The last decade in the world practice of management there are many new modern concepts and methods of managing organizations. The issues of coordinating business processes in firms are becoming 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 managing an enterprise. It allows you to create the appropriate conditions in the company in order to be able to adapt the position taken 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 management.
Management is understood as a set of activities, including planning and decision-making, organization, leadership, management of people, aimed at the resources of the organization (human, financial, material and information). The goal of these activities is to achieve organizational outcomes in an efficient and effective manner.
The concept of management technology
Control technology is one of the factors of production that tells how much a company can produce with a given amount of capital and labor. It covers everything that affects the productivity of labor and capital. Modern management technologies can also be understood as the totality of knowledge, skills, experience and organizational decisions used to produce and use goods and services to meet human needs.
Elements of the concept under study:
- hardware means the physical equipment needed to perform tasks and operations, i.e. machines, devices, systems, etc.;
- software – knowing how to use hardware (programs, databases, projects);
- intellectual provision - awareness of technology, ability and willingness to use it, employee competencies, organizational conditions, innovation culture.
Introduction of modern control technologies means methods and methods, as well as knowledge embodied in specific products (for example, knowledge contained in operation manuals, technical and technological specifications, patents, computer software).
Typology of technologies
Taking into account the scale of use of modern management technologies in the enterprise, the following types are distinguished:
- basic - are widely used at this enterprise, and are also used at all enterprises and do not givecompetitive advantage for the firm;
- 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 scientific research and testing.
Characteristics
Compared to other products, modern control technology has a number of features:
- Knowledge is an elusive category, this product is intelligent. The utility value of technology is based on a growing knowledge base that allows for a steady stream of products and services to be produced.
- The cumulative nature of knowledge means that current resources and level of development are indirectly linked to the scientific and technological progress of past generations, making it difficult to attribute them to specific facts or concepts.
- Depreciation in the economic sense. Knowledge cannot be spent, technology can be sold and used an infinite number of times without consuming its essence.
- Easy to transfer: Technology has become mobile thanks to the rapid development of telecommunications and computer communication networks.
- The transnational and global nature of the process of generating technological knowledge includes both copyrighted and non-copyrighted skills.
Let's considerthe main modern control technologies.
Management by goals
Modern technologies and management methods deal with management by objectives.
This method was created in the 1950s and allows for creativity and ingenuity.
The essence of management by goals:
- joint definition and coordination of goals by management and subordinates;
- general views and evaluation of the results.
The general process steps are described below:
- setting goals;
- determination of funds;
- performance measurement;
- strategic planning (mission, long-term and short-term goals);
- separation of main goals;
- assigning goals to individual organizational units;
- stating and comparing key areas.
When implementing the steps, consider:
- profitability;
- expenses;
- efficiency;
- quality.
Features of the management method by goals are:
- quantifying goals;
- selection of key result areas.
This method is mainly used in large and medium enterprises.
Management is influenced by four factors:
- set of main and particular tasks;
- transparent organizational structure;
- information and control system;
- democratic leadership style.
The procedure can be described in detail as follows:
- preparationsenior management;
- workshops;
- wording key result areas;
- coordination of goals at the highest levels;
- coordination and approval of goals;
- development of an employee's work card;
- improvement plan (this is an individual plan);
- periodic checks and controls;
- analysis and evaluation of achieved results;
- restart management by goals.
Exception management
Modern organization management technologies are about exception management.
The tasks of the process are:
- create conditions to focus on the most important tasks or issues;
- reliance on information and control;
- delegation of authority and responsibility while maintaining the manager's right to intervene in exceptional matters.
Steps include:
- analysis and measurement (calculation of expected values);
- choice of evaluation criterion (permissible limits);
- observation and comparison;
- solutions, opportunities and perspectives.
Standards, plan and goals of the company positively influence the stages of implementation of management through exceptions. However, the risks are negative.
Method used in areas:
- control activity;
- warehouse management;
- expenses;
- crisis detection.
Method benefits:
- simplify the work of the manager andsaving him time;
- providing opportunities to identify crises;
- forced use of systems;
- Equal distribution of decision-making powers at different levels of the structure.
The disadvantages are:
- difficulties with delegation of authority;
- communication with the leader is possible almost only in crisis situations.
Performance management
The use of modern management technologies is about results-based management.
According to Peter Drucker, this method is needed when enterprises create costs, but profits are beyond them. This is a method of temporarily focusing on activities in relation to selected services (products) that 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.
Steps of applying the technique:
- analysis of the company's potential;
- choosing products that promise the best results;
- focus on these products;
- creating profit centers;
- systematic monitoring of the results achieved.
