Why do companies need effective management? "Effective management" - what, in fact, is it? Performance Management System Integration

16.01.2021

If economists really understood business,
they would be rich people, not rich people's advisers.
Kerk Kerkorian,
American financier, billionaire,
owner and leader Tracinda Corporation

What is meant by management efficiency, where is the boundary between efficiency and inefficiency? If we ask this question to economists, financiers, personnel officers, marketers, production workers, we will get completely different answers. Each of them sees the enterprise "from his own bump." Their view may be correct, but limited, not creating a complete picture. Only from the highest "hummock" can one look at all aspects of the business, therefore, this article discusses the effectiveness of enterprise management from the "flight height" of general management, or, as it is commonly called, from the point of view of general enterprise management.

How to evaluate the effectiveness of enterprise management?

Most often, the concept of efficiency is used in the financial and economic field of management - an exact discipline that operates with numbers, formulas, coefficients. In this regard, a certain stereotype has developed, and when it comes to the effectiveness of enterprise management, people expect to receive a formula with exact data in which these data are added, multiplied, divided and subtracted. The result should be a certain coefficient. This method can be used to measure the effectiveness of management, for example, investments, capital, working capital, but this approach is unacceptable for understanding the overall effectiveness of enterprise management.

By studying the overall effectiveness of the organization's management, we will get a number of indicators, some of which will be expressed in numbers, others in verbal formulations. These indicators will be useful only to those who have a sufficient level of experience and qualifications in management and can make a balanced general conclusion that takes into account all the facts, factors, trends, trends, etc.

I'll draw an analogy. If the inhabitants of an African tribe bring a disassembled machine gun with cartridges, then they will find use for its parts in their household, but they will not think of collecting it and using it as a weapon. If they are shown the machine gun in action, and then dismantled in their presence, then they will not drag it to their huts, but will try to assemble and use it, then everything will depend on their quick wits. The conclusion is this: if a person does not know which object should be composed of elements, and does not understand the purpose of each element, then he perceives these elements individually, understanding their purpose in his own way. At the same time, I note that the machine gun will not shoot if it is incorrectly assembled or one part is missing.

Enterprise management is a little more complicated than a Kalashnikov assault rifle, therefore, when evaluating the effectiveness of management, it is necessary to take into account who conducts the assessment (from what “bump” he considers the enterprise) and how he draws generalizing conclusions (is he able to correctly connect the elements into a coherent picture).

Efficiency of enterprise management in various perspectives

It is impossible to add up a holistic picture of the effectiveness of management without considering the enterprise from different angles of view. The overall efficiency of managing an enterprise (organization) consists of the effectiveness of managing individual functional subsystems - marketing, human resources, financial resources, production, logistics, etc., and also largely depends on how the management of all subsystems is balanced at the level of general management i.e. at the general management level. Also, the effectiveness of enterprise (organization) management is considered from a strategic and operational-tactical point of view. In addition, it must be considered in the context of various enterprise systems, for example:

Efficiency of the resource attraction system.
The effectiveness of the organization's resource use system.
Efficiency of the business process coordination system.
The effectiveness of the control system in all areas of the enterprise.
The effectiveness of the enterprise goal-orientation system.
The effectiveness of the decision-making system.
The effectiveness of the personnel motivation system.
The effectiveness of the system of delegation and distribution of responsibility.
The effectiveness of the system for assessing the activities of the enterprise.
The effectiveness of the forecasting system.
The effectiveness of the personnel training system.

In addition, the effectiveness of enterprise management has two important measurements- economic and productive. A performance measurement reports how well an organization successfully accomplishes its objectives in terms of meeting the required volume of production, sales, and other marketing objectives. And the economic dimension reports how costly this way of achieving the goals is. Another division of control areas must be carried out in two categories: object-logical control (OLU) and socio-psychological control (SPU).

Object Logic Control (OLU)

: to anticipate, predict, analyze, plan, decide, organize (develop and implement, ..) order, give instructions, set tasks, coordinate, control.

Control objects: process, function, information, as well as a person, a subdivision - as an element of a process, a function performer, etc.

Object-logical management is often called administrative.

Socio-Psychological Management (SPU)

Management actions taken: motivate (call, inspire, encourage and punish, etc.), train, develop, instruct, take care, provide support.

Control objects: a person (as a social object, which is an emotional and spiritual personality, having his own views, values, interests), a group (as a society) involved in processes, performing functions and tasks.

Only a harmonious combination of these two components ultimately creates a full-fledged management and opens the way to effective management:

Effective management = OLU + SPU.

When all these factors are combined into a single system, a multidimensional model is obtained, in which a complex interweaving of causal relationships can be traced. Seeing such a complex picture of interdependencies, most owners do not even try to understand it, since they are entrepreneurs at their core, and the routine of system management makes them bored. They usually go in three ways:

1. Leave the enterprise at the level of development that allows for the usual directive management.
2. Invent your own simplified management model and try to improve it by trial and error.
3. Establish effective management with the help of specialists in management and transfer the overall management of the enterprise to a professional manager.

The first way leads to the gradual attenuation and death of the enterprise, because if the business does not develop in a competitive environment, then the company loses in the competition to stronger rivals. The exception is organizations that have found and occupied a very small niche in the market that is not interesting for stronger competitors. If the enterprise is faced with the task of reaching a new level of competition, then it means that it is necessary to increase the efficiency of management.

The second path leads to disappointment, because in order to invent your own original management system, you need to deeply understand the principles of effective management. If the basic principles of effective management are not violated, then it is quite possible to create your own original management system, which many leading companies have proven in practice. But these companies created their management models (seemingly easy to understand at first glance) only after they had gone through a stage of deep study of the principles of efficiency.

The third way is potentially advantageous, but only if the business owner responsibly approached the transfer of control. If it is not carried out technologically competently, then the consequences of such a transfer can be the most deplorable, up to a complete loss of business.

The effectiveness of strategic enterprise management has a higher priority than operational management, although both of these components are essential for business success. Strategic management indicates the direction of movement (the direction vector of all the efforts of the organization) and creates systems for tracking the course. Operational management ensures the speed of advancement of the enterprise along the chosen strategic course. Why does the strategy have a higher priority? I'll try to explain simply. If the direction is chosen correctly, then the enterprise, even at a low speed, can get ahead of its competitors. But if the direction is chosen incorrectly, then the enterprise can move at a fast pace, but along the wrong path and, accordingly, will not achieve its goal.

Efficiency of strategic enterprise management

Decisions about the fate of a business (enterprise, organization) are made at the top level of management and this is called strategic management. In most Ukrainian companies, the strategic vision of successful competition and market conquest is the mission of individual highly qualified specialists, and sometimes even one founder. Strategists in the fog of the future look at the goal and orient the organization towards it. What should the organization be like in N years, what will be its products, why will they be in demand, why will consumers prefer them over competitors, and so on. This is the strategic vision (sometimes called vision).

