For the company to function smoothly and efficiently, quality management must be ensured. The concept and essence of this term have many interpretations developed by leading scientists and economists. It is worth noting that the concept of management, although similar to such a phenomenon as management, is at the same time significantly different from it.
Management: concept and essence
In order to effectively manage the organization, it is important to thoroughly study the theoretical side of the issue. This is especially true for such a field of activity as management. The concept and essence of this concept can be expressed in terms such as leadership, administration, disposal, management and other synonyms. In addition, this is a separate discipline that is studied in educational institutions.
It is worth noting that in order to become an effective leader, it is important to know what principles management is based on. The concept and essence of this phenomenon are based on such key points:
- loyalty to subordinates, which creates a healthy atmosphere in the team;
- a sense of personal responsibility of the manager for the results of the organization;
- established communications both vertically and between equal units;
- encouraging initiative among workers, which helps to reveal their abilities, as well as the search for new ideas
- introducing all employees to activities in order to create a sense of common goal;
- continuous monitoring of the external environment in order to respond to changes in a timely manner;
- in working with subordinates, a policy aimed at their satisfaction should be developed;
- direct participation of the head in all production processes;
- compliance business etiquette both within the organization and in working with contractors;
- cleanliness in the conduct of business;
- knowledge of fundamental principles and rules of management, as well as their use in work;
- continuous self-education and personal growth.
Thus, we can say that the concept and essence of management consists in continuous planning, motivation, organization of activities, as well as control over it at each stage.
What is meant by the word "management"
The essence and content of the concept of management can be characterized as follows:
1. This is a science that defines the theoretical foundations of enterprise management.
2. The concept, essence of management implies directly the process of regulating the activities of the organization.
3. These are creative abilities that determine a person’s ability to quickly make effective decisions.
4. This is a management apparatus that includes management at various levels.
School of Management
The concept and essence of management were formulated completely differently by economists who belonged to different scientific trends. Based on this, several main schools can be distinguished, namely:
- School of Scientific Management. I implied that management should be based on accurate data obtained as a result of measurements and timing. At the same time, workers were exclusively a mechanism for achieving production goals, and therefore only their physiological characteristics and needs were taken into account.
- School of Administration. I set myself the goal of developing universal principles that will become the key to the success of any organization. Moreover, each of the representatives of this trend had direct experience in managerial activity.
- School of human relations. For the first time, the human factor is highlighted. The employee ceases to be perceived only as a labor unit. Its psychological characteristics are beginning to be taken into account, which helps to increase production efficiency.
- The emergence of the school of quantitative methods is directly related to the development of computer technology and cybernetics. The emphasis is on the development of new effective forecasting techniques, as well as algorithms for the implementation of plans.
Management models
It is worth noting that the essence and content of the concept of "management" largely depend on the national characteristics of the state where the enterprise operates. Thus, the following models are distinguished in control theory:
- The formation of the Asian model of management was greatly influenced by religious teachings and movements. That is why such categories as understanding and respect play a key role in organizing production. Due to the fact that the staff is selected carefully and based on the level of education, trusting relationships are established between employees. Here, employees are focused on the overall result, and not on self-expression.
- The Western management model is based more on the practical side of the issue and does not imply collectivism, but individual responsibility for the results of work. At the same time, relations between employees should be exclusively working (friendship and close contacts are not welcome). All authority for managing the production belongs exclusively to the manager, and employees only comply with the directives.
It is worth noting that, due to national characteristics in its pure form, these models can be used exclusively in their "homeland". Nevertheless, many organizations are experimenting, trying to create new methods that combine the principles of the Asian and European models.
The essence of the concepts of "management" and "management"
Economic science knows a number of terms that, although close in meaning, are not equivalent. So, the essence of the concepts of "management" and "management" many identify, which is erroneous. It is worth noting that the first term is broader.
If we talk about management at the enterprise, then it includes the whole range of activities for the allocation of resources and responsibilities to achieve the goals that were set by management. If we talk about management, then this is a set of methods and mechanisms by which the achievement of a pre-planned result is achieved.