Cost centers are usually taken by division of the enterprise, but on the condition that it is possible to directly accrue costs. A profit center can be a division of any organization that has contact with the market and sells goods or products.
Profit (cost) centerbased on organizational units. These are the centers that are responsible for expenses and profits.
They are designed for:
- raising the level of management;
- improving efficiency and flexibility;
- improving the competitiveness of this company.
Implementation through:
- increasing the independence of units;
- linking the results of their work with the system of remuneration of employees and heads of individual departments.
Creating goals for departments is based on a procedure including:
- organizational division of centers;
- determining the goals and objectives of the centers;
- determining the scope of responsibility and independence;
- clarification of the rules and procedure for evaluating the center;
- drawing up the rules for linking the results of the centers with the pay system.
Advantages of the technique:
- simple payment management tools;
- increasing the personal responsibility of managers;
- better links between performance and pay.
Disadvantages include:
- occurrence of coordination problems;
- possibility of a conflict character;
- probability of spreading autocratic style of government.
Management through delegation of authority
The foundations of modern management technologies concern the delegation of authority.
Manager attitudeplays 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 don't want to delegate are:
- selfish;
- workhorses;
- inexperienced;
- doubtful.
The barriers to an efficient delegation process are:
- manager-related: unwillingness, insecurity, lack of managerial skills;
- associated with subordinates: insecurity, lack of willingness to take on additional responsibilities;
- external conditions and working climate: no clear division of duties, rights.
The procedure is as follows:
- manager must have knowledge of whom to delegate rights and what will be the scope of responsibility and authority;
- applies the principle of dual responsibility, which states that the boss is still responsible for completing the delegated task.
The delegation of rights is managed according to the following steps:
- recognizing the need to delegate;
- analysis of current tasks and powers;
- delegation capability;
- calculation of costs and benefits of accommodation;
- selecting an employee (in writing) and giving them new tasks, powers and responsibilities.
Advantages of the technique:
- frees the manager from routine tasks, giving him the opportunity to engage in the implementation of strategicactivities;
- best quality solutions;
- accelerate decision-making;
- creating an opportunity to meet higher level needs;
- more equal and rational distribution of responsibilities at different levels of the organization.
The disadvantages are:
- method is subject to bureaucratic difficulties;
- over-formalization and over-stabilization.
Management through participation in management
Modern management technologies are about 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 control is present:
- direct employee participation through voting;
- indirect influence from works council representatives;
- providing employees with information and active forms of communication.
In order to characterize participatory management, the following types should be distinguished:
- formal → direct → passive;
- informal → indirect → active.
There are two types of patterns:
- American based on informal consultation, managerial dominance, trust and tolerance;
- German based on shared decision-making, negotiation, rule of law.
Advantages of the technique:
- motivational character;
- providing opportunities for employees to develop;
- ability to reduce the phenomenon of social unrest.
The disadvantages of the technique are:
- too many decisions being made;
- Encountering difficulties in obtaining the required responsibility and related decision-making difficulties;
- barrier in the form of inadequate preparation of employees and managers for the actions taken.
Benchmarking technology
Benchmarking stands out among modern management technologies.
Benchmarking is a method of comparing your own solutions with the best results of competitors. If the company wants this method to give the expected results, it must be applied systematically. It is a process of continuous learning, consisting in comparing your products, methods and phenomena with your colleagues (rivals), which are better managed. Benchmarking helps in the process of economic intelligence, which is a legitimate activity, unlike industrial espionage.
Benchmarking's motto is to say that "it's better to learn from the successes of others than from your own mistakes."
The object of benchmarking is almost every aspect of the company's activities, namely:
- company structure;
- production processes;
- design methods;
- product features;
- other aspects such as marketing.
There are types of benchmarking:
- internal;
- competitive orexternal;
- functional.
Internal benchmarking is applicable to diversified enterprises. It is based on the fact that some establishments use the experience of others.
Competitive analysis is done on competitors in the market.
Functional benchmarking is related to the comparative analysis of functions. Typically, this type of benchmarking is outside of trading.
The subjects of the methodology are most often:
- data processing processes;
- customer service (service companies).
The methodology consists of the following steps:
- subject selection;
- Selection of enterprises for comparison;
- define data collection methods;
- detection of deviations in relation to patterns;
- monitoring the causes of these deviations;
- determining the levels of future results;
- introducing improvements;
- monitoring results as an implementation step.
For a successful benchmarking, there must be reliable sources that provide the necessary information about the processes performed in other enterprises.
Benchmarking Benefits:
- enhancing innovation through choice;
- cost minimization;
- improving competitiveness;
- clear statement of goals;
- is the backbone of the 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 a company cannot afford to allocate financial resources to access paid sources of information;
- labor-intensive analysis;
- high probability of erroneous choice of standard.
