Management processes are the subject of research in several scientific directions. Yes, general principles of control are studied in cybernetics. Problems of controlling technical systems without human participation are studied in the theory of automatic control (ACT). Features of management in socio-economic systems are the subject of management. But in all these industries, the necessary knowledge of the general laws of the functioning of systems, which are based on the application of a systems approach and are studied within the framework of the general theory of systems and systems analysis.
Control is understood as the process of forming purposeful behavior of a system under conditions of changes in the external environment through information influence, which is carried out by a person (a group of people) or a device.
In systems with control, in any case, one can distinguish a control subsystem (CS) and a controlled subsystem, or control object (CO). Management is based on the collection and processing of information, which is considered as a kind of resource. Therefore, one of the main prerequisites for control is feedback, that is, the transfer of information about the state of the controlled subsystem and the external environment to the control system, the exchange of information between these systems and the external environment.
The control system is shown schematically in Fig. 18. Here X is information about the state of the external environment (external influence on the control object), X / is information about the state of the external environment, which is available in the control system, Y is information about the state of the control object, Y / is information about the state of the control object, which available in the control system, u - command information.
Rice. 18. General diagram of the system with control
The control system implements the task of stabilization, program execution, surveillance and optimization, and thereby ensures either the maintenance of the initial characteristics and state of the system when external influences change within specified limits, or the system performs actions regarding changes in its characteristics or the characteristics of the external environment (transition to a new trajectory).
The control object in this case acts as a tool or means that implements the main function of the system. The communication system ensures the exchange of information between the control system and the control center.
Management tasks in this case will be:
Synthesis of the structure and parameters of the op-amp, which corresponds to the main goal of the system (the law of operation);
Synthesis of the structure and parameters of the control system, that is, determination of the type of management structure, the number of hierarchy levels and the type of connections between them, taking into account the main goal of system management and restrictions on costs (for development, the number of management personnel, etc.), determining the arrays of information that are subject to transfer , processing and storage;
Synthesis of parameters and structure of the communication system.
Control functions. Specific management functions are implemented through the use of certain management methods. Depending on their content, methods of managing economic systems are divided into:
Economic;
Organizational;
Legal;
Social.
The principles of management are the same for all levels of the hierarchy of socio-economic systems, but they are implemented differently depending on the object of management and the functions that are performed. Among the main functions that are performed when managing socio-economic systems are:
Planning (operational, tactical and strategic);
Forecasting;
Organization;
Analysis and control;
To take into account the human factor, the functions of stimulation and motivation are separated into a separate group.
Strategic planning. At the stage of strategic planning, the need and possibility of changing the structure, properties, and operating laws of the system are considered, the main goals of the system are selected, the desired end results and methods for achieving goals and results are determined. Methods and means of achieving the goals (including the necessary resources, the sequence of their use) are determined without detail. At this stage, the course of action is determined and principles for future long-term decisions are provided.
Tactical planning consists in determining intermediate goals on the way to achieving strategic ones, that is, in determining the trajectory of the system. At the same time, the means and methods for solving tasks, using resources, necessary procedures and technologies are determined in detail. Strategic planning considers issues of possible changes in the characteristics of the entire system due to changes in its composition, structure or properties. For example, it is possible for an enterprise to increase production capacity through the construction of new workshops, acquisition of equipment, changes in specialization or technology, and the like. In tactical planning, the properties of the system are considered given.
Forecasting aims to take into account the level of uncertainty in the state of the system and the external environment, possible changes in the structure, properties or finding the law of functioning of the system in the future. A forecast is a scientifically based judgment regarding the state of the system in the future, or regarding alternative ways and timing for the system to achieve the desired (target) state.
Organization is a management function, which consists in establishing permanent and temporary relationships between all elements of the system, in determining the order and conditions of their functioning. This means uniting people, production, material, natural, information resources into a single system aimed at solving certain goals. This is understood as defining the structure of the system, relationships between subsystems, distribution of functions between subsections and granting powers.
Analysis and control provide identification and clarification of the reasons for the deviation of the system from the desired state.
Operational management ensures the functioning of the system in accordance with the developed plan. It consists in periodically comparing the actual results obtained with the planned level of the corresponding indicators in the plan and subsequent correction of production processes. Operational management is closely related to tactical planning in the case when deviations of the state of the system from the planned plan require a change in the trajectory of the system.