But a path must be laid to the goal - certain directions for the organization's actions. The path to a long-term goal consists of many transitional stages. The step-by-step movement from one stage to another is planned taking into account the capabilities of the organization, the state of the market and the influence of competitors. This is the strategic development plan. At the moment, strategic plans and strategic planning are more negatively perceived, and this pours balm on the soul of those entrepreneurs for whom the development and formalization of such plans is a terrible torment. In my opinion, the negative attitude towards strategic planning is another distortion, and it arose as a reaction to the failures of corporations, which replaced live activity in the strategic field with a bureaucratic planning system. One of the great commanders expressed the idea that plans in most cases lose their relevance as soon as hostilities begin. But at the same time, he emphasized the great importance of the planning process, during which many scenarios of possible development of events are played out, resources and capabilities are thought out and calculated, the interaction of units is being worked out, thereby high-quality preparation for the upcoming military operations is carried out.

Strategic planning is necessary precisely because we cannot predict anything... Strategic planning does not deal with future decisions, but with the prospects of present decisions. Solutions exist only in the present. The question that confronts the strategic decision maker is not what his organization would do tomorrow, but what we must do today to prepare for the unknown tomorrow.
Peter Drucker

The same substance for a person can become both a poison and a medicine - it all depends on the dose and method of application. The same is the case with strategic planning. If the attitude to the strategic plan is like a formal document that is drawn up once a year or several years and must be strictly observed after approval, then such planning is poison for the organization. In this case, the effectiveness of enterprise management will be unsatisfactory and disastrous for the enterprise. And if strategic planning is viewed as a process of teaching an organization to predict events, preparing for conducting competitive hostilities, and the plan itself becomes a strategic guideline that must be adjusted in the implementation process, then this approach is of great benefit to the enterprise. In this case, the efficiency of enterprise management is significantly increased.

Many business founders, possessing entrepreneurial talent, correctly determine the strategic priorities for business development on an intuitive level, and such strategies become winning for the enterprise. But one should not confuse intuitive foresight with management based on this foresight. If the directions of development are not known to the employees of the organization, there is no sense of strategic direction, the strategy is not broken down into goals and objectives of each department and employee, then I call this intuitive management of one person. In reality, such intuitive strategic management is possible only up to a certain business scale. Since many decisions in the field of operational management are based on strategic guidelines, only the managing owner of the business can make informed correct decisions. His subordinates do not have enough information to make the right decisions. At the initial stage of development of the organization, as a rule, a directive management style is used, and all important business processes are closed to the owner of the business. Directive management style means management through direct instructions (directives).

A typical picture of directive management. The subordinate, having received a direct instruction (directive) to perform something, begins to fulfill it. At the same time, the formulation of the problem presupposes a certain scenario for the development of the situation. If the development of the situation deviates from the scenario, then the subordinate becomes at a standstill and is forced to disturb the leader again so that he makes a decision and gives him new instructions. While there are not so many subordinates and business processes are all in sight, the owner copes with this flow of requests for decision-making and issuance of directives. But as soon as the business begins to grow, the managing owner becomes a "brake to processes." Subordinates wait hours and days for decisions, while processes are frozen at this time, as the main decision-making center is overloaded. I will not dwell on the emotional aspects of such a situation, when the owner feels like a driven horse, I will only say that such a situation is extremely harmful for the business and can lead to serious economic losses and provoke problems at the strategic level - serious complications in relations with customers, suppliers, within the team, deterioration of the image trademark etc. The effectiveness of the directive management of the enterprise rushes to zero as soon as the enterprise crosses a certain border of business activity.

When an enterprise has a strategic vision, strategic guidelines are indicated, then the company needs to be led along the chosen path to the desired goal as quickly as possible at the lowest cost. These are the tasks of operational-tactical control.

Efficiency of tactical enterprise management

When there is a strategic vision and a strategic plan, then the organization must be led along the chosen path to the desired goal. In order for the forces and resources of the organization to be directed to solving strategic problems, it is necessary to properly manage resources daily and hourly - human, financial, material, temporary. Long-term strategic goals are achieved through the daily efforts of many ordinary employees. One big step of the organization consists of many small steps of its employees. When employees move smoothly in the right direction, this indicates that the people who organize them are good managers and, in general, the efficiency of enterprise management is at a fairly high level.

The effectiveness of enterprise management can be judged by how ordinary employees understand and perceive information about goals and objectives, are able to make the right decisions at their level, act adequately to the situation, and are focused on solving the problems of the enterprise; what conflicts arise and how they are resolved; how the actions of employees and departments are coordinated, how they are supported by the timely allocation of resources, and so on.

The table shows some indicators of management effectiveness and the areas of enterprise management that affect them:

Management performance indicators	Influencing areas of enterprise management
The employee understands his tasks correctly.	· Goal setting (clear interpretation); · Development and communication of a strategy for achieving goals; · Task scheduling; · Setting goals; · Company's mission; · Corporate culture; · The employee understands his contribution to the overall result, to the intermediate results. The tasks are delivered to the executors broken down into blocks that they understand, in an understandable form.
The employee has the necessary qualifications and competence.	· Correct vision of the need for human resources; · Recruitment; · Arrangement of personnel; · Teaching the principles and methods of personal effectiveness; · Stimulating the improvement of professional skills; · Education.
The employee is motivated (his interests are in accordance with the interests of the organization).	· Development, description of business processes; · Adequate evaluation of results; · Career motivation; · Career planning.
The worker has the necessary energy to complete tasks	· Favorable working environment; · Feeling of belonging to the “right” cause; · Favorable moral climate; · A state of positive stress; · The company provides an opportunity to restore strength and energy; · Training in recovery techniques, stress relief; · Promoting and promoting a healthy lifestyle.
The employee is correctly oriented in general rules and principles (has a sense of a general orientation).	· Company's mission; · Corporate culture; · Values, principles, rules; · disciplinary rules; · ethical standards; · Control of the passage and perception of information.
The employee receives the necessary information in a timely manner and in full to complete the tasks.	· Development, description of business processes; · Sophisticated information system; · Willingness to cooperate; · Control of the passage and perception of information.
When performing tasks, the interests of the employee (department) in accordance with the interests of other employees (departments)	· Development, description of business processes; · System of material incentives (reward based on results); · Accounting for individual motivations; · Timely prevention of destructive conflicts; · Elimination of system conflicts; · The desire for cooperation.
The actions of workers are coordinated in time and space.	· Development, description of business processes; · Creation of coordination centers; · Planning training; · Action planning; · Control of results; · Analysis; · Correction.
The actions of employees are supported by the timely allocation of resources (financial, human, temporary).	· Financial planning and forecasting; · Cash flow management; · System of planning and distribution of workload on staff; · Proper allocation of resources (budgeting); · Operational budget management; · Resource control.
Tasks and problems are solved in order of their priority importance.	· Development, description of business processes; · Learning to prioritize; · Agreeing on priorities.
Decisions are made in a timely manner and with high quality.	· Development, description of business processes; · Possession of up-to-date information for decision-making (information system, desire for cooperation); · Decision-making criteria are clear (mission, values, attitudes, rules, understanding of the goals and objectives of the enterprise); · Delegation (decision centers should not be overloaded); · Distribution of powers and responsibilities; · Decision making training.

How to measure the effectiveness of enterprise management?

