Organization economics: concept, forms and functions

Economics is a sphere of human activity that allows satisfying the needs of individuals. At the same time, it is an object of several scientific disciplines: applied and theoretical. The purpose of the economy is consumption, but it is impossible without production, the development of which is the foundation of the functioning of the market, since it represents the source of the whole mass of products and goods.

Organization economics is a discipline that considers various aspects of entrepreneurial activity. Its main sections are production, description of processes, explanation of what is happening at the enterprise. The regularities of the production process, being understood, are used to formulate new techniques and approaches for translating into reality the intended result, achieving the goal.

Mutual relations and differences

Organization economics is a scientific discipline that considers an enterprise within the framework of the economic field as a whole. The analysis is implemented through production factors and the sales market. The economy of the enterprise obliges to study the interaction of the company and the market, as well as the mutual influence of firms on each other. The object of the study of science is the process of managing as a whole and as a complex of interrelated phenomena, interests of a legal entity.

The economy of an organization depends on the economy of the micro level, the macro level, affects them, but it is not an identical concept. Conducting analysis at the micro level obliges us to study the influence of the market on the company, with equal attention being paid to both demand and supply. But the enterprise’s economy primarily uses demand as a conditional unit given initially.

Regarding the economic macro level, the organization’s economy considers certain factors as given parameters that must be remembered and taken into account. This includes pricing, nat. income, which for the macro level of science are problems that are analyzed and need to be addressed. Changing aspects of the national economy, changing consumption patterns, changes affecting demographics or average per capita income, technological progress - all these are factors that macroeconomics can manipulate, but for a company’s economy, these are only aspects that need to be taken into account when calculating your own situation, its prospects and development opportunities.

Independence as a basic condition

The organization’s economy examines some objects that, for the micro-, macrolevel, represent predetermined quantities that must be accounted for, but not adjusted. These include, for example, production costs.

The objects of the organization’s economy are the enterprise, aspects of its activities, the production process, decisions to which the management of the company is subordinate. This is a completely independent scientific discipline, and its importance is in no way less than similar areas.

Objects: more

When considering the concept of organization economics, it is important to pay special attention to those objects that are studied by this scientific discipline. These include:

• features of the organization of the management process;
• formation of a strategy, production and implementation plans;
• legal entity production structure;
• types of production;
• organization of the industrial cycle of work;
• capital;
• technical capacities, resources, material support, supplies, stocks, infrastructure;
• production costs, cost, pricing;
• fin. Opportunities legal entity, the effectiveness of households. activities, risk assessments;
• innovation, quality aspects, investment;
• HR work, organizational aspects, remuneration, stimulation of growth in the efficiency of work processes;
• foreign economic households. activity.

Scientific methods

Organization development economics is a science that has its own methods of research, analysis, and accumulation of information. Applied discipline, applies research approaches that have long been used in other applied areas related to the economy. Especially important are statistical rules and laws that allow you to monitor the development of the situation. No less important is comparative analysis. Using such approaches, it is possible to accumulate useful information, calculate and compare indicators, conduct a correct analysis of changes, compare current results and those characteristic of past stages. It is equally important to conduct regular comparisons with other business entities in order to understand who is achieving the best results, than what is due.

Theoretical, applied analytical problems, examples in the economy of the organization are solved with the help of modeling, graphic images. Such methods simplify the perception of information, allow more correctly assess the relationship of parameters, characteristics, as well as analyze what trends are characteristic of indicators that affect them to a greater extent. Economic, mathematical modeling is performed with two tolerance conditions:

• the company is interested in bringing profit to the maximum possible;
• the market environment is active, affects all subjects.

You can’t catch a fish from a pond without labor

Only such an entrepreneur can achieve success that adequately assesses the role of the organization’s economy in the success of the enterprise. At present, a positive financial result can be achieved by actively applying popular and effective scientific methods and strategies. It is important to navigate in general economic theory and have practical skills and knowledge. An entrepreneur who is able to apply quantitative methods for making calculations and forecasting the situation will be able to build an adequate line of development for the company without losses.

The fundamentals of an organization’s economy are closely related to marketing approaches and the entrepreneurial economy as a scientific discipline. In order to gain a deeper understanding of the essence of science, it is important to navigate the rules and patterns of accounting, industrial finance, and statistical research. Theory and practice are closely interconnected, and one who is ready to make efforts to master both of these directions can count on success. We will have to study the activities of the company, delve into the patterns that govern decision-making. A comparative analysis is no less important than the calculation of probabilities, the ability to correctly formulate a forecast. Organization economics is a scientific discipline that allows you to master the knowledge, skills related to economic laws, as well as apply them in real life.

Power Organization

The organization’s economy in market relations is an analysis of the primary economic link. The effectiveness of its work directly determines the quality and effectiveness of the state-level economy, the level of financial well-being of the country's population. An enterprise is an object that supplies products, services, and work to those in need, which means it ensures the livelihoods of the masses.

The economy of the organization in the market system involves the assessment of an individual as a basic element of the economic system. This is due to the fact that a legal entity not only produces a product that is in demand on the market, but also forms employment places for the population. This increases employment. A legal entity calculates payment for labor and is responsible for a number of other operations. It is important at the enterprise to solve various issues related to production tasks: determine the necessary output volumes, adjust the product range, select suppliers of raw materials and look for buyers, set price trends, make rational use of resources and personnel, implement effective equipment, and modern technologies.

The economy of a modern organization is a set of requirements, rules, laws and relationships, the correct application of which in practice allows the formation of multi-level budgets successfully, with benefit for all interested parties. The company is responsible for paying taxes, which means it contributes to the provision of resources to government agencies and social programs.