All groups of management methods are interdependent and are used in combination. Consequently, the processes of managing socio-economic systems include a number of such aspects:
Information (collection and processing of information);
Algorithmic and model (development of a system of models);
Regulatory (development of forms of influence to coordinate the interests of individual subsystems and the system as a whole).
The presence of different aspects of management, as well as the functions of the system, predetermines the simultaneous formation and functioning of different hierarchical structures in accordance with different signs of separation of the plurality of elements that form the control object. The interaction of such structures is not reduced to a simple relationship of subordination in the hierarchy.
An important task for improving the management of economic systems is to build a rational system of relationships between individual subsystems. On the one hand, an increase in the number of hierarchy levels or intermediate chains in the control system leads to increased costs for the control system and reduces its efficiency. On the other hand, an insufficient number of management levels leads to overload of management workers and a decrease in the efficiency of their work. Therefore, the choice of a rational management structure should ensure maximum system efficiency.
Concept and necessity of management
Management is a complex, multi-valued concept. There are:
· In socio-economic systems
· In living organisms
· Productive and technological systems
In socio-economic it is related to human activities. 2 parts:
ü Effective
ü Coordinating (regulating)
The 2nd part is management.
Control– purposeful influence on a person, coordinating his activities with the activities of people and leading to the achievement of a common goal.
The need for management arises as a result of joint work aimed at increasing its efficiency. As a result of the division of labor, labor productivity increases, as a result of which it became possible to support a certain number of people who were involved in management.
The end of the 19th century – they began to be called “managers”. The need for management is enhanced by the following factors:
§ Development of production; increase in the number of people engaged in joint activities (+ development of machine production, increasing management requirements)
§ The emergence of a large number of market economy entities, strengthening market relations
§ Increasing competition and instability of the market economy, which necessitate a professional approach to management
§ Increasing complexity of business and management (emergence of large corporations)
§ Dispersion of ownership between shareholders (resulting in new functions for managing share capital, distributing profits between shareholders, etc.)
§ Limited resources
§ Changes in the general economic situation (for example, the emergence of crises)
Types of control
Some of the types of control:
Human activity includes government, economic, social, political, military and other activities. Accordingly, different types of management are distinguished.
Public administration. This includes creating conditions for economic development, maintaining public order and stability, and ensuring the country's defense capability. Carried out by legislative and executive bodies in the center and locally. Based on economic and administrative-legal methods.
Economic management. Production of material goods and value, their distribution, exchange and consumption. Carried out by managers.
Social management. Impact on social systems (society and its social groups). Groups are distinguished according to the following characteristics:
§ Role in the production process (owners, managers, work teams)
§ Level of wealth (rich, middle class, poor)
§ Family relations
Political management. Regulating relations between nations, states and social groups. Carried out in batches. The main method of management is the method of persuasion.
Military Administration. Troop control. Performed min. defense and the General Staff.
All types are interconnected and form a system. In this system, social management sets social guidelines for development. Economic management creates the material basis for achieving social goals. Political, state and military creates the conditions for achieving social and economic goals.
Features of managing socio-economic systems
A socio-economic system is a set of resources and economic entities that form a single whole and interact with each other in the sphere of reproduction, exchange and consumption.
It has boundaries: economic, historical, ethnic, geographical, political.
Main properties:
1. Integrity - a change in one element of the system affects others.
2. Hierarchy - each system is a subsystem of a higher order.
3. Integrity means that the system has properties that differ from the properties of its constituent elements
Control specifics:
1. The most important element of management is the person
2. A person is both an object and a subject of management
3. Management is objective-subjective in nature (based on objective laws, reflects the will and desire of a person)
©2015-2019 site
All rights belong to their authors. This site does not claim authorship, but provides free use.
Page creation date: 2017-03-31
BASICS OF MANAGEMENT
1. General theory of control
Management- production management; a set of principles, methods, tools and forms of production management developed to improve production efficiency and profit management.
Management– the ability to achieve goals using labor, intelligence and motives of behavior of other people who worked in the organization.
Manager (English: manage) – a hired professional manager, management specialist.
Any engineer or economist involved in management cannot be considered a manager. A manager is a person with special training.
The words “entrepreneur” and “manager” are not synonymous. Entrepreneur takes on the risk of organizing a new enterprise; in the future, he can hire a manager to manage this enterprise.
Russia's transition to a market economy increases the role of management and necessitates the training of management specialists. Modern management is a group of individuals performing entrepreneurial and managerial functions within an enterprise (organization).
