Book "Fundamentals of Management" Michael Mescon, Michael Albert and Franklin Hedouri is one of the most popular management textbooks in the world. It sets out in detail and in the most accessible language the basics of management as a science and tells about the basic principles and concepts of management. The book describes both theoretical and practical aspects of managerial activity, taking into account the realities of our time. Particular attention is paid to the situational nature of management, which is becoming increasingly important, given the constant changes in the modern business environment.

Due to its carefully thought-out structure and simplicity of presentation, the book "Fundamentals of Management" can be useful to a wide range of readers: students studying management, teachers, practicing managers and just people who are interested in theoretical and practical issues of management.
to full content >>>>>

PART THREE: CONTROL FUNCTIONS

Glossary

Lessons from American Management (introductory article)

Americans, accustomed to sharp turns of fate, to competition, define a similar situation with the word "challenge" (challeng). According to them, each challenge is fraught with both opportunities and threats for an individual, organization, country. To cope with this unprecedented challenge in the life of current generations, we, among other things, need to master new knowledge, learn how to use it in practice. An important part of this knowledge, as world experience shows, is the comprehension of the science and art of management.

With the light hand of the Americans, this English word has become known today to almost every educated person. In a simplified sense, management - this is the ability to achieve goals, using labor, intelligence, motives for the behavior of other people. Management - in Russian "management" - a function, a type of activity for managing people in a wide variety of organizations. Management is also an area of ​​human knowledge that helps to carry out this function. Finally, management as a collective of managers is a certain category of people, a social stratum of those who carry out management work. The importance of management was especially clearly realized in the 1930s. Even then it became obvious that this activity had turned into a profession, the field of knowledge - into an independent discipline, and the social stratum - into a very influential social force. The growing role of this social force forced people to talk about the “revolution of managers”, when it turned out that there were giant corporations with huge economic, industrial, scientific and technical potential, comparable in power to entire states. General Motors, for example, is invariably present in the top dozen of the largest economic entities in the world (including both states - the USA, Japan, the USSR, etc., and corporations). The largest corporations, banks are the core of the economic and political strength of the great nations. Governments depend on them, many of them are transnational in nature, extending their production, distribution, service, information networks around the world. This means that the decisions of managers, like the decisions of statesmen, can determine the fate of millions of people, states and entire regions. However, the role of managers is not limited to their presence only in huge multi-level and branched corporate governance structures. In a mature market economy, small business is no less important. In terms of quantity, this is more than 95% of all firms; in terms of value, this is the closest approximation to the daily needs of consumers and, at the same time, a testing ground for technical progress and other innovations. For the majority of the population, it is also a job. To manage skillfully in a small business means to survive, to resist, to grow. How to do this is also a question of effective management.

A little more and concepts. The question arises - is it possible to consider that the English concept of "management" and the Russian "management" and, accordingly, "manager" and "leader" are one and the same. Yes and no. In a general sense, or, so to speak, from a bird's eye view, perhaps - yes. At the same time, there are also differences in the interpretation and application of these concepts, which are of interest, however, mainly only to specialists. However, two differences appear to be significant. First, when talking about "management", Americans almost always mean the figure of a "manager" - a person, a subject of management, acting in some organization. In a more general sense, they use the term "administration", "administration" (administration), which to a greater extent reflects an impersonal management system. Secondly, when they say "manager", then, by and large, they mean a professional manager who is aware that he is a representative of a special profession, and not just an engineer or economist involved in management. In addition, a manager is a person who, as a rule, has undergone special training.

This book will help you, dear reader, to take quite serious, for someone, the first steps on this path. The question "How to become a manager?" actually not so naive. Of course, for this you need to take a managerial position, become a leader. But the main thing is to be aware of your professional affiliation with management, to master the amount of knowledge that directly concerns management, to adhere to certain standards, even external attributes of behavior that are usually inherent in managers. A full-fledged manager, for example, in whatever country he is, needs to know English. And yet, at the same time, one should not forget that the leader who knows his business, knows how to manage well, and achieve his goals, regardless of his appearance and education, is valuable. Wherever it is, this is the main standard of a real "manager".

In the culture of developed capitalist countries, the concept of management very often coexists with the concept of business. Business is an activity aimed at making a profit by creating and selling certain products or services. "Business management" is the management of commercial, economic organizations. Along with this, the term business administration is used almost as a synonym, which can be translated as "business administration". The term "management" is applicable to any type of organization, but when it comes to government bodies at any level, it is more correct to use the term public administration - "public administration".

A businessman and a manager are not the same thing. Businessman - this is the one who "makes money", the owner of capital in circulation, generating income. It may be a business person who has no one to report to, or a major owner who does not hold any permanent position in the organization, but is the owner of its shares and may be a member of its board. Manager but he necessarily occupies a permanent position, people are subordinate to him. A slightly more special case of business is entrepreneurship. This type of activity is even more associated with the personality of a person - entrepreneur, who carries on business by starting a new business, implementing some innovation, investing his own funds in a new enterprise, and taking personal risk. The differences between a manager and an entrepreneur will be very large if the manager gravitates toward a bureaucratic leadership style, but they are blurred to a certain extent if he adheres to an entrepreneurial management style. So far, very few large firms have managed to resolve this contradiction, and yet the reader will find some examples of success in this matter in the pages of this textbook.

The wide public interest in management is largely associated with the formation and development of business schools or management schools, most common in the US and are part of the "management infrastructure". Infrastructural sectors in production - energy, transport, telecommunications, etc., and in the non-manufacturing sector - education, publishing, public computer networks, consulting, etc. - are very developed precisely in a market economy, where horizontal connections are especially important , and public services that satisfy a certain social need and are paid for by the consumer are quickly formed into independent large, medium or small businesses. Today the USA is the country with the most developed management infrastructure in the world. There are more than 1,300 registered business and management programs in America that have an official certificate from the American Assembly of Collegiate Schools of Business, including 600 business schools operating independently as part of multidisciplinary universities. They provide regular education in business and management. There are over 10,000 consulting firms operating in the country, in addition to tens of thousands of independent consultants who provide services in various aspects of this activity. More than 70 periodicals, more than a dozen publishers specialize in management and business literature. The United States is a leader in management science, business and management research in terms of both the number of researchers, the amount of money spent, and the breadth of the problems covered.

The system of education in business and management, as in most other specialties, is three-stage in the United States. After graduating from high school, after four years of study at a university or college, one can earn a degree bachelor, which roughly corresponds to our high school diploma. At the same time, after the first two years, you can interrupt education, which will be tantamount to graduating from a “junior college”. This is followed by a two-year education master's programs: "Master of Business Administration" - Master of Business Administration - the famous MBA (MBA); "Master of Management Science" - Master of Management Science - MMS (EMM Es); "Master of International Management" - Master of International Management - MIM (M I M) and the like.

Usually, people aged 25-30 years old who, in addition to a bachelor's degree, have at least two years of practical work, enter master's programs. The master's degree awarded as a result of training, generally speaking, is not a scientific degree. This degree is rather “professional”, indicating that the graduate who received it has not only theoretical, but also practical knowledge and partly skills in the field of business and management based on the analysis of a large number of management situations, participation in management games, internships in large firms, abroad etc. MBA programs are the main ones for business schools, especially leading ones. They are characterized by an exceptional intensity of study and guarantee the high quality of specialists. There is a real hunt for graduates of the top ten most quoted business schools. For example, the starting salary of a master's degree from Harvard Business School, which has been ranked number one for many years, typically exceeds $60,000 per year. Its constant rival is the Stanford Business School, the leading places are occupied by the Wharton School in Pennsylvania, the Sloan School at the Massachusetts Institute of Technology, the University of Michigan School of Business and others. And at the same time, those who graduate from less prestigious schools may have problems finding employment. In general, in order to make a career as a professional manager in the United States, especially in a large firm, or as a specialist in business and management of a high rank, a master's degree is considered highly desirable. Recently, evening programs of study on master's programs for executive practitioners of the highest level (Executive MBA) have been widely distributed. In general, about 72,000 Americans receive a professional MBA degree each year, which is a quarter of all masters, which are prepared by American universities in all specialties.

