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2.1 New management thinking

Lecture



Within the framework of the new managerial thinking, the new management philosophy, the main factor for the effectiveness of any company is the quality of management at all levels .

In Russia, the transition to effective management on scientific principles is not only necessary and possible, but also becomes the main means of implementing economic reforms.

Concepts and principles of development of science and practice of management and the main directions of the new management thinking should have the following orientations (Fig. 1.4).

  2.1 New management thinking

Fig. 1. 4. Stages of business engineering

1. The need to reform the social subsystem in the direction of the implementation of its main principle "Personnel decide everything."

New management thinking is associated with the awareness of the need to include the human factor in the management system, reliance on the development of creative abilities of workers and self-realization of their personality.

The reliability of management is determined by three factors: people, materials and capital. The influence of these three factors on the rapid growth of the economy of any country is great because they constitute the main resources of management.

A very important, although not seen until recently, factor of efficiency is the substitution of manual labor, skilled and unskilled knowledge . As a result, the decisive impact on productivity is no longer exerted by workers, but by knowledge workers — managers * , technicians, and specialists.

The basic factor in the development of the modern economy is the rate of “brain accumulation,” the pace with which the country produces people with education, imagination, theoretical knowledge and analytical skills . A country in which the conditions for the development of this basic factor are not created inevitably faces a brain drain and a slow economy.

In the 90s, the initial conceptual management model changes in the theory of management of organizations. The staff begins to be considered as the main resource of the company, which primarily determines the success of the entire organization.

The theory that considers personnel * as costs to be reduced is replaced by the theory of human resources management, according to which personnel is one of the company's resources that need to be properly managed, create conditions for its development, invest in it.

The developed and theoretically sound concept of human resources is based on the recognition of the economic feasibility of investments related to recruitment, training, development and improvement of its potential.

Distinctive features of the concept of human resources are: the application of economic criteria for assessing the role of the human factor in production, intrafirm management and restructuring of the entire system of work with personnel.

2. Reengineering * , i.e., restructuring of the organization of economic activity and management on a modern informational and technological basis (see Fig. 1.5).

It is necessary to begin, as in any case, with goal setting , that is, with strategic modeling . This is the same as strategic planning (development of goals and ways to achieve them using various techniques: swot-analysis, goal tree, marketing analysis) - innovation is contained only in the final procedure. Business engineering requires that the results of your planning are recorded in standard interrelated accounting registers or blocks.

At the second stage , the organizational structure necessary for the implementation of the goals is modeled , that is, they project a strategy * onto the functions and organized units of the company. This is done by prescribing appropriate relationships. The identification of relationships is the strength of the integrated solution: now any changes in the business goals will automatically lead to certain changes in the organization.

For the modern Russian economy is characterized by the creation and development of enterprises of various forms of ownership. This circumstance implies the need for a radical restructuring of organizational structures and integration processes within an economic entity.

Attention is drawn to the clearly expressed tendency to reduce the rigidity and hierarchy of the existing structures, to expand the use of cooperation between organizations, and to further develop the program-target management. At the highest level, the functions of integrating the activities of the company and the development of common strategies, relations with external organizations and the evaluation of low-level proposals are concentrated. Such measures lead to a reduction in bureaucratic procedures and a significant reduction in the managerial apparatus.

The transition from structural to process modeling (third stage) allows building unrelated functions into a set of sequential actions (works) aimed at achieving a specific goal.

As part of the new managerial thinking, a program-target approach is needed to form the structure of production units, in-house production planning with a focus on minimizing the time for equipment changeovers. This form of specialization orients each team of the production system to the output of the final product, and not to the amount of work by groups of equipment. Such an approach provides an increase in labor productivity, contributes to reducing production costs, improving product quality, reducing work in progress, reducing the duration of the production cycle, and increasing capital productivity.

At the final stage, a qualitative description of business processes is transferred to a quantitative one. The process model is provided with the help of operational budgets (in other words, estimates of all works are made), which are then reduced in the budget of income and expenses, cash flow budget and budget according to balance sheet. This is the financial business model : its goals, formulated at the first stage, are reflected in the corresponding budget items.