I.e…

The economy and the organization of production are solutions to the problems of finding, forming an individual, unique development path for each legal entity operating within the market. The company must not only maintain balance, but also develop, and for this to improve its own economic situation. This is possible while maintaining a balance between profit and spending. To increase efficiency, you need to be able to find new ways and methods of using capital, attracting a client. Successful product policy, the search for suppliers and other working aspects - all these issues are considered in the framework of the enterprise economy as a scientific discipline that allows you to get solutions that are applicable in practice.

General provisions of science

The economics of organization, production is a scientific field recognized by all, but there is no generally accepted decoding of the term itself, therefore, in each specific case, interpretation is left to the discretion of a specialist who analyzes the topic. The basic science here is economics, that is, discipline, within the framework of which it is investigated how limited resources can be used to produce useful services, goods distributed among the public masses. At the firm level, economics is a discipline that analyzes such processes within a particular legal entity.

Organization economics - management, considered from a scientific point of view and based on a combination of production, non-production nuances. In the analysis take into account funds, stocks, products, income associated with the sale of goods, the provision of services.

The enterprise economy explores the structure of a legal entity (organizational, production), as well as all management processes and their features. An important aspect is restructuring, that is, the separation, absorption, association of firms.

Objects of scientific research

As objects of economy and organization management consider:

• marketing analytical work that allows you to plan the activity of the company;
• formation, practical application of labor, financial, property resources;
• creation of costs, calculation of cost, production prices;
• control of financial resources, the formation of results;
• budget;
• investments;
• innovation;
• competitiveness control;
• certification, standardization.

As well as ways to improve the quality level of the product.

Science: Important Aspects

The enterprise economy as a scientific discipline involves studying the essence of a legal entity, its funds and working capital, personnel, and investments. The analysis is subject to communication between these objects in order to improve the financial results of the enterprise. Responsible economists should be able to describe individual industries, find ways to optimize work processes, reduce risks, change the management system to improve the company's results. Environmental and technical aspects are subject to accounting, and not just those related to the economy.

To achieve the objectives should use scientific approaches. Research methods involve obtaining a solution to the formed problem by means of techniques, calculations, theoretical, and practical approaches.

The study of the economics of financial organizations, industrial, commercial (and other types) is a rather difficult cognitive task. First you need to formulate and justify the selected topic, then determine the task of work, identify a hypothesis, select a list of objects for analysis, draw up a program of work with them. The researcher collects useful information, accumulates data, summarizes them, on the basis of which he develops ways to apply the obtained patterns in practice.

Scientific methodology

Methodology is a basic approach to the construction of knowledge, the forms of this process and the methods applicable to it. For any research, the methodological, theoretical basis is scientific work written by eminent figures (foreign and domestic), as well as achievements already made in the chosen field of science. The basis of the methodology is the methods applicable for this area, that is, research (their content, sequence), methods of reporting data, ways of applying the results. It is important to consider the methods that determine the scientific nature of the study, allowing to call it productive.

For the scientific analysis of the organization’s economy, the didactic method is actively used, forcing to evaluate the object as something changing. The analysis begins with the simple, gradually moving on to the complex. No less important for understanding the essence of the structure of the organization’s economy will be the use of specific techniques, as well as common to all economic sciences.

General scientific approaches:

• abstraction;
• induction;
• deduction;
• comparison;
• experiment.

Specific economic scientific methods:

• statistics;
• monograph;
• balance;
• mathematical;
• constructive.

Organization: what is it?

The center of the economy is production, that is, the formation of some product. Production is a basic condition that makes consumption possible. The company produces a product, performs services, on the basis of which nat. wealth can gradually grow. The efficiency of an individual, the financial condition of companies are factors affecting the economic situation within a state, the country's power as an economic unit.

An enterprise is an independent entity leading a household. activities that produce a product, perform work, provide services in order to meet the needs of society, profit. In our country, the definition, forms of organization in the economy are regulated by the Civil Code, namely, the 48th article, which indicates the factors that make it possible to rank a certain object among the organizations. These conditions are:

• the presence of separate property and the ability to meet obligations regarding it;
• ability to buy, exercise rights (property, non-property);
• the opportunity to act in court as a defendant, plaintiff;
• incumbency.

To become a legal entity, you need to have a balance, an estimate. The starting point in the existence of the company is the moment of its state registration in accordance with the procedure regulated by law. Each enterprise has a unique name in which there is an indication of the chosen form of activity.

There are commercial and non-legal entities. The first are those that work for profit. They are formed in the form of societies, partnerships, cooperatives, state and municipal enterprises. The second group - created not for profit, which means that they conduct entrepreneurial activity only within the framework of achieving the main goal for which the legal entity was formed.

Do not take away!

In any form, any type of legal entity - an important element of nat. economics. Such enterprises are the basis for the increase of nat. income, GDP, GNP, defense, reproduction. Firms are the foundation of the existence of the state, without them the execution of the state is impossible functions. At the same time, enterprises are necessary for the progress of science, technology, medicine, culture, and education. They help solve the problem of unemployment, other social difficulties. Within the framework of a market economy, the functions of organizations mentioned above are extremely important both for the state as a whole and for individual citizens in particular.

The company is created in such a way that the results of the work are positive, the activity is profitable. Additional important goals include improving the quality level and achieving a leading position in the technological fields. Any company wants to occupy as much of the selected market as possible, use all available resources as efficiently as possible, and increase employment. This is possible through stabilizing the situation and minimizing the cost of resources (including labor) in the manufacture of each unit of the product. Organization functions considered in the framework of economic science:

• Protection of Nature;
• providing the employed with an adequate level of wages;
• providing the buyer with a product that meets the requirements of the agreements;
• solving social problems.

Work principles

Organizational economics as a science establishes the following principles for the activities of modern companies:

• increasing the economic efficiency of the production process;
• decentralized management;
• Respect for property rights.

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