Efficient Use Of Socio Economic Systems Commerce Essay


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:

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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. 

-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. 

-Business Ethics. 

-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. 

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Most organizations have three levels of management: top, middle and bottom. Managers at each level perform the same function.  The only difference is the value which they provide for a particular function.  Top managers are paid to planning and organization longer than the heads of the lower levels. Top managers of medium and large organizations focus on planning for the future, setting goals, determining a course of action, rules and procedures for their implementation.  The ways in which management policies are influenced by environment factors include the circumstances caused by the decisions that are in tight connection with the external factors. Dependence on the situations that can affect the management policy, as is has a certain risk. When a company has different connections and takes a considerable risk, it can be influenced by the environment factors. To prevent it, there should be made a careful research to understand the risks and the possible consequences and dependence of the external factors. Today, managers are responsible for the prosperity of the organization and therefore need to plan, direct and control its activities.  Manager of middle level management controls and works more time than top managers.  Managers of mid-level department heads and departments should organize their work so that organizational objectives are achieved and the policy is carried out in life to recruit and retain good employees.  They are responsible for managing the daily operations of their units.  The mid-level managers are managers of shops, warehouses, and other leaders.  Lower level management - is the level of officials who directly manage the work of their subordinates.  Lower-level manager position include: master, foreman, team manager, agent for the supply, freight forwarder. Lower-level manager spends most of his time on motivation and control of subordinates. At this level management functions of planning and organization are less important for the manager than the controls and motivation.  Yet most managers perform all four functions of management. 

Criteria for effective management. A manager manages people using the principles to support in the lower self-esteem.  First a manager praises a subordinate and only then - to give guidance on improvement works; attention to issues and not personalities; increased use of methods of reinforcement of positive reactions to the desired action or negative - on undesirable.  Managers should respond immediately on the change of people's behavior because the delayed reaction causes unnecessary confusion; nomination of clear requirements, support for constant contact with people of strong feedback. Based on these principles, the manager should seek in the subordinate the desired results: suggest those who have trouble only in the prompt; give advice to those who need to be continually mentored, advised, inspired to action; give direct instructions to remind of the need to act unready; in categorically tell, hard to enforce on those who ignores advice, guidance, recommendations; dismissed, if no other way to get people to obey, and, conversely, encouraged by the faithful execution of all instructions in the head. How and with whom to work - depends largely on the peculiarities of human nature, not only employees but also managers.  This point manager must consider himself.

Production management at any level is a complicated process.  Outside the firm manager must constantly fight for the market share, to anticipate customer requirements, provide accurate delivery times, all to produce products of higher quality, set prices according to the conditions of competition and in every possible way to take care of maintaining the firm's reputation among consumers.  Within the firm, he must seek productivity gained through better planning, better organization and automation of manufacturing processes.  Simultaneously, a manager must consider the requirements of trade unions to maintain its competitive position in the market, to provide dividends to shareholders at a level so as not to lose their confidence, and leave a sufficient amount of retained earnings to ensure its growth.  An important task of management is to join the integration of all parties and aspects of the organization and the areas of their private purposes, in order to achieve the overall objective of this system.

Control theory applies the scientific methods of analysis to develop specific methods and recommendations for management practices.  However, these methods and recommendations are not prescriptions, they cannot be absolute.  Effective use of these methods and recommendations is based on a combination of specific circumstances and conditions.  For example, the Japanese experience in the use of quality circles has not been found widespread used in American industry because of different social relations in the workplace.  Therefore, one important condition for effective control (for example, achieving the organization's objectives at minimum cost) is adequate (compliance) of the methods of management of external and internal environment of the organization's functioning. 

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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.

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.

Enterprise as a machine. It was believed that the industrial organization that emerged from the Industrial Revolution, the property of their creators and owners.  Enterprises were presented as a machine whose function was to serve their creators, providing them with adequate value for money time and money.  Therefore, the main if not sole purpose of such organizations is to create profit.  In that view of the enterprise, its employees were viewed as replaceable machines or machine parts.  Hence, their personal goals and features were considered insignificant.  For people who have developed very simple repetitive tasks, as if they were destined for the machine.

Over time, the conditions that inspire the mechanical concept of the enterprise began to change.  First, the growth of the potential of individual companies in general is confined to self-financing.  Therefore, many private firms became public - joint-stock.  Their property was dispersed among a large number of shareholders, most of which do not come into direct contact with the workers.  Appeared Management (wage controls) that performs the wishes of shareholders. Secondly, the emergence of management separated from ownership, accompanied by increased social security and the economy, which reduced the threat of economic hardship for working people.

Under the new concept of an industrial enterprise is as an organism.  That is, individual departments and divisions of the plant, as well as in the body the liver, heart, brain, are connected to each other and perform their functions. In this case, the company endowed with its own life and goals.  Profits of an enterprise largely have been regarded as oxygen to a living organism: the need, but not the goal of life.  In this case, managers should take full responsibility for their decisions. Workers, workplaces and society in which they worked, is constantly changing.  It became apparent that the ratio of workers to their work has a significant impact on how much and how well they work. When the job is to give less satisfaction, output is declined sharply.  With the introduction and spread of automation meaningfulness of work from a technical point of view has increased significantly.  Investments in education and training of workers have become one of the major cost items that increase the cost of replacement workers.  The more skills acquired business, the harder it becomes for the boss to tell how to do the job.  Managers can only specify which product or outcome they want. Thus, improving the technical meaningfulness of work brought with it an increasing freedom of hired singers and dependence on their employers. Since the qualification of workers grew, they became less inclined to blindly obey, and the companies hired them.  Therefore, their personal needs and requirements for the work became more and more concerning for employers who need their skills. In these circumstances it is not enough to consider the employee (or those working more than an engineer) just as a separate organ of the enterprise. 

Organizations have existed before, but under the new concept of the notion there has been given the new insight into the enterprise.  The organization is (1) a purposeful system that (2) is part of one or more of the targeted systems, and (3) part, which - people have their own purpose.

Nature of the impact on the enterprise of its elements depends on how it affects them, and exactly the same effect on it of systems of higher order depends on its impact on such systems.  Fundamentally new element in the problems of management was the need to integrate and harmonize the objectives of individual enterprises and people working on it, as well as those systems, which include an enterprise to achieve the goal of the system. Lean production is the concept of logistics management, focusing on streamlining business processes with the highest market-oriented and subject to the motivation of each employee.  Lean manufacturing is the foundation of a new management philosophy.  The purpose of this production is to achieve a minimum cost of labor, minimum periods to create new products, to guarantee the supply of a product to the customer, high quality at minimum cost.  In accordance with the evolution of the conditions of production there are developed scientific schools and directions of management.

All in all, it can be argued that management theories are developed in response to the problem facing managers at a particular stage in history, as sometimes different circumstances occur, which force management to change its principles, goals and approach. Certainly there are connections between management theory and the industrial scene, as along with the technological progress management faces new challenges, new requirements and new rules.