The New Management Concepts (Development of modern management concepts)

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The New Management Concepts

A concept is a certain way of understanding and interpreting an object, phenomenon, or process, the main point of view on the subject, etc., and the guiding idea for their systematic coverage. The term "Concept" is also used to refer to the leading idea, constructive principle in scientific, artistic, technical, political, and other types of activity

Management activity is one of the most important factors in the functioning and development of enterprises in modern conditions. This activity is constantly being improved in accordance with the objective requirements of production and sale of products, increasing complexity of economic relations, increasing the role of the consumer in the formation of technical, economic and other parameters of the enterprise.

Changes in the conditions of production activity, the need for adequate adaptation of the management system to it affects not only the improvement of its organization, but also the redistribution of management functions by levels of responsibility, forms of their interaction, etc. We are talking about such a management system, which is generated by the objective necessity and laws of the modern management system, related to the satisfaction of both individual needs and ensuring the interest of employees in the highest final results of the entire enterprise. All this requires enterprises to adapt to modern conditions and overcome emerging contradictions in the economic, scientific and technical processes.

Development of modern management concepts

Modern management concepts are: strategic management; marketing; quality management; logistics; project management and cost management; consulting, etc.

Strategic management

Strategic management refers to a set of programs, principles,methods and techniques that top management uses to plan the company's development in the medium or long term. A plan is usually drawn up with a 5-year planning horizon.

In strategic planning, it is most important to give a true analysis of the internal state of the business, the external position of the company in the market. In accordance with this, there are two sections. In the first section are key questions such as: whether the staff is interested in reducing economic losses, and what barriers there are properly and timely met the needs of consumers, how they are maintained, what level of costs compared to major competitors, what products and services are most profitable? Is the use of raw materials and resources rational, and is the method of allocating overhead costs rational?

Strategic plan may consist of such sections as:

• products and market;
• means of production;
• resources;
• organization of work and distribution of work;
• management system;
• motivation and incentive program.

Of course, only an economist can calculate such standards as income per share, property increment, return on invested capital, profit, income and working capital, income per employee, profit per employee. Economic specialists are usually part of the functional staff assigned to help the Manager. They are proficient in economic methodology and methodology, develop a model and program for a strategic plan.

Marketing. management planning market Economics

In European countries, a special area of management - marketing-has been developing for a long time. Marketing - special branch (theory and practice) management that develops new products, produces and markets goods (or provides services). Among the problems or functions of marketing are usually called demand research, pricing, advertising, sales promotion, product range planning, and others.

Marketing is an integrated management system aimed at ensuring maximum sales of products, achieving high efficiency of operations and expanding market share. Finally, marketing is a special management concept and at the same time a form of relationship between the company and the customer.

Modern marketing is a dynamically developing area of management. It constantly raises new topics and problems, the in-depth study of which leads to the formation of independent directions.

Quality management

Improving product quality is now becoming a strategic resource and a crucial factor in maintaining and improving the company's competitiveness. In the world's leading companies, all the company's services are aimed at achieving high quality. Customer requirements, information about faults, miscalculations and errors, and customer ratings play a key role in improving quality. Special studies show that in poorly performing companies, it can take up to 60% of the time to fix a marriage, in normally functioning firms - no more than 20%, and in the best companies - less than 5%, or even no time is spent on correcting the mistakes of their colleagues.

Experts talk about the emergence of a new management discipline that can or should make fundamental changes to the existing management system. This is a fairly broad phenomenon that includes the quality of service, the quality of reporting documentation, and the quality of production operations.

Now more and more people are talking about the need for a total quality control system in the company. Among the main indicators is a focus on strategic planning, which is able to link the quality of products with the real needs of consumers and create conditions under which products are sold at prices that meet the demand of customers. At the same time, the company should not suffer in any way. On the contrary, labor productivity should grow.

In connection with the concept of quality management, it is necessary to focus on such aspects as the single European market and standardization of quality management.

Common European market and standardization of quality management

The Internal European market largely operates on the basis of European standards.

It is the policy of the European regulatory commissions to adopt international standards as a basis (mostly unchanged) when developing European standards.

