Management

Management, also known as management, is the science of managing the resources of enterprises, governments, and other organizations through business administration.

In terms of institutional spheres, management is focused on: entrepreneurship, state socio-economic systems, non-profit organizations, etc.

Management is an academic discipline, a social science, the subject of which is the study of social organization.

Management (verbal noun) is often used as a synonym for managing an organization or managing production^. Management (metonymically) is often used as a synonym for the management of an organization, a directorate

Definition

Management is a set of modern technologies, principles, methods, means and forms of management aimed at improving the efficiency of various enterprises.

Management is presented as a process, the end or its final point is a specific result in the form of products obtained and results achieved. Management is a system consisting of separate parts, elements, the structure of which is aimed at processing the resources included in it and transforming them into the final result.

Management functions are a specific type of managerial activity carried out by various techniques, methods, organization of work and control of activities.

Evolution of management

Milestones in management development

Management has always existed where people worked, and, as a rule, in three spheres of human society, according to N. B. Kirillova:

• Political – the need to establish and maintain order in groups;
• economic — the need to find, produce and allocate resources;
• defensive – protection from enemies and wild beasts.

Considering the development of management theory and practice, N. B. Kirillova identified several historical periods:

• Period I is the Ancient Period (9,7-9,7 B.C. to 3000th century A.D.). The first forms of organization and regulation of joint labor appeared at the stage of the primitive communal system. Elders, chiefs of clans and tribes embodied the guiding principle of all kinds of activity. Approximately in the 2800th and 470th millennia there was a transition from an appropriating economy to a producing economy, which became the starting point in the birth of management. Ancient Egypt accumulated a wealth of experience in managing the state economy. In 399-428 B.C., a sufficiently developed state administrative apparatus and its service stratum (scribes, officials, etc.) were formed. One of the first to characterize governance was Socrates (348-356 B.C.). He analysed various forms of governance, on the basis of which he proclaimed the principle of universal management. Plato (323–<> B.C.) gave a classification of the forms of government and made attempts to delimit the functions of the organs of government. Alexander the Great (<>–<> B.C.) developed the theory and practice of command and control of troops (defined the concept of strategy and tactics). Naturally, these examples do not cover all the events, but only draw attention to the main issues that were of interest to society at the early stages of management development.
• Period II was the industrial period (1776-1890). The greatest contribution to the development of ideas about public administration during this period belongs to A. Smith. He is not only a representative of classical political economy, but also a specialist in the field of management, as he analyzed various forms of division of labor and characterized the duties of the sovereign and the state. R. Owen is the author of the ideas of humanization of management, recognition of the need for training, improvement of working and living conditions of workers (which is still relevant today). The revolution in the theory and practice of management is associated with the name of Charles Babbage (1833), who developed the project of the "Analytical Engine" — the prototype of modern digital computer technology, with the help of which even then management decisions were made more quickly.
• Period III is the period of systematization (1856-1960). The science of management is in constant motion, new directions, schools, trends are being formed, the scientific apparatus is changing and improving, researchers and their views are changing. What we now call management began with the Industrial Revolution in the <>th century, when the factory emerged as the primary type of production and the need to employ large groups of people meant that individual owners could no longer oversee the activities of all workers on their own. For these purposes, the best employees were trained, trained so that they could represent the interests of the owners on the ground, and these were the first managers.
• Period IV — informational (1960 — present). At present, any managerial decision requires a huge amount of information, which is processed with the help of mathematical techniques and computer technology. Management is seen as a logical process that can be expressed mathematically. Systemic, situational and process approaches have emerged.

The current system of views on management, formulated in the 1970s and 1980s:

• An enterprise is an open system considered in the unity of internal and external environmental factors.
• Focus not on output volumes, but on the quality of products and services, on customer satisfaction.
• Situational approach to management, recognition of the importance of speed and adequacy of reaction.
• The main source of income is people with knowledge and skills, and the conditions for realizing their potential.
• A management system focused on increasing the role of organizational culture and innovation, employee motivation and leadership style.