The third stage of study in business and management are programs leading to a degree PhD - Philosophy Doctor - Ph.D. (P.H.D.). They provide for three to four years of study with the obligatory defense of a dissertation and the award of a Ph.D. This degree, approximately equal to the degree of a candidate of sciences in a strong Soviet university or research institute, is higher than a master's degree, but exists, as it were, in parallel. The master's degree is professional, and the doctoral degree is scientific. Those who receive it do not intend to become practical managers, but will be engaged in research, teaching in this area, or professional work as a planner, analyst in firms. High quality Ph.D. in US universities (where, by the way, there are no analogues of the second, higher degree of "Doctor of Science" awarded in our country and in Europe) is determined primarily by the development of a huge array of scientific literature and numerous special courses on the subject. It is not uncommon for a graduate student starting a Ph.D. at one university, he graduates from another, which is dictated by his scientific interests, the logic of research, the presence of prominent scientists engaged in research on problems of interest to him. For the Ph.D. PhD students enter with a bachelor's degree, and sometimes (not at all) a master's degree, in which case the period of study is reduced. This American system is very extensive, flexible and expensive. MBA tuition is typically around $15,000 a year at a top university, and a Ph.D. costs even more.

Recently, this education system has been criticized quite often. According to some, it forms people who are "in an ivory tower", having high ambitions, but not knowing real life, unable to adapt to change. However, US business schools are by no means going bankrupt. Moreover, income from master's programs is usually a good support for other, non-profit activities of American universities. If some master's programs cease to be in demand, they are replaced by others. In order to strengthen the connection between science and practice, many business schools prefer to hire people who have worked in senior positions in firms and government departments and at the same time have a Ph.D. degree, experienced in teaching and research. Professors who have passed this kind of “rotation” are a special category of teachers that is very valuable for business schools.

However, it should be emphasized that the American way of forming managers is not the only one in world practice. In Japan, for example, there are only three business schools, mainly to train those who intend to work abroad. Leaders are trained by the firms themselves on the basis of the concept of "learning by experience", systematically moving them to different positions. This allows you to learn the specifics of various aspects of the business and thoroughly study your company. Only at the age of about 35 employees have a chance to get their first managerial position. Everyone learns in Japanese firms - from workers to the president, and the main responsibility for this rests with the heads of each of the departments, the elders teach the younger ones. Sending practitioners to study at third-party training centers is not a common thing, although, for example, at Matsushita Denki, there is the Matsushita Academy, where capable young people with higher education are trained for another five years. But this is an exception for the elite.

Europeans also have business schools. Their leading European association EFMD (European Fund for Management Development) has about 300 full-fledged management training centers registered. Many of them are highly trained, although master's degrees in business and management are not as common and not as highly rated as in the United States. Somewhat more important in European schools are disciplines close to production, the study of social, as well as country and international aspects of business and management.

And yet it should be recognized that the training and formation of managers in different countries are very close both in essence and in the methods of organizing training, especially in the last decade. Management as a profession, as a field of knowledge, is becoming truly international. Mastering the experience of managing each of the countries, transferring this experience is a very valuable and useful thing that everyone is beginning to understand. After all, this allows not only to understand how to do business abroad, but also to learn how to avoid mistakes in situations that have not occurred in the present and the past, but are quite possible in the future. The story of someone else's success or failure can also be very instructive. And, of course, scientific and empirical generalizations, the development of general principles of effective management, the typification of its various forms and the conditions for their application - all this is the subject of serious work for those who think about management in a scientific sense and advance managerial thought.

In all this diversity of theories and phenomena of living practice, American management has been and remains the most powerful "management civilization". Its leading importance in the world today is undeniable, and its influence on the development of theory, practice, and even more so management training is the greatest. There is no need to blindly follow the conclusions of American theorists and the recommendations of their practitioners, but it is certainly necessary to know their ideas.

This American textbook on management offered to our reader serves just this. This is not the first book of its kind translated in the USSR. In 1981, the book by G. Kunz and S. O "Donnell "Management: a system and situational analysis of managerial functions" (Translated from English. M .: Progress, 1981) was published. Previously, our readers got acquainted with the rather complete "Course for Higher Management personnel "(Abridged translation from English / Scientific editor V.I. Tereshchenko / M .: Economics, 1970). The book of D. O" Shaughnessy "Principles of organizing company management" (M .: Progress, 1979). Among the Soviet works on this issue, the most significant role was played by the book of Academician D. M. Gvishiani "Organization and Management" (2nd additional ed. M .: Nauka, 1972), devoted to the systematization and analysis of the American management theory at that time. However, the textbook "Fundamentals of Management" has a qualitatively different character. It has three characteristic features.

Firstly, this is a sufficient completeness of the description of the most important elements of modern knowledge about management, while, say, the book by G. Kunz and S. O "Donnell, mainly covered the principles of the "classical" or "administrative" school in theory management, and a more compact textbook by D. O "Shaughnessy contained a popular review of the results of the most famous studies in this area. The authors of "Fundamentals of Management" went, by their own admission, along a somewhat eclectic path. They did not pursue an imaginary methodological harmony of presentation, but tried to adequately highlight the achievements of various approaches and schools and their real contribution to modern managerial thought. The reader of the book can be sure that he will get the basics of knowledge about management, get acquainted with all the most important achievements of Western managerial thought, and learn the most famous names of authorities in science and management practice. In general, this will prepare you to take the next steps - to delve into the study of specialized literature on certain aspects of management, discuss these problems with Western colleagues or study management abroad. Such a feature of the book, of course, is a great advantage in our time of familiarization with the achievements of world management thought.

Secondly, this textbook has its advantages in terms of readership. With a solid scientific level, it is written intelligibly, fascinatingly, even lively, which was not in any of the previous books of this kind - domestic or translated. You can not only study it carefully with a pencil in your hands, but also just read it to broaden your horizons, or even for pleasure. The main contingent of our readers are those who have taken up the study of management without serious preliminary training and, perhaps, even higher education. In America, this textbook is used primarily by bachelor students. I, in particular, had the opportunity to use it as the main teaching aid when reading a course in the basics of management in 1989 at San Francisco State University for students in this category. But taking into account the specifics of our country, this textbook can be used not only by students. Managers who are training in management or upgrading their skills, already established engineers or economists with specific work experience, will find this book interesting and useful, as it opens up a new area of ​​​​knowledge for them, usually not included in our university courses. This book, due to the same novelty of its problems, can be very useful for those who receive postgraduate education in graduate school or in master's programs that are new to us. It is, of course, used by those who are now establishing management teaching in our country. It will be read by people of different ages and professions engaged in self-education. In a word, with the formation of a new system of training and advanced training of managers in our country, this textbook seems to be very timely.

Thirdly, this book is interesting from the point of view of a methodical approach to the organization of the presentation of the material. In my opinion, it is a good example of a high scientific level, sharpness of definitions and formulations, a sense of proportion in the presentation of scientific truths and, at the same time, full information about management practice, vivid examples and specific situations for analysis. The abundance of illustrative and schematic material, generalizations at the end of each chapter, questions for discussion - all this, of course, is the result of many years of evolution in the methodology of management education in America, and for us it is an example of a modern approach to the effective training of students and managers.

Speaking about the content of the book, it must be admitted that it gives a good idea of ​​the state of American managerial thought. Reading it, one can, in particular, form a certain position on the traditional, but still relevant question: is management a science or an art? There are good reasons to argue that this is the synthesis of science, art and experience, as discussed in chapter 1. This is, of course, trivial, but it is important to recognize the fact that the activity of management is so complex, and the science of management is still so young. that it is necessary to evaluate its possibilities with great care, of course, without detracting from the usefulness of life-tested theories and scientifically based methods. No one knows simple recipes for solving managerial problems, which is repeatedly emphasized throughout the pages of this book. This idea underlies the methodology of the "situational approach" to management - perhaps the largest scientific result in this area over the past two decades.

