The last decade in the world of management practice there are many new modern concepts and methods of managing organizations. The issues of coordinating business processes in firms become very relevant, as they directly affect the efficiency of the company.
The essence of the concept
The concept of management is an idea, a way of management in an enterprise. It allows you to create the appropriate conditions in the company so that you can adapt the position held by the company to the expectations of employees. There are many different management methods. The choice of the most suitable for the specifics of the enterprise depends on the leadership.
Under the management understand the complex of measures, including planning and decision-making, organization, leadership, management of people, aimed at the resources of the organization (human, financial, material and information). The purpose of these events is to achieve the final results of the organization in an effective and efficient manner.
Management technology concept
Management technology is one of the factors of production that shows how much a company can produce using a given amount of capital and labor. It covers everything that affects labor productivity and capital. Modern management technologies can also be understood as a combination of knowledge, skills, experience and organizational decisions used to produce and use goods and services to meet human needs.
Elements of the studied concept:
- hardware - physical equipment necessary to perform tasks and operations, that is, machines, devices, systems, etc .;
- software - knowledge of how to use equipment (programs, databases, projects);
- intellectual support - awareness of technology, ability and willingness to use it, employee competencies, organizational conditions, innovative culture.
The introduction of modern management technologies means methods and methods, as well as the knowledge embodied in specific products (for example, the knowledge contained in the manuals, technical and technological specifications, patents, computer software).
Typology of technology
Given the extent of the use of modern management technologies at the enterprise, the following types are distinguished:
- basic - are widely used at this enterprise, and are also used at all enterprises and do not give competitive advantages to the company;
- key - at the moment they provide competitive advantages to the company;
- development technologies - their use in modern production is low due to the fact that they are under development, while the prospects for their use in the future are promising;
- emerging (innovative) - those that are just emerging and are in the phase of research and testing.
Character traits
Compared to other products, modern management technologies have a number of features:
- Knowledge is an elusive category, this product is intelligent. The useful value of the technology is based on a growing knowledge base that allows us to produce a constant flow of products and services.
- The cumulative nature of knowledge means that current resources and the level of development are indirectly related to the scientific and technological progress of past generations, which makes it difficult to relate them to specific facts or concepts.
- Depreciation in the economic sense. Knowledge cannot be used up; technology can be sold and used an infinite number of times without consuming its essence.
- Ease of transfer: technology has become mobile thanks to the rapid development of telecommunications and computer communications networks.
- The transnational and global nature of the process of generating technological knowledge includes both skills protected by copyright and without such protection.
Consider the basic modern management technology.
Goal Management
Modern technologies and management methods relate to management issues by objectives.
This method was created in the 1950s and allows you to use creativity and ingenuity.
The essence of management by objectives:
- joint definition and coordination of goals by management and subordinates;
- general views and assessment of the results.
The general process steps are described below:
- goal setting;
- definition of funds;
- performance measurement;
- strategic planning (mission, long-term and short-term goals);
- separation of main goals;
- Assigning goals for individual organizational units
- approval and comparison of key areas.
When implementing the steps, the following should be considered:
- profitability;
- costs;
- efficiency;
- quality.
The features of the management method by goals are:
- quantification of goals;
- selection of key areas of results.
This method is mainly used in large and medium enterprises.
Management is subject to four factors:
- set of basic and particular tasks;
- transparent organizational structure;
- information management system;
- democratic leadership style.
The procedure can be described in detail as follows:
- senior management training;
- workshops;
- formulation of areas of key results;
- alignment of goals at the highest levels;
- coordination and approval of goals;
- development of an employee work card;
- improvement plan (this is an individual plan);
- periodic inspections and control;
- analysis and evaluation of the achieved results;
- restart management by goals.
Exclusion Management
Modern organization management technologies relate to exception management.
The objectives of the process are:
- creating conditions to focus on the most important tasks or problems;
- reliance on information and control;
- delegation of authority and responsibility while retaining the right of the manager to intervene in exceptional matters.
Stages include:
- analysis and measurement (calculation of expected values);
- selection of assessment criteria (acceptable limits);
- observation and comparison;
- solutions, opportunities and prospects.
The company's standards, plan and goals positively affect the stages of management implementation through exceptions. However, the risks are negative.
The method is used in the areas of:
- control activities;
- warehouse management;
- costs;
- identification of crisis situations.
Advantages of the method:
- simplification of the manager’s work and saving his time;
- providing opportunities for identifying crisis situations;
- coercion to use systems;
- uniform distribution of decision-making powers at various levels of the structure.
The disadvantages are:
- difficulty delegating authority;
- communication with the leader is possible almost exclusively in crisis situations.
Results Management
The use of modern management technologies relates to results management.
According to Peter Drucker, this method is needed when enterprises create costs and profit is outside of them. This is a method of temporarily focusing on actions in relation to the allocated services (products), which are the source of the greatest profit for the enterprise. Most often, the method is used in large companies that produce different types of products.
