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Management means the creation, control and maximizes the efficient use of socio-economic systems and models of different levels. The main functions of management are: planning, organization, motivation, communication, management, development of processes and decision-making control. The relationship of these functions is determined by the fact that you cannot manage unorganized system, that is, the better organized company, the less it needs to be managed. The nature of management includes the concept of “management” also refers to leadership and management at various levels in the enterprise.
Modern Management is a specific tool, a specific function for organizations for the result. The implementation of this important task requires expanding the responsibilities of a manager, which includes all factors affecting the organization’s activities and its results: both internal and external, both controlled and totally independent from it. This requires a strategic approach to managing both vertically (at all hierarchical levels) and horizontal (functional areas of management) strategy – the case of all employees. The human factor is becoming a key factor in the success of the operation of the enterprise, as reflected in the governance principles formulated at the turn of XX and XXI centuries. The responsibilities of managers include:
-Loyalty to employees.
-100% responsibility – as a prerequisite to successful management.
-Communication, permeating the organization from the bottom up, top to bottom, horizontally.
-The atmosphere in the organization that promotes the disclosure of ability to work.
-Continuous training for all, everywhere and always.
-Equity participation of every employee in the overall results.
-Timely response to changes in the environment.
-Methods of working with people to ensure job satisfaction.
-The transition from an authoritarian style of leadership to leadership.
-The direct participation of managers in work groups at all stages as a condition of consistency and integrity.
-Ability to communicate with customers, suppliers, performers, directors, etc.
-Honesty and trust in people.
-Using the work of the fundamentals of management.
-Vision of the organization to have a clear idea of what it should be.
-The quality of personal work, continuous learning.
-Implementation of management principles today makes high demands on the individual manager.
The role of management in the organization plays an important part. Under the main provisions of systems theory, any object, phenomenon or process can be considered. Under the system it is understood a set of interrelated elements. Element is part of the whole system. Thus, any system: first, consists of two or more elements; second, each element is peculiar; third, between the elements there are ties by which they influence each other; fourth, the system cannot exist outside of time and space. The system has a temporal nature (its composition can be determined at any given moment), its limits and the environment. The first feature of the organization or enterprise as a system lies in the fact that it is – an open system that can exist only with the active interaction with the environment. It chooses from the intermediate and the overall external environment, key inputs and turning them into products (goods, services, information) and waste, passes again into the external environment. The condition for the viability of the system is a useful (beneficial) exchange between “input” and “exit”.
Another feature of this system is its artificiality. This system is created by a man for his own interests above the common labor. So the obvious feature of any enterprise is the division of labor. Two forms of division of labor are: the horizontal and vertical. The first is a division of labor through the division of labor operations for individual tasks. The result of the horizontal division of labor is the formation of divisions that perform certain parts of the overall transformation process. Since working at the company everything is divided between departments and individual artist, someone must coordinate their actions to achieve the overall goal of activities. So objectively there is a need for separation of administrative work from the executive. Hence, the need for control is connected with the processes of division of labor in the enterprise. For the organization to achieve its goal, the task must be coordinated by a vertical division of labor. Therefore, management activities are essential for the organization. However, smaller organizations often do not have a distinct group of leaders. For example, in a small shop owned by two partners, one can decide on supply, thus performing the function of leadership within a week, and the second – during the second week. They both coordinate their work schedules to ensure store hours. But both partners also do not perform management functions, serving customers, displaying goods on shelves. None of the partners considers the second owner or manager. Although the supervisory functions are not clearly marked, the main function – coordination – is performed. The vertical division of labor leads to the formation of vertical levels of management, some managers spend time on coordinating work of other leaders who, in turn, coordinate the work of other leaders, until, finally, there are level managers, who coordinate the work not management staff, for example people who physically manufacture products or perform services. Such vertical division of labor creates a management level.