What is financial management?
The concept and essence of financial management are a combination of specific techniques to ensure the maximum level of profit, as well as minimize the risk of bankruptcy. This category includes planning of financial indicators, as well as regular assessment of the economic condition of the enterprise in order to timely respond to deviations. This also includes liquidity management and building relationships with various financial institutions.
The main task of financial management is to ensure the regular and uninterrupted flow of funds for the normal functioning of the organization. If we talk about the long term, then not only the survival of the enterprise should be ensured, but also the achievement of the highest possible profit indicators.
Strategic management
The concept and essence of strategic management consists in the fact that this mechanism implies the setting of long-term goals, as well as the development and implementation of measures to achieve them. One of the main tasks is the formulation and development of a strategy that determines the direction of the organization. Based on this, goals and tactical steps are developed.
If we talk about strategic management, then it performs the following functions in the organization:
- determination of the system of interaction between the internal and external environment of the enterprise;
- the identification of the general direction and vector of the organization’s activity, on the basis of which the goals and tasks are detailed;
- ensuring close and streamlined relationships between the various departments of the enterprise;
- timely detection of deviations and an adequate response to them;
- making fairly accurate forecasts for the development of the organization and the industry as a whole.
Strategic management is primarily aimed at determining the current state of the enterprise (both objective and relative to its main competitors). Next, it is worth making a realistic plan (based on data on the development of the enterprise both in past years and in the reporting period), in which the perspective state of the organization will be indicated. Based on this, a clear mechanism of action should be developed that will lead the organization from the current state to the target indicators.
Goals and objectives of management
In the framework of the topic "Concept, essence, goals of management" it is worthwhile to dwell on the latter. They determine the specific condition that should be achieved by the results of the activity. If we talk about the general goals of management, then they consist in planning certain indicators, as well as their achievement. Also here you can include continuous production management and staff motivation.
One of the main tasks of management is to ensure the survival of the organization. The bottom line is that even at critical moments, the company must stay afloat, providing at least a minimum level of profit and maintaining its place in the market. In the event that this goal is achieved, it is worth moving to a new level, which implies a move towards maximum economic indicators.
Since the economic environment is characterized by instability, risk management can be considered one of the important tasks of management. It is important not only to respond to fluctuations in the external and internal environment, but also to be able to anticipate them in order to develop preventive measures.
Speaking of such categories as concepts, essence and tasks of management, the following points can be distinguished:
- the formation of a production program in accordance with the needs of potential customers (for this, relevant studies are carried out;
- search for qualified specialists who should occupy both managerial and working positions;
- development of a motivation system, which includes improving working conditions and financial incentives, which will contribute to staff interest in achieving the organization's goals;
- determination of the strategic direction in accordance with which the enterprise will develop;
- drawing up clear plans both for the enterprise as a whole and for its individual divisions;
- identifying the need for all kinds of resources for the smooth operation of the enterprise and finding ways to ensure them;
- continuous monitoring of compliance with the planned indicators.
Management functions
The essence of the concept of "management function" we have, in principle, outlined. The bottom line is that all types of management activities should contribute to achieving the target state of the organization. It is customary to include the following:
- Planning is one of the main categories of management that determine its essence. The basic concepts of management are inextricably linked with the prediction of the future situation, as well as the determination of the desired state of the organization in a specific period of time. In addition to the definition of planned indicators, it also means the development of specific measures to bring the enterprise to the desired state.
- The function of the organization is to develop the appropriate structure of the enterprise, which will ensure effective targeted activity. It also means providing the production process with all the necessary resources - temporary, labor, material, financial, and so on. In addition, there is a determination of the responsibilities and activities of each individual structural unit.
- Motivation - involves the development and implementation of measures that help stimulate employees of the enterprise to more productive work. Creating favorable conditions for staff, you can ensure high production efficiency, and therefore this moment should be given special attention.
- Control - implies continuous monitoring of current indicators for compliance with their goals. This process helps to notice deviations in time, as well as quickly take measures to eliminate them. The performance of this function is entrusted to a special unit, however, the Director General also takes a direct part.