Stages of application of the technique:
- analysis of the company's potential;
- selection of products that promise the best results;
- focus on these products;
- creation of profit centers;
- systematic monitoring of results.
Cost centers are usually taken by business units, but provided that you can directly charge costs. The profit center can be a unit of any organization that has contact with the market and sells goods or products.
The center of profit (cost) is created on the basis of organizational units. These are centers that are responsible for costs and profits.
They are designed for:
- improving management;
- increased efficiency and flexibility;
- increasing the competitiveness of this company.
Implementation is carried out through:
- increased independence of units;
- linking the results of their work with the wage system of employees and the heads of individual departments.
Creating goals for departments is based on a procedure that includes:
- organizational separation of centers;
- determination of the goals and objectives of the centers;
- definition of responsibilities and independence;
- clarification of the rules and procedure for the assessment of the center;
- drawing up rules for linking the results of centers with the wage system.
Advantages of the technique:
- simple management tools in terms of payment;
- increasing the personal responsibility of managers;
- better connections between performance and pay.
The disadvantages include:
- occurrence of coordination problems;
- the possibility of a conflict character;
- the likelihood of the spread of the style of autocratic governance.
Delegation management
The basics of modern management technologies relate to delegation of authority.
The attitude of the manager plays a key role in the delegation process. If the management team has a negative attitude towards delegation of rights, then difficulties arise.
The types of managers who do not want to delegate authority are as follows:
- egoists;
- work horses;
- inexperienced;
- doubtful.
Barriers to an effective delegation process are:
- related to the manager: reluctance, insecurity, lack of managerial skills;
- associated with subordinates: insecurity, lack of willingness to take on additional responsibilities;
- external conditions and working climate: lack of a clear separation of duties and rights.
The procedure is as follows:
- the manager must have knowledge of whom to delegate rights to and what will be the extent of responsibility and authority;
- the principle of double responsibility applies, which states that the boss is still responsible for the performance of the delegated task.
Management of delegation of rights is carried out in accordance with the following steps:
- awareness of the need to delegate;
- analysis of current tasks and powers;
- the possibility of delegation;
- calculation of costs and benefits of accommodation;
- choosing an employee (in writing) and providing him with new tasks, powers and responsibilities.
Advantages of the technique:
- relieves the manager of routine tasks, giving him the opportunity to engage in the implementation of strategic activities;
- best quality solutions;
- faster decision making;
- creating opportunities to meet the needs of a higher level;
- more even and rational distribution of responsibilities at different levels of the organization.
The disadvantages are:
- the method is associated with difficulties arising from bureaucracy;
- excessive formalization and excessive stabilization.
Management through participation in management
Modern management technologies relate to participation in the management of employees.
The method is to include subordinates in the business management process, as well as in the processes of making important decisions and strategies.
There are three figures in which participation management is present:
- direct participation of employees by voting;
- indirect influence from the representatives of the production council;
- providing employees with information and active forms of communication.
In order to characterize the management of participation, the following types should be distinguished:
- formal → direct → passive;
- informal → indirect → active.
There are two types of models:
- American based on informal consultation, dominance of managers, trust and tolerance;
- German is based on joint decision-making, negotiations, legal norms.
Advantages of the technique:
- motivational nature;
- providing employees with opportunities for development;
- ability to reduce the phenomenon of social unrest.
The disadvantages of the method are:
- too many decisions made;
- encountering difficulties in obtaining the required responsibility and the associated difficulties in making decisions;
- a barrier in the form of inadequate preparation of employees and managers for the actions taken.
Benchmarking technology
Among modern management technologies, benchmarking is distinguished.
Benchmarking is a method of comparing your own decisions with the best results of competitors. If a company wants this method to produce the expected results, it must be applied systematically. This is a process of continuous learning, consisting in comparing their products, methods and phenomena with their colleagues (rivals) who are better managed. Benchmarking helps in the process of economic intelligence, which is a legitimate activity, unlike industrial espionage.
The benchmarking motto is to say that "it is better to learn from the successes of others than from your own mistakes."
The benchmarking object is almost every aspect of the company’s activities, namely:
- structure of the company;
- production processes;
- design methods;
- product properties;
- other aspects, such as marketing.
There are types of benchmarking:
- interior;
- competitive or external;
- functional.
Internal benchmarking is applicable at multidisciplinary enterprises. It is based on the fact that some establishments use the experience of others.
Competitive analysis is carried out in relation to rivals in the market.
Functional benchmarking is associated with a comparative analysis of functions. Typically, this type of benchmarking is out of trade.
The subjects of the technique are most often:
- data processing processes;
- customer service (service companies).
The technique consists of the steps:
- item selection;
- selection of enterprises for comparison;
- definition of data collection methods;
- definition of deviations in relation to patterns;
- monitoring the causes of these deviations;
- determination of levels of future results;
- introduction of improvements;
- control of results as a stage of implementation.