According to the regulation of the European commissions, European standards must be translated into the national collections of standards of the EU member States without changes. At the same time, different national standards are canceled. The European Committee for standardization has been established for this purpose.

European Committee for standardization (CEN).

The European Committee for standardization was established in Paris on March 25, 1961. In 1970. mandatory development of European standards (EN) was introduced.

Members of CEN are the national standards organizations of 18 countries. This is a closed organization. CEN member countries recognize the priority of international standardization within the framework of ISO and IEC.

Area of activity. The work on standardization in CEN is based largely on or complements the results achieved in ISO. In addition to European standards, CEN also reviews and adopts harmonization documents and preliminary standards. Harmonization documents are the simplest form of removing technical barriers to trade between these countries. Their main purpose is to ensure uniform application of international standards (ISO) in the EU countries. Preliminary standards are developed in cases where the level of innovation is high, technologies are changing rapidly, indicators and requirements may change quickly, and when a long period is required for standards to be agreed and adopted. Such standards have a limited validity period of up to three years.

Administrative work is performed by the Central Secretariat, which is located in Brussels and, according to Belgian law, is registered as a scientific and technical non-profit organization.

European Committee for standardization in electrical engineering (CENELEC)

The European Committee for standardization in electrical engineering was established in 1972. CENELEC members are National electrotechnical committees of 17 European countries. All of them are simultaneously members of the IEC. The highest body of CENELEC is the General Assembly, which represents national standardization organizations, government bodies of the European Union member States, the European economic community, and the European free trade Association.

European and international standardization. Their distinctive features.

The highest levels of standardization are international and European. They are aimed at solving global problems: removing technical barriers to trade; facilitating the mutual exchange of advanced technologies; and interstate economic cooperation. At the same time, the tasks of European standardization are focused on achieving specific goals related to the unification of Europe.

Logistics.

Logistics is understood as a system for managing material and commodity flows inside and outside the enterprise. Logistics systems first appeared in the United States in the 1950s, and in Western Europe in the mid-60s. An integral element of the logistics system is information systems, which have become the subject of an independent management discipline. The flow of innovations, fundamentally new ideas and developments is constantly increasing, especially in connection with the computerization of management.

Project management and cost management.

A European Manager cannot be considered competent if they are not familiar with the latest trends in the management discipline of project management. It integrates various fields of science and production, but it is especially closely related to changing the structure of the organization. Applying knowledge in a particular area of management, a modern Manager changes at the same time the managerial roles (and with them the management style).

In project management, the most optimal role is considered to be that of a "moderator" who develops initiative, responsibility, and self-organization among subordinates. In quality management, many managers adhere to a different role - "strict controller". In cost management, this is also an independent and rapidly progressing direction of management, the Manager acts more as a researcher, because in sufficient perfection he must master the " functional cost analysis".

Consulting.

Consulting - the combination of knowledge from different disciplines related to management, sociology, Economics, law, psychology, systematic approach, etc., that uses specialist, not only they are proficient at the theoretical level, but also understands their application potential as valuable practical advice or recommendations to another expert who professionally knows these disciplines, but take a quite responsible post, for example plant Manager or the mayor.

Today, consulting has become a widely branched field of activity, where specialists often do not fully know each other. Thematic and sub-disciplinary areas, schools, and specializations have emerged

Among the major thematic specializations, the following types of consulting can be distinguished: management consulting; psychological consulting; economic consulting; social consulting; legal consulting; organizational consulting; personnel consulting.

Management consulting is professional assistance from management specialists to managers and management personnel of various organizations in analyzing and solving problems of their functioning and development, carried out in the form of advice, recommendations and solutions jointly developed with the client.

A. K. Semenov identifies four main types of management consulting:

1. Project Consulting, when the consultant himself develops a project for the organization of some required change, a specific solution to the problem and offers it in a ready-made form.
2. Process Consulting, when the consultant uses special tools to organize group work of the organization's employees in order to find the right solution.
3. Training consulting, when the consultant sets out in a classroom setting (lectures, practical classes) and demonstrates to management employees already worked out in practice ways and methods of solving problem problems.
4. Consulting through mutual training, when the consultant for a special program organizes a direct exchange of skills and achievements between the heads of services and organizations

The number of new management areas, techniques, concepts, and management tools is constantly increasing. Service management has moved into an independent industry. The variety of service types is so great that it is possible to manage them only with strict classification, building special models and information systems.

