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As in any other field of intellectual and practical activities of people (military science, medicine, etc.), scientific management and the art of management complement each other. Effectiveness of control systems provided the ability to master the art of creative managers to apply scientific management principles in specific situations. In management actions that achieve the goals should be distinguished from so-called “ritual” and “impact”. Under the ritual are meant managerial activities, which do not lead to any results either. Such activities may be safe only in a stable economy. Under the “impact” refers to managerial activities, leading to changes in organizational structure, terms of internal and external environments of organizations, but they do not achieve their objectives. In most cases, such activities endanger the life of the organization. Thus, the guiding actions that fail to achieve this goal are not administrative. The three main functions of management are: business management to improve its efficiency, management and administration managers and employees work – due to the complex nature of the business – the specifics of the profession manager is to perform three functions simultaneously. In line with the aims and objectives of the firm function of business management is a central, uniting all the functions – manage your business – it means finding the optimal balance between the diverse needs and goals.
As a fact, it can be argued that management theories are developed in response to the problem facing managers at a particular stage in history. Some of the theories do not depend on the stages of history, as they are indispensable for a long period of time and they depend on other factors. Sometimes management theories are developed to improve the situation, consequently they are applied to the certain situation and the current circumstances. In the modern world there are being developed different theories that are needed to help management work properly, that is why in this fast changing world it is more essential to create theories that will serve for a particular project or a period of time. These days everything is changing rapidly, that is why the old theories will not help in solving the modern problems.custom term paper
Evaluation of the place and role of management in social production and formulation of problems of economic development is a challenge not only for the economy but also for a number of other social sciences (sociology, political science, etc.). The theory of institutional economics, which arose at the junction 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 different aspects of social and individual production has led to the modern understanding of the systemic nature of the economy, including its structural and functional differentiation, and development of concepts of its institutionalization as a determinant of social interaction in the process of economic development.
Based on the fact that the functions of the subsystems of socio-economic system are realized through the appropriate institutional forms and processes, specification of the structural-functional approach to the analysis of system management functions, as the institutional structure can be represented by the following concepts:
a) management is regarded as one of the subsystems of social production and socio-economic system as a whole;
b) implementation of its system functions is defined by structural and functional differentiation of social production and the presence of systemic imperatives, is a specialized contribution to the management of the society;
c) management at the level of social production and its current operation can be regarded as an institutional process, effected by management decisions that result in costs of production and revenues, on the one hand, and the creation of wealth and services – on the other.
The system-wide understanding of the institutional dimension of the problem of implementation of system management functions includes not only a subsystem of social production, but also provides them a direct effect of the structure of other institutions of socio-economic system.
The influence of socio-economic environment for system management functions can be represented as follows. Managers make decisions at the micro level, in relation to which decisions are taken by the State that is why they are the macro-level, forming the external environment company. In general and for individual enterprises and the state there are generally three levels of objectives: task – the results are expected to be available within the plan period; goal – the results are not expected to be achieved outside the plan period, but to which the company expects to approach within the plan period; mission (ideals) – results that are unattainable, but the approach to which is possible. Clear boundaries between these three levels is most often impossible to make, but in general can be defined that mission involves the desire to work in a specific direction, purpose – to achieve any concrete results, and problems have specific estimates and timetables for achieving them. Accordingly, distributed, and levels of decision-making among managers and middle managers. An example of the mission of the firm can be a quick reaction to the needs and wishes of consumers, the desire to ensure that consumers valued the firm.
Since the end of the last century, with increasing complexity of production changes the perception of companies, objects of management changed the principles of their management.