The practical implementation of these functions is considered in two aspects. Firstly, it can be formulated as the management of an enterprise (organization), operating in market conditions with complete independence and associated with the need to make independent decisions in any unexpected situations. Secondly, management of an independent activity, which does not necessarily involve the creation of an organization and management of subordinates. For an enterprise, “management” is used in 3 meanings: general management, department-level management and management process. Under general management refers to all managers occupying senior positions responsible for the stated goals, objectives, policies and all issues related to the planning, control and management of the enterprise. Department level management– development of goals, strategies and objectives at the department level in accordance with the overall strategic objectives and the chosen concept of enterprise management. Management process differs from the general manager and the manager at the department level in terms of authority, responsibility, and detail. In the process of mentation, all functions can be performed by any employee of the enterprise within their competence.
2, 3 Patterns of control of various systems. Management of socio-economic systems (organizations)
Law is considered a necessary, essential, stable, recurring relationship in nature and society. There are three groups of laws governing various systems:
General or universal, for example, the laws of dialectics;
- phenomena common to large groups, for example, the law of social selection;
- private or specific, for example, the law of optimal norm control.
Laws are objective in nature and exist independently of people’s consciousness. Knowledge of laws is the task of science. They cannot be banned, forgotten, canceled or destroyed. The laws of management should be classified as private laws of society, which have been little studied.
All control patterns can be divided into two groups. The first includes the laws inherent in management in general as a purposeful influence, the second law of management. Production management is dual in nature. On the one hand, management expresses the objective process of directing the work of workers in the production of consumer values, that is, management acts as a need for production (management relations are determined by joint labor); on the other hand, the production relations of the parties in the process of creating value. The parties are the employer and the employee who enter into property relations with each other. In accordance with this, production management is considered in two aspects: organizational-technical and socio-economic. In the first case, management means the unification of the labor of all workers on the basis of an organized system of machines and technical means. Its task is to connect the labor of workers with objects and tools of labor, to establish certain proportions, modes and connections in production. Through the organizational and technical direction, the content of management and the composition of its elements are revealed. The socio-economic aspect is that the owner of the means of production carries out the production process not only in his own interests, but also in the interests of the workers and society as a whole united for joint labor. There are general and specific control laws. The general laws of management include: the law of specialization of management; law of management integration; law of saving time. Here we will give a brief description of the three named laws. Law of management specialization. Modern production is based on the use of the latest technological processes, technical means, a high degree of organization of production and labor, and information systems. To manage such production, highly specialized knowledge and skills are required in various fields of science and technology, which leads to the division of general functions and their manifestation in specific conditions at various levels. Management includes economic, socio-psychological, legal and organizational and technical aspects, so managers must have high professionalism in each of these areas. The risk and uncertainty of the situation inherent in a market economy require managers to be independent and responsible for decisions made, and contribute to the search for optimal organizational, scientific and technical solutions.
4. Management infrastructure and features of management infrastructure in Russia
Management infrastructure is the environment in which managers have to operate.
structure:
1) owners of capital, owner.
Its goal is to preserve and increase capital. The interests of the owner do not always coincide with the interests of the manager
2) employees of the enterprise, workers
their interests: - normal working conditions, permanent place of work, satisfaction of work needs, professional growth, self-expression, salary, need for a hostel
3) owners of borrowed capital - give capital to the company at a certain%
They are interested in increasing %, and managers, on the contrary, are interested in decreasing %
4) supplier
Interested in a high price, favorable delivery conditions, delivery volume, long-term nature of the relationship
5) state
Interested in improving the well-being of its citizens, high competitiveness in the international market, and improving the environment of its countries
6) state, non-state, public organizations that solve problems, promote economic activity, and on the other hand limit it (brokerage firms, chambers of commerce and industry, Greenpeace...)
Modern management, depending on where it develops and is formed, has a number of general and specific features. General features reflect stage of civilization, socio-economic formation, economic model, socio-economic management needs, level of development of scientific and technological progress and a number of similar factors. Specific features include: national characteristics of society, historical characteristics of its development, geographical conditions, culture and other similar factors.
The state of development of Russian society, existing industrial relations, mentality and other factors allow us to identify 4 main features of Russian management:
1. priorities in the issue, emphasis of attention and effort. (The most pressing problems of management in Russia are anti-crisis management, employment management, information technology, support for entrepreneurship and small businesses, motivation of economic activity in production, banking management)
2. management infrastructure, socio-economic and political conditions of its existence. It is a combination of many factors that make up the socio-economic environment in which Russian management is formed.