The assurances, characteristic of the Russian literature of the past years, that we are allegedly capable of “scientifically managing” not only production, but also society, do not stand up to criticism either from a theoretical or practical point of view. From an objective standpoint, the current state of scientific knowledge about management and housekeeping is such that it can serve as a source of not only insights, but also serious misconceptions, and “scientifically based” theories and methods can bring not only benefits, but also significant harm. It must be admitted that the myth of "scientific management" has long been simply beneficial to the ruling stratum of the bureaucracy in the administrative-command system in your country as one of the arguments for the centralization of power in its hands. Today, the attempt of the townsfolk to find those responsible for our past and present mistakes among scientists who allegedly advised leaders the wrong way is simply incorrect from the standpoint of real management practice, that weather is made by those who have power, and not those who advise them something. Although the lag in science and education in the field of management is, of course, people scientists are to blame.

In real management, the figure of a scientist, an expert, is perhaps not as important as the figure of a leader, albeit not so educated, but who owns the mysteries of management as an art due to his personal qualities, talent, experience, skills and sound judgment. The combination of talent and scientific knowledge in this area will give a synergistic effect, multiply the ability to achieve the desired results in practice. To do everything so that real talents in the field of business, management, entrepreneurship rise to the surface of real economic life, no matter what it costs - this is the way of salvation in market conditions. Without this, nothing good will happen in our economy.

At the same time, it is important for the reader to understand that management, management is, of course, independent field of knowledge, requiring thoughtful study. This is a separate discipline, or rather, an interdisciplinary field, which is most correctly called "managerial thought", combining science, experience, "know-how", multiplied by managerial art. Readers of the book will be convinced that management thought is influenced by the achievements of many sciences, and the evolution of management in the 20th century consists precisely in using these achievements to solve the main problem - how to get the desired results based on the coordinated actions of many people who produce products and services and use diverse resources.

And, indeed, the first breakthrough in managerial thought, which took place at the beginning of the century and was associated with "Taylorism", was based on the premise that one can manage "scientifically". This was both an insight and an illusion, but in fact it consisted in transferring the ideas of engineering sciences to management at the grass-roots production level. However, quite soon the management world realized the fundamental limitations of "Taylorism". The next major step in the development of Western managerial thought, closely related to the previous one, consisted in the dissemination of the “principles of management” formulated by A. Fayol, which can be recognized as the first independent result of the “science of administration” in its now classic version, focused primarily on building “ formal" organizational structures and systems. It is no coincidence that Americans call this Frenchman the father of management. It must be said that the search for rational forms of enterprise management in our country was carried out at that time with some consideration of these achievements. So, for example, by decision of the party conference, the “functional” (according to Taylor) was abolished in favor of “linear-functional” organizational structures (according to Fayol). But behind all this there were by no means scientific arguments, the specter of tightly controlled hierarchical management systems, based on the unquestioning subordination of the lower levels to the higher ones, on universalism, standard and impersonality, was already hovering over the country, which became a political and economic reality for many decades.

The third breakthrough in managerial thought, comparable in its significance to the first two and often called "neoclassical" - the birth of the school of "human relations" at the turn of the 30s. In the 1940s and 60s, this direction was continued by the development of the theory of organizations as social systems, but by its nature it was nothing more than the use of the achievements of psychology and sociology - the sciences of human behavior - in management. In Soviet theory and practice, this did not cause anything but a harsh rebuff to the “intrigues” of bourgeois ideology in the field of establishing “human relations”, and the attempts of some of our scientists to appeal to reason only led to the defeat of sociology and stopped its application in management. This, along with the underestimation of the psychological aspects of behavior in real organizations, caused us enormous damage, which has by no means been repaired to this day.

A new breakthrough in management thought - the development of modern quantitative methods for justifying decisions in the 1950s and 60s - turned out to be a direct consequence of the use of mathematics and computers in management. In our country during this period, the economic and mathematical movement was especially strong, it had a great and generally positive influence on economic and managerial thought, although it was not without serious illusions and significant shortcomings. It was the "quantitative school" in world management thought that stimulated the involvement of the provisions of systems theory, cybernetics - areas of science that synthesize, integrate complex phenomena - to management, which over time contributed to overcoming the conflict between the rationalism of the supporters of the "science of management" and the romanticism of enthusiasts of establishing harmony in human relationships, organizations and society.

At the turn of the 1970s, a turning point for all management thought was the clearly formulated idea that an organization is an open system that adapts to its very diverse external and internal environment, and the main reasons for what happens inside the organization should be sought outside it. . The 1970s and 1980s were spent in an intensive search for relationships between types of environment and various forms of management. Alas, this transition from universalism to a “situational approach”, comparable to the transition from a plane to a three-dimensional space, from silent black-and-white cinema to color with stereophonic sound, in domestic management thought, which, like the whole of society, was in stagnation, to Unfortunately, it went almost unnoticed.

The decade of the 1980s was marked by a new breakthrough - the discovery, unexpected for many Americans, of the importance of "organizational culture" as a powerful management tool, used especially effectively by the Japanese. Today, many American theorists tend to put culture on a par with the organization as a managerial tool in terms of its impact on people, and curricula to transform culture in organizations were a fashionable innovation of the leading business schools in the 1990s. It seems that there is a rational grain in this. After all, in the second half of the 1980s, we also discovered that the main potential and at the same time the main danger for progressive changes lies in a person, or rather, in his mind, in culture, including cultural stereotypes of behavior in organizations.

If we talk about the years of the 90s, here, in my opinion, there are three most interesting trends. The first of them is connected with some return to the past - awareness of the importance of the material, technological base of modern production and the provision of services. This is due not only to the use of computers in management, but also to the general strengthening of the influence of technological progress on achieving the goals of the organization, increasing the role of productivity and quality in order to win the competition. It is no coincidence that this textbook on the basics of management has independent sections on managing operations and achieving high performance through the synthesis of human activities and the use of technological factors of production. It seems that managerial thought is again entering a period of some strengthening of "technocracy" in it on a new, deeper and healthier basis.

However, in parallel with this, there is a second trend, which concerns already social, behavioral aspects - this is an increase in attention not only to organizational culture, as mentioned above, but also to various forms of democratization of management, participation of ordinary workers in profits, in the implementation of managerial functions. , owned. This idea, which originated in the 1930s and was persistently developed by the theorists of the 1950s, was implemented in the practice of American management, however, rather sluggishly. In this, American management differed from European and Japanese (albeit very peculiar in this sense) management. But today the democratization of management, participation in management is a reality. It is already generally recognized - both in Europe, and in Japan, and in the USA - that the future belongs to democratized, "participatory" forms of government. This phenomenon, apparently, will be generalized and comprehended in the coming years by management specialists. Our practice can give a lot of original and interesting things in this area, as well as in matters of business ethics - another traditional, but again very relevant aspect of managing in a market, economic freedom.

Finally, the third feature of managerial thought in the 1990s was the strengthening of the international character of management. Following the transition of most post-industrial countries to an open economy, a sharp increase in the role of international competition and, at the same time, production cooperation, the development of transnational corporations, etc. The internationalization of management raises a lot of new questions for management theory and practice. The most important of them are what is common and special in management, what patterns, forms, methods of management are universal, and which operate in a range of specific conditions of different countries, how best to perform management functions in foreign economic activity, what are the features of the national style in management , in organizational behavior, how important these features are for achieving the desired results, how foreigners can quickly adapt to the national local environment. These are all extremely interesting new questions, many of which are still waiting to be answered. For us, in this area, too, we have to overcome a serious backlog, because international business is a new thing for many, it needs to be learned from the basics. There are already more than 30 thousand enterprises and organizations involved in foreign economic activity, and it is impossible to train and consult all their personnel in a short time. And yet, the search for the shortest paths to success in this area, taking into account the experience of other countries that do not repeat the mistakes of others, is a worthy task for creatively thinking people in our country.