Causes:

• S&T, concentration of scientific and production potential;
• In the post-war period, industries that directly meet the needs of people, as well as industries based on advanced technologies, began to play a significant role in the world economy;
• Production is increasingly focused on the specialized needs of consumers, that is, on large markets, which has led to the formation of a large number of small and medium-sized enterprises, to the complication of the system of relations between organizations, to the high importance of such business criteria as flexibility, dynamism and adaptability to the requirements of the external environment.

Principles of management in the new paradigm:

• loyalty to employees;
• responsibility as a prerequisite for successful management;
• communications that permeate the form horizontally and vertically;
• atmosphere in the company, which helps to reveal the abilities of employees;
• establishing the share of each employee in the overall results;
• timely response to changes in the environment;
• methods of working with people to ensure their job satisfaction;
• direct participation of managers in the work of groups at all stages as a condition for coordinated work;
• the ability to listen to everyone whom the manager encounters in his work;
• Business ethics is the golden rule of management;
• honesty and trust in people;
• reliance on the fundamentals of management: quality, costs, service, innovations, resource control, personnel;
• the quality of personal work and its continuous improvement.

Major schools of management

School of Scientific Management

(rationalist school) (1885-1920) associated with the works of Frederick Taylor, Frank and Lillian Gilbreath, Henry Gant, Harrington Emerson, Henry Ford.

School Methodology:

1. The founders of the school believed that by using observation, measurement, logic, and analysis, it was possible to improve the operations of manual labor.
2. The first phase of the methodology was the analysis of the content of the work and the identification of its main components. For example: The Gilbreths studied operations using a motion picture camera combined with microtiming that recorded intervals of up to 1/200th of a second. To determine the time required for a particular movement while performing a job.

Attitude to the human factor:

1. Systematic incentives for employees in order to motivate them to increase labor productivity and production volumes.
2. Introduction of breaks in production, including for rest.
3. Setting achievable production standards, and making additional payments to those who exceeded them.
4. The importance of selecting people who were physically and intellectually appropriate to the work to be performed, and the training of workers was recognized.

Separation of management functions from production:

1. They advocated the separation of the managerial functions of analysis and planning from the actual performance of work.
2. We defined management activities as a specific specialty that is necessary for the success of the organization.
3. Management began to be recognized as a separate field of professional activity, although the representatives of the school were concerned with the problems of improving the efficiency of work at a level below the managerial level.

Administrative (classical)

(1920-1950) associated with the work of Henri Fayol (head of a French coal mining company), Lyndal Urwick (management consultant in England), James Mooney (vice president of General Motors), A. Reilly, L. Gulick, W. Newman, L. Allen, M. Weber.

The goal of the school is to create universal management principles, following which will lead the organization to success.

We have developed two categories of management principles:

1. Related to the development of a rational management system of the organization. Fayol viewed management as a universal process consisting of several interrelated functions. By defining the core functions of a business as finance, production, and marketing, they were confident that they could determine the best way to divide the organization into groups and subgroups.
2. Related to the construction of the structure of the organization and management of employees. Max Weber's Rational Bureaucracy.

School Features:

1. Representatives of the school had direct experience of senior managers in big business.
2. The research was aimed at improving the efficiency of the entire organization.
3. Representatives of the school tried to evaluate the activities of the organization from the point of view of a broad perspective, to determine the general characteristics and patterns of organizations.

School of Human Relations

(1930-1950) and Behavioral Sciences (1950-present).

Representatives of the school of human relations: Mary Parker Follett, Elton Mayo, Abraham Maslow. Representatives of the later (behavioral) direction of the school: K. Adjiris, R. Likert, D. MacGregor, F. Herzber, C. Bernard, and others.

Features of the School of Human Relations:

1. Awareness of the human factor as the main element of an effective organization (in contrast to previous schools).
2. E. Mayo's experiments (Hawthorne) opened up a new direction in control theory. Well-designed work operations and good remuneration do not always lead to productivity gains, unlike the forces that arise in the course of human interaction.
3. Later studies by A. Maslow and other psychologists have made it possible to understand the causes of this phenomenon. People's actions are motivated not by economic forces, but by various needs that can only be partially satisfied by money (communication, respect, self-expression).