Here we can distinguish 3 main groups of factors: a) mentality factors (values, national traditions and culture),
b) factors of social consciousness, i.e. awareness of foreign and domestic practices (manager training system),
c) factors of the level of scientific thinking, methodological culture, development of socio-economic knowledge.
3. a set of factors that hinder or facilitate the strengthening of management in Russia: factors of the level of scientific thinking, methodological structure, development of socio-economic knowledge;
4. cultural environment, features of social consciousness that cannot be changed overnight and which, as historical development experience shows, do not need to be changed.
5. Sociofactors and management ethics.
One of the requirements for optimal and socially oriented management is compliance with ethics and consideration of social factors in the management process. Therefore, when searching for solutions to problems in management, it is necessary to build into the management structure a value element - ethics, which transforms the informal aspects of the action to manage an object into a system of criteria, the satisfaction of which is the task of management when it is oriented towards the sociality of the processes taking place.
Social environmental factors– conditions that determine the nature and possible consequences of the changes occurring in it.
From the standpoint of social development management, there are:
1. Factors that indirectly affect the business mood and quality of working life of employees.
Management- this is a system of management methods in a market or market economy, which involve the company’s orientation towards the demand and needs of the market, a constant desire to increase production efficiency at the lowest cost, in order to obtain optimal results.
Control is the process of planning, organization, motivation and control necessary in order to formulate and achieve the goals of the organization (Meskon M. Kh.). The essence of management is the optimal use of resources (land, labor, capital) to achieve set goals.
System- this is a set of interacting elements that make up either a summative formation, or a holistic formation with an introduced new property that is not possessed individually by any of its elements.
10 control system elements:
1. Subject of management- a subject (person, group of people or organization) who makes decisions and manages objects, processes or relationships by influencing the managed system to achieve set goals. The control subject, through a forward channel, transmits a control action to the control object, which, through a reverse channel, transmits a reaction or its own current state. The managerial link refers to both the official (chief, director, manager) and the governing bodies (ministry, department). That is, in essence, it is either the top or an intermediate link in the management structure.
2. Control object- this is a social system (country, region, industry, enterprise, team, etc.), to which all types of managerial influence are directed in order to improve it, improve the quality of functions and tasks, and successfully achieve the planned goal(s). By scale and levels of managerial influence country, industry, regions, enterprises, etc.; By type of regulated activity differentiated into: production, social, political, sociocultural activities; By addressee of management influence management objects are divided into: the population and all organizational structures of the country, acting as a single and integral socio-territorial community; population of regional, district, city socio-territorial communities; personnel of ministries and departments; personnel of enterprises, institutions, research institutes and educational institutions, personnel of health care, social security, law enforcement agencies, military units and units, etc.
3.Organizational goals: By sourcesexternal goals, taking into account the needs of the broader social community within which the organization operates; internal goals- the goals of the team itself, focused on meeting its needs. They are formed either as a resultant or as a coinciding part of the individual goals of its participants, which greatly facilitates the management process; in terms of complexity simple, complex goals, which in turn are broken down into subgoals; By importance: strategic goals focused on solving promising large-scale problems that qualitatively change the face of the organization, for example, occupying a leading position in their field of activity; tactical goals reflect individual stages of achieving strategic ones, for example, carrying out major repairs. They happen operational(annual plan goals) and operational(current tasks); by validity period long-term goals (over five years), medium-term (from one to five years), short-term (up to one year). By content technological (computerization, introduction of flexible technologies, construction of new production buildings), economic (strengthening the financial stability of the organization, increasing the profitability of work, increasing the market value of share capital), production (in the production of a certain volume of goods and services, improving their quality, increasing production efficiency, cost reduction), administrative (achieving high controllability of the organization, reliable interaction between employees, good discipline, coherence in work), marketing (related to the conquest of certain sales markets, attracting new buyers, clients, extending the life cycle of goods and services, achieving leadership in prices, etc.), scientific and technical (focus on the creation and implementation of new product models and improving existing ones, bringing them to the level of requirements of world standards), social (focus on creating favorable working and rest conditions for workers (increasing their educational and qualification level, eliminating heavy and manual labor, establishing social partnership relations in the organization, providing people with high-quality medical care, etc.)); In terms of prioritynecessary goals, the achievement of which decisively affects the position of the organization, division or individual employee, desired goals, the implementation of which allows to improve the situation to a certain extent and create additional guarantees of stability, possible goals, the achievement of which does not change anything at the moment; By directionfor the final result, for example, the release of a certain volume of products, to carry out this or that activity, for example, advanced training, to achieve a certain state of the control object- reconstruction of the enterprise; According to the form of expressiongoals characterized by quantitative indicators(for example, obtaining a certain volume of production), goals described qualitatively(for example, achieving a favorable moral and psychological climate in a team, which cannot be measured by anything); From the point of view of interaction featuresindifferent to each other(indifferent), competing, complementary(complementary), mutually exclusive(antagonistic), matching(identical); By levelmission ( creates an idea among others about the organization and its purpose; social responsibility to society and its employees; preferences, values, beliefs, principles, culture; the most attractive areas of activity, formulates the direction of the organization’s movement, taking into account internal and external conditions) , general organizational and specific goals ( are developed in each division (strategic, economic unit) and determine the main directions of its activities in the light of the implementation of their common goals)). Goal Requirements(attainability, flexibility, measurability, specificity, compatibility, acceptability and understandability for employees, defined with deadlines).
