Management process- this is an influence on an object in order to change its state or shape.

Control system is divided into two subsystems: managed and control.
Control subsystem performs production management functions. It includes the management apparatus with all employees and technical means. Managed subsystem carries out various management functions. It includes workshops, sections, teams.

Based on functionality, the control system is divided into subsystems:

• technical (machinery and equipment);
• technological (a number of processes, production stages);
• organizational;
• social (unity of social relations);
• economic.

The control system includes:

1. structural-functional subsystem (implements the principle of unity of structural and functional elements of the system);
2. information-behavioral subsystem (providing actions with the necessary information);
3. self-development subsystem (the principle of independence, independence of development of individual elements).

Subject of management

Purpose of the subject of management— ensure the controllability of the system as a whole.

Controllability— the ability of the system to perceive control input and respond to it accordingly.

Subjects of management- centers of activity, centers of responsibility.

Subject of management is a manager, collegial body or committee that exercises managerial influence. A manager can be either a formal or informal leader of a team. In turn, the subject of management can also be an object of the board (for senior managers).

The main goal of the functioning of the subject of management is to develop a management decision that ensures the efficiency of the system as a whole.

The goals of the management subject are considered at 2 levels:

1. at the integrative level - the management subject functions in order to lead the system to the goals set for it, therefore the degree of achievement of the goals of the system as a whole is a criterion for the effectiveness of the management subject's functioning;
2. at the local level (at the level of the system itself).

Requirements for the subject of management:

1. the subject of management must implement the law of necessary diversity (quantitative side);
2. The control system must have all those properties and characteristics that are inherent in a cybernetic system (these requirements characterize the qualitative side):
   • unity;
   • integrity;
   • organization;
   • emergence.
3. the subject of management must be fundamentally active, who knows the goals, knows the ways to achieve them and constantly generates functions. A fundamentally active system consists of active elements;
4. the management system should always be the center of responsibility;
5. the subject of management must be law-abiding;
6. the subject of management must be of a higher socio-cultural level in relation to the external environment in order to be able to adequately respond to the influence of the external environment and influence the development of this level;
7. the subject of management must have higher creative and intellectual potential in relation to the object.

As part of the management subject, when considering the element aspect, it is necessary to highlight the following subsystems:

1. system of management goals;
2. functional model of the control system;
3. structural model;
4. information model;
5. communication model (system of relations);
6. efficiency model;
7. control mechanism;
8. operating (technological) model.

Control object

The object of management is the socio-economic system and the processes that occur in it.

Control object- this is an individual or group that can be united into any structural unit and which is subject to managerial influence. Currently, the idea of ​​participative management is increasingly spreading, i.e. such management of the affairs of the organization, when all members of the organization, including ordinary people, participate in the development and adoption of the most important decisions. In this case, control objects become its subjects.

Management process in an organization

Management process- this is a certain set of management actions that are logically connected with each other to ensure the achievement of set goals by converting resources at the input into products or services at the output of the system.

The management process is a set of actions related to identifying problems, searching for and organizing the implementation of decisions made.

All management processes are divided into two groups:

1. permanent processes - represent functional areas of human activity to achieve current goals;
2. periodic processes are an active form of management caused by unforeseen situations and requiring the development of operational management decisions.

The main stages of the management process are shown in the figure.

The creation and stages of the management process are determined by its elements:

Target— each management process is carried out to achieve a specific result, goal. Goals in the management process must be operational in nature and transformed into specific tasks. They are a guideline for specifying the use of necessary resources.

Situation— represents the state of the controlled subsystem.

Problem is a discrepancy between the actual state of a managed object and the desired or specified one.

Solution- represents the choice of the most effective influence on the existing situation, the choice of means, methods, the development of specific management procedures, and the implementation of the management process.

Stages of the management process:

1. setting a specific goal;
2. Information Support;
3. analytical activity is a set of operations associated with assessing the state of a managed object and finding ways to improve the existing situation;
4. choice of action options;
5. implementation of solutions;
6. feedback - compares the result obtained from the implementation of the decision with the goal for the sake of which the management process was carried out.

Management mechanism

Management in an organization is carried out using management mechanisms. The economic mechanism solves specific problems of interaction in the implementation of socio-economic, technological, socio-psychological problems that arise in the process of economic activity.