The advantage of this textbook is that, by highlighting the state of managerial thought in scientific and applied aspects, it brings the reader up to about the mid-80s. At the same time, it is very American, closely connected with the development of American managerial thought, based on many values ​​that are characteristic of American society, culture, and management. It contains vivid examples from the practice, first of all, of this country. Therefore, it is necessary to make some allowance for this specificity, to leave room for a certain amount of skepticism, for a free search for thought and taking into account our special conditions. At the same time, it must be clearly understood that this book deals only with the basics of management. Real professional knowledge in management requires mastering both special management literature on various sections of this discipline (which is why the text contains numerous references to American sources), and mastering fundamental works in related disciplines - economics, sociology, psychology, mathematics, cybernetics etc. This is necessary first of all, of course, for those who intend to devote themselves to research and teaching in the field of management. For practitioners, apparently, it is much more important to delve into the study of specific situations, and more generally, into the study of the history of management on the example of well-known organizations, famous projects, the activities of outstanding leaders, etc. It seems that this empirical layer in managerial thought is still undeveloped virgin land for us. Raising it, we will understand a lot in our management, we will learn to separate the wheat from the chaff, we will learn from the past, we will take a real step forward.

If we try to assess the significance of this textbook for our reader in modern conditions, then it should be emphasized that even some five years ago this book, perhaps, would not have been worth publishing in a large circulation. It could be used in teaching courses on foreign management experience, which were and are being taught in a few of our educational institutions, but for American researchers it would naturally seem somewhat superficial. It would be better to replace it with a series of more specialized, narrowly focused books or works by Soviet authors that analyze and evaluate certain aspects of foreign management. Until recently, this has been the case. However, now the need for such a book is great, since it is at the present time that the formation of a new managerial thinking in most people is necessary. After all, now there is already a very high confidence in the transition of our economy to the market. And this transition means a colossal restructuring of the entire management system.

Organization management is adaptation. This is the cornerstone of modern management methodology. Nothing in management happens unmotivated, everything has its own reason, everything is determined by the extremely complex intricacies of the influence of many variables, the external and internal environment of the organization. That is why it is so difficult to manage well. Modern managerial thought allows us to realize this truth.

Of course, we can talk about our lagging behind in theory and especially in the practice of effective management, however, in my opinion, this would, by and large, be simply incorrect. After all, the management of Soviet organizations for decades was adapted to the requirements of a certain environment - the administrative-command system . And adaptation to this system, not only to the organizational, legal, economic mechanism, but also to its policy, ideology, system of values, took place very actively and in its own way was by no means unsuccessful. Implementation of the plan, often at any cost, instead of meeting the needs of the consumer; growth in the size of enterprises, an increase in the volume of output, regardless of the improvement of its quality and the economical use of resources; stability instead of dynamics; unification instead of diversity; subordination instead of initiative and freedom - these and other requirements of the economic system encouraged certain forms of management to come into being, which made it possible to adapt to specific conditions. According to modern classifications, what was common before are bureaucratic, mechanistic systems for managing organizations.

The administrative-command system was looking for its talents. Among them were outstanding "production commanders", brilliant technocrats, to whom the industry owes a series of outstanding achievements, but at the same time - tough bureaucrats, dogmatists, masters of political intrigue, who turned out to be the creators or accomplices of not just stagnation in society, but also a real national disaster. . A huge mass of people in our economy who were not involved in politics simply worked in ordinary managerial positions. They did their job within the framework of the system where they happened to live, their actions corresponded to the requirements of specific situations, and their views were generally accepted in their environment. In many cases, it was more difficult to achieve results in this environment than in another, more rational in its structure. This required a strain of thought, a kind of search, and enormous personal dedication. Unfortunately, the social selection operating in the administrative-command system often contributed to the promotion of not the best people to top management positions. And yet, from the standpoint of today, it is in no way possible to belittle the potential of our leaders, engineers, workers, and even entrepreneurs. It is important to make the best use and develop this potential. We have no other way. It is necessary to deeply realize the fact that we are all the product of a bureaucratic "administrative civilization" that has shown its historical failure and is in need of revolutionary restructuring.

It should be borne in mind that in its history, mankind has developed only three fundamentally different management tools - that is, influencing people. The first one is hierarchy, an organization where the main means of influence are relations of power-subordination, pressure on a person from above, with the help of coercion, control over the distribution of material wealth, etc. Second - culture, that is, values, social norms, attitudes, patterns of behavior, rituals that are developed and recognized by society, organization, group, which make a person behave one way and not another. The third is market, that is, a network of equal horizontal relations based on the sale and purchase of products and services, on property relations, on the balance of interests of the seller and the buyer.

It is important to understand that hierarchical organization, culture, the market are complex phenomena. These are not just “management tools”. In living, real economic and social systems, all of them almost always coexist. It is only about what is given priority, what is the main bet. This determines the essence, shape of the economic organization of society.

The root of the administrative-command system of traditional Soviet society was a hierarchy that was, so to speak, "universal". Everything had some kind of line of subordination, a higher authority, and the powers of the highest executive power were practically unlimited. But in parallel with this, Soviet society also actively used the "hard" culture as a powerful means of influencing its members. Through ideology, party membership, under the influence of the media, education, supported traditions and habits, people comprehended numerous do's and don'ts, controlled primarily by the partyocracy. They either adhered to them or came into conflict with the official system.

The market, as a universal means of influencing economic life, was suppressed in every possible way, used almost exclusively for trade in consumer goods. "Economic methods" of management were applied within a clear framework of hierarchical systems. And yet the market in its natural powerful state existed in the shadow economy, which along the way built its hierarchical relations in hidden antisocial, corrupt structures, formed negative cultures that deformed people's consciousness, their social relations.

The administrative and economic system, which has undergone a long evolution, was well debugged and coordinated in its main elements. Since Stalin's times, it has made it possible to keep society and specific organizations "in check", to achieve goals that were set from above, regardless of costs, to suppress external manifestations of conflicts. This "harmony of evil" the authors of this book, as pragmatists, would apparently recognize as effective (at least pay attention to their assessment of Mao Zedong on p. 46). In addition, this system was aimed at actively satisfying the lowest of the social needs of people - the need for involvement, belonging to a group (see Chapter 13). Despite the brutal suppression of the rights of an individual, for many loyal members of society, the myth of universal participation in building a happy future for the country under wise leadership, about life in the most just society formed the basis of their worldview.

Now, however, the system of government must undergo a radical transformation along with the whole of society. Their necessity is due to the fact that the administrative-command system, the ideology underlying it, came into obvious conflict with the requirements for the development of productive forces and ensuring human rights. Under the conditions of the scientific and technological revolution, new technology and the organization of production bring advanced countries to such a fundamental level of satisfying the economic needs of individuals that this is already a material basis for achieving real economic freedom in the lives of most people. Let this not apply to all countries and not all people, let it exist against the backdrop of great social inequality. However, a qualitative leap has already taken place. A real technical possibility to give people on a massive scale human conditions of existence - material and social, to save them from the fate of the "raw material of exploitation", to make them free to exist.

But in order to make such a leap, as the experience of many countries on different continents - both traditional and new leaders of world development - shows, it is necessary to have an adequate management system and culture that can ensure productivity, efficiency, dynamism, and adaptability of production to the various requirements of consumers. , suppliers, inventors, etc. Only the market as a means of managing the economy by its nature has such a potential. Hierarchy, organization is a rational means of introducing stability, regulation into economic and other activities. In addition, different cultures correspond to the market and hierarchy, almost polar opposites in their essence.