4.Objectives of the organization it is a prescribed work or part of it (operations, procedures) that must be performed in a predetermined manner within a predetermined time frame.
· receipt of income by the owner of the enterprise (owners may include the state, shareholders, individuals);
· providing consumers with the company’s products in accordance with contracts and market demand;
· providing enterprise personnel with wages, normal working conditions and opportunities for professional growth;
· creation of jobs for the population living in the vicinity of the enterprise;
· environmental protection: land, air and water basins;
· preventing disruptions in the operation of the enterprise (delivery failure, production of defective products, sharp reduction in production volumes and decrease in profitability).
5.Organization structure:Linear This management structure is typical for small and medium-sized enterprises that produce goods and services that are not particularly complex. With a linear structure, each division has only one manager, who is entrusted with the authority to make all management decisions; this manager reports only to a superior manager, etc.;
Functional Within the functional structure, management decision-making is distributed among functional heads, who are responsible for making decisions in the area that falls within their competence. These decisions are transferred to departments or specific employees, who bring them into existence;
Linear-functional In fact, with a functional structure, performers simultaneously report to functional and line managers. Constructive managers are entrusted with the responsibility of making decisions, while the line manager resolves issues related to operational management;
Line-staff The management of the performers is entrusted to the line manager, under whom the headquarters is created. The headquarters has no authority related to leadership and decision-making; his tasks are limited to assisting the line manager in carrying out certain management functions. Headquarters units are the planning and economic department, legal service, departments of analysis, coordination, controlling, marketing department, accounting, etc. In some cases, headquarters units are vested with the right of functional management (this once applies to the entire accounting department, personnel management department, marketing department, economic planning department);
Matrix There are two types of connections. Firstly, these are functional connections, in which a specific performer reports to the head of the corresponding functional service. Secondly, the contractor also reports to the project manager. The responsibilities of the second type of manager include coordinating the actions of various performers within the framework of one project (target program, topic); This manager is responsible for completing this project within the specified time frame, using the allocated resources and at the proper level of quality. At the same time, the project manager interacts not only with members of the project team, but also with workers of the relevant functional services who report to him in a number of issues;
Divisional The main figure is the manager in charge of the department (vertical relation). He is subordinate to a number of assistants who perform the function of coordinating individual functional services (horizontal communication). Divisions are distinguished based on one criterion: it can be either a factory of a certain type of product, or serving a region, or working with a certain type of consumer, or another characteristic. Heads of functional services depend on the manager in charge of the department and report to him.
6.Resources:
Human Resources- these are people, or rather, those abilities, skills and abilities that people sell to organizations for a salary. The organization must pursue a competent personnel policy; Without this, its survival, of course, will not be in question, but its effectiveness will suffer. For this reason, it is necessary to strive to ensure that talented, well-trained people, preferably with work experience, come to the organization. You should not refuse inexperienced workers either, since the organization has the opportunity to train a good specialist who will make a significant contribution to its prosperity. A good specialist should create conditions that will keep him in the organization.
Capital- these are the funds of shareholders and banks, with which the organization acquires other resources necessary for its activities.
In order to have the funds necessary for the functioning of the organization, the organization is forced to resort to borrowing them from the external environment, for example, by distributing shares, finding investors or taking out loans from banks.
Raw materials along with technology- the basis of the activities of almost any organization engaged in the production of goods. The availability of material resources in the required quantity is a very important component of the normal functioning of an organization. In order for activities to be effective, any organization usually stocks the necessary materials.
