Management is one of the areas of modern economic science aimed at creating, planning and implementing a development plan for an enterprise, organization, firm in order to maximize the potential profit of the company, create a sustainable enterprise management system. The strategic management of the company's management is of great importance for the development of the company.
The essence of management
Management is an independent type of professionally carried out activity aimed at achieving the intended goals in market conditions through the rational use of material and labor resources using the principles, functions and methods of the economic mechanism of management.
Management - management in a market, market economy means:
- orientation of the company to the demand and needs of the market, to the needs of specific consumers and the organization of production of those types of products that are in demand and can bring the company the planned profit;
- constant striving to improve production efficiency, to obtain optimal results at lower costs;
- economic independence, providing freedom of decision-making to those who are responsible for the final results of the company or its divisions;
- constant adjustment of goals and programs depending on the state of the market;
- identification of the final result of the activity of the company or its economically independent units in the market in the process of exchange;
- the need to use a modern information base with computer technology for multivariate calculations when making reasonable and optimal decisions.
Goals and objectives of management
The ultimate goal of management is to ensure profitability, or profitability, in the activities of the company through the rational organization of the production process, including production management and the development of the technical and technological base, as well as the effective use of human resources while improving the skills, creativity and loyalty of each employee.
The profitability of the company indicates the effectiveness of its production and marketing activities, which is achieved by minimizing costs (costs for raw materials, materials, energy, wages, financing) and maximizing income from the results of production - the monetary emission of products and services.
Management is called upon to create conditions for the successful functioning of the company based on the fact that profit is not the reason for the existence of the company, but the result of its activities, which is ultimately determined by the market. Profit creates certain guarantees for the further functioning of the company, since only profit and its accumulation at the enterprise in the form of various reserve funds make it possible to limit and overcome the risks associated with the sale of goods on the market.
The market situation, as you know, is constantly changing, there are changes in the position of competitors in the market, in the conditions and forms of financing, in the state of the economic situation in the industry or in the country as a whole, in the conditions of trade in world commodity markets. Hence the constant presence of risk. The goal of management in these conditions is to constantly overcome risk or risk situations, not only in the present, but also in the future, which requires certain reserve funds and the provision of managers with a certain degree of freedom and independence in economic activities in order to quickly respond and adapt to changing conditions.
Decision making is an important component of management, necessary for the transformation of inputs into results of activities. This action is related to all management functions, but does not exhaust them. It is only part of management. In addition to decision-making, the functions of management include the impact of decision-makers on those who implement them.
With the development of cybernetics, an understanding of management as an information process began to form. Of course, the availability of information is an important prerequisite for the performance of the functions of the subject of management, i.e. manager. Through information processes, all management functions are implemented. Therefore, each organization creates an information system. However, despite the importance of the information process, management cannot be identified with it. This is one of the important aspects of management and a condition for its implementation.