The restructuring of the economic structure of Soviet society consists precisely in a cardinal structural change. The market - as a product of the rule of law and economic reality should become the main "instrument of management" (more precisely, even self-government) at the level of social production as a whole. It is he who will determine the essence of the economic structure of the new society, its external environment. Now commodity-money relations will tend to acquire a "universal character", and society will quite reasonably restrict this process in some, primarily spiritual areas: education, culture, science, healthcare, etc.

The hierarchy will not die and collapse - that would be a disaster, it will fade into the background in some sectors of the economy that require more control, and most importantly, it will move down to the level of specific organizations, where its useful role will remain for a long time to come. The organizations themselves will adapt to the new external, partly internal environment; in their depths, bureaucratic, mechanistic structures and management systems will increasingly be replaced by organic, flexible, debureaucratized structures and systems.

In parallel, a colossal, figuratively speaking, “tectonic” cultural shift must take place in our economic, managerial thinking, and psychology. It is necessary to turn the consciousness of the leader, the worker, towards the consumer, and not towards the boss; to profit, not to waste; to the entrepreneur, not to the bureaucrat; to the innovator, and not to the thoughtless performer; to pluralism and diversity, not to unification and depersonalization. By and large, we must move from the ideologists of the gassing of management to common sense, from the scientism of abstract schemes and the dogmatism of self-satisfied edifications to knowledge that gives a practical result in improving the behavior of people and the functioning of organizations. If this is not done purposefully, stubbornly, realizing the complexity of the task, nothing will happen, no matter how radically hierarchical relations are replaced by market ones at the legal level, no matter how carefully new “systems” are worked out. Softening, atrophy of culture as a "management tool", inattention to it - this is the path to collapse in the new conditions. Without this "organizational cement" capable of withstanding higher stresses and loads, a new building cannot be built.

This book can make a contribution to the formation of new managerial thinking and the development of new knowledge that we need today. Some of its provisions will be unknown to many, especially if we take into account our poor understanding of the essence of the market and competition, poor education in the field of sociology and psychology. Others, say, connected with modern methods of substantiating decisions, from the standpoint of our managerial knowledge, will be perceived even as somewhat primitive. Still others, for example, the problems of forming organizational management structures, will seem familiar from previous domestic and translated foreign publications. However, after reading the book, we will rethink many of the problems of entrepreneurship and management that are already facing the Soviet business executive. Everyone, apparently, will choose those questions that are more consonant with his current problems, specialty, ability to see and learn new things. However, it seems that this American textbook, written cleverly and skillfully, with great attention and respect for the reader, will not leave anyone indifferent. I would like to wish that familiarization with management thought in its modern American interpretation will become useful and interesting for you, dear reader, make you a more effective leader, encourage you to search for truths and practical approaches that help solve our problems, taking into account the searches and discoveries of others.

The publication of Fundamentals of Management is the result of expanding Soviet-American cooperation. The American-Soviet Trade and Economic Council (co-chairs - W. Forrester and V. Cheklin), its committee for the training of managers, headed by A.F. Dobrynin (USSR) and D. Andreas (USA) rendered great assistance in the implementation of this project. San Francisco State University School of Business Dean A. Cunningham and San Francisco State University Professor S. Thrall were the originators of this idea. The Soviet publishers of the book are grateful to them, as well as to everyone who worked on the translation and publication of this textbook.

Professor L. I. Evenko, Rector of the Higher School of International Business at the Academy of National Economy

2. Andrushkiv and in. Fundamentals of management. World - Lviv, 1995

3. Management of the organization / Textbook, ed. Z.P. Rumyantseva, N.S. Salomatina, INFRA-M: 1997

4. Goldstein G.Ya. Fundamentals of Management: Lecture Notes. Taganrog: TRTU, 1997, 235p. Second revised edition.

5. Practical management. Methods and techniques of the leader's activity / Auth.-comp. N.Ya. Satskov. - D.: Stalker, 1998. - 448 p. (Series "Business Literature")

Glossary of basic terms

Management- this is the ability to achieve goals, using labor, intelligence, motives for the behavior of other people. Management is the science of managing an organization.

Control(management) is the process of planning, organizing, motivating and controlling necessary to formulate and achieve the goals of the organization.

Organization A group of people led by a manager to achieve a common goal.

Manager- a specialist with special knowledge and skills, professionally engaged in management in a particular area of ​​the organization.

System is a set of interrelated elements interacting with each other and the external environment to achieve the goal.

industrial enterprise- a system in which workers use the means, objects of labor, technology and information to produce products.

External environment- the environment of the organization, that is, a set of elements that are not part of the organization, but have an impact on it or affect the process of its work.

Target is a future-oriented desired state of the control object.

Mission- the main overall goal of the organization, which clearly expresses the reason for its existence, indicates the direction in which the organization must move to achieve its goals at different levels.

Principles- these are the basic rules that guide managers in the management process, taking into account the existing socio-economic conditions.

Methods - These are the possible ways of the subject's influence on the object.

managerial function- this is a set of objectively necessary, steadily recurring actions or works, united by the uniformity of content and target orientation.

Planning - This is a type of management activity aimed at determining the goals of the organization and ways to achieve these goals.

Organization- this is a rational combination in space and time of all elements of production for the successful achievement of the goals of the enterprise.

Motivation- this is the motivation of the team and its individual employees to labor activity aimed at achieving the goals of the enterprise

Control - managerial activity, which is reduced to a comparison (comparison) by the manager of the planned indicators of the enterprise and the actual results obtained.

Organizational management structure (OSU) is a set of elements with functions and powers defined for each of them, which reflects the relationship between the elements.

Working Time Photo (FW)- a method of studying working time by observing and measuring its duration during the working day. This is a type of observation in which all, without exception, the cost of the performer's time for a certain time of work is measured.

Management decision- this is the choice of an alternative, carried out by the head within the framework of his official powers and competence and aimed at achieving the goals of the organization.

Leadership style- this is the usual manner of behavior of the leader in relation to his subordinates with the aim of influencing them or inducing to action (completion of tasks).

Educational edition

Lysenko Tatyana Ilyinichna

Alekseenko Inna Anatolievna

MANAGEMENT

Tutorial

Signed for print

The main issues of the topic: 1. The content of the concept of "management" 2. Management as a science and art 3. Management as a process and as a system 4. Management as a type of human activity 5. The concept of an organization 6. The life cycle of an organization 7. Stages of development of an organization according to L. Greiner and I. Adizes

To the history of the issue ... The English word "management" comes from the Latin "manus" - hand. Initially, it belonged to the field of animal control and meant the art of controlling horses. To manage to manage (horses) To manage: 1. lead, manage, manage; stand at the head; 2: be able to handle (with smth.); own (weapons, etc.) 3: pacify, tame; break); rule (horses) 4: manage, contrive, be able (to do) Manager Manager - manager, head Management - Management - management

Peter Drucker: 'management' 'The term 'management' is extremely difficult to understand... it is specifically American in origin and can hardly be translated into any other language, including British Isles English. It denotes a function, but also the people who perform it; it indicates a social or official position, but at the same time means an academic discipline and a field of scientific research. for organizations that are not related to business, do not talk about management and managers. However, even in American usage, management is not adequate as a concept: for organizations that are not related to business, one does not talk about management and managers.

>> Management The history of management is disproportionately older than the history of management Methods and forms of management have evolved along with the development of culture - the economic, social and political conditions of people's life" title="(!LANG:Management and management Management >>> Management The history of management is disproportionately older than the history of management Methods and forms of management developed along with the development of culture - the economic, social and political conditions of people's life" class="link_thumb"> 6 !} Management and Management Management >>> Management The history of management is incommensurably older than the history of management Methods and forms of management have evolved along with the development of culture - the economic, social and political conditions of people's life. >> Management The history of management is disproportionately older than the history of management Methods and forms of management have evolved along with the development of culture - the economic, social and political conditions of people's life "> >> Management The history of management is disproportionately older than the history of management social and political conditions of people's life activity." > >> Management The history of management is incommensurably older than the history of management Methods and forms of management have evolved along with the development of culture - the economic, social and political conditions of people's life activity" title="(!LANG: Management and Management Management >> > Management The history of management is disproportionately older than the history of management Methods and forms of management have evolved along with the development of culture - the economic, social and political conditions of people's life"> title="Management and management Management >>> Management The history of management is disproportionately older than the history of management Methods and forms of management have evolved along with the development of culture - the economic, social and political conditions of people's life"> !}

Definition of the concept of “Management” V.I. , having time in this, to put everything in order.