If the management system in place at the enterprise does not even meet the current business objectives, then it becomes a significant brake on development, lowers competitiveness and negatively affects performance. When an enterprise aims to develop, expand, enter new territories, new sales markets, where it will meet in the fight against stronger competitors, the problem of reorganizing the management system becomes very relevant. Therefore, if the task is to evaluate the effectiveness of managing a developing enterprise, then first of all it is necessary to set the goals that the enterprise is striving for, and then to diagnose the existing enterprise management system for compliance with future tasks.

Evaluation of management effectiveness is carried out according to many parameters. For different enterprises, this set of indicators almost does not change, but the parameters themselves acquire different priorities for each enterprise. According to the Pareto principle, 80% of efforts and attention should be paid to 20% of the main subsystems, functions, business processes that have the greatest impact on performance. The challenge is how to identify those top 20% and focus on them.

There is no single immutable standard by which any organization can receive a rating for the effectiveness of its enterprise management. We can only say with certainty that management must be so effective that the enterprise achieves its goals. And each organization has its own goals, and at each stage of the enterprise life cycle, the goals and objectives change due to the natural growth of the business, and are also significantly adjusted by the goals of the business owners.

The problem of managing the performance of an enterprise is determined by its leading role in the progressive development of the enterprise, the harmonious combination of the interests of owners, employees and society. The effectiveness of this management depends on the quality of building a management system in the organization, its proper methodological and information support.

Performance and Performance Management: Key Approaches

In modern business conditions, in order to be successful and competitive, an organization must be both cost-effective and efficient.

Efficiency and efficiency - one of the most complex economic concepts, the interpretation of which causes a lot of discussion among scientists.

The most common is determination of efficiency as an indicator of the relative effect is determined by the ratio of the result to the costs that ensured its receipt. That is, this is the most favorable ratio between total costs and achieved economic results.

Economic efficiency can be measured and quantified by defining the monetary value of its inputs and outputs:

To organization's management performance indicators most often include:

The share of management costs in the total cost of production and sales of products;

The share of managerial personnel in the total number of personnel of the organization;

The ratio of linear and functional management personnel;

The financial position of the enterprise (liquidity, solvency, efficiency in the use of assets, efficiency in the use of equity capital, profitability, etc.).

Economic efficiency management is based on the following principles:

Correlation of results and costs;

Comparability of costs and results;

Efficiency correlations;

The cumulative efficiency.

Efficiency - this is a measure of control accuracy, which is characterized by the level of achievement of the expected state of the control object, control goal or the degree of approximation to it. It is associated with production, technological and management processes, specific problems and ways to solve them.

A performance indicator is a unit of measurement that is associated with a key success factor and a strategic goal by which the performance of processes and the organization as a whole is evaluated. I.e performance indicator - this is a certain standard that allows you to quantify the degree of achievement of strategic goals. Its values may be based on the expectations of the control system, the needs of consumers, or on the results of studies of the actual values of indicators. Moreover, it is not advisable to use many performance indicators, two or three are enough for each of the strategic goals, which must meet the following criteria: be specific, measurable, achievable, realistic, understandable, time-bound, result-oriented.

The effectiveness of the organizational system is formed under the influence of many factors: the potential of the system, the balance of the components of the organization, the level of development of all subsystems of the organization, the competitive position of the organization, etc.

Difference of concepts "efficiency" and "performance" shown in fig. 9.1.

Rice. 9.1- Characteristics of the concepts of "efficiency" and "effectiveness"

Performance Management in the classical interpretation it is interpreted as "the process of transforming plans in action, results", "strategy management" .

Performance management is formed on the basis of the following conceptual provisions:

1. The maximum concretization of the enterprise strategy, that is, the consistent deployment of the strategy into a system of subordinate goals of an increasingly applied nature at each next level.

2. The maximum formalization of the strategy, that is, the establishment of a system of quantitative and qualitative indicators to measure the degree of achievement of each specific goal, starting from the current state and up to the target indicator (target indicator, represents the state of achieving the goal).

3. The maximum personification of the strategy, that is, bringing each applied goal to a specific performer in such a way that he understands his specific goal and ways to achieve it, as well as the place of this goal in the enterprise strategy, and the enterprise strategy itself.

4. The most accurate system for tracking resource costs during the implementation of the strategy.

Performance and Performance Management is a complex system that covers all stages of the circulation of capital, all processes of formation and use of the potential of an organization that ensures the harmonization of the interests of all participants in social relations. It includes: management of targets and strategies, material and financial flows, people, processes, information flows and communication links.

In general, performance and effectiveness management is based on the performance of four main management functions (Fig. 9.2).

Rice. 9.2-

The planning process in an organization begins with a clear understanding of what needs to be done for its effective development and functioning. Setting general goals makes it possible to choose guidelines for the work of the entire organization, and their further concretization and determination of criteria for evaluating the results obtained ensures the effectiveness of the entire planning process (Fig. 9.3).

The quality of any plan depends on:

The quality of goal-setting in priority areas of development of the organization based on an assessment of its past, present and future plans and the success of its response to changes in the external environment;

The quality of a preliminary comprehensive analysis of the activities of the organization itself (operational, financial, marketing, risks, etc.);

Correct assessment of the competitiveness of the organization;

Selecting and implementing a development strategy that will increase the efficiency and effectiveness of the organization.

Rice. 9.3- Stages of effective organization performance planning

The effectiveness of planning is manifested in the specification of the development goals of the entire organization and each of its divisions separately for a specified period of time, the determination of the financial resources necessary to solve the tasks set, taking into account the possibilities for the most efficient (alternative) use.

The effectiveness of the planning process in an organization is ensured by using the following principles:

Participation of the maximum number of employees of the organization in the work on the plan already at the very early stages of its preparation (people will be more willing to perform tasks not “launched” from above, but those that they have set for themselves)

Continuity, according to which planning is not a single act, but a system of regularly repeated actions;

Continuity, that is, new plans are developed taking into account the fulfillment of past ones and the fact that they themselves will serve as the basis for drawing up plans in the future

Flexibility, allows for the possibility of revising, within certain limits, previously adopted plans when circumstances change;

Coordination of plans by coordinating the plans of units of the same level and integrating the plans of subordinate units;

Profitability, which requires that the cost of drawing up a plan be less than the effect obtained as a result of its implementation;

Creation of the necessary conditions for the implementation of the plan.

So, the basic principles of planning orient the enterprise to achieve the best economic results. The listed principles are interconnected, universal and suitable for different levels of management.

There are three main forms of organizing planning: top-down, bottom-up, goals down - plans up.

Top-down planning is based on the fact that management creates plans to be carried out by their subordinates. This form of planning can only produce positive results if there is a rigid, authoritarian system of coercion in place.

Bottom-up planning is based on the fact that plans are created by subordinates and approved by management. This is a more progressive form of planning, but in the conditions of deepening specialization and division of labor it is difficult to create a single system of interrelated goals.

Planning "targets down - plans up" eliminates the shortcomings of the two previous options. Governing bodies develop and formulate goals for their subordinates and stimulate the development of plans in departments. This form makes it possible to create a unified system of interrelated plans, taking into account the fact that common targets are mandatory for the entire organization.