For a successful comparative analysis there must be reliable sources that provide the necessary information about the processes carried out at other enterprises.
Benchmarking Benefits:
- improving innovation through choice;
- cost minimization;
- increasing competitiveness;
- precise statement of goals;
- is the foundation of a learning organization.
The disadvantages of benchmarking are:
- costs of access to information, as many sources of information are paid;
- difficulties in obtaining information, because in many cases the company cannot afford to allocate financial resources for access to paid sources of information;
- laborious analysis;
- high probability of erroneous selection of a standard.
Reengineering technology
Reengineering is a method based on a thorough transformation of the company's overall processes. This is the cessation of traditional functional structures and the beginning of the introduction of teams that execute processes from start to finish. Reengineering is a very flexible method that allows you to use many other methods, for example, comparative analysis.
In order for the reengineering method to bring the expected benefits, it is necessary to follow the rules when implementing it:
- start an activity by identifying customer needs;
- be process oriented and analyze it;
- Develop processes in a completely new way to quickly improve performance.
The technique is applied in stages:
- selection of a process for reconstruction;
- team building;
- understanding of the process;
- reconstruction of the process;
- implementation of the control process:
There are versions of the methodology:
- revolutionary, including the destruction of the old order and the construction of the new from scratch;
- systematic, based on the reorganization of processes;
- method of moving targets.
Main advantages:
- wide range of proposed goals;
- increasing customer satisfaction;
- increasing market position;
- flexibility and variety of methods used simultaneously.
The disadvantages are:
- increase in employment costs;
- insufficient preparation of employees and staff for changes.
Outsourcing technology
Outsourcing is mainly related to services.
Its features include:
- exemption of the enterprise from performing certain tasks;
- use of external services.
Outsourcing is distinguished by its variations:
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The concept of dynamic personnel management
Modern HR technologies mean:
- maximum approach to the employee;
- elimination of excessive distance;
- the manager acts as a member of the management and team;
- success depends on the activities of the entire team.
Application in the information space
Modern information management technologies have entered into all spheres of life, and they excellently “feel” themselves, especially in business. It’s actually hard to imagine a modern growing company that wouldn’t use them.
In the age of knowledge-based information, modern IT systems have become key tools for business success. In large companies, many business solutions are supported today by advanced analytical management systems. For example, large retailers make decisions about the choice of assortment, its distribution and pricing policy based on knowledge arising from the analysis of a huge amount of data and using modern forecasting algorithms. Thanks to such tools, large players continue to increase their market share, crowding out smaller structures.
A company that uses modern information solutions in management works quickly and efficiently. To be competitive in the market, all processes must be controlled as quickly and optimally as possible, therefore ERP-systems are the main ones. And the more developed the company, the more complicated it is.
The company's IT management system is similar to the human nervous system. It improves internal communication and supports the continuous cooperation of company departments in the implementation of tasks. In times of dynamic change, adaptive skills become a key success factor.
Application in public administration
Almost all advanced management technologies can significantly increase the productivity of local and city government. In the modern world, the external conditions of activity of each organization are rapidly changing, the financial environment is becoming increasingly competitive. As it follows, almost all organizations in the private and municipal sector are obliged to use new methods of management. Most of the modern management technologies can be applied not only in the commercial sphere, but also in state and local administrations. The new conditions for the development of society lead to the fact that almost all management methods and techniques that have proven their productivity in the private sector are gradually moving to the practice of local and city management. As a result, the differences between commercial and municipal management are reduced. Most of the approaches, certain methods and technologies of effective management, are now relevant for the public sector. Recently, around the world there have been changes in the management model in the civil service as a whole, including in local and city management. These changes to some extent coincide with changes in management in commercial organizations. New approaches of modern technologies of public administration provide continuous training and professional development, careful selection of personnel and ensuring labor safety. The adaptive potential of the organization is obtained due to the relative stability of the team with common values and a common vision. In the process of creating a new management model, the role of staff is changing. Investments in human capital are also of great importance, as are investments in fixed capital. Continuous staff training, and ways to resolve issues, become an indispensable element of management.
Use in education
The effective management of educational institutions and the adoption of competent decisions require clear and accurate information about the work of the educational institution. Due to the low level of automation of accounting in educational companies, obtaining up-to-date and accurate information is complicated from time to time or takes a lot of time.
The success of modern educational technologies in management at present cannot be achieved without the use of effective information and communication methods. The introduction of these technologies in the educational institution is the key to achieving the transfer of the institution to a new level of control, which forms the sustainable development of the education system as a whole.
Conclusion
This article presents the main types of modern management technologies in companies. The issues of applying these technologies are very relevant today, since effective management creates the conditions for the rational functioning of all departments of the company, which is expressed in the quality of products and services.