the current understanding of the systemic nature of the economy, including its structural and functional differentiation and the development of concepts of its institutionalization as a determinant of social interaction in the process of economic development.

Structural-functional approach is a specification of the ideas of systems theory and systems analysis applied to various areas of the economy (including management), which is considered an integral and interactive part of the social system of the highest order - society. From the standpoint of management paradigm and interdependent system functions do not exist separately from each other: there can be no economy politics, culture, technology, and so on. D. The concept of system functions of the organization is based on the simple fact it vklyuchёnnosti in the livelihoods of the whole society as the ambient social whole. However, modern science establishes a correspondence between invariant aspect of the object and the concept of the structure, which is used to denote the set of stable relations between the major parts of an object, ensuring its integrity and identity itself. The concept of structure is usually related to the concept of the system, with the structure expresses only what remains stable under different transformations of the system. The main properties of the system at the same time belong to the class of properties or the emergence of integrity, they are inherent in the system as a whole, occur during the formation of the pieces disappear with it, and can not be explained on the basis of the properties of the individual parts, without reference to the relations between them. When two or more systems having synergistic effects due to the desire of each to the equilibrium parameters and properties which are caused by the initial state of each system. But it is precisely these properties play a decisive role in terms of control actions on the socio-economic system, including the impacts of proposed structural and functional reorganization of the entire system or parts of its structure in accordance with the purposes and interests of the community. It follows that an important task of science is to understand the structure of socio-economic systems as carriers of emergent properties, which determine the basic characteristics of their behavior. The success of the restructuring of the system in the direction of obtaining the desired properties, is the ultimate criterion for determining the degree of knowledge of the real structure.

Systematic approach to management inevitably leads to the need to find a meaningful set of functional imperatives of the level of implementation of which depend on the survival of businesses and their effectiveness of social production. Equally necessary and identify the structures that form these imperatives and management paradigm of the socio-economic system as a whole. Indeed, the development of the socio-economic system is due to the dominance of a functional imperative. Thus, during the Soviet period, the dominant role in the economy belonged to the planning and production functions and elements that are directly related to its execution. Now Russia is clearly visible expansion of the banking sector, which is trying to subjugate the rest of the economy. From this it follows that either explicitly or implicitly in every socio-economic system established unique system management functions, plays an important role in achieving the objectives of social production.

The presence of own goals - the main difference from other organizations artificial systems created by man. Objectives - Means, goals and ideals of the system can be set as an objective, as well as the number of elements contained in them. This allows you to explore the teleological system, in terms of output, rather than deterministically, in terms of input, which is a key moment from the standpoint of evaluating the effectiveness of management.

Systematic review of the organization defines it as a targeted system, which is part of one or more other targeted systems and part of which - the people - have their own goals. Therefore, research organizations should provide three levels of analysis purposes: the system, its parts and systems of higher order, which is part of the organization. The need to take such a large number of targets simultaneously and creates an imperative goal, goal-setting and problem in the organization and management respectively.

enterprise management

Proper management allows to motivate employees to achieve the most effective results.

management functions

Production of results - provides performance of the organization in the short term.
Administration - maintaining order in the organizational processes.
Entrepreneurship - a kind of human activity aimed at creating material goods and services with a view to profit, but with a greater risk of loss of original capital.
Integration - the creation of a system of values that encourage people to work together to ensure the viability and effectiveness of the organization in the long run.

Elements of the management system

- The organization's mission
- The objectives of the organization
- Organizational chart of subordination
- Units
- Evaluation of the performance indicators (KPI)
- Regulations of work
- The system of measurement activities

Components of the management

Large company at the same time poses and solves a set of interrelated tasks, which creates several subsystems in the management system:

project Management
Human Resource Management
quality control
innovation management
financial management
strategic Management
Investment management
Risk Management
information Management
environmental Management
See also:

  • Strategic Management
  • Innovation
  • Logistics
  • Economic Theory
  • Crisis Management

  • Banks

    International Monetary Fund

    Wall Street

    Bank of America

    JP Morgan Chase

    Wells Fargo


    Goldman Sachs

    Morgan Stanley



    BNP Paribas

    Credit Agricole


    Credit Suisse

    Royal Bank of Scotland (RBS)

    Deutsche Bank

    Sberbank of Russia


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