Ideally, work plans should be convenient working tools that can be discussed and corrected, and not just documents that lie in a drawer and get only when you need to prepare a report on the work.

Most organizations today are built on the principle of a vertical structure (functional management).

The functional structure of the organization has a number of advantages, namely:

Clarity of separation and specialization of jobs;

Clear requirements for the qualifications and responsibilities of employees;

Strict separation of power and subordination;

High degree of company management.

However, in today's changing economic conditions, the disadvantages of this structure prevail over its advantages. The most significant disadvantages include:

Multi-level management, growth in the number of administrative staff while reducing the responsiveness to environmental changes;

Discrepancy between the number of personnel and the effectiveness of its activities, an increase in the number of personnel and the cost of its maintenance;

The presence of functional barriers that impede the interaction between departments and impede effective management;

An information system based on vertical flows, in which decisions go down "down", and information goes up "up", which causes untimely and insufficient quality of diagnostics and solving organizational problems;

Excessive bureaucratization of management, which leads to a decrease in the initiative of the staff.

To ensure the implementation functions of the organization effective and efficient activity, it is necessary, if possible, to reduce the levels of the hierarchy and switch to a more horizontal model of the organizational structure (Fig. 9.4), that is, to give preference to process management.

Rice. 9.4-

A feature of the performance management system is a clear focus on achieving the result of implementing the strategy through the integrated and coordinated activities of all departments of the company. It is based on the desire to improve the quality of managerial decisions, to reduce the gap between the decisions, plans and actions of all categories of employees.

The choice of a horizontal type of structure is determined by strategic goals and is based on the interdependence of employees, groups and departments within business processes. With a horizontal structure, the boundaries between the divisions of the company become transparent. This allows you to quickly and efficiently exchange information between them and solve problems that arise in the course of activities.

Motivation and stimulation in effective organization, on the one hand, involves an individual approach, and on the other hand, should be based on a system that applies to all employees.

Remuneration should be determined on the basis of both the individual assessment of employees and their assessment as members of working groups. Most traditional way motivation in organizations is wages. In terms of incentives, remuneration is a monetary reward paid to an employee in proportion to the costs and results of labor. So, the specific amount of remuneration of an employee should depend on the level of his labor costs and the results obtained.

When making decisions about how to properly use monetary rewards as an incentive for employees, the following principles should be followed:

Monetary remuneration should be differentiated depending on the results of work;

Differentiation wages within less than 10% of the total remuneration is ineffective for incentives;

Monetary remuneration should be closely related to work over time;

An employee should not face negative phenomena in his work that are more significant than the benefits of wages;

The number of salary components should not be too large;

Among the components of wages there should be remuneration for collective (team) results;

It is important to ensure an objective, impartial and equal approach to assessing the performance of various jobs;

The employee must know in advance how much he can earn;

With a certain, sufficiently high level of income, additional monetary remuneration does not stimulate the employee to improve the efficiency of his work.

Change or improvement of the incentive system in an effective organization should be carried out taking into account the achievement of results, with an emphasis on group work, not individual work, with the encouragement of multifunctional rather than one-sided competence.

The control in an effective organization is a familiar and systematic process based on a combination of control functions and providing employees with timely feedback to achieve established organizational goals. Feedback can be both periodic and spontaneous.

System improvement control within the framework of performance management provides:

Identification of critical areas of the organization's activities for monitoring and evaluating results and deviations;

Determination of clear and simple benchmarks for efficiency and effectiveness for groups and each employee individually.

Thanks to systematic monitoring, the manager can identify unsatisfactory performance at any time during the evaluation period and provide timely targeted assistance in achieving the required performance.

It is customary to single out such generalized performance indicators, using which, one way or another, you can control and evaluate the results of activities:

Quantity (amount of work performed or result achieved)

Quality (compliance of work performed with established standards)

Deadlines (timeliness of work execution);

Cost (profitability, cost savings, economic effect, compliance with estimates, budget, etc.).

Generalized indicators allow you to understand how you can measure and control the results of activities. Specific indicators follow from the generalized indicators, which, taking into account the specifics of the activity of a particular position, make it possible to evaluate the performance of an employee.

In the economic literature, there are three main approaches to assessing the performance of an organization - targeted, systemic and selective.

Target approach involves assessing the performance of the organization based on determining its ability to achieve previously set goals. In accordance with this approach, in an organization, groups act rationally to achieve goals. Rationalism is the choice of such an option for the use of resources that would make it possible to achieve certain goals at the lowest cost. This approach is advisable to use if the goals are clearly defined, and the effect can be accurately calculated.

According to the target approach, the effectiveness depends on:

The clarity of the definition of goals, that is, the compliance of the intended goals with the conditions and requirements of the external environment, the capabilities of the enterprise and the interests of interested groups;

Orientation of personnel motivation to achieve goals;

The adequacy of the chosen strategies for the set goals;

The amount and quality of resources used by the organization to achieve goals.

Systems approach. According to this approach, the criterion for the effectiveness of the organization is its ability to adapt. This approach focuses more on the internal characteristics of the organization and on the means of maintaining relations between members of the organization than on goals. The internal distribution of resources, the definition of hierarchical dependencies, the principles and rules for the interaction of participants take center stage, and cost estimates recede into the background. This approach is typical for budgetary organizations.

The concentration of attention on the "survival" of the organization as a result of its adaptation to changes in the external environment causes passive management of it, focused only on the reaction to changes. This approach assumes that the organization must have a certain amount of unused resources, which allows it to withstand changes in the external environment, but this contradicts the criterion of cost minimization.

selective approach. To evaluate the effectiveness, criteria are used that correspond to the strategic components of the organization. This approach is based on ensuring a minimum level of satisfaction for all components of the organization, the motives and goals of which differ. If this level is not reached, then tension and conflicts paralyze the activity of the organization and make it ineffective. Central to this approach is the need to define for an organization which components are strategic.

Each of these approaches has its own disadvantages and advantages, which manifest themselves under different circumstances. The best results are achieved with a combination of all three approaches.

The hallmarks of an effective and efficient organization are:

Targeted nature of development with the relative stability of strategic guidelines;

Long-term orientation of development;

Adaptation of the development process in the form of ensuring compliance with internal and external capabilities for a long time, including through changes in the internal and / or external environment;

Ensuring the stability of the competitive position of the organization in the long term, as the ability to withstand adverse factors of changes in the external and internal environment.

The performance management system allows the use of various methods and concepts. The effectiveness of management is determined by the ability of management to choose such methods and approaches that are more consistent with the strategy and conditions of the company.

The implementation of a performance management system allows the organization's management to:

Reduce the risks caused by volitional (emotional) decisions and attempts to hide real problems;

Minimize unproductive activities that are not related to the implementation of the company's strategy;

To increase the return on staff, revealing its potential.

Performance management is a set of measures that allow timely identification and correction of deviations of the organization from the set goals.

Comparing the management systems of Western and Russian companies, one can see many differences in their management systems. In Western management, the organization's performance management is called "performance management" - Performance management, which includes 5 important principles.