Features of the development of views on management in behavioral sciences:

1. Representatives of this field studied various aspects of social interaction, motivation, the nature of power, authority, leadership, organizational structure, communications, changes in the content of work and the quality of working life (QLW).
2. Helping the employee to become aware of his or her own capabilities by applying the concepts of the behavioral sciences to the construction and management of organizations.
3. The main goal of the school is to increase the efficiency of the organization by increasing the efficiency of the use of its human resources.
4. The main thing is that the correct application of behavioral science will always contribute to the improvement of the efficiency of both the employee and the organization.

School of Management Science (Quantitative Methods)

(1950-present). Representatives: R. Ackoff, L. von Bertalanffy, S. Beer, F. Goldberger, D. Forsrester, R. Luce, L. Klein.

School Features:

1. The formation of the school is associated with the emergence of cybernetics and operations research. Initially, the study of operations was limited to the development of ways to quantitatively analyze a problem as a whole without isolating its parts. At its core, operations research is the application of scientific research techniques to an organization's operational problems.
2. Once the problem has been formulated, the research team develops a model of the situation. A model is a form of representation of reality that simplifies it and makes it easier to understand its complexities (a map, a globe). Once the model is created, the variables are quantified (values) to objectively compare and describe each variable and the relationships between them.
3. A key characteristic of management science is the replacement of verbal reasoning with models, symbols, and quantitative values.

The computer allowed operations researchers to construct models of increasing complexity. These models are found in management: resource allocation, inventory management, mass service, choice of development strategy, etc.

The theory of decision making is a further development of the ideas of the school of management.

Main directions:

1. Development of methods for mathematical modeling of decision-making processes in organizations.
2. Creation of algorithms for the development of optimal solutions using the theory of statistical solutions, game theory, etc.
3. Development of quantitative applied and abstract models of economic phenomena, including models of reproduction, models of the balance of inputs and output, models for forecasting scientific, technical and economic development.

Scientific approaches to management

At present, there are different approaches to management. The most well-known and widely used are:

1. Systematic approach

It allows you to consider an organization as a system consisting of a certain number of interrelated elements. Initially, systems theory was applied to the exact sciences and engineering. It began to be used in management in the late 50's, which was a success of the school of management science. The founder was L. von Bertalanffy. The starting point of the system approach is the concept of a goal, the presence of which is the most important feature of an organization, by which this system differs from others.

A systems approach is a way of thinking about organizations and management, not a set of principles for managers.

A system is a whole, consisting of separate interrelated parts (elements), each of which contributes to the characteristics of the whole (all organizations are systems under management).

Types of systems:

• closed — have rigid fixed boundaries, its actions are independent of its surrounding environment;
• open – characterized by interaction with the environment (external) environment and are able to adapt (adapt) to it;

Any system consists of subsystems.

A subsystem is a large component of complex systems that is itself a system. In an organization, subsystems are departments, levels of management, social and technical components of the organization.

The model of the organization as an open system:

1. An organization receives from the external environment: information, capital, human resources, materials – these components are called inputs.
2. In the course of its activities, the organization processes these inputs, transforming them into products or services—these are outputs.
3. If the management system is effective, then during the transformation process, the added value of the inputs is obtained, as a result of which there are many additional outputs, such as profit, increase in market share, increase in sales, growth of the organization, etc.

2. Process approach

It was first proposed by adherents of the school of administrative management, who tried to define the functions of management. However, they saw them as independent of each other. The process approach, on the other hand, considers them to be interrelated. Management is seen as a process, as the work of achieving goals with the help of others is a series of continuous, interrelated activities. These activities, each of which is also a process, are referred to as management functions. The sum of all functions is the management process.

There are different points of view on the functions of management:

• A. Fayol identified five functions: — forecasting and planning; – organization; – Order; – coordination; – control;
• In modern literature, the following functions of management are distinguished: planning, organization, management, motivation, leadership, control, coordination, communication, research, evaluation, decision-making, regulation;
• In general, the management process can be represented as consisting of the following functions: planning (preparation and adoption of a management decision); organization; motivation; control.