Thus, the result is ensured by a strict sequence of actions from stage to stage. Moreover, the final blocks of the previous stage become input to the next. A well-built financial business model is a good basis for improving its strategy.

Know-how of business engineering - a detailed and formalized description of the elements of business management. And this became possible due to the fact that standards have emerged for describing those parts of management that cannot be quantified (for example, structure and business processes). As a result, it was possible to use computer technology, and this provided a real breakthrough, a new quality of support for management decision-making.



3. Creation of domestic corporate markets. It is about transferring the laws and principles of market economy to the internal activities of companies. Such transformations should cover all divisions.



To this end, autonomous units have been created within the framework of the enterprises, which are fully operating on cost accounting. These units are fully responsible for their production activities. Each unit finances its work, enters on a commercial basis in partnerships, both with internal divisions of the company, and with external organizations. In the central management body, however, the solution is concentrated only on strategic development issues associated with large investments.



4. Integration of management processes, i.e., integration processes in management, focused on more efficient use of all types of resources (primarily scientific, technical, investment and financial), which leads to the emergence of diverse forms of horizontal association of organizations.

5. Development and support of small enterprises. They can be created on the basis of any form of ownership by both individuals and various structures (enterprises, organizations, government bodies). The creation of small enterprises acquires special significance when the existing highly monopolized firms are disaggregated, which leads to overcoming the dominant role of economic entities.

In addition, small businesses are able to intensify economic restructuring, reduce unemployment, increase competition and respond quickly to changing market needs.

6. New gauges of management efficiency. As targets for organizational change, one should use such general characteristics of a firm's activities as financial results, for example, achieving financial stability or ensuring financial growth. At the same time, financial stability of a company is understood as its ability to solve the following tasks in full and in a timely manner:



  • fulfill their payment obligations;
  • provide with financial resources their production and business needs;
  • create a financial reserve in case of changes in claims from the external environment or to cover unexpected losses.


The use of financial results as a goal of organizational change is fully consistent with the understanding of the company as a commercial enterprise whose purpose is to make a profit (income).

However, it should be borne in mind that in many cases non-financial gauges better indicate the achievements of organizations and the promising effectiveness of management models. Intellectual capital, customer satisfaction, completeness and complexity of technologies are such qualitative criteria.



7. Separation of property rights and management functions. Previously, ownership was monopoly and belonged exclusively to the state. Currently, the public ownership sector is approximately 10%. This circumstance led to the emergence of a new function - property management.



The ratio of the categories of ownership and management organization, their interrelation and mutual understanding may have one of two options:



  • the right of the owner and the functions of the head are combined in one person (trade, services);
  • the owner, owning a controlling stake, not having the necessary competence and experience, hires a professional leader.


8. Approval of contractual relations in all forms of ownership. This expands the scope of competitive forces with a corresponding impact on efficiency.

The low efficiency of the public sector is one of the most important causes of the current crisis of public finances both in Russia and in many Western countries.

The greatest opportunities for the development of competition in the public sector are opening up in the sphere of its interaction with market structures through contractual relations and market testing. The development of contractual relations is accompanied by the strengthening of the role of competitive selection of proposals. The winner is the contestant who has proposed the most beneficial contract for the customer.

A new social contract is also needed, covering the system of social protection of workers.

9. Strengthening the regulatory role of the state is the most important direction in solving the problems of a market economy. As the concrete experience of the developed industrial countries shows, they owe their high wealth not only to the “invisible hand” of the market, according to Adam Smith, but also, perhaps, to a greater degree to the “invisible hand” of the state. The functions of the state extend to almost all spheres of social and economic life. It establishes the norms and rules of economic relations, and if necessary, directly intervenes in them. Modern failures in reforming the economy of Russia are primarily due to poor state governance.

The regulatory role of the state in relation to the organization is manifested, firstly, in creating a favorable sphere for the functioning of enterprises and, secondly, in stimulating internal transformations in enterprises.

10. Managing change is the key to the future. The only constant in modern business is change. It penetrates into every area, making obsolete not only products and enterprises, but also people. Changes occur at an unprecedented, sometimes unnerving pace. The future is for those companies and people who can manage change — they can quickly adapt to them, respond to them quickly, anticipate and anticipate them, and thus can plan in advance how to benefit from them.


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Management

Terms: Management