In order for a business to make a profit and grow, it is necessary to build an established system of relations between all structures both within the enterprise itself and with external partners and organizations. The complex of micro- and macroeconomic factors directly affects any business, but one of the priorities facing the head is the competent management of resources and personnel. Styles used by company management for its development may be different, but they are all divided into three main categories. The most common in the current model of market relations economic management methods and their combinations.
High matter
Newcomers to the business who do not have experience in business or at least specialized education are not always able to adequately assess the full range of tasks that need to be performed by the leader. Particularly zealous "businessmen", armed with a shallow theoretical knowledge, can, taking up the matter with enthusiasm and remarkable efforts, even realize their dreams and goals, building their business intuitively. In practice, this rarely happens and soon the owner of the company is forced to seek help or learn on their own.
The inexperience of the leader and his inability to implement the methods of managing economic activity is the main reason for the ruin of many enterprises. According to the influence on the executors of tasks and processes at the enterprise, direct and indirect management methods are distinguished. In the first case, the actions of the leader will lead to the actual result, which will be the result of a causal relationship. Indirect methods, however, suggest rather than direct guidance, but rather the creation of favorable conditions conducive to the achievement of goals and plans.
Three methods
In economic science, there are three methods by which the enterprise is managed. The most important place is occupied by economic management methods. They suggest a set of actions in management, which covers work with different directions - this is planning, analytical activity, response to external factors, solving organizational issues and personnel management.
No less important place is occupied by organizational and economic management methods, or administrative. It sounds scary and is associated with punishment, although in reality this method is fundamentally important and by no means punitive, rather bureaucratic. The administrative methods cover the sphere of influence of the regulatory and legislative framework in the field of which the enterprise operates, as well as the internal charter and order. It is also a regulatory method and is a direct manifestation of power. However, the era of feudalism has long gone into oblivion, and the modern leader rarely takes over the reins of government in full, delegating his own powers and responsibilities to other people.
At some enterprises, socio-economic management methods are in their infancy and underdeveloped, although their level of influence is very high. They mean actions aimed at normalizing relations in a team, training personnel, organizing jobs and leisure activities, etc.
That which is not subject to man
Economic management methods are applied at three levels, for each of them the subject and object of management are different.In macroeconomics, a manager is a government body that affects an object (enterprise), which must conduct its activities in accordance with the stated requirements of state organizations. Ideally, there shouldn’t be a reverse process, that is, an enterprise cannot dictate its terms of power, however, as practice and historical background show, lobbying for personal interests in government is the norm of the modern economy, and the lower its level of development, the brighter this process is manifested .
Other indicators in accordance with which the company needs to carry out management activities are the investment climate, financial and credit situation, pricing and fiscal policy of the state, as well as various government programs to support and develop business, government orders and, of course, ratings and forecasts of reputable publications .
Business plan
The normal functioning of the enterprise involves the preparation of plans based on the analysis of activities, and adequate timely introduction of adjustments. In any company, economic management methods that are applied not to individual employees, but to the structure as a whole, can be divided into two groups:
- planning (tactical and strategic);
- commercial calculation, the purpose of which is to analyze the self-sustainability of the enterprise, its ability to function at the expense of its own working capital.
It is customary to draw up a business plan at the start, however, planning does not end there. Management activity is to be able to draw up the right strategy and tactics for the development of the business, individual units and performers. Organizational, controlling decisions and actions of the management make it possible to implement both short-term plans and those aimed at the future.
Mathematical harmony
Economic methods of enterprise management are largely based on the preparation of an action plan, but the role of analysis, as well as mathematical modeling, is important. The staff of accountants and analysts monitors company performance, competing organizations, and macroeconomics.
Timely and competent management intervention in a particular situation, predicted in advance or timely identified, allows you to achieve a positive result, avoid losses and, in some cases, increase the efficiency of the enterprise. This applies both to factors negatively affecting business development (economic downturn, the emergence of a new competitor, loss of the target audience, political or financial instability in the country), and those that, on the contrary, contribute to an increase in production and sales volumes. These include various government programs, investments, the identification of increased consumer demand for a particular product, etc.
There is safety in numbers
Even if the company consists of two people, we can say that it has a team. Its management is the most important milestone in the activities of management. And the more hired personnel are subordinate, the more important it is to build an effective system of influence methods that will lead to a positive result and the fulfillment of functional duties by each employee.
The staff can be affected in different ways: through administrative or socio-economic pressure, but the most effective and popular is the system of economic management methods that regulate the production process in the team through material rewards.
Of course, none of the methods presented above can cope with the task of creating the ideal mechanism for solving all problems in the team, so the system should be comprehensive and include various means.It is noteworthy that in enterprises and organizations that operate on the principle of "five-year period in three years", the socioeconomic and administrative methods of influence are chosen as the main form of pressure on personnel. In market conditions, when management makes the organizational chart of the enterprise transparent, motivating staff with personal gain, economic management methods are applied. They are perceived by the staff most favorably, in addition, contribute to greater dedication and productivity.
To whom is the carrot, and to whom is the whip
Conventionally, the methods used by management to influence personnel can be divided into only two groups:
- promotion methods;
- methods of punishment.
The purpose of any of them is to increase the efficiency of the company's employees. Economic incentives can be expressed in the form of remuneration for work (salaries, allowances, bonus payments) or additional benefits that the company offers its employees in the form of a bonus. This is insurance early retirement or favorable loan terms.
As a punishment, the manager may deprive the employee of any privileges previously given to him. It is worth noting that the employer does not have the right to withhold a fine from the minimum wage, unless the employee caused real damage to the enterprise by his actions. But failure to fulfill plans or criticism of the client cannot be the reason to pick up the minimum.
You can't buy happiness for money
Economic methods of personnel management are undoubtedly effective. However, they are not able to create optimal working conditions and microclimate in the team. For many people, moral satisfaction from activities is important, and this is precisely the method of social influence on the part of management.
The opportunity to express one’s own point of view, participation in solving production issues, praise are elementary and affordable ways of influencing staff, which, nevertheless, allow creating a healthy psychological atmosphere among employees.
In addition, the socio-economic management methods must include the possibility of free access to information from all members of the team, the lack of moral pressure and dictatorship at work, harassment. By instilling in each employee the principle of mutual responsibility and the importance of personal contribution to the development of the business, the company's management promotes the development of a team spirit, which often becomes the driving force for successful work.