- Coordination is one of the main functions of management, because it involves ensuring interconnections between different departments of the enterprise. Various communication methods are used here, and a reporting system is established.
Types of management
Economic science studies the essence, concept and types of management. So, we can distinguish the following main categories, in accordance with the field of activity:
- Production management - refers directly to the process of manufacturing products, providing services or performing other operations that relate to the main activities of the enterprise. This applies to the organization, supply, planning, as well as the placement of personnel in jobs.
- Financial management implies the management of all financial flows that are carried out both within the organization and with external contractors. Here we are talking about the development of methods and mechanisms that will ensure timely and complete provision of the organization with cash, which will satisfy production needs and ensure economic sustainability.
- Innovation management - performs the task of continuous updating of all systems of the organization in order to bring them into line with scientific and technological progress. A separate service is responsible for this, which is engaged in the study of the latest scientific developments, as well as their adaptation to existing production conditions.
- Investment management - involves the process of attracting financial flows from external sources, as well as managing them. Here we are talking about creating an attractive image of the organization, which will contribute to the influx of cash resources, as well as their proper distribution to obtain the corresponding benefits.
- Crisis management - designed to keep the organization afloat during a period of economic instability of both internal and external environment. It is worth noting that these actions should not be reactive, but preferably preventive in nature. It is important to predict possible financial fluctuations in order to prevent negative reactions from production.
- International management is the mechanisms and processes for managing cooperation between enterprises that operate in different countries of the world. In addition to studying the demand and feasibility of concluding business relations, the features of foreign legislation, as well as the tradition of doing business, should also be taken into account.
- Strategic management - aimed at the long term. It is important to determine the direction of the enterprise taking into account forecasts and economic development trends.This is the basis for the functioning of the organization, on the basis of which all other controls are developed.
Management system
We examined the concept, the essence of the management system. It remains to note that such activities are aimed at managing financial resources, which includes the following components:
- enterprise mission; goals and objectives of the work;
- basic performance indicators;
- established production processes;
- effective organizational structure;
- Information Support;
- financial well-being.
findings
Leading economists and scientists are constantly studying issues such as essence, the concept of management, organization. Management can be defined as a set of mechanisms for the regulation of the enterprise. Moreover, this term should be distinguished from management. The second is broader in meaning. It applies not only to entrepreneurship, but also to other areas of human life. If we talk about management, then this is not just an activity on the organization of production, but also a full-fledged section of economic science. Also, this concept may mean the management apparatus and special abilities of the director or other employees of the organization.
The essence and basic concepts of management were formed under the influence of various schools. Initially, it was a scientific approach based on accurate measurements and normative indicators. Here, staff was perceived solely as a workforce, and attention was paid only to physiological characteristics and needs. As for the administrative school, its theory is more realistic, because each of its representatives was directly related to managerial activity. Speaking about the school of human relations, it is worth noting that here the employee goes to a new level. Not only are taken into account physiological needs but also psychological features. With the development of modern computer technology, a school of quantitative methods appears, which builds enterprise management on the basis of clear economic calculations and forecasts.
It is worth noting that the formation of traditions and characteristics of management is not the last one is influenced by nationality. So, if we are talking about Asian countries, then here the enterprise is positioned as a family. It respects respect and mutual support between workers. At the same time, a sense of collective responsibility and a desire to work for the good of the organization are developed. Often, an employee works all his life at the same enterprise, gradually moving up the career ladder. As for European countries, their management model can be characterized by the expression "each for himself." An atmosphere of competition is created, and the responsibility for each area of activity is individual. At the same time, employees actively migrate between different enterprises.
So, we examined the essence, the basic concept of management. This activity is closely related to planning, which involves the development of a "road map" of the enterprise. The following is the solution of organizational issues, such as the formation of an appropriate structure and the placement of personnel in places. In order for employees to fulfill their duties properly, they should be motivated through tangible and intangible incentives. Moreover, all production processes must be constantly monitored in order to timely identify deviations from the plan. It is also worth noting the importance of such a function as coordination, which ensures effective interaction between structural units.