Peter Drucker:. Management is a special kind of activity that turns an unorganized crowd into an efficient and productive group. Management as such is a stimulating element of social change and an example of significant social change.

Management as a science ... It has its own theory, its own laws, patterns, functions, principles and methods of purposeful activity of people in the management process. The systematization of scientific knowledge helps to develop a strategy, manage current activities, and set goals for the organization.

Any organization is a complex socio-technical system, which is influenced by numerous factors of the external and internal environment. The most important factor is the PEOPLE working in the organization and with organizations. To manage this factor requires not only science, but also the art of its application. Management as an art...

A set of interrelated and interdependent elements, combined into one whole to achieve the goals. Management as a system... Management as an activity of people (managers)... An integral part of any organization, without which it, as an integral association, cannot function effectively and achieve the planned results.

As a conclusion... Management is a set of key provisions that reflect the content and specifics of one of the typological models of managing socio-economic systems (organizations) and, specifically, managing a market economy. The main goal of management is to ensure the profitability and profitability of the company through the rational organization of the production process, the effective use of human resources and the use of new technologies, which should eventually lead to an increase in the value (value) of the company.

Management tasks: 1. Assessment of the state of the control object 2. Determination of specific development goals and their priority 3. Determination of the necessary resources and sources of their provision 4. Distribution and coordination of powers and responsibilities, improvement of the structure of the organization 5. Determination of the priority and sequence of decision-making, development of a system time measures 6. Selection, training and stimulation of labor 7. Establishment of accounting and control in solving tasks

The definition of an organization is a consciously coordinated social entity with defined boundaries that functions on a relatively continuous basis to achieve a common goal or goals. Organizations are designed in advance, modeled in order to form a structure subordinated to the interests of achieving established goals!

Fayol: “To organize an enterprise means to supply it with everything that is necessary for its functioning: raw materials, equipment, money, personnel. An organization is a set consisting of two components: material and social organisms. Organization Definition

Mescon: “An organization is a group of people whose activities are consciously coordinated to achieve a common goal or goals. To be considered an organization, such a group must meet several mandatory requirements: the presence of at least two people who consider themselves part of this group; the presence of at least one goal, which is accepted as common by all members of this group; the presence of group members who intentionally work together to achieve a goal that is meaningful to all.” Organization Definition

Max Weber: An organization is a set of social relations - closed or with limited access from outside, in which regulation is carried out by a special group of people: a leader and, possibly, an administrative apparatus that has representative power Definition of an organization

Milner: An organization is a consciously coordinated social entity with defined boundaries that functions on a relatively permanent basis to achieve a common goal (s) An organization is a complex dynamic system that has a goal An organization is a system for acquiring, processing and distributing resources, acting in the interests of its creator or creators

Encyclopedic Dictionary: organization is: - internal order, consistency, interaction of more or less differentiated and autonomous parts of the whole, due to its structure - a set of processes or actions leading to the formation and improvement of relationships between parts of the whole - an association of people jointly implementing a program or goal and acting on the basis of certain rules and procedures Definition of the organization

OBLIGATORY FEATURES OF ORGANIZATION presence of at least two people who consider themselves a group; a pronounced common goal, not reducible to the individual goals of its members; voluntary and conscious direction of labor efforts of group members to achieve a common goal; a set of resources and a certain way to protect them; a system of officially approved norms of behavior and forms of control over their observance; the structure of steadily reproducible statuses (the organization must have a relatively permanent formal leadership); specific division of labor between its members (formal or informal); availability of rewards and punishments for participation or non-participation in the affairs of the organization.

The organization is characterized by: complexity (level of specialization or division of labor, the number of levels in the hierarchy, the degree of territorial distribution of units); formalization (rules, procedures that determine the behavior of employees); the ratio of centralization and decentralization (levels at which management decisions are developed and made).

For example… Strengthening the independence of regional companies (autonomy); Exchange of information between managers of all levels; Each employee is a member of a cohesive team, there are no barriers between managers and ordinary employees; Weeks of "anti-bureaucracy" are regularly held (managers work as sales consultants).

The life cycle of an organization is a set of stages of development that an organization goes through during its existence. Meaning: The manager must know at what stage of development the organization is, and evaluate how the adopted leadership style corresponds to this stage.
Stage of creation of the organization Directions and stages Purpose Methods Results 1. Product selection Define a niche in the market Study the sales volume and market capacity Possible sales volume 2. Evaluate the actions of competitors Determine the opportunities of competitors to occupy this niche in the market Study the work of similar enterprises The dominant factor of competition 3. Analysis of the scheme entrepreneurship Determine the required resources and the possibility of obtaining them To study the possibilities of creating technology, providing raw materials, capital Formation of the entire system and prerequisites 4. Analysis of the general environment Determine the significance of external factors Determine the nature of the environment and trends in its change Uncertainty of the values ​​of factors

Conditions influencing the choice of the type of management at the stage of economic growth of the organization Characteristics Operational type of management Strategic type of management Main purpose Profit maximization Profit maximization taking into account the interests of society The main way to achieve the goal Optimization of the use of internal resources Establishing a dynamic balance with an uncertain and unstable environment The importance of the time factor Not the most an important factor in competition The most important factor in competitive struggle Short-term evaluation of efficiency profitability Accuracy of forecasting changes in the internal environment and time to adapt to changes in the external environment, quality of goods. Attitude towards personnel Employees are one of the resources of the organization Employees are the most important resource of the organization

The maturity of the organization emphasizes the effectiveness of innovation and stability; the output of products is increasing and the market for the provision of services is expanding; leaders identify new opportunities for organizational development; periodically and timely adjust the management structure of the organization. Purpose: ensuring the strategic viability of the organization, maintaining and strengthening a stable position in the market.

The stage of the decline of the organization with a decrease in demand toughens competition and complicates its forms; increases the competitive power of suppliers; the role of price and quality in competition is increasing; the complexity of managing the increase in production capacity increases; the process of creating product innovations becomes more complicated; profitability decreases.

TEST 1. Has its own theory, its own laws, patterns, functions, principles and methods of management as ... a) Art b) Science c) Type of activity d) Process 2. A set of interrelated and interdependent elements characterizes management as a) System b) Result c ) Process d) Method

3. Among the listed features, select the features characteristic of the organization (there may be several): a) territorial isolation b) a specific division of labor c) a set of resources and a certain way to protect them d) the presence of a system of public authorities

4. What stage of the organization's life cycle is characterized by fuzzy goals? a) Creation b) Growth c) Maturity d) Decline 5. To maximize profit without taking into account the interests of society, the following type of organization management is selected - a) Strategic type of management b) Tactical type of management c) Operational type of management d) Linear-functional type of management

Other books by the author:

See also other dictionaries:

Information about the presence of organizational structures in management practice was found on clay tablets dated to the third millennium BC. However, although management itself is quite old, the idea of ​​management as a scientific discipline, profession ... Wikipedia

This is a set of ways and methods of influencing the team and individual employees in order to fulfill the mission and achieve the goals of the organization. Management methods perform 2 functions: Study of the problems of the functioning of the organization; Management ... ... Wikipedia

The significance of the subject of the article is called into question. Please show in the article the significance of its subject by adding evidence of significance to it according to particular significance criteria or, in the event that private significance criteria for ... ... Wikipedia

Graduate School of Management SPbGU (GSOM SPbGU) Founded 1993 Location St. Petersburg ... Wikipedia

Graduate School of Management SPbGU (GSOM SPbGU) Founded 1993 Location St. Petersburg ... Wikipedia

Graduate School of Management SPbGU (GSOM SPbGU) Founded 1993 Location St. Petersburg ... Wikipedia

This article lacks links to sources of information. Information must be verifiable, otherwise it may be questioned and removed. You can ... Wikipedia

risk management infrastructure- 2.3 risk management framework set of components that provide the framework and organizational arrangements and structure for developing, implementing, monitoring (2.28), reviewing and continual improvement of risk management ... ... Dictionary-reference book of terms of normative and technical documentation

PSYCHOLOGY OF MANAGEMENT- (... from English management management) a scientific direction that develops recommendations on the use of psychological data in the management, organization of the work of managers. The object of study in P. m. are people included in ... Encyclopedic Dictionary of Psychology and Pedagogy

Request "Manager" is redirected here; see also other meanings. Management (from English management management, leadership, management, administration, direction, skill) means development (modeling), creation ... ... Wikipedia

© Williams Publishing House, 2006

© 1988 Harper & Row Publishers, Inc.