These functions are connected by the connecting processes of communication and decision-making. Leadership is seen as an independent activity that involves the ability to influence individuals and groups in such a way that they work towards the achievement of goals, which is necessary for the success of the organization.

3. Situational approach (thinking about organizational problems and their solutions

Features of the situational approach:

1. The possibility of direct application of science to specific situations and conditions.
2. The central point is the situation—the specific set of circumstances that affect the organization at a given time.
3. Managers can better understand which practices will be more conducive to achieving the organization's goals in a given situation.
4. The approach attempts to relate specific techniques and concepts to specific situations in order to achieve the organization's goals more effectively.
5. The approach takes advantage of situational differences between organizations and within organizations themselves. The manager needs to determine what the relevant variables of the situation are and how they affect the effectiveness of the organization.

Methodology of the situational approach to management:

• the manager should be familiar with professional management tools that have proven to be effective;
• A manager must be able to anticipate the likely consequences (both positive and negative) of applying a given technique or concept to a particular situation.
• A manager must be able to interpret the situation correctly. It is necessary to correctly determine which factors are most important in a given situation and what is the likely effect of a change in one or more variables;
• A manager must be able to select specific techniques that would cause the least negative effect in a particular situation, thereby ensuring that the organization's goals are achieved in the most effective way.

Subject and object of management, their interrelation

A management subject is a person or a group of people who create managerial influences within the organization and in order to achieve its goals and objectives.

The object of management is everything to which the managerial influences of the subject of management are oriented. The objects of management can be the personnel of the organization, its competitors, the organization's finances, production, sales, suppliers of resources, information, etc.

Subjects and objects of management together represent the management system of the organization

The subject and object of management interact with the external environment. At the same time, the subject of management (located at the top) has an impact on the object of management (located at the bottom), and together they affect the external environment. In turn, the external environment also has an impact on the subject and the object, forcing them to adapt to new realities.

Management models

The set of ideas that underlie the management system of an organization is called a management model.

The formation of the management model is influenced by religious, geographical, and political factors. In management science, the following management models are distinguished.

Asian Model of Management. The main factor influencing the formation of the Asian model of management is Buddhist philosophy. The worldview in the East is fundamentally different from the European one, so the application of Western-style governance in Asian countries was impossible.

The characteristic features of the Asian management model are:

1. Intra-firm and inter-firm relations built on trust and mutual understanding of company managers.
2. Comparatively high level of education of the staff.
3. Focus on the trust of partners in each other.
4. Awareness of joint contribution to the development of the organization.

The basis of Asian management is friendly relations in the team. The main difference from the American style of management is the way in which businessmen conduct negotiations, which in the process of discussion touch upon all issues, gradually approaching the very essence of the matter. The reason for this is the desire to build trust first before solving the underlying problems. The daily routine and philosophy of managers of different models differ significantly.

For example, Japanese management assumes:

1. Spending working time only in uniform.
2. Obligatory rewarding for success in work.
3. Functioning and development of "quality circles".
4. Organization of a common canteen for managers and workers.
5. Use of lifetime employment practices.

The ideology of Chinese management and Chinese management practices were formed under the influence of Confucianism. The teachings of Confucius shaped the Chinese love of hierarchy and control, the paternalistic and autocratic style of management, and the importance of family relationships and business connections. Leadership, in accordance with the Confucian tradition, is focused on caring for the well-being of employees, harmony in work groups, teamwork and dedication. China's leaders should ideally be humble and committed to their organization. They expect their employees to work tirelessly for the benefit of their organization. Their management style is focused on strict unity of command and complete control over the organization.

Western model of management. This management model is based on the following principles: individual responsibility; self-assertion of the heads of individual divisions in the enterprise. The main participants of the Western management model are owners, shareholders, managers, government organizations, stock exchanges, and consulting firms. Management management through consulting services is one of the ways to stimulate the efficiency of the company's activities by in-depth analysis of existing problems in the business and, therefore, the proposal of plans for the development of the company's personnel. The Western management model is characterized by:

1. Lack of a sense of dedication among employees.
2. One-man management of the manager in decision-making (subordinates only help him to choose a decision based on the analysis of production and sales costs).
3. Differentiation between business and personal relationships.

In Western management, American, English, and German management stand out. American management involves the implementation of the following provisions:

1. Managers are straightforward; Managers resort to an order when agreeing on a solution in negotiations.
2. Managers do not make long digressions, but go straight to the heart of the matter.

English management is guided by:

1. Production costs (striving for their constant reduction).
2. Development of new high-tech products, thorough research and development.
3. Flexibility in the use of technological processes.

German management is characterized by the following features:

1. Foresight, high discipline.
2. A long process of introducing innovations, modernizing production.
3. The company is managed by two structures: the Management Board and the Supervisory Board.

Each management model used at the enterprise leaves its imprint on the management processes in the organization: the mechanisms of managerial decision-making, organizational management structures, management and planning priorities change; The mechanisms for the implementation of all functions and methods of management in the organization are changing.

It can be said that each management model leads to a different level of economic efficiency of the organization's economic activity.

Management Knowledge System

The system of knowledge about the management of organizations and socio-economic systems is formed on the basis of various sciences. In political economy, in law, in psychology, and in many other sciences, there are sections related to management. A number of specific scientific disciplines specifically study certain functions of management: planning, accounting and decision-making, information processing, etc., generalizing practical experience and developing more advanced forms and methods in order to increase the effectiveness of managerial activities. Quantitative methods and models of decision-making are of particular importance in this regard.

Management at any level is a complex and complex system. For example, for a manufacturing organization, the manager must constantly take care of market share, anticipate customer requirements, ensure accurate delivery times, produce products of ever higher quality, set prices based on competitive conditions, and take care to maintain the firm's reputation with customers, while within the organization he must achieve productivity growth through better planning, more efficient organization, and automation At the same time, we must take into account the demands of the trade unions, maintain a competitive position in the market, provide shareholders with dividends at a level that does not lose their confidence, and leave the firm with enough retained earnings to ensure its growth. An important task of management is to unite, integrate all parties and aspects of the activities of the organization and sites, their particular goals, in order to achieve the common goal of this system.

Management theory applies scientific methods of analysis in order to develop certain methods and recommendations for the practice of management. The effective application of these methods and recommendations depends on a combination of specific circumstances and conditions. For example, the Japanese experience of using "quality circles" was not widely used in American industry because of the differences in social relations in production. Therefore, one of the important conditions for effective management (i.e. achieving the goals of the organization with minimal costs) is the adequacy (compliance) of the applied management methods to the external and internal environment of the organization's functioning. It is useless to apply to industry the methods of management adopted in the army, and vice versa. In the same way, under the conditions of a market economy, the directive methods of management used in the USSR will not ensure the planned results. Conversely, the application of management and marketing methods in the economy of the USSR would be of only academic interest.

As in any other sphere of intellectual and practical activity of people (military affairs, medicine, etc.), the scientific nature of management and the art of management complement each other. The effectiveness of the management system is ensured by the ability of managers to master the art of creative application of scientific management principles in specific situations. Management, i.e. actions that ensure the achievement of goals, should be distinguished from the so-called "kamlaniye" and "influence" (kamlaniye is the ritual actions of shamans to summon rain, exorcise spirits, etc.). Leadership is understood as a leadership activity that does not lead to any results. Such activities can only be safe in a sustainable economy. "Impact" refers to management activities that lead to changes in organizational structures, external and internal environment of organizations, but do not ensure the achievement of goals. In most cases, such activities pose a danger to the life of the organization. Thus, management actions that fail to achieve the goal are not governance.

The three main functions of management: managing a business to improve its efficiency, managing managers, and managing employees and work — are due to the complex nature of business – the specificity of the managerial profession is to perform these three functions simultaneously. In accordance with the main goals and objectives of the firm, the function of business management is central, uniting all functions - to manage a business means to find an optimal balance between its various needs and goals.