Setting goals and evaluating results

When studying the work of Russian companies, one can often come across a situation where the company does not have approved plans and the manager and the subordinate understand their goals and objectives in different ways. As a rule, the head of the company is sure that his employees know exactly what they need to do, but as soon as they sit down at the “negotiating table”, it turns out that this is not at all the case. Ultimately, this “goal setting” can lead to problems and misunderstandings.

In foreign companies using performance management, goals for the year are set for all employees with clear criteria for their measurement, and all the main business processes are described in detail. The goals of employees are usually tied to the strategic goals of the company. The analysis of the movement by goals and two-way feedback between employees and managers are regularly carried out.

In companies where the Performance Management system has been implemented, if an employee regularly does not fulfill the planned indicators, then when he is fired, everyone understands perfectly well why this happens.

In Russian companies, sometimes it happens that an employee may lose his job without knowing the reason for his dismissal, although, in his opinion, he did everything right.

Feedback

Nowadays, some domestic companies have already begun to implement performance management tools, but often, many managers do not fully understand what feedback is and what main tasks it solves. Until now, you can find companies in which the heads of departments evaluate the work of their employees only once a year.

In foreign companies, employees constantly maintain feedback from their managers, who are sincerely interested in the opinion of their subordinates. After each meeting, the manager asks what he is doing wrong, what he can improve and asks his subordinates for advice.

In domestic companies, directors are rarely interested in the opinion of their employees, and here open feedback is a huge rarity. People are ready to say anything to their boss, just not to be left without a job. For example, an effective feedback format would be a 360-degree evaluation, which is conducted anonymously. But even in this case, if it is carried out formally, subordinates “just in case” try to overestimate their boss. As a result, the manager does not receive an objective assessment of his activities, which can negatively affect his development and the results of the work of his unit.

Studying the experience of leading Western companies, we can conclude:

Corporate culture should begin, first of all, with the top management. Leaders need to ensure they receive honest feedback. This approach to business and personnel management is the most effective, as in this case, communication is established between the manager and employees.

Employee Engagement

Most foreign companies have adopted a culture where managers regularly ask for the opinion of their employees. This approach to personnel management shows its effectiveness, as a trusting relationship is created between the employee and the manager, which in turn has a positive effect on labor productivity.

In Russian companies, things are a little different. During the study, it was found that about 45% of employees are dissatisfied with their position and current management. People do not have enough respect for them and recognition of their merits. Many of them dream of changing jobs.

One of the main tasks of the HR service is to increase the involvement of employees in the work process. When an employee is involved in the process and passionate about his work, as a rule, he will speak well of the company in which he works, and will be happy to perform his job duties.

Leading experts in the field of management say that managers need to praise their employees more often. To keep people enthusiastic, to help them grow professionally, to create the best working conditions - this is the main task of the modern leader.

Nowadays, it is extremely important to be able to support people, help them develop professionally, and give soft feedback.

Horizontal control

In most Russian companies, as a rule, there is a hierarchical management structure. And the larger the company, the more difficult it is for a simple employee to reach the very top. The less opportunity he has to speak out and convey his idea, which can benefit the organization.

In our companies, it is difficult to meet an informal leader in a T-shirt who communicates with his subordinates on social networks.

Today, in order to be competitive, it is necessary to think out of the box, that is, “outside the box”. To do this, the company needs to create an environment where employees can have a sense of freedom and security. The rules of the game must be clearly understood and defined. Mutual support is necessary, because without it it is difficult to reveal your abilities and effectively achieve your goals.

As an example, we can cite the large corporation Google, which simultaneously employs more than 10 thousand teams. They are formed for common goals and objectives, and also disintegrate and re-create. At the same time, all teams completely lack a hierarchy, so they are cross-functional and self-governing.

You can read about how Russian companies are implementing a horizontal management structure in the article:

Coaching Approach

Today it is already difficult to surprise someone with the word "coach". Every year, more and more Russian companies begin to use the services of coaches to train their leaders and top managers. However, not all managers use the coaching approach in their work. Many business leaders and HR departments still do not understand who a coach is and why they need to pay for it.

If you look at the experience of successful European companies, then for them working with a coach has long become the norm. In some organizations, in addition to external coaches who train senior management, separate schools of internal coaches have been created to train employees of the company. For example, Nokia has invested about 1.2 million euros in the institution of internal coaches.

According to Russian companies, such an investment is considered unreasonable and unprofitable today. Why is this happening?

The fact is that performance management is long-term and aimed at obtaining consistently high performance in the long term. And the mentality of many leaders of Russian companies strives for momentary profit and does not allow them to plan for the long term.

It is important to understand that a coach is a specialist who helps people to correctly prioritize, set goals and achieve their implementation. Such a specialist is needed in any company that seeks to take a leading position in the market.

We recommend reading our article:, which describes the main advantages of this approach.

So, we can summarize that the following 5 principles greatly influence the performance management of an organization:

Having clear goals and evaluating results
Timely Feedback
Employee engagement
Horizontal control system
Coaching approach to management

To succeed in today's world, an organization needs clear goals and engaged employees who understand how they will achieve those goals and that their work will be appreciated.

TO ORDER THE SERVICE: "BUILDING AN EFFECTIVE SALES DEPARTMENT" and "MANAGING THE EFFICIENCY OF THE ORGANIZATION", YOU CAN CALL BY PHONE: +7 495 394-33-17 OR FILL OUT THE FORM ON OUR SITE!

Faculty of Economics and Management

Department of Management

COURSE WORK

in the discipline "Management"

Management efficiency

Introduction

The essence of effective management

1.1 Evaluation and principles of management effectiveness

1.2 Criteria for management effectiveness

1.3 Three levels of management system effectiveness

Factors for increasing the efficiency of managing a commercial organization

2.1 Organizational structure and division of labor

2.2 Resources and technology

2.3 Personnel as a factor in improving management efficiency

Influence of the head on management efficiency

3.1 The main qualities of a leader

3.3 Proper organization of labor as a factor in improving management efficiency

Conclusion

Sources

Introduction

"Organization management system" is one of the key concepts of organization theory, closely related to the goals, functions, management process, the work of managers and the distribution of powers between them in order to fulfill certain goals. Within the framework of this system, the entire management process takes place, in which managers of all levels, categories and professional specializations participate. The management system of the organization is built to ensure that all processes occurring in it are carried out in a timely manner and with high quality. Hence the attention paid to it by the heads of organizations and specialists, with the aim of continuous improvement, development of both the system as a whole and its individual components. It is obvious that the study and improvement of the management system, both within the framework of a separate organization and the state, society as a whole, contributes to the speedy achievement of the goals and objectives.

Management as a modern management system for a firm, an enterprise operating in a market economy, involves the creation of the conditions necessary for their effective functioning and development of production activities. We are talking about such a management system (principles, methods, organized structure), which is generated by the objective necessity and patterns of market relations of management associated with the orientation of the company to the demand and needs of the market, to requests for individual results by the wide use of the latest scientific and technological achievements, the regulation of inter-firm relations . The peculiarity of modern management is its focus on ensuring rational management of the economy at the firm level in conditions of scarcity of resources, the need to achieve high end results at minimal cost, optimal adaptation of the firm to new market conditions for production or consumer goods, the availability of modern electronic computing technology, the degree of involvement into foreign economic activity.