Not to mention the traditional areas of management, in particular, production management, which now includes a huge number of old and new concepts, models, programs, etc., modern areas of management are also growing in volume and are divided into sub-sectors.

Competing concepts and theories and alternative programs are emerging in each of these industries, which indicates a high density of empirical research and an active theoretical search. Thus, information Resource Management covers planning, staff training, budget development, organization, operational management, and other types of information activities.

A particular section of this activity is model management, structural modeling, and situational models. Such areas of management as simulation modeling and the theory of managerial decision-making are developing especially actively now. Risk management, which is effective in an unstable economic situation and in managing the global economy in a crisis, has also been singled out as a separate area.

In management, there are now several dozen areas and areas, each of which can be identified dozens more private areas of knowledge.

New management concepts.

In modern conditions, new management concepts are being developed that reflect the trends of humanization and liberalization in the life of social systems.

The essence of the new approaches reflects the concept of Management without hierarchy

We can distinguish the following goals of the concept Management without hierarchy:

1. Refusal to legitimize the right of unilateral management of resources and information
2. Depersonalization of power and the abolition of the dual principle of "sanction" and " reward"
3. Establishment of Autonomous groups with a high potential for self-regulation
4. Adoption of humane values and forms of behavior instead of one-sided orientation to economic results
5. Consideration of economic requirements in business decision - making.

The following modern concepts have been developed in the production sphere: Operational production system.

This is an operational production system with a zero inventory level (which does not provide for the creation of large material reserves, but requires a clear organization of the supply system). The JIT concept is aimed at eliminating losses in production and related areas of activity. Only the quantity that is required by the specified time is subject to production.

Universal quality control

This is the concept of guaranteed quality, which involves the coverage of employees at all levels of production to ensure the best satisfaction of consumer needs.

General production support

The TPM concept focuses on a comprehensive increase in the efficiency of the production system by involving all employees of the organization in this process. to be effective, full support of the total workforce is required. The main goal is to increase the productivity of fixed assets with a modest investment in maintenance.

Lean production

This is a concept based on the idea of continuous improvements that eliminate those activities that do not create additional value, it offers a philosophy of "harmony". The core of a "lean" enterprise is formed by" profit centers " that are product-oriented and responsible for the economic success of their product.

Benchmarking.

This is the process of identifying, understanding, and adapting existing examples of effective company performance in order to improve your own performance. It equally involves two processes: evaluation and comparison. The "best" product and marketing process used by direct competitors and firms working in other similar fields is usually taken as a model for identifying possible ways for the firm to improve its own products and methods of work.

The concept of Benchmarking is aimed at continuous improvement of the company's activities and increasing its competitiveness by focusing on the highest achievements in all functional areas. It is based on a systematic analysis and evaluation of the company's activities in comparison with the achievements of the main competitors in the markets; with objective trends in the development of science, technology, and technology; with the highest achievements of international practice in the relevant field.

Business process reengineering

Fundamental rethinking and radical redesign of business processes to achieve the maximum effect of production, economic, financial and economic activities, issued by the relevant organizational, administrative and regulatory documents. Reengineering uses specific tools for presenting and processing problem information that are understandable to both managers and developers of information systems.

The concept is to redefine the foundations of building organizations and their organizational culture, radically redesign their business processes, and reengineering a business means "starting from scratch".

The findings and conclusions

Modern management concepts include: strategic management, marketing, quality management, logistics, project management and cost management, consulting, personnel management, etc. The application of these concepts together will allow the company to increase the efficiency of its activities and become dynamically developing and competitive in the market.

Management becomes effective and successful only when the organization relies on modern management concepts, creatively applies the necessary management models, keeps up with developing economic trends in society, dynamically solves problems and consistently implements all five functions of modern management. The result is the successful development of both the entire organization and the individual employee, contributing to the achievement of goals and objectives in General and individually.