Information- this resource, the importance of which was fully realized not so long ago. The role of information in an organization's activities can be enormous. (information can be the subject of purchase and sale, information is very important for making the right decisions)
Technologies- an equally important resource. The main task of the organization is to achieve its goals with the most efficient use of resources and minimal costs. Many foreign firms and corporations specifically allocate funds for scientific research that can be useful in the process of the factory in which they are engaged.
7. Control functions:
Planning– designing the achievement of organizational goals under existing constraints (determining what should and can be done and when).
Organization– determining the forms, rules and methods of performing work to achieve goals, creating an organizational environment.
Motivation– creating conditions for teams and individual employees to perform actions necessary to achieve the organization’s goals.
Control– comparison of the actual state or functioning with the specified goals, identifying the causes of deviations and options for their elimination.
8.Management methods– a set of techniques and methods of influencing a managed object to achieve the goals set by the organization. Highlight: organizational and administrative, based on direct and directive instructions; economic, due to economic incentives; socio-psychological, used to increase the social activity of employees
9. Management principles:
General management principles - management principles, directly related to the management system as a whole, i.e. to the entire set of components included in it.
· Applicability principle- management develops a kind of guide to action for all employees working in the company.
· Systematic principle- management covers the entire system, taking into account external and internal relationships, interdependencies and openness of its own structure or system as a whole.
· The principle of multifunctionality- management covers various aspects of activity: material (resources, services), functional (labor organization), semantic (achieving the final goal).
· Principle of integration- within the system, different ways of relationships and views of employees must be integrated, and outside the company, separation into their own worlds can occur.
· Value orientation principle- management is included in the social surrounding world with certain ideas about such values as hospitality, honest services, favorable price-service ratio, etc.
Private (special) principles controls are local in nature and regulate only individual management processes, industries, organizations and divisions. Private principles of management should not be contradicted general, but may differ significantly from them.
· The principle of the optimal combination of centralization and decentralization The problem of combining centralization and decentralization in management is the optimal distribution (delegation) of authority when making management decisions.
· The principle of collegiality involves the development of a collective decision based on the opinions of managers at different levels, as well as executors of specific decisions.
· Principle of scientific validity is the requirement that all management actions be carried out on the basis of the application of scientific methods and approaches.
10.Organization personnel- personnel of the organization working for hire to ensure the main goals of the company
Economic management system is a set of methods aimed at improving and controlling the economic situation.
The economic management system, regardless of position in the hierarchy, has several sets of tools at its disposal. These include systems of planning, organization, forecasting, analytics, operational regulation, control and accounting.
Concepts of economic management systems
There are three main concepts of economic management that are taken into account throughout the world. These include:
- liberal concept;
- administrative concept;
- mixed concept.
Under a liberal system of managing economic processes, any administrative regulatory measures are not provided. The economy develops and is regulated on its own without government intervention. The liberal concept is based on mechanisms of consumption and management tools such as independent media and other information flows.
The use of a liberal system of government has been effective for a long time. However, as a result of the lack of administrative measures, crisis situations have arisen that cannot be prevented without government intervention.
The administrative concept, on the contrary, denies any measures of market influence and includes only state methods of managing the economy. Initially, the administrative concept shows good results, but ultimately crisis processes develop in such a system, which inevitably leads to collapse.
There may be several reasons for this:
- Government bodies cannot fully respond promptly to changes in the market and economy. The ban on any manifestation of independence in the process of economic management does not allow timely regulation of the mechanisms of supply and demand, which leads to the emergence of shortages and other negative phenomena.
- For the development of the economic system, proper motivation of enterprise employees is necessary. Being dependent on the decisions of government bodies, entrepreneurs cannot create their own motivation system, and employees are inevitably subject to stringent measures of administrative regulation. This slows down economic development and leads to the collapse of the administrative system.
- To follow the path of economic development set by the state, the support of leaders of economic sectors and enterprises is necessary. This means that managers become a non-primary role. This approach leads to economic degradation.
A mixed economic management system is considered the most optimal and balanced. The basis of this concept is the market mechanisms of the economy when regulated by the state as a correction. A mixed management system requires the application of a specific economic development strategy.
The flow of information and media in such a system has a certain degree of freedom, but is still under state control. A mixed management system is the most effective in the modern economy.
Stay up to date with all the important events of United Traders - subscribe to our