The goal of any organization is to grow, develop and maximize its economic results. This requires continuous improvement in management efficiency. The quality of organization management is influenced by many both objective and subjective factors. One of the most important is a properly built structure and division of labor, the availability of all necessary resources, modern technologies. The effectiveness of management is influenced by the attitude of the staff to work, the manager and the organization. The qualities and abilities of the leader himself, his authority, the ability to find a common language with subordinates and organize the work process are also of great importance.

The purpose of this course work is to study the concept of management effectiveness, criteria and directions for its evaluation, as well as factors for its improvement.

1. The essence of effective management

1.1 Evaluation and principles of management effectiveness

Currently, there is no single approach to assessing the effectiveness of company management. Due to the fact that in practice the dimension of estimates is quite large, and it is often impossible to make quantitative comparisons of the parameters of a managed object (firm), it is not possible to evaluate all aspects of management. Therefore, in some cases, the assessment of management efficiency is limited to the analysis of the financial and economic state of the company.

The simplest example is the assessment of management effectiveness in terms of the level of profit, according to the trend of increasing or decreasing this indicator. That is, if we evaluate the compliance of the results of the company's activities with the actions of management, then the resulting indicator will be a criterion for the economic efficiency of management.

More difficult economic analysis the effectiveness of the company's management includes an assessment of the company's performance using comparative indicators, which are reflected in financial reporting firms.

Thus, it has historically developed that profitability is considered to be the main criterion for the economic efficiency of management. Another economic criterion of efficiency, subject to the criterion of profitability, is productivity, characterized by indicators of individual and group labor productivity, output volume, product quality. This also includes indicators of the use of material resources (indicators of the balance of inventories, current direct and overhead costs, etc.), human resources (the cost of hiring labor, training and advanced training, indicators of labor organization), the introduction of innovations (the availability of appropriate capacities, production reserves).

At the same time, the presence of several solutions in the management organization raises the question of comparing results with costs. This comparison becomes more and more necessary as the freedom of choice grows on the one hand, and with the intensification of the use of resources on the other.

In this interpretation, management efficiency is increasingly identified with efficiency: a useful result is compared with the costs of activity, and among the latter there are costs that really affect the receipt of a useful result, as well as inevitable (foreseen) and unjustified losses.

Also, the effectiveness of management can be expressed and evaluated not only by the final economic results of the work of the entire company, but also by such parameters as the speed of decision-making and the implementation of specific steps, the return on the implementation of the decision, measured in cost terms. To determine the effectiveness of a particular solution, you can compare the planned and actual "inputs" and "outputs" and measure the return on the solution, i.e. the ratio of "output" to "input". The effectiveness of the system of intra-company management is defined in this case as the economic effect of making managerial decisions.

Since control is informational in nature, information is also the result of an action, and therefore, is the "output" of the control system.

Effective management must be based on certain principles. They must be set by the organization itself. For example, in the federal law "On the Fundamentals Public Service Russian Federation" established following principles public service the following principles are established:

1) the supremacy of the Constitution of the Russian Federation and federal laws over other normative legal acts, job descriptions when civil servants perform official duties and ensure their rights;

2) the priority of the rights and freedoms of man and citizen, their direct effect: the duty of civil servants to recognize, observe and protect the rights and freedoms of man and citizen;

3) the unity of the system of state power, the delimitation of subjects of jurisdiction between the Russian Federation and the constituent entities of the Russian Federation;

4) separation of legislative, executive and judicial powers;

5) equal access of citizens to public service in accordance with their abilities and professional training;

6) binding for civil servants of decisions taken by higher state bodies and managers within their powers and in accordance with the legislation of the Russian Federation;

7) the unity of the basic requirements for public service;

8) professionalism and competence of civil servants;

9) publicity in the implementation of public service;

10) responsibility of civil servants for prepared and adopted decisions, failure to perform or improper performance of their official duties;

11) non-partisan civil service; separation of religious associations from the state;

12) the stability of the staff of civil servants in state bodies.

In addition, management efficiency is determined by the efficiency of functioning and use of each element of the management system - the rationality of the structure, the use of scientific, advanced management methods, the speed, completeness of information services, the qualifications of management personnel, their ability to creatively approach solving specific management problems.

1.2 Criteria for management effectiveness

The criteria for management effectiveness are closely related to the goals of the firm. The specificity of management lies in the fact that the development of goals is a function of management itself, and their implementation is carried out both within the framework of the functioning of management and within the framework of a managed object.

Among the socio-economic criteria for the effectiveness of the organization are usually called: stability (production, structure, position in the market), growth (growth rates of production, number of employees, number of innovations), the ability of the organization to adapt to changes in the external environment (the relationship between indicators of the external environment and the organization's activities) .

The areas of assessment are:

goal achievement;

quality of functioning;

profitability;

change in the technological basis of production;

changes in the quality of the workforce;

external socio-economic conditions.

The set of assessment directions for achieving the goal, the quality of functioning and economy evaluate the activity of the subject of management (control system) and form direct management efficiency, which mainly evaluates the activity of the management system and contributes the most weight to the assessment of the real effectiveness of the management system.

Another contribution to the assessment of the real effectiveness of the organization's management system is the results of the activity of the control object in the implementation of control actions.

The main activity of the management object, related to the production of products and services, evaluates the activities of the company as a whole. Potential management efficiency takes into account and evaluates those changes in the management object that are carried out by the governing bodies of the management entity.

The main ones are: changes in the technological basis of production, changes in the quality of the labor force, external and internal conditions.

The criteria for evaluating the effectiveness of the management system as a whole should be supplemented by particular criteria for its elements. First, their inclusion in the overall system of performance criteria ensures the completeness of coverage and the complexity of the assessment.

Secondly, it allows you to identify and measure the sources, factors for improving management efficiency, ensuring the growth of its quality and cost reduction. Being in continuous interaction, so that a change in some elements causes corresponding changes in others, they give the system as a whole new qualities inherent only to it.

The quality of functioning is evaluated in two directions:

Organizational structures;

Information Support.

The effectiveness of organizational structures is associated, first of all, with the historically changing ratio of centralization and decentralization, with an increase in the flexibility of organizational forms. Efficiency criteria mainly refer to the assessment of the number of links in the structure and interaction of management levels, the degree of structuring of goals and the relationship between them and the structure, horizontal and vertical links.

Also used is the criterion of information manageability within the organizational structure, the degree of interaction between various aspects of management activity. This implies the requirement to reduce hierarchical levels. A criterion is used that evaluates the compliance of the structure and goals by the level of the hierarchy.

Criteria for information support reflect the regularity and reliability of servicing operational documentation managers and are determined in the following areas:

Efficiency of current information processing, including its complexity;

The speed and accuracy of issuing information on special requests (the quality of the selection of the necessary information and minimizing the time spent on preparing a response);

Reliability and security of information;

Timeliness of information;

Availability of the necessary information;

Lack of redundant information;

The quality of interfunctional relationships;

Economies of scale for collecting, processing and transmitting data.