Reengineering Technology
Reengineering is a method based on a thorough transformation of the overall processes of a company. This is the end of traditional functional structures and the beginning of the introduction of commands that carry out processes from beginning to end. Reengineering is a very flexible method that allows for many other methods such as benchmarking.
In order for the reengineering method to bring the expected results, it is necessary to follow the rules when implementing it:
- start activities by identifying customer needs;
- be process oriented and analyze it;
- design processes in a completely new way to lead to rapid performance improvement.
The methodology is applied in stages:
- choosing a process for reconstruction;
- team creation;
- understanding the process;
- reconstruction process;
- implementation of the control process:
There are versions of the methodology:
- revolutionary, involving the destruction of the old order and the construction of a new one from scratch;
- systematic, based on process reorganization;
- method of moving targets.
Key Benefits:
- a wide range of offeredgoals;
- improving customer satisfaction;
- improving market position;
- flexibility and variety of methods used simultaneously.
The disadvantages are:
- increase in employment costs;
- insufficient preparation of employees and staff for change.
Outsourcing technology
Outsourcing is mainly related to services.
Its features include:
- freeing the enterprise from performing certain tasks;
- using external services.
Outsourcing has its own variations:
- used by small start-up companies that refuse to accept certain features;
- used by large companies that are in the process of restructuring.
Benefits of this method:
- cost reduction;
- rational use of resources;
- increasing savings.
However, the disadvantages are:
- quality risk;
- possibility of blurring the company's image;
- growing social spending.
Management through motivation
Modern technologies of personnel management relate to the issues of motivation in the enterprise. This method makes it necessary to know the psychological mechanisms of stimulation.
The concept of "motivation" is defined in different ways. It is most often understood as providing and demonstrating incentives for action, as well as justifying the action taken.
Motivational mechanisms are:
- needs (Maslow, Herzberg, McClelland);
- wait;
- effects of previous action - learning process;
- Feeling fair treatment.
Herzberg created a two-factor theory:
- circumstances that determine job satisfaction are called factors: work achievements, recognition, job content, development opportunities, areas of responsibility;
- hygienic factors, the lack of which causes dissatisfaction: working conditions and wages, job confidence, relationships between people, status (position held).
Typology of needs according to McClelland's theory:
- need for achievement;
- people like to take responsibility for the tasks they perform;
- they take reasonable risks;
- they find results information valuable;
- need for power.
Motivational tools:
- traditional division of payments: salary, bonuses, prizes;
- intangible: praise;
- coercive measures in the form of orders, instructions;
- stimuli as positive reinforcement;
- means of persuasion: negotiation, agreement.
Dynamic Personnel Management Concept
Modern HR technologies mean:
- maximum approach to the employee;
- eliminate excessivedistance;
- manager acts as a member of management and team;
- success depends on the work of the entire team.
Application in the information space
Modern management information technologies have entered all spheres of life, and they "feel" excellently, especially in business. In fact, it's hard to imagine a modern growing company that would not use them.
In the age of knowledge-based work, modern IT systems have become key tools for business success. In large companies, many business decisions are supported today by advanced analytical management systems. For example, large retail chains make decisions about assortment selection, its distribution and pricing policy based on knowledge derived from the analysis of huge amounts 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, which is why ERP systems are paramount. And the more developed the company, the more difficult it is.
The company's IT management system is similar to the human nervous system. It improves internal communication and supports continuous cooperation between the company's departments in the implementation of the tasks. In times of dynamic change, adaptive skillsbecome 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 for the activities of each organization are rapidly changing, the financial environment is becoming more and more competitive. As it follows, almost all organizations of the private and public sector are obliged to use new ways of management. Most of the modern management technologies can be applied not only in the commercial sphere, but also in state and local administration. The new conditions for the development of society lead to the fact that almost all methods and methods of management 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, all over 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 to modern public administration technologies provide continuous training and advanced training, careful selection of personnel and ensuring labor safety. The adaptive capacity of an organization comes from the relative stability of a team with shared values and a common vision. Duringcreating a new management model, the role of staff is changing. Investing in human capital is just as important as investing in fixed capital. Continuous training of staff, and ways to resolve issues, are becoming a mandatory element of management.
Application in education
Effective school management and good decision making require clear and accurate information about the work of the school. Due to the low level of automation of accounting in educational companies, obtaining up-to-date and accurate information is sometimes difficult or time-consuming.
The success of modern educational technologies in management at the present time cannot be achieved without the use of effective information and communication methods. The introduction of these technologies in an educational institution is the key to achieving the transition of the institution to a new level of control that shapes the sustainability 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 conditions for the rational functioning of all departments of the company, which is expressed in the quality of products and services.