* * *

Foreword

teacher

The main purpose of the book Fundamentals of Management- to provide the reader with basic information about formal organizations (commercial and non-commercial, large and small) and how to effectively manage them. An effective manager always considers situational differences and, in predicting and preparing for the future, acts proactively rather than reacting to events that have already occurred.

The field of management is so broad that introductory courses tend to focus on a single conceptual approach, such as management processes. But, from the point of view of the authors of this book, such a narrow approach does students a disservice. And over the years, many teachers have been convinced that our book satisfies both their needs and the needs of their students.

Preparing for the release of this third edition, we tried to take into account the opinion of teachers who use Fundamentals of Management in the educational process, and even those who do not use this book. And we hope that the result of our efforts is a book that preserves everything that brought her great success in the past. At the same time, it has been changed so that it is even more consistent with the objectives of the basic management course.

We remain convinced that an eclectic approach that brings together the most important and common ideas and concepts from all major schools is the best fit for the real world and the most useful for students. We do not use the findings of any one school to unify the discussion; on the contrary, we emphasize the need to consider the situation as a whole when making any managerial decisions. We repeatedly point out that the manager must necessarily consider both the interaction between different elements of the organization (i.e. internal variables) and the relationship between the organization and the external environment (i.e. external variables), and also that any his decision in one way or another affects all aspects of his firm. And this applies not only to the highest level of management. By helping readers understand what factors determine the success of their future management decisions, we seek to improve their effectiveness at any level of organizational management.

Since all variables and functions interconnected, it is obvious that in order to correctly and comprehensively interpret this or that aspect of the organization's activities, the reader must have at least a basic understanding of all functions and variables. Essentially, this book presents the same topics as most other well-known management textbooks, but the discussion is in a different order. In essence, our approach to organizing material is based on Alfred Chandler's wise saying, "Strategy determines structure."

The discussion of the topics is organized by the authors in such a way as to achieve the main goal - to ensure that readers understand the need to consider the organization as a whole, and that the relationship between all elements and variables must be taken into account when making and implementing any decisions. The very structure of this book clearly reinforces the essential message that the theory and practice of management are evolutionary and that even commonly accepted concepts may need to change.

book structure

Part I of this edition includes five chapters: an overview of the book; a chapter on the evolution of management theory and practice; topics such as social responsibility and ethics.

A detailed discussion of managerial functions begins in Part II. It deals with the so-called connecting processes: communication and decision-making. From our point of view, this order of presentation of the material allows us to emphasize the need for an integrated approach to management problems and helps readers understand the importance of situational factors. However, this part is presented in such a way that teachers who prefer to start with management functions can easily go their own way.

Part III is devoted to the main managerial functions. Two chapters deal with the planning function, two with the organization function, and two with the motivation and control functions.

Part IV has a separate section on group dynamics and leadership, which the teacher may wish to consider when discussing the function of motivation.

Part V is intended both to introduce new topics and to summarize what the reader has learned from previous chapters. Chapter 19 deals with human factors and human resource management issues. Chapters 20 and 21 discuss how an organization's operations are managed, which is critical to its performance. In Chapter 22, we summarize what we have learned about effective management and show how a holistic approach can improve business performance in the future.

Thanks

First of all, we would like to especially thank for the valuable contribution to this publication the Dean of the School of Business. Franklin Purdue at Salisbury College Timothy S. Mescon. He is the author of the original chapter on strategic planning and the part of chapter 10 on implementation and control in planning. We are also deeply indebted to Richard G. Dean and Thomas B. Clarke of Georgia State University for their invaluable contributions to two new manufacturing chapters. David Bruce from the same university has been very helpful in highlighting international and global business issues. You will find his materials in different chapters of this book. Many thanks also to Claudia Rawlins of the University of California (Chico) for their help.

I would like to express my gratitude to the people who provided the most interesting case studies for each chapter and part of our textbook: Caron St. John (Georgia State University), Murray Silverman, Jane Baack, and Paul Schonemann (University of San Francisco).

And many thanks to everyone who read it at different stages of preparation of the manuscript and gave useful recommendations for its improvement.

Michael X. Mescon

Michael Albert

Franklin Hedouri

From the publisher

You, the reader of this book, are its main critic and commentator. We value your opinion and want to know what we did right, what could have been done better, and what else you would like to see published by us. We are interested to hear any other comments that you would like to express to us.

We are waiting for your comments and look forward to them. You can send us a paper or e-mail, or simply visit our Web server and leave your comments there. In a word, in any way convenient for you, let us know if you like this book or not, and also express your opinion on how to make our books more interesting for you.

When sending a letter or message, do not forget to include the title of the book and its authors, as well as your return address. We will carefully read your opinion and be sure to take it into account when selecting and preparing for publication of subsequent books. Our coordinates:

Addresses for letters from:

Russia: 115419, Moscow, PO Box 783

Ukraine: 03150, Kyiv, PO Box 152

Part I. Elements of organizations and management

So, we are going on an exciting journey. A significant part of the territory under study will be unfamiliar to you or even contradictory to what we, how to us seems, we know. The limited time and space of the book further complicate matters. But despite these problems, the final destination of our journey justifies our efforts. You will master the basic concepts of management and organization, that is, a topic of great practical value and very important for almost every member of modern society.

It is generally accepted that the journey will be more successful if the traveler imagines what awaits him. And our case is no exception. Just as people study a map of a country before driving across it, so we begin in Chapter 1 with a general description of organizations, their meaning, and the nature of management. In Chapter 2, we will discuss management development, which is the main theme of this book.

When you hit the road, of course, you want to make sure that your car is in perfect order. Every motorist understands that if the brakes fail in the mountains, new candles will not help. He will probably want to check other aspects of the upcoming trip, such as whether there are gas stations along the route and what the condition of the roads is. Similarly, the manager of the organization must understand and consider how critical factors, or elements of the company, and external forces that affect her. With elements of an organization that are called internal variables, you will learn in Chapter 3, and the factors external environment, or external variables, are described in Chapter 4.

Let's continue the analogy with autotravel. Any experienced driver understands that his car can become a source of danger. Safety issues concern him no less than the technical efficiency of the machine. Similarly, the manager of an organization must take into account its impact on society. Chapter 5 is devoted to this topic.

Chapter 1 Organizations, Managers, and Successful Management

Introduction

In our dynamic time, managing an organization is a difficult task; it cannot be successfully solved by template formulas. A manager needs to know and understand the general rules, while taking into account the vast variety of variables that distinguish management situations. In this chapter, we will present basic definitions of concepts such as organization, management, and managers and briefly describe their main characteristics. We will also define the success of an organization and its main components: efficiency, effectiveness and productivity. Our goal is to create a basis for further discussion and show the general direction of our movement. As you read this chapter (like everyone else), you should try not just to remember the definitions of the main concepts, but to understand their essence.

After reading this chapter, you should be able to understand the terms and concepts listed at the beginning of this chapter.

What determines the success of an organization

Situation 1. How to win a computer game

Realizing that the computer business has a great future ahead, the two firms decided to compete. Firm A is a large American corporation that has already become a leader in the field of electronics. It can invest millions in a new business and conduct market research, hire excellent technicians and sales people, and build new factories equipped with the latest technology. Firm B has just two college dropouts whose electronics experience is limited to selling illegal toll-free long distance devices. Starting development, they do not spend a cent on research. Their initial venture capital is $1,300 from the sale of a Volkswagen bus and a pocket calculator. Their office is in the bedroom of one of the partners, and the assembly line is in the garage. Which firm will be more successful?

The answer is obvious: firm A, in our example - RCA Corporation. But you hardly saw her computers, because in 1976, after losing more than $ 300 million, she curtailed her computer production. And firm B became Apple Computer Products, which in 1982 set a record by entering the Fortune 500 list just 6 years after its inception.

Case 2: Big name in retail

The firm is a pioneer in marketing and retail; she was the first to develop and purchase goods taking into account the wishes of consumers. She owned the first department store, which was the first to implement a new idea - to offer the customer a wide selection of goods, most of which were made to the firm's own specifications. She is known for her "We refund, no questions asked" policy; it is the largest retail chain in the country. What is this company?

You have every reason to answer Sears. But while the above description is perfectly applicable to this largest retail chain in the US, it is not the correct answer. This is a Japanese company Mitsukoshi. Founded in 1650, it became Japan's largest retail chain, 250 years earlier Sears started using the advanced techniques described above.

Situation 3. How to take a steep climb

Imagine that it is the 1960s, and you, an economics student at Yale University, are writing a term paper and proposing to create an airline that will deliver small packages across the United States in one day. Your dream company should become a competitor UPS and the US Postal Service. You plan to drive these powerful competitors out of business, even though it is estimated that your company will charge 40 times more for package delivery services over the same distance than they do. How do you think you would be graded for your work?

Most likely, not higher than the top three - just for the efforts. This is how the “absurd” work of Frederick W. Smith was evaluated, which, in fact, became the project of the corporation Federal Express. Smith could challenge that estimate, but he's too busy running a company that brings in $600 million a year and guarantees millions of packages a year to be delivered within 24 hours. He doesn't even have time to spend the $58 million he earned in a year when he was the highest-paid American corporate executive.

Like RCA in situation 1, this firm is a giant corporation aiming to take over most of the computer market. Her image in society is even more conservative than the image RCA. Until recently, the firm had a rule that all male employees, even repairmen, had to wear white shirts and ties to work. In her 75 years in business, she has never been considered a technology leader. But while its products aren't state-of-the-art, the firm charges almost 25% more than its competitors. It does not set high mandatory sales targets; on the contrary, these figures are so small that almost all employees receive a bonus. Moreover, the firm instructs its salespeople to try to charge customers as much as possible. less of money. To this end, the company sometimes resorts to such sentimental methods: renting a stadium, sellers run out onto the field, and their names and sales figures are indicated on the information board. Does this company have a chance to successfully compete in the computer business with such monsters as, for example, Apple?

One day, while answering this question to a reporter, the former president of the company Apple A. S. Markkula said that his firm has three main competitors: IBM and IBM. The company described above is, of course, IBM. And when PC sales IBM rapidly took the first place in the industry and it cut off a solid piece of sales Apple, it became clear that the assessment of Mr. A. S. Markkula, alas, was absolutely correct.

Situation 5. Food for thought

Here are two firms working in the restaurant business. The first is in an old building in the old part of the city, and not even on the first floor. The food and service here are excellent, but the owner refuses to advertise. The prices in the restaurant of the second company are much lower, the chefs do not have much experience, the dishes are prepared in large volumes and heated before serving to customers. The company is located in the newest part of the city and actively advertises its services. Who is more likely to succeed?

In fact, both of these firms are undoubtedly doing well. For more than two hundred years, gourmets have considered La Tour d'Argent, which is located on the top floor of an old building and offers a magnificent view of Notre Dame Cathedral, the best restaurant in the world. But most people are more familiar with another restaurant business that sells hamburgers under golden arches all over the world.

Situation 6. Obvious truths

According to the Declaration of Independence, "we hold to certain self-evident truths." This applies to management and to our time. It is clear that the world is rapidly changing, and in order to survive, we must also change. Therefore, managers need to be able to make decisions quickly. There is no doubt that one person cannot be the immediate superior of thousands of subordinates. However, the leaders of one organization do not consider all these truths to be obvious. When it comes to policy change, even compared to the terrible state bureaucracies, this organization can be compared to a snail trying to catch up with a hare. Apparently, its leader is not even aware of modern democratic trends. He issues verdicts without consulting mere mortals, and expects their unquestioning execution. We say "he" here, not "she" because explicit sexual discrimination precludes the very possibility of a woman reaching such a high position in this organization. In the light of current trends, could this organization even dream of surviving the 1980s?

No one is allowed to know their future. But if an organization has managed to survive and flourish for 2000 years, this is a serious success. So the likelihood that the Roman Catholic Church, which was discussed, apparently will continue to exist, is very high.

Why is it tiny Apple and giant IBM made hundreds of millions in the computer business, and RCA did it fail? How Federal Express better service than the US Postal Service, which has far more resources and government support? How MacDonald's manage to sell millions of hamburgers for a small price every year and make huge profits, while most restaurants can only feed a few hundred customers a day? Why Sears and Mistukoshi have been leading the retail trade in their countries for many years, while others have gone bankrupt? Why has the Catholic Church been flourishing for 2,000 years when its policies could bring down any other company in just a few hours?

Management arose precisely because people have always sought to understand the reasons for the success and failure of organizations. Scientists are constantly looking for the answer to this question by trial and error. To answer it, you need to find the answer to a more pragmatic question: "What can a manager do to ensure the success of his company?".

At first glance, in all the situations described above, one can easily find an explanation for the success or failure of a particular firm. For example, one might say that RCA was wrong in trying to compete directly with IBM. But DEC, Data General and honneywell also compete with IBM and they were quite successful. We still have to repeatedly make sure that the explanations lie on the surface, but then it turns out that they are erroneous or imperfect.

The absence of easy answers does not mean that success cannot be explained and that there are no specific methods to achieve it. There are many techniques, procedures and concepts that have proven to be effective. The lack of easy answers only means that there are no methods that will work for everyone and at all times, and that what worked in the past may not work in the future. Henry Ford's concept of mass production of standard cars was one of the greatest ideas in history. But Ford was so blinded by his success that he nearly bankrupted the company by insisting on the Model T when General Motors began to offer customers cars of different colors and models. And the experience that allowed RCA to become a leader in the production of televisions and television broadcasting, proved to be useless in the computer business.

Organizations

All the examples described above have one common characteristic, which also Brownie Troop 107, King's ranch in Texas, Mount Sinai Hospital, Sony, Harper & Row Publishers, DPRK, General Motors, US Navy and your college. All of these are organizations. Organization is the basis of the world of managers and the reason for the existence of management. Therefore, we will begin the study of management with a discussion of what an organization is and why it should be managed.

What is an organization

1. Having at least two people who consider themselves part of this group.

2. The presence of at least one goals(desired outcome) common to all members of the group.

3. The presence of group members who consciously work together towards a common goal.

Combining these requirements, we get an important definition.

Organization - a group of people whose activities are consciously coordinated in order to achieve a common goal or goals.

Formal and informal organizations

More precisely, it should be said that this definition is not just an organization, but formal organization. There are also informal organizations, i.e., groups that arise spontaneously, but their members regularly interact with each other. Informal organizations exist in all formal organizations, except for very small ones. They do not have managers, but they are so important that we have devoted a separate chapter to them. Guided by generally accepted practice, speaking of informal organizations, we will call them that way, and the term organization will refer to formal organizations.