Complexity and adaptation of control systems

According to R. Ackoff, the systems approach to management is based on the fact that any organization is a system consisting of parts, each of which has its own goals. When making managerial decisions, the manager should proceed from the fact that in order to achieve the overall goals of the organization, it is necessary to consider it as a single system. At the same time, it is necessary to identify and evaluate the interaction of all its parts and combine them on a basis that will allow the organization as a whole to effectively achieve its goals. However, the achievement of the goals of all subsystems of the organization is a desirable phenomenon, but almost always unrealistic. The need for a systematic approach to enterprise management can be understood by considering two aspects of the manager's work. First, he seeks to achieve the overall effectiveness of his organization and not to allow the private interests of any one element of the organization to be detrimental to the overall success. Second, it must do so in an organizational environment that always creates conflicting goals. Strategy, technology and economics are interrelated elements of one common problem. The essence of the economic problem is to choose a strategy, including the equipment and all other resources necessary for the implementation of strategic plans, that will be either the most effective (the most profitable solution of the task given the available resources) or the most economical (the achievement of the task at the lowest cost).

A control system can be represented by a special kind of machine on the basis that each system performs some function that can be considered as the purpose of the machine. One of the main distinguishing categories of managed systems is complexity. Any firm has many contradictory goals, and this is one of the decisive factors in the need to describe an enterprise or firm as a very complex probabilistic system. The complexity of a system is determined by the number of its constituent elements and the possible connections between them. The degree of complexity is measured by the diversity of the system. Diversity characterizes the number of possible states of a system. The fundamental principle of control, discovered by W. Ashby, is the law of necessary diversity, according to which the level of diversity of the control system must correspond to the level of diversity of the controlled system. In particular, it follows that it is not possible to create a simple control system to manage complex systems and processes. It follows that both individuals and organizations are unable to cope with problems whose complexity exceeds a certain level. When this level is exceeded, managers are no longer able to understand what is happening around them and develop an adequate strategy for managing the firm or country. Another reason for the increasing complexity of production management is related to the pace of change in the external environment. The influence of the external environment is a determining factor for the company when choosing a management system. The speed of change in the external environment of organizations is growing, and the complexity of the problems facing the organization is growing accordingly. The more complex these problems are, the longer it takes to solve them. The more the rate of change increases, the shorter the life of the solutions found. By the time a solution is found, the situation has already changed and a fundamentally new solution is required. An organization cannot be able to learn quickly and effectively if its leadership does not have that ability. In general, the law of necessary diversity for the management of a firm determines that in order to successfully confront the environment, the complexity and speed of decisions in the firm must correspond to the complexity and rapidity of changes taking place in the external environment.

According to St. Beer, the classification of any system from the standpoint of cybernetics provides for two criteria: (a) according to the degree of complexity: simple dynamical systems, complex systems that can be described (well-structured), and very complex systems that cannot be adequately analytically described (weakly structured), and (b) the distinction between deterministic and probabilistic systems. Moreover, probabilistic systems do not include those systems of knowledge that are not sufficiently complete at the moment, but probabilistic in nature, which cannot be unambiguously described in principle. A class of highly complex probabilistic systems includes the firm, the brain, and the economy. In accordance with the law of necessary diversity, the control system for the economy and the firm must also be a very complex probabilistic system, and industrial control systems (provided that they are sufficiently efficient) must be built as cybernetic systems. Cybernetics offers a feedback mechanism as a way out of the contradictions between probabilistic control and controlled systems. A closed-loop regulator ensures that not only certain types of disturbances are compensated, but also any disturbances. In particular, it compensates for the effect on the system of perturbations, the cause of which is completely unknown. This is precisely the importance of the feedback principle for the management of industrial production, which is a very complex system that cannot be described in detail.

Socio-economic functions and objectives of management

The assessment of the place and role of management in social production and the formulation of problems of economic development is the task not only of economics, but also of a number of other social sciences (sociology, political science, etc.). The theory of institutional economics, which emerged at the intersection of economics, sociology, law, and history, is focused on the study of formal and informal norms that structure interactions between individuals in various spheres of everyday activity. Awareness of the interdependence of different aspects of social and individual production has led to a modern understanding of the systemic nature of the economy, including its structural and functional differentiation, and the development of concepts for its institutionalization as a determining factor of social interaction in the process of economic development.

The structural-functional approach is a concretization of the ideas of systems theory and system analysis in relation to various spheres of the economy (including management), which are considered as components and interacting parts of a higher-order social system — society. From the standpoint of the managerial paradigm, system functions are interdependent and do not exist separately from each other: there can be no economy without politics, culture, technology, etc. The concept of system functions of an organization is based on the obvious fact of its inclusion in the life of the entire society as an encompassing social whole. At the same time, modern science establishes a correspondence between the invariant aspect of the object under study and the concept of structure, which is used to designate a set of stable connections between the main parts of an object, ensuring its integrity and identity with itself. The concept of structure is usually related to the concept of a system, and the structure expresses only that which remains stable under the various transformations of the system. At the same time, the basic properties of the system belong to the class of properties of integrity or emergence, they are inherent in the system as a whole, arise during the formation of parts, disappear with it, and cannot be explained on the basis of the properties of individual parts without reference to the connections between them. When two or more systems interact, synergistic effects arise due to the tendency of each of them to a position of equilibrium, the parameters and properties of which are determined by the initial states of each system. But it is precisely these properties that play a decisive role from the point of view of controlling influences on the socio-economic system, including influences that involve the structural or functional restructuring of the entire system or elements of its structure in accordance with the goals and interests of society. It follows that an important task of science is to understand the structures of socio-economic systems as carriers of emergent properties that determine the main characteristics of their behavior. The success of the reorganization of the system in the direction of obtaining the desired properties is the ultimate criterion that determines the degree of knowledge of the real structure.

Based on the fact that the functions of the subsystems of the socio-economic system are implemented through the appropriate institutional forms and processes, the concretization of the structural-functional approach to the analysis of the system functions of management as an institutional structure can be represented by the following concepts:

• management is considered as one of the subsystems of social production and the socio-economic system as a whole;
• the implementation of its systemic functions, determined by the structural and functional differentiation of social production and the presence of system-wide imperatives, constitutes a specialized contribution of management to the life of society;
• Management at the levels of development of social production and its current functioning can be considered as an institutional process carried out through managerial decisions, the result of which are costs and incomes of production, on the one hand, and the creation of material goods and services, on the other.

In the system-wide understanding, the institutional aspect of the problem of implementing the systemic functions of management covers not only the subsystems of social production, but also the structures of other institutions of the socio-economic system that have a direct impact on them.

Thus, the above-mentioned provisions and the scheme of analysis of the system functions of management make it possible to reflect structurally and functionally the place and role of management in society and their institutional interrelation. Management as a subsystem of social production has generic significance and specific characteristics. Generic meaning is formed by subject-object properties: the functions of management are determined by the institutional factors of the socio-economic system, and at the same time its actions are aimed at changing the state of production, and the results in economic terms attribute two sides of innovative results: costs and revenues of the enterprise and, at the same time, goods and services. Specific characteristics of management are determined by the specific conditions of a particular production.

A systematic approach to the problems of management inevitably leads to the need to search for a significant set of functional imperatives, the level of implementation of which determines the survival of commercial enterprises, their efficiency and the efficiency of all social production. It is equally necessary to identify the structures that form these imperatives and the management paradigm of a given socio-economic system as a whole. After all, the development of this socio-economic system is conditioned by the dominance of some functional imperative.

Having its own goals is the main difference between an organization and other artificial systems created by man. The ends—the means, objectives, and ideals of a system can be established as objectively as the number of elements they contain. This makes it possible to study the system teleologically, from the point of view of output, and not deterministically, from the point of view of input, which is a fundamental point from the standpoint of assessing the effectiveness of management.

A systems view of an organization (see SYSTEMS APPROACH IN MANAGEMENT) defines it as a goal-directed system that is part of one or more other goal-directed systems and whose parts—people—have their own goals. Therefore, the study of an organization should include an analysis of three levels of goals: the system itself, its parts, and the higher-order system of which the organization is a part. The need to take into account such a large number of goals simultaneously forms both the imperative of the goal and the problem of goal-setting in the activities of the organization, and, accordingly, management.

The influence of the socio-economic environment on the system functions of management can be presented as follows. Managers make decisions at the micro level, in relation to which the decisions made by the state are macro-level, forming the external environment of the enterprise. According to R. Ackoff (p. 98), three levels of goals are common both for an individual enterprise and for the state as a whole:

• Objectives are the results that are expected to be achieved within the plan period.
• Objectives are results that are not expected to be achieved outside the plan period, but which the firm expects to approach within the plan period.
• Mission (ideals) are results that are considered unattainable, but which can be approached.
• Management is a process aimed at achieving a specific goal. The level of achievement of the goal determines the effectiveness of management in general and its tools in particular;
• Under market conditions, economic efficiency is an imperative for all production activities of a commercial enterprise. The orientation of the goal to profit maximization provides a condition for the economic efficiency of production and increases the stability of the enterprise in the market environment.

Competent management allows you to motivate employees to achieve the most effective result.

Evolution of production and management concepts

The term "management" was first used by Giulio Parigi in 1598 in the manuscript Fronte capillata as an activity "with a tool in hand" in the management of risks, the main of which he considered to be military risk to stable urban management^. It should be noted that 11 as the date of writing the manuscript mentioning management is disputed as 1598, and the authorship of Giulio Parigi has not been established with certainty, since the title page has not been preserved in the manuscript, and the authorship was established in the post-war years in the United States, a contradiction also mentioned in the source.Gradually, the term management became more specific, associated with the scientific approach to management in the late ^{11th century}. Subsequently, many management concepts appeared, which merged into a single science of management.

The classics of management are A. Fayol, M. P. Follett, F. Taylor, P. F. Drucker, F. Gilbert and L. Gilbert, G. Gant, G. Ford, J. S. Smith. Barbash, R. Ackoff, S. Black, R. House, S. Ghoshal, Cr. Bartlett, N. S. Parkinson, E. Mayo, C. Hull, J. Schumpeter, A. Thompson, A. Strickland, F. Kotler, G. Emerson, C. Barnard.

As R. Ackoff has shown, since the end of the last century, with the increase in the complexity of production, the ideas about enterprises as objects of management have changed and the principles of their management have changed.

Typical management areas, processes and functions

According to the PAEI classification proposed by Yitzhak Adizes, it is possible to define four enlarged areas of management activity:

• E – Entrepreneuring;
• I — Integrating;
• A — Administering;
• P stands for Producing results.

Large and medium-sized organizations simultaneously set and solve a set of interrelated tasks, for which they create several subsystems (processes) in the management system:

1. In the field of "Entrepreneurship (Engineering)", typical subsystems (processes) of management:
   • Marketing
   • Strategic Management
   • Investment Management, Asset Management
   • Financial and Legal Risk Management
   • Innovation Management
   • Change management
2. In the field of "Integration (Integrating)", typical management subsystems (processes):
   • Organizational Structure Management
   • Enterprise Architecture Management
   • Business Process Management
   • Human Resources Management
   • Knowledge Management
3. In the field of "Administering" typical subsystems (processes) of management:
   • Ad hoc management
   • Document (Record) Management
   • Information Management
   • Financial Management
   • Project Management
4. In the field of "Productionof results" typical subsystems (processes) of management:
   • Quality Management
   • Supply Chain Management
   • Production Management
   • Sales Management
   • Environmental Management, Technological Risk Management

According to the process approach to the consideration of management (Deming Cycle, PDCA), the main invariant functions of management are:

• "Plan": forecasting, programming, planning (strategic, medium-term, short-term), development, creation, organization, norming, standardization, regulation;
• "Do": management of plan execution, production management, execution of business processes;
• "Check": monitoring, controlling, controlling, accounting, reporting;
• "Act": analysis, correction of performance, motivation.

Management functions are divided into two categories: preliminary – "Plan" and "Act" (including forecasting, programming, planning, adjustment based on the results of execution); operational – "Do", "Check" (execution of the plan, control of execution). The functions of management include regulation, the regulatory system (self-regulation system), which includes: "Check" (monitoring, control, controlling, accounting, reporting) and "Act" (adjustment of execution, without significant adjustment of plans, business processes, structure of the organization).