Thus, modern management theory comes to the need, firstly, to harmonize management performance indicators with indicators of the efficiency and productivity of the company; secondly, to the need to take into account the multilateral impact of management on the firm, using a set of additional criteria.

1.3 Three levels of management system effectiveness

Then the management system and its effectiveness is considered not at one, but at three levels:

As an organic part of a higher system.

As an independent complete system.

As a concentration of components included in this system, with their inherent specific properties.

In this case, the effectiveness of management at the first level can be expressed through the performance of the company, since the result of management activities is manifested indirectly through the results of the entire organization, in its relationship with the external environment.

At the second level, the effectiveness of the control system is expressed through the characteristics of its ability to act independently, i.e. to the solution of the tasks immediately facing it and the achievement of the goals set.

At the third level, the effectiveness of the components of the system is highlighted. It is here that the functioning of the forces and means included in the system can be considered in specific forms both in technical and organizational and socio-psychological terms. In practice, the effectiveness of the third level can be reduced to the effectiveness of managerial work and its means.

The product of managerial activity is also three-dimensional. Firstly, it acts as a final one, in the form of one or another production efficiency, and is nothing else than the result of the efficiency of the functioning of management objects and the management activity itself.

Secondly, it acts as an intermediate, in the form of the quality and efficiency of the operation of the management system as a whole.

Thirdly, it is the embodiment of the quality of the performance of functions and stages of managerial work, the nature of the use of available forces and management tools.

An analysis of the existing theoretical and practical approaches to assessing the effectiveness of management within a firm allows us to identify the following areas for analyzing various aspects of efficiency as components of the overall management effectiveness:

Economic indicators of management efficiency.

Efficiency in providing external and internal social policy; relation between the goals of the firm and society.

Efficiency of management as a self-regulating system; adaptive ability to the requirements of scientific and technological progress, changes in the social conditions of production.

The effectiveness of the information system; information support of management and control impact on the firm.

(According to www.avacco.ru).

2. Factors for increasing the efficiency of managing a commercial organization

2.1 Organizational structure and division of labor

The organizational structure of any commercial firm or bodies with any type of activity should be considered from different positions and taking into account different criteria. Its effectiveness and efficiency are affected by:

real relationships between people and their work. This is reflected in organizational charts and job descriptions;

current management policies and practices influencing human behavior;

powers and functions of employees of the organization at various levels of management (lower, middle, higher).

With a skillful combination of these three factors, an organization can create such a rational structure in which there is a real and favorable opportunity to achieve a high level of management efficiency.

The structure of the organization reflects the allocation of individual divisions that has developed in the organization, the connections between these divisions and the unification of divisions into a single whole.

The structure of an organization is a logical relationship between management levels and functional areas, built in a form that allows you to most effectively achieve the goals of the organization.

Integration is the possibility of coordinated action by many people.

The need for coordination, which has always existed, becomes truly urgent when work is clearly divided both horizontally and vertically, as is the case in large modern organizations. If management doesn't put in place formal coordination mechanisms, people won't be able to get the job done together. Without appropriate formal coordination, different levels, functional areas and individuals can easily focus on their own interests, and not on the interests of the organization as a whole.

Thus, we can say that the integration process is a process of achieving unity of efforts of all subsystems of the organization to achieve its objectives and goals.

The unity of efforts increases the efficiency of management, does not give the departments of the organization the opportunity to pull it in different directions, scatter its forces and capabilities and achieve the overall goals of the organization.

In order to effectively integrate the organization, senior management must constantly keep in mind the overall goals of the organization and just as constantly remind employees of the need to focus their efforts precisely on common goals. It is not enough that each department and each employee of the organization will work effectively on its own. Management should view the organization as an open system.

The pattern of the integration process is that the more integrated the firm, the more successful it is.

For integrated organizations operating in a sustainable environment and using mass production technology, methods related to the development and establishment of rules and procedures, hierarchical management structures are suitable. Organizations operating in more variable environments and using a variety of processes and technologies for the production of individual products often find it more appropriate to integrate through the establishment of individual relationships, the organization of the work of various committees and the holding of interdepartmental meetings.

If integration implies the unity of efforts and goals, then the process of differentiation, on the contrary, implies the distribution of these efforts and goals within the organization among its various components.

Differentiation should be maximum within such organizations whose activities are based on creativity (for example, research institutes),

The regularity of the process of differentiation is that the more complex the environment of the organization, the greater the differentiation.

The concentration of production and the enlargement of the firm contributes to the differentiation of functions between different levels of the management system.

Thus, for example, the functions of long-term planning and technical re-equipment should be dealt with centrally at the upper levels of the management system, and operational management issues at its lower levels.

Differentiation of problems solved centrally and decentralized is reflected in the structure of the administrative apparatus. Thus, the differentiation in the development of planned indicators at one time led to the expansion of the economic services of the enterprise.

The specialized division of labor is directly related to the processes of integration and differentiation.

In order for an organization to achieve its goals, tasks must be coordinated through a vertical division of labor. The vertical layout is shown in Figure 1.

Figure 1. Vertical scheme of the division of labor

The head of the upper level manages the activities of the leaders of the middle and lower levels, that is, in a formal sense, he has more power and status. Vertical differentiation is related to the organization's hierarchy in depth. The more steps there are between the highest level and operational workers, the more complex this organization is. The vertical structure consists of levels of power built in a hierarchical order. Power is distributed according to positions and the leaders who occupy these positions. The figure also shows the position of workers in a vertical structure. The goal is seen as a guide for the flow of connections and power.

Horizontal differentiation reflects the degree of division of labor between individual units. The more different areas in the organization that require specialized knowledge and skills, the more horizontally complex it is. Horizontal specialization is aimed at differentiation of functions and covers: the definition of work and the definition of the relationship between different types of work that can be performed by one or many different people. The horizontal division of labor is that the top manager has direct control over three managers: the middle manager (production), the middle manager (accounting), and the middle manager (marketing). In turn, RSUs (mid-level managers) have direct control over the respective RNUs (lower-level managers), and those - directly over a certain number of performers. This can be seen as functionalization (a variety of tasks that must be completed in order to achieve the goals of the organization), as a result of which certain specialized units are formed.

Middle level

lowest level

Figure 2. Diagram of the horizontal division of labor.

2.2 Resources and technology

The resources available to the organization, their quantity and quality are a significant factor in the quality of management. Both material and spiritual resources influence the possibilities of successful activity of the company. The latter are of great importance in the service sector enterprises. When planning or carrying out the necessary activities, it is always necessary to determine the availability of resources, without which their implementation is impossible. Once the resources have been identified, it is necessary to compare the available resources with those needed to bring the plans to life. This will give a realistic picture of the possibilities. The task of the organization's management is to ensure the possibility of implementing plans, and at the same time, the continuity of the organization's activities in the short and long term by developing existing and creating new resources.

At the present stage of development, the most important role for the functioning of the organization is played by information. A very important factor in improving management efficiency is a properly constructed and reliably functioning information system and the use of modern information technologies that ensure the circulation of information within and outside the enterprise, as well as the protection of data related to trade secrets.

All enterprises have a huge amount of data and accumulated practical experience. Today, the condition for entrepreneurial success is, first of all, knowledge - this is the key to profitable work. The economic leadership of many enterprises is mainly due to the priority in the use of information technology. Modern information technologies built on the basis of computer intelligence play a key role in the development of enterprises.

Management information technologies are methods and methods of interaction between the control and managed subsystems of construction production based on the use of modern tools.

A modern toolkit for managing a single information field throughout the entire life cycle of a building (structure) creation consists of:

electronic computers,

communication systems and computing systems,

data and knowledge banks,

software and information tools,

economic and mathematical methods and models,

expert systems.

Technology as a factor in the internal environment is much more important than many people think. Most people view technology as something to do with inventions and machines, such as semiconductors and computers. However, sociologist Charles Perrow, who has written extensively on the impact of technology on organization and society, describes technology as a means of transforming raw materials - be they people, information, or physical materials- in the desired products and services.

Technology implies standardization and mechanization. That is, the use of standard parts can greatly facilitate the process of production and repair. Nowadays, there are very few goods whose production process is not standardized.

At the beginning of the century, such a concept as assembly conveyor lines appeared. Now this principle is used almost everywhere, and greatly increases the productivity of enterprises.

Technology, as a factor that strongly affects organizational effectiveness, requires careful study and classification. There are several ways to classify, I will describe the classification according to Thompson and according to Woodward.

The classification of technology by Joan Woodward is the most famous. It distinguishes three categories of technologies:

Single, small-scale or individual production, where only one product is manufactured at a time.

Mass or large-scale production is used in the manufacture a large number products that are identical or very similar.

Continuous production uses automated equipment that runs around the clock to continuously produce the same product in large volumes.

The sociologist and organizational theorist James Thompson proposes three other categories of technology that do not contradict the previous three:

Multi-tier technologies characterized by a series of independent tasks that must be performed sequentially. A typical example is mass production assembly lines.

Intermediary technologies are characterized by the meetings of groups of people, such as clients or buyers, who are or want to be interdependent.

Intensive technology is characterized by the use of special techniques, skills or services in order to make certain changes in a particular material entering production.

These two categories are not so different from each other. For example, multi-tier technologies are equivalent to mass production technologies, and intermediary technologies occupy an intermediate place between individual technologies and mass production technologies. Differences in these classifications are primarily caused by different areas of specialization of the authors. That is, Woodward was mainly engaged in technology industrial enterprises, while Thompson embraced all kinds of organizations.

One type of technology cannot be called better than another. In one case, one type may be more acceptable and in another, the opposite will be more suitable. People determine the ultimate suitability of a given technology when they make their consumer choice. Within an organization, people are an important deciding factor in determining the relative suitability of a particular task and content of operations for the chosen technologies. No technology can be useful and no task can be accomplished without the cooperation of people, who are the fifth intrinsic variable.

2.3 Personnel as a factor in improving management efficiency

People are the backbone of any organization. Without people, there is no organization. People in an organization create its product, they shape the culture of the organization, its internal climate, they determine what the organization is.

Because of this situation, people for the manager are "subject number one." The manager forms personnel, establishes a system of relations between them, includes them in the creative process of joint work, promotes their development, training and promotion at work.

People working in an organization differ greatly from each other in many ways: gender, age, education, nationality, marital status, abilities, etc. All of these differences can have a significant impact on both the performance and behavior of the individual employee and the actions and behavior of other members of the organization. In this regard, management should build its work with personnel in such a way as to contribute to the development of positive results of the behavior and activities of each individual and try to eliminate the negative consequences of his actions. Unlike a machine, a person has desires, and it is characteristic for him to have an attitude towards his actions and the actions of others. And this can seriously affect the results of his work. In this regard, management has to solve a number of extremely complex tasks, on which the success of the organization's functioning depends to a large extent.

The demographic, socio-psychological, national and other characteristics of the personnel have a great influence on improving the efficiency of managing an organization.

Motivated staff is the key to successful work and the progressive movement of the company to implement its strategy and strengthen its position in the market. Therefore, staff motivation is a universal topic, the relevance of which does not decrease, despite the constant attention of management theorists and practitioners. A systematic approach to staff motivation is a prerequisite for the professionalization of management and the rational use of organizational opportunities to stimulate employees to labor activity.

A systematic approach to staff motivation is based on a comprehensive consideration of the psychological principles of the motivational process of individual and group activities, as well as effective methods of motivating attraction, retention and effective work. A systematic approach includes managing the motivation of employees at all levels using all types of motivation: depending on the time frame - long-term, medium-term, short-term and momentary; depending on incentives - material and non-material, monetary and non-monetary. A systematic approach involves a combination of the action of organizational incentives and the consistent efforts of managers at all levels of management to motivate staff in strict accordance with the organizational strategy.

Personnel motivation is carried out at three interrelated levels, each of which has its own characteristics.

At the personal level, long-term, medium-term, short-term and momentary motivation of each employee is carried out. There are all three types of motivation: attraction, retention and effective work. In relation to one employee, motivation may be effective, and in relation to another - ineffective.

At this level of motivation, the situational factor is of great importance. The use of the same methods and approaches to employee motivation in various conditions leads to different results. Therefore, the basic principles of motivation at the personal level are timeliness, differentiated approach and connection with the interests of the employee. Important factors in the effective motivation of an employee at the personal level are the clarity of the task, its compliance with the competence, competence and interests of the employee.

At the group level, the motivation for effective and efficient group work is carried out. Motivation for group work comes down to determining the range of tasks that can be effectively completed in a group way, and creating optimal conditions for group interaction. Key factors in effective group motivation are group characteristics, leadership, and management style. The principles of group motivation are thoughtfulness, trust and openness.

At the organizational level, staff motivation is carried out using economic and political incentive methods supported by all management subsystems. Important factors in effective motivation at the organizational level are the image of the organization and the reputation of top managers, as well as its adequacy to strategic goals and the changing organizational environment. The effectiveness of motivation is determined by its social assessment and the expectations of employees. The principles of organizational motivation are responsibility, manageability and balance of interests of all categories of employees.

Managerial competence and motivation to achieve results serve as links that unite all levels of motivation into a single system that can ensure the attraction and retention of talented employees, as well as the rational use of their personal and group potential.

Combining employees and teams into a single whole is a prerequisite for successful management and achievement of strategic goals and involves the creation of a coherent and strong system. The more integral and durable the system, the higher the manageability of the company. Individual employees and groups should become interrelated elements, whose activities should be aimed at solving common goals. In this regard, an employee's understanding of which company he is a part of largely determines his motivation to work. Therefore, the image and social significance of organizational activities can both increase and decrease the motivation of staff. Lack of understanding of one's role and underestimation of the importance of one's contribution to the common cause leads to a decrease in labor motivation of employees.

At the organizational level, the problems of long-term and medium-term motivation for attracting and retaining personnel, as well as their effective work, are relevant.

The effectiveness of staff motivation at the organizational level depends on the ability of top management to maintain the value of material and non-material incentives for all categories of employees by choosing the optimal forms, methods and incentive regime in terms of the situation, organizational goals and staff expectations. Fair material incentives for labor are of particