People and organizations its styles and results


Management (in the broadest sense) - means a development (simulation), creating and maximizing the use of socio-economic systems at different levels. Management (in the narrow sense) - is the administration of social and economic systems, including manufacturing.

The main functions of management: planning, organization, motivation, communication, administration, development processes and decision-making control. The relationship of these functions is determined by the fact that you cannot manage unorganized system. The better company is organized, the less it needs to be managed. The concept of management also refers to leadership and management at various levels in the enterprise, as described in Cognitive Management: Managing your Organization's Mind.

Modern Management - is a specific tool, a specific function for organizations of 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 set out in the beginning of the XXI century.

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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.

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.

Business Ethics.

Honesty and trust in people.

Using the work of the fundamentals of management.

Vision of the organization that have a clear idea of what it should be.

The quality of personal work, continuous learning.

Implementation of management principles in today makes high demands on the individual manager.

Elements of management system: organization's mission; objectives of the organization; an organizational chart of command; departments; Indicators for assessing the effectiveness (KPI); regulations of the measurement system activity; components of management.

A large company simultaneously raises and answers a set of interrelated tasks, which creates several sub-systems management system:

Production Management.

HR Management.


Marketing Management.

Financial Management.

Project Management.

Strategic Management.

Innovation management.

Environmental management.

Quality control.

Risk Management.

Investment Management.

Information Management.

Strategic management, as stated in Management Style in Organizations.

Strategic management - activities aimed at achieving the strategic objectives through strategic tools. Strategic objectives can be - any suitable resources, geographic region, a new quality, leadership for some key competitive parameters. Policy instruments act - and any capital raise funds, and any tangible and intangible assets, organizational, human and natural resources, foreign and investment policies of the organization, equipment, key knowledge and technology.

Features of strategic management are special techniques and methods to achieve strategic objectives not obvious in terms of line management. For example, conservation of resources in a market crisis may require measures to reduce costs - the dismissal of qualified personnel, relocation or transfer of manufacturing to less expensive, but inconvenient place, which are usually in conflict with the goals of middle management. Also, for example, the borrowing of funds in the form of a loan or bond issue is the type of strategic decision because it is gratuitous and urgent to attract a strategic tool - financial resources.

Faulty transmission line management complete control over a strategic tool often leads to inefficient use of resources, until his loss.

In view of the difference between tasks, the practical implementation of strategic management by a special body that brings together owners, or consisting of the persons authorized by the owner. The traditional name of this body - is the Board of Directors. Operation of the Board of Directors provides a separate and independent from the main organization structure - possessory office management or holding company.

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Management is closely relative with motivation. One of the main tasks of a manager - is to motivate personal of the enterprise work more efficiency. Motivation of staff - is one of the ways to increase productivity. Motivation of staff is a key area of personnel policy of any company. The most effective system of employee motivation is "motivation by the result". The results of the staff shall be determined by Indicators for assessing the effectiveness (KPI). KPI and motivation of staff can significantly improve the efficiency and productiveness of the company. Most of the theoretical systems of motivation to come to the conclusion that the only motivation for the result is a perfect system, because substantiate the business of remuneration, and staff allows you to receive and to increase the income of a clear link to their efforts, as described in The Employee Motivation Audit.

Distinguish the following types of motivation: financial motivation, social motivation, psychological motivation.

However, for effective existence of the firm only motivation is not enough. Organizational structure - is a very important element of any management system, because it determines which way business process inside the firm would conduct. Organizational structure - is a set of ways in which the labor process is first divided into individual work tasks, and then reached the coordination of action to address problems. In essence, the organizational structure determines the distribution of responsibility and authority within the organization. As a rule, it appears as organigram - graphical design elements of which are hierarchically ordered organizational units (departments, job positions etc.), as stated in Organizational behavior and management.

Identify the following organizational structure:




simplified matrix;

balanced matrix;

rigid matrix;



Often, the organizational structure fit for the manufacturing process of products or services, depending on the type of production and the type of production.

Management concept strongly linked to the concept of marketing. Some scientists argue that management should not be separated from marketing and vice versa. Marketing - controls the creation of goods and services, and mechanisms for their implementation as a single integrated process. There are many definitions of marketing.

Marketing - is the art and science to choose the right target market, to attract, retain and increase the number of consumers by creating a buyer confidence that it represents the highest value for the company, as well as an orderly and purposeful process of awareness of the problems consumers and regulation of market activity.

In marketing, there are the following five basic principles: manufacture and sale of goods should meet the needs of customers; market conditions and opportunities of the company; fully meet the needs of buyers and high-tech and artistic level; presence in the market at the moment the most effective possible implementation of products; constant updating of manufactured or marketed products; unity of strategy and tactics to respond quickly to changing demand.

There are five main approaches, based on which business organizations are managing their marketing activities: a concept to improve production, improve product concept, the concept of the intensification of commercial efforts, marketing concept and the concept of social and ethical marketing. These concepts were formed at different periods of development of market economy. The general trend of development of marketing - is the shift from production of goods for commercial efforts on the consumer and the increasing focus on consumer issues and social ethics. The concept of improvement of production (the production concept) comes from the fact that consumers will be sympathetic to the goods, which are widespread and affordable, and therefore, management should focus its efforts on improving production and increasing the efficiency of the distribution system, as stated in A Framework for Marketing Management .

Applying the concept of improving production comes in two situations. The first - when demand for goods exceeds supply. In this case, management should focus on finding ways to increase production. Second - when the cost of goods is too high and should be reduced, which requires improved performance (but part of the production, which will be located in warehouses due to the fact that production costs are too high and, consequently, the demand for it is low, must sell at discounted prices. This may adversely affect the company engaged in manufacturing and/or sale of this product).

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The concept of improving the product (product concept) comes from the fact that consumers are showing interest to the goods, offering the highest quality, best performance and properties, and, consequently, the organization should focus its energy on continuous improvement of the goods. Using this concept can provide us an advantage only in the short term, but in general the concept of improving the product leads to a "marketing myopia". Paying attention to all this kind of a product, the seller may have overlooked the needs of consumers. For example, the U.S. leadership railroads believed that consumers need to train, not a means of transport and did not notice the threat posed by airlines and road transport. Manufacturers of slide rules believed that engineers need the ruler, rather than the ability to make payments, and missed the threat from the pocket calculators.

The concept of the intensification of commercial efforts (selling concept) comes from the fact that consumers will not buy goods of the firm in sufficient quantities, if it does not take sufficient efforts in the field of marketing and promotion. Guided by this concept, developed various techniques to identify potential customers and so-called "hard sell" them to the goods when the buyer actively affects virtually to make a purchase.

The concept of marketing (marketing concept) comes from the fact that the key to achieving the organization's objectives are to determine needs and requirements of conventional markets and provide the desired satisfaction more effectively and efficiently than competitors' means. The object of attention in the marketing concept is not a commodity, and clients of the firm with their needs and requirements, it is profits that the company gets through the creation and maintenance of customer satisfaction.

The concept of social-ethical marketing (societal marketing) comes from the fact that the task of the firm is to establish the needs, requirements and interests of target markets and provide the desired satisfaction more effectively and efficiently (than competitors) in ways while preserving and strengthening the welfare of consumers and society in whole. This concept has been formed relatively recently, after it was concluded that failure of the concept of net marketing position of the environment, lack of natural resources and other social and ethical issues. Ultimately, the concept of pure marketing does not address the problem of possible conflicts between the needs of the buyer and its long-term prosperity. The concept of social-ethical marketing requires a balance of three factors: profit firms, the purchasing needs and interests of society.

The concept of a holistic marketing is based on planning, developing and implementing marketing programs, processes and activities based on their latitude and interdependence. Holistic marketing recognizes that in the marketing business, everything is important and that often requires extended, integrated approach. Holistic marketing includes four components: a relationship marketing, integrated marketing, internal marketing and socially responsible marketing. Thus, a holistic marketing - is an approach which attempts to recognize and balance the various competencies and the complexity of marketing activities.

The concept of relationship marketing is the latest marketing concept along with the concept of social and ethical marketing. The essence of the concept is to build long-term relationships between companies and consumers, the formation of loyalty from the consumer. Tools in such activities can act: financial incentives; moral incentives; system of structural links between companies and consumers, as described in International Marketing.

Following major component of marketing is leadership. Effective and professional manager should be a leader. I would like to consider what leadership means in marketing context. According to Towards a theory of leadership practice, leader - is a person in a group (organization), which enjoys a large, recognized authority, having the effect, which manifests as control actions. Member of the group, whom it recognizes the right to make responsible decisions in important situations for it, that is the most respected personality, which plays a central role in organizing joint activities and regulates the relationship within the group.

In psychology, have adopted different classification leaders: on the content of (the leader, inspirer and leader of the executive); the nature of (the universal leader and situational leader); by activity (emotional leader and business leader), etc.

A leader can be both the official and unofficial head of the group. Formal leadership - is the process of influencing people to positions of office. Informal leadership - is the process of influencing people with their abilities, skills or other resources.

In contrast to the head, which sometimes deliberately elect and appoint more and who, being responsible for the situation in his team, has the official right to promotion and punishment of participants in joint activities, the informal leader is put forward spontaneously. He does not have any recognized outside of authority and it is not charged with any official duties. If the leader of the group and its leader are not the same person, the relationship between them may contribute to effective collaboration and harmonization of the group's life or, alternatively, to acquire the character of conflict, which ultimately determined by the level of group development.

In corporate groups as well as in high socio-psychological level of development, generally, functions of a leader and manager are assigned to the same person. At the same time, the foundation of leadership and governance in these two types of highly psychologically groups are fundamentally different. So, if corporate groupings match status positions leader and the head is a real priority for government relations at the expense of the emotional terms of relationships, the prosodies group, high levels of development type group was emotional "feeding" power often acts as an essential foundation for the implementation of formal authority.

Except that was said the above, professional management must should have one more skill - ability to recruit professional's team, that would be efficiently perform tasks - staff recruitment. Staff recruitment - is a business process, which is one of the main responsibilities of HR-managers or recruiters. Also, recruitment - the basic service offered by recruitment agencies. The correct choice of a candidate may help in increasing productivity, profits and increasing employee loyalty. The wrong choice usually affects the large staff turnover or lack of competence of staff, as described in Human Resource Management and Organization.

Allocate the following methods of searching for a new employee: search among friends and relatives or close friends on the recommendations; attract staff from other organizations, "poaching" of staff; search through print media and the Internet; attracting college graduates or graduate students; appeal to the recruiting organization (staff or consulting agency).

Then the candidates selected pool ring up, it clarifies some details of the summary and appointed an interview. Further, technology is different. Many are limited to the interview and its results to select candidates. Sometimes you need more serious evaluation methodology: tests, business games, assessment center and others.

Let's consider types of recruiting. Mass recruiting - applied for the selection of a large number of employees. Basically it is a line-level professional, with a fairly well-rounded skills and experience. Payment for the selection of such experts is low relative to other types of recruiting. The emphasis is on quantitative measure of employed persons. Cost of the successful selection of each employee can be high. Average payment agency is 1,2-1,5 salary specialist. The main disadvantage to the HR is risk of a large number of substitutions.

Executive search (search for rare expertise and/or mid-level managers) - the most expensive and most efficient technology employed agencies. When working on such technology advance of 30% of the contract required. When you work in this area, you focus more on specialization in a particular market segment or business. Spacecraft with a clear sectoral specialization are sufficiently extensive contacts in the "core community" of experts, may at any time to give analytical information on various occupations and work conditions. 

Head Hunting - is poaching particular specialist (manager) from one company to another company on the instructions of the customer. The cost is usually not more than 10% of annual income. Low cost of this service is primarily concerned with the fact that the search for a specialist to conduct is not necessary, the customer has already made his choice, and so the probation period in case of dismissal, the employee is not provided.

The joint activities of people require coordination of efforts of workers. Management - is intended effect which coordinates joint activities of people. In the management can be distinguished structurally meaningful substantive and procedural aspects. Structural and content aspect represents a selection of activities manager: foresight, organization, activation, coordination, regulation, control. Procedural and a substantive aspect of considering workflow manager: goal setting, definition of the situation, identifies problems and the need to address them, make a decision.

Management is carried out in the form of any action. The sequence and combination of actions that comprise the management is the process of governance. Influence is carried out in the control system. 

Management is a special type of control that is realized in a market economy, i.e. in terms of economic independence and entrepreneurship organizations in a competitive environment and risk. Management has features that distinguish it from other types of control. Among them: the reliance on economic instruments to influence the use of motivational management tools, advanced information technologies, professionalization of management.

Management has its own infrastructure. It relies on the scientific mind, the mentality of society and the art of management. Management requires professional administration. At the heart of the management organization is the manager - an official, professionally administrator, who is responsible for firm's activity. Success factors for the manager are: a set of scientific knowledge, management expertise and the art of administration. Manager in its activities play a role, some of his official position in the organization. For the successful implementation of the manager of his functions, he must have certain professional and personal qualities, such as leadership, ability to recruit professional staff etc. 

An important task of modern management - is to make knowledge productive. The basic capital resource, the main object of a developed economy is a worker who has mastered the knowledge that is embodied in his work is what he got in a systematic process of education rather than one that uses workers in their work skills or physical strength.