Control mechanism is a subsystem of the control system, the purpose of which is to ensure the controllability of the system as a whole.

Components:

• methodology (patterns, principles, policies, rules);
• decision-making bodies;
• executive bodies;
• selected point of influence;
• method of influence;
• protective mechanisms that are built into any system (self-regulators);
• tools of influence;
• feedback;
• responsibility centers and control centers;
• forms of manifestation of influence.

The economic management mechanism consists of three levels:

1. intra-company management;
2. Production Management;
3. personnel Management.

In-house management:

• marketing;
• planning;
• organization;
• control and accounting.

Principles of intra-company management:

• centralization in management;
• decentralization in management;
• combination of centralization and decentralization;
• focus on long-term development goals;
• democratization of management (participation of workers in top management).

Manufacturing control:

• carrying out R&D;
• ensuring production development;
• sales support;
• selection of the optimal organizational management structure.

Personnel Management:

• principles of selection and placement of personnel;
• terms of employment and dismissal;
• training and professional development;
• personnel assessment and performance;
• forms of remuneration;
• relationships in the team;
• involving workers in management at the grassroots level;
• employee labor motivation system;
• organizational culture of the company.

Methods of influence in management

Management is considering management methods as a set of various methods and techniques used by the administration of companies to enhance the initiative and creativity of people in the process of work and satisfy their natural needs.

The main goal of management methods is to ensure harmony, an organic combination of individual, collective and social interests. The peculiarity of methods as tools of practical management is their interrelation and interdependence.

Management methods can be:

1. economic;
2. organizational and administrative;
3. socio-psychological.

Economic methods affect the property interests of firms and their personnel. They are based on the economic laws of society, the market and the principles of remuneration for labor results.

Organizational and administrative methods are based on the objective laws of organizing and managing joint activities, the natural needs of people to interact with each other in a certain order.

Organizational and administrative methods are divided into three groups:

• organizational-stabilizing - establish long-term connections in management systems between people and their groups (structure, staff, regulations on performers, operating regulations, concepts of company management);
• administrative - provide operational management of the joint activities of people and firms;
• disciplinary - designed to maintain the stability of organizational connections and relationships, as well as responsibility for certain work.

Social-psychological methods represent ways of influencing the social and psychological interests of firms and their personnel (the role and status of individuals, groups of people, firms, psychological climate, ethics of behavior and communication, etc.). They consist of social and psychological and must comply with the moral, ethical and social norms of society.

Control functions

Control function- this is a type of human labor activity aimed at balancing the state of the organization with the external environment, while entering into a system of management relations.

Based on these characteristics, two main groups of management functions can be distinguished:

1. general management functions are functions that determine the type of management activity regardless of the place of its manifestation;
2. specific functions are functions that determine the focus of human labor on a specific object. They depend on the organization and its areas of activity. Specific management functions arise as a result of the horizontal division of labor.

TO general management functions relate:

• planning;
• organization;
• coordination;
• motivation;
• control.

Planning function involves deciding what the organization's goals should be and what members of the organization should do to achieve those goals. Planning is one of the ways in which management ensures that all members of the organization are aligned in their efforts to achieve common goals.

The purpose of planning as a management function is to strive to take into account in advance all internal and external factors that provide favorable conditions for the normal functioning and development of enterprises (divisions) included in the company. This activity is based on identifying and forecasting consumer demand, analysis and assessment of resources, and prospects for the development of economic conditions.

Organize- means creating a certain structure. There are many elements that need to be structured so that an organization can carry out its plans and thereby achieve its goal.

Since people perform work in an organization, another important aspect of an organization's function is determining who exactly should perform each specific task. A manager selects people for a specific job, delegating tasks and authority or rights to individuals to use the organization's resources. These delegates accept responsibility for the successful performance of their responsibilities.

Coordination as a management function, it is a process aimed at ensuring proportional and harmonious development of various aspects (technical, financial, production and others) of the management object with optimal labor, monetary and material costs for given conditions.

According to the method of implementation, coordination can be vertical or horizontal.

Vertical coordination subordination takes on the meaning - the subordination of the functions of some components to others, and in management - the official subordination of juniors to seniors, which is based on the norms of official discipline. The task of vertical coordination is to organize effective communication and balance structural units and their employees at various hierarchical levels.

Horizontal coordination consists of ensuring cooperation between managers, specialists and other employees of departments between whom there are no subordination relationships. As a result, a coordinated unity of views on common tasks is achieved.

Motivation- the process of motivating oneself and others to act to achieve a common goal. A manager must always remember that even the best laid plans and the most perfect structure of an organization are of no value if someone does not carry out the actual work of the organization. Therefore, the purpose of this function is to ensure that members of the organization perform work in accordance with the responsibilities delegated to them and according to the plan.

Control is the process of ensuring that an organization actually achieves its goals. Circumstances may force an organization to deviate from the main course planned by the leader. And if management fails to identify and correct these deviations from original plans before the organization is seriously damaged, achieving its goals will be jeopardized.

INTRODUCTION

The relevance of studying this topic, in our opinion, is directly related to the fact that the management process, although it plays a very definite role in the organization, nevertheless permeates the entire organization, touching and affecting almost all areas of its activity.

However, it should be noted that with all the diversity of interaction between management and the organization, it is possible to establish with a sufficient degree of clarity the boundaries of the activities that constitute the content of the management process.

The management process within the organization itself has certain specifics. O. S. Vikhansky and A. I. Naumov in their reasoning emphasize that management positions within the organization itself are mainly determined by the purpose and role that this or that organization is called upon to implement. In intra-organizational life, management plays the role of a coordinating principle that shapes and sets in motion the organization’s resources to achieve certain goals.

Management as a process forms and changes, when necessary, the internal environment of an organization, which is an organic combination of components such as structure, intraorganizational processes, technology, personnel, organizational culture, and manages the functional processes occurring in the organization.

The subject of the study is a management process.

The object of research is the content of the management process.

Based on the foregoing, the purpose of this work is the need to characterize the substantive component of the management process.

Achieving this goal, in our opinion, involves solving the following tasks:

1. Cover the content of the management process.

2. Identify and characterize the main stages of the management process.

3. Classify the management process.

In the process of writing this work, we used the following methods:

1. Analysis of sources and literature used.

2. Comparative method.

This work was written using normative sources and educational literature.

Organizational management appears as a process of implementing a certain type of interrelated actions to form and use the organization's resources to achieve its specific goals.

V. R. Vesnin emphasizes that management as an activity is implemented in a set of management processes, that is, targeted decisions and actions carried out by managers in a certain sequence and combination.

He emphasizes the fact that these management processes are improved along with the development of the organization itself.

He also draws attention to the fact that management processes contain both hard, formal elements, such as rules, procedures, official authority, and rather soft ones, such as leadership style and organizational values. The goal of a specific management process, as the author emphasizes, is to change or, conversely, maintain the existing management situation, that is, the totality of those circumstances that have, or in the future may have an impact on the development of the organization itself.

O. S. Vikhansky and A. I. Naumov in their reasoning emphasize that the management of an organization appears as a process of implementing a certain set of specific interrelated actions.

They point to the peculiarity of the management process that in its substantive interpretation it is not equivalent to all the activities of the organization to achieve certain interrelated goals, but includes only those functions and actions that are associated with coordination and establishment of interaction within the organization, with incentives to implement production and other activities (see Fig. 1).

The content and set of actions and functions carried out in the management process, according to O. S. Vikhansky and A. I. Naumov, directly depend on both the type of organization (business, administrative, public, educational, army), on the size of the organization, and also from the scope of its activity (production of goods or provision of services), from the level of the management hierarchy (top management, middle level management, lower level of management), from the function within the organization (production, marketing, personnel, finance) and from many other factors.

However, despite all the diversity, as A. Fayol drew attention to back in 1916, the management process within an organization is characterized by the presence of generally homogeneous types of activities.

Thus, we can conclude that, according to O. S. Vikhansky and A. I. Naumov, the management process is characterized by functional content. That is, the authors believe that all types of management activities can be grouped into four main management functions:

1) planning, which consists in choosing goals and an action plan to achieve them;

2) a function of the organization through which tasks are distributed between individual departments or employees, as well as interaction between them is established;

3) leadership, which consists of motivating performers to carry out planned actions and achieve their goals;

4) control, which consists in correlating the results actually achieved with those that were planned.

L. E. Basovsky also draws attention to the existence of the functional component as a substantive side of the management process. He defines the management process as a continuous sequence of interrelated actions to implement the functions of planning, organization, motivation and control.

There are other definitions of the substantive component of the management process.

According to A.I. Orlov and V.N. Fedoseev, the term “management process” refers to a set of coordinated activities aimed at achieving set goals.

V. Siegert gives the following definition: “Management is such leadership of people and such use of funds that allows you to carry out assigned tasks in a humane, economical and rational way.” To this we must add that goal setting, i.e. the choice of goals and the formulation of tasks also relates to management.

Moreover, goal setting is one of the main responsibilities of managers, especially first managers.

Thus, we can conclude that among the authors - theorists in the field of management there is no single point of view on the issue of interpreting the substantive side of the management process.

However, the analysis of the above interpretations shows a functional orientation in considering the content of the management process.

Management process- this is a set of individual activities aimed at streamlining and coordinating the functioning and development of an organization and its elements in the interests of achieving their goals.

Management process solves two tasks:

• tactical is to maintain stability, harmonious interaction and performance of all elements of the control object;
• strategic ensures its development and improvement, transfer to a qualitatively and quantitatively different state.

The process is characterized continuity, cyclical repetition of individual phases (collection, processing, analysis, storage, control of information; development and decision-making; organization of their implementation), unevenness, inertia, manifested in the delay of management actions. It develops and improves along with the organization itself.

Management process combines such aspects as managerial work, its subject and means, and is implemented in a specific product.

The subject of work in management is management documents, which received this name in contrast to other documents that are not generally related to the management process. The main carrier of information in the management system is currently the document. With their help, the relationship between the structural divisions of the organization is carried out.

The transformed information acquires an independent existence and can accumulate, which leads to a complication of the management process and an increase in the dominance of past decisions over current ones. The latter, however, is to a certain extent useful, since it generates organizational order, ensuring automatic activation of management mechanisms and the implementation of appropriate actions without special instructions. However, it is limited because it is not able to subordinate and coordinate all organizational elements.

By means of managerial laboris everything that facilitates transactions with information - from computers, telephones to pens and paper. In this case, the following are distinguished: means for drawing up documents (printers, voice recorders, etc.); tools for processing and processing documents (stamps, cutters, hole punches); means of grouping and storing documents (folders, binders, filing cabinets); means for performing computational operations; means of operational communication; furniture.

Product of labor- this is the result of the management process, which is a management decision. With the help of one or another material medium (mainly documents), these decisions come directly to the control object.

Managerial work, like engineering, design, research, etc., belongs to the category mental labor carried out by a person in the form of neuropsychic efforts. He exists in three main forms: heuristic, administrative and operator.

Heuristic work comes down to a set of actions to analyze and study certain problems facing the organization, and based on this, develop various options for their solutions - managerial, economic, technical. Depending on the complexity and nature of the problems themselves, this work is performed by managers and specialists.

Administrative work is the lot of managers. It is associated with the implementation of such types of work as the ongoing coordination of the activities of subordinates, their control, evaluation, motivation, management (communicating decisions made verbally and in writing to the executors), instruction, exchange of information (carried out in the process of holding meetings and conferences, receiving visitors , conducting business negotiations, answering letters and phone calls, visiting workplaces).

Operator labor aimed at technical support of production and management processes with the necessary information. It includes such work as documentation (registration, reproduction, sorting, and storage of various kinds of documents); primary accounting and accounting (collection of statistical, accounting and other information about production, economic, social and other processes occurring within the organization); communicative-technical, computational and formal-logical (sequential processing of collected information and implementation on its basis and according to a given algorithm, calculations necessary for decision-making).

This work falls to the lot of specialists and technical performers. Part of it, strictly speaking, does not relate to the mental, so the term “non-physical labor” is sometimes used to denote it.

The process of managerial work consists of elementary actions, or operations, that is, homogeneous, logically indivisible parts of management activities, with one or a group of information carriers (documents) from the moment of their receipt to transfer in a transformed form to others or for storage.

Management Operations is a technologically indivisible process of processing management information entering a given structural unit.

Management operations are: search, computational, logical, descriptive, graphic, control, communication (for example, listening, reading, talking, observing the actions of various devices, thinking, etc.).

An independent set of operations for processing information (collecting, studying, analyzing, formulating conclusions, drawing them up), ending with a result defined in form and content in the form of an oral message or document (certificate, order, letter, etc.), is called work.

Management jobs vary:

• by purpose (anticipation, activation, control);
• for specific content (research, planning);
• by periods (strategic, tactical, operational);
• by stages (goal setting, situation analysis, problem definition, search for a solution); by direction (inside or outside the organization);
• by area (economic, social, technological);
• by objects (production, personnel);
• by forms and methods of implementation; by organizational role (differentiating and integrating);
• by the nature of information transformation (stereotypical, performed according to an algorithm, and creative);
• according to degree of difficulty.

Let us dwell in more detail on the latter, since for managerial work it is perhaps the main characteristic.

The complexity of managerial work is determined by several circumstances.

Firstly, the scale, number and composition of the problems being solved, the connections between them, the variety of methods used, and organizational principles.

Secondly, the need to make new, unconventional decisions, often in conditions of uncertainty or risk, which requires deep professional knowledge, experience, and broad erudition.

Third, the complexity of managerial work is determined by the degree of efficiency, independence, responsibility, and riskiness of the decisions that need to be made. When making decisions, a manager often takes responsibility not only for the material well-being of people, but for their health and even life.

• communication (negotiations, receiving visitors, visiting the organization, going on business trips);
• administrative and coordination (communicating decisions made orally and in writing to executors, drawing up and issuing tasks, instructing);
• control and evaluation (checking the timeliness and quality of task completion);
• analytical-constructive (studying information and preparing decisions);
• information technology (with storage media) which takes 10 - 15% of working time; primary accounting and accounting.

Management procedure– a set of management operations and documents interconnected in a certain order, aimed at achieving a fixed goal.

The procedure should reflect the purpose of the work, the documents used and developed, their content, and the order in which they are completed.

Classification of procedures and operations is carried out according to a number of criteria:

1. By content:
   • Information or information technology are associated with the processing of information and its media. Documentation, primary accounting, accounting and computing operations and procedures are also distinguished here;
   • Logical-mental or analytical-constructive are associated with the preparation and adoption of management decisions;
   • organizational ones consist of service-communication, administrative and coordination operations and procedures.
2. By the nature of the combination in time:
   • sequential, i.e. each operation or procedure begins only after the completion of the previous one;
   • parallel, involving the simultaneous execution of operations and procedures;
   • parallel-sequential involve partial combination of adjacent operations and procedures in time and space.
3. By difficulty:
   • simple operations and procedures, i.e. containing several elements and operations;
   • complex operations (20-30 elements) and procedures (100 or more operations).
4. By degree of repeatability:
   • repetitive, i.e. constantly performed by employees of the management apparatus;
   • non-repetitive or creative, complex operations and procedures.

With all their diversity and varying degrees of complexity, management procedures are cyclical in nature.

Management cycle– this is the period of circulation of information in the field of management, which is measured by a time interval or calendar period defined for each procedure.

The management process is the activity of management subjects united in a certain system, aimed at achieving the company’s goals by implementing certain functions using management methods.

As a rule, company management processes are very diverse, multidimensional and have a complex structure (consisting of a large number of stages and phases). In a general sense, the control process consists of general control functions that are combined into control cycles (Fig. 12.1).

Rice. 12.1. Control cycle

12.2. Place of decision in the management process

Solution- the central point of the entire management process. We can say that the essence of the management profession is decision making.

In a broad sense, this concept includes the preparation of a decision (planning); in a narrow sense, it is the choice of an alternative. As part of long-term planning, fundamental decisions are made (what to do?), then in the process of ongoing planning, organization, motivation, coordination, regulation, changes in plans - decisions in the narrow sense (how to do?), although such a boundary is conditional.

In practice, the solution problem is specific to the pressure of deadlines, lack of qualifications or information for the solution, unreliability of methods, managers' tendency to routine, disagreements between decision makers (DMs).

All types of decisions made in the management process can be classified according to numerous criteria:

By object of decision (goal or means oriented, fundamental structural or situational);
- reliability of the source information (based on reliable information, risky and unreliable);
- duration of consequences (long-, medium-, short-term);
- connections with the planning hierarchy (strategic, tactical, operational);
- frequency of repetition (random, repetitive, routine);
- production coverage (for the entire company, highly specialized);
- the number of decisions in the process of making them (static, dynamic, single- and multi-stage);
- decision makers (individual, group, from managers, from performers);
- accounting for data changes (hard, flexible);
- independence (autonomous, complementary);
- difficulties (simple and complex).

The most typical decisions made by company managers can be classified as follows (research in Germany in 1983):

Situational, routine, departmental decisions;
- decisions of medium complexity (current clarification of the area of ​​activity, decisions under stress and under deadline pressure, decisions in exceptional cases);
- innovative and defining solutions.

12.3. Structure and decision-making process

The decision-making process is determined to a large extent by the clarity of its structure.

A solution with a clearly defined structure can be presented as shown in Fig. 12.2.

Rice. 12.2. Clearly structured solution

Based on the predicted data packets D, the predicted results K can be calculated for alternative solutions A. Next, taking into account the possibility of risk, the alternative Aopt is selected, which best corresponds to goal A.

A loosely structured solution is shown in Fig. 12.3.

Rice. 12.3. Loosely structured solution

The decision made also affects the decision maker (responsibility, deepening of intuition, gaining experience).

The progress of a solution can be viewed as the execution of an interrelated set of steps and sub-steps in the solution process. In each specific case, this process will naturally be refined and individualized (Table 12.1).

Table 12.1

Phase	Phase content
1. Collection of information about possible problems	1.1. Monitoring the internal environment of the company 1.2. Surveillance of the external environment
2. Identification and definition reasons for the problem	2.1. Description of the problem situation 2.2. Identifying the organizational unit where the problem arose 2.3. Problem Statement 2.4. Assessing its importance 2.5. Identifying the causes of the problem
3. Formulation of goals problem solving	3.1. Defining the company's goals 3.2. Formulation of goals for solving a problem
4. Justification of the strategy problem solving	4.1. Detailed description of the object 4.2. Determination of the area of ​​change of variable factors 4.3. Defining Solution Requirements 4.4. Defining criteria for the effectiveness of a solution 4.5. Defining Constraints
5. Development of options solutions	5.1. Breaking down a task into subtasks 5.2. Searching for solution ideas for each subtask 5.3. Building models and performing calculations 5.4. Determination of possible solution options for each subtask and subsystem 5.5. Summarizing the results for each subtask 5.6. Forecasting the consequences of decisions for each subtask 5.7. Development of options for solving the entire problem
6. Choosing the best option	6.1. Analysis of the effectiveness of solution options 6.2. Assessing the influence of uncontrollable parameters
7. Adjustment and agreement on the decision	7.1. Working out a solution with the performers 7.2. Aligning the solution with interoperable services 7.3. Decision approval
8. Implementation of the solution	8.1. Preparation of a work plan for implementation 8.2. Its implementation 8.3. Making changes to the solution during implementation 8.4. Evaluating the effectiveness of the adopted and implemented solution

In practice, of course, everything does not go so smoothly:

Substages may not take place in the same order; they may be disrupted, skipped, subject to feedback, overlap, or parallel movement;
- the decision-making process is more individual, the more complex the decision;
- a limited amount of information limits the rationality of the decision, the role of intuition is growing;
- preliminary settings on alternatives influence the choice of solution;
- there is no desire for an optimal solution if there is a satisfying one;
- the participation of several persons and organizational conditions change the order of passing the substages.
- managers intervene in various ways in the structure and process of decision-making, thus influencing their quality. The most common cases are:

A priori determination of the person making the decision for execution;
- determination of the circle of persons participating in the decision;
- participation of the decision maker in its execution;
- determination of the moment of decision and its place;
- determination of the methodology and calculation of the solution;
- setting goals and their relative importance;
- limiting the number of alternatives;
- attracting persons of certain competence;
- monitoring the progress of the solution;
- provision or restriction of information;
- links to similar solutions;
- moral and material impact;
- expansion of freedom in decisions;
- assigning responsibility for decisions.

12.4. Distribution of decision-making powers

There are two possible directions of distribution of powers:

Delegation of powers;
- centralization of the solution.

The following distribution of solutions is most typical (for Western firms).

High centralization:

Investment decisions;
- financial decisions;
- personal appointments in senior management.

Limited centralization:

R&D solutions.

Limited delegation:

Investment decisions within budget;
- decision on personnel.

High Delegation:

Current production issues;
- decisions on product sales.

Delegation of decisions is promoted (positive correlation):

Size of enterprises;
- product range;
- computerization of management;
- dynamics of scientific and technological progress;
- environmental variability;
- acceptability of demand prices;
- inter-industrial cooperation.

Delegation and centralization of decision making can have different consequences (Table 12.2).

Table 12.2

Consequences of delegation and centralization of decisions

Result	Benefits of delegation. Disadvantages of Centralization	Disadvantages of delegation. Benefits of Centralization
Company success	Improved results due to increased responsibility of performers. Reduced costs. Possibility of manager absence	High qualifications of lower management levels are required. Additional costs for monitoring decisions made
Quality of solutions	Senior management can focus on strategic decisions. The reality of decisions made. The center's decisions are far from reality	Insufficient homogeneity of decisions made. Homogeneity of the centralized solution. The problem of qualification of lower levels of management. Lengthy implementation process
Unloading upper levels The uselessness of headquarters. Unloading communication paths	Loading subordinate levels. Increasing volume of solutions
Coordination	Self-determination of subordinate levels of management. Their own responsibility. Intervention by senior management only in exceptional cases	Possibility of conflict with lower levels of management. Increasing need for their control
Social and psychological effects	Additional development opportunities for lower levels of management. Increased performance requirements for subordinate managers. Feelings of success and satisfaction	Delegations to subordinate levels of management (removal of responsibility). Stress due to responsibility at lower levels of management. Less decision-making power for management

12.5. Risk in decision making

Risk refers to the danger of making a wrong decision. Since risk is the danger of loss, it means a negative deviation from the goal. Since the future is never known, all decisions involve risk.

The risk may be the impact on profitability, revenue, costs, turnover and liquidity (the ability to always pay your bills).

Risk can be distinguished:

General (threatens the enterprise as a whole);
- special by factor (raw materials, equipment, energy, personnel, capital);
- special in the manufacture of products (defects, incorrect methods, in R&D, in storage);
- special when evaluating products (during sales, in workshops, in guarantees, in payment);

Risk can be divided into calculable and non-calculable, insurable and not.

To influence all types of risk, the manager has certain tools (Fig. 12.4).

Rice. 12.4. Risk Mitigation Toolkit

Elasticity		- versatility of production facilities and personnel.
Employee incentives		- connection of their interests with risk.
Support systems		- labor protection, fire safety, safety from failure, waste, product reliability.
Reducing systems		- duplication of unreliable elements.
Error pointers		- alarm before failure.
Quick shutdown		- zero circuits in critical situations.
Risk Limitation		- choice of legal form, dispersal, counter transactions, property reservations, insignificant cash in hand, dispersal of warehouses, production facilities, patent protection.
Shifting Risk		- to third parties (suppliers, creditors, employees, buyers, government).
Security		- insurance contract.

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The management process represents a set of certain types of activities that are aimed at coordinating and streamlining the functioning and development of the organization and its elements in order to achieve its goals. During the management process the following tasks are solved:

1. tactical: maintaining stability, harmonious interaction and performance of the entire set of elements of the control object;
2. strategic: ensuring development and improvement, transfer to a qualitatively and quantitatively different state.

Typically, organizational management processes are quite diverse and multidimensional, characterized by a complex structure. The management process in a general sense consists of general management functions combined into management cycles (Fig. 1).

Rice. 1. Control cycle

As you can see, this process can be characterized as continuous, with cyclic repetition of individual phases (collection, processing, analysis, storage, control of information; decision-making and organizing their implementation), uneven, inertial, with some delay in management actions. The management process improves and develops along with the organization.

The essence of the management process

The management process combines such aspects as management work, subject and means, and the final result of its implementation is a certain product.

The subject and product of managerial work is; in the first case, it is “raw” and therefore not used in practice; but for preparing a decision, it serves as a basis; it is used to guide the implementation of certain actions.

The transformed information acquires independent existence and then accumulates, which leads to a complication of the management process, an increase in the dominance of decisions made in the past over current ones. The latter can be useful to some extent, since it generates an organizational order that ensures that control mechanisms operate automatically and the corresponding action is performed without special instructions. At the same time, it is limited due to the fact that it is not able to subordinate and coordinate all elements of the organization.

Management tools are everything that contributes to the implementation of operations with information. At the same time, they distinguish: means for drawing up documents, processing and processing documents, grouping and storing documents, means for performing computational operations, and operational communications.

Forms of managerial labor

Managerial work is implemented in three key forms:

• heuristic;
• administrative,
• operator

Definition

Heuristic work is a set of actions to analyze and study certain problems facing the company, and on the basis of this, develop a number of options for solving them - economic, managerial, technical.

Depending on the nature and complexity of these problems, the work is performed by specialists or managers.

Definition

Administrative work is mainly the responsibility of managers, which is associated with the implementation of work on the ongoing coordination of the activities of subordinates, their control, evaluation, motivation, management, instruction, and information exchange.

Definition

Operator work is aimed at providing technical support for production and management processes with the necessary information.

It includes documentation work (registration, reproduction, sorting, and storage of various documents); accounting (collection of statistical, accounting and other information about processes occurring in the organization); communication, calculation and sequential processing of collected information. This work is entrusted to specialists and performers.

Management work and operations

The process of managerial work includes elementary actions, or operations, that is, homogeneous, logically indivisible parts of management activity, with one or a group of information media from the moment they are received until they are transferred in a transformed form to others or for storage.

Management operations can be: search, computational, logical, descriptive, graphic, control, communication, etc.

A complex of independent operations for processing information (collecting, studying, analyzing, formulating conclusions, formalizing them), which ends with a result defined in form and content in the form of a message or document is called management work.

Management work is classified:

• by purpose (activation, prediction, control);
• for specific content (research, planning);
• by periods (tactical, strategic, operational);
• by stages (setting a goal, analyzing the situation, identifying a problem, choosing a solution);
• by focus (inside or outside the organization);
• by area (social, economic, technological);
• by objects (personnel, production);
• by forms and methods of implementation;
• by organizational role (integrating and differentiating);
• by the nature of information transformation (stereotypical, performed according to an algorithm, or creative);
• according to degree of difficulty.

The last classification is the most important characteristic of managerial work.

The complexity of managerial work is determined by a number of circumstances.

Firstly, the scale, number and composition of problems, the connections between them, the methods used, and organizational principles.

Secondly, the need to make ever new, unconventional decisions, often under conditions of risk and uncertainty, which requires the deepest professional knowledge, experience and erudition.

Thirdly, and finally, the complexity of managerial work is characterized by the level of efficiency, independence, responsibility, and riskiness of decisions that must be made. A manager in the decision-making process often takes responsibility not only for the well-being of people in material terms, but for their health and even their lives.

A management procedure is a documented sequence of execution of elements of the management process, which determines the composition, content of its constituent operations, and their order. The procedure reflects the purpose of the work, the documents being developed and used, their content, and the order in which they are completed.

Process control technology

The method of performing management operations and their elements in an optimal sequence with a rational division between performers depending on their qualifications and working time is called management technology.

The main tasks of management technology:

1. establishing orderliness and rationality in the sequence of management work;
2. ensuring unity, consistency and continuity of actions of subjects when making decisions;
3. participation of senior managers;
4. uniform load on performers.

Management technologies are based on production and information flows, a body of knowledge about the techniques and methods of action of workers when performing management operations.

Control technology should be minimally complex and labor-intensive. Let's take a closer look at them.

Linear technology is characterized by a strict sequence of certain phases, which flow from each other and change in accordance with a previously established plan. If it is impossible to assess the state of affairs accurately, identify the main problem and clearly outline the goal, management technology can be ramified.

The technology for controlling deviations that began in the previous phase is based on the fact that the latter will partially not require adjustment at all; and overcoming them and partially introducing changes into the management process is possible through the efforts of the performers themselves; Only when they are significant should the manager intervene.

Situational management technology can be used in cases where the management process is carried out under conditions of uncertainty.

Results-based management technology is characterized by the fact that in the absence of certainty of the situation and a vague final goal, after each of the phases, depending on the degree of achievement of the previous planned results, subsequent actions are clarified.

Thus, the management process is the activity of management subjects united in a certain system, which is aimed at achieving the goals of the organization through the implementation of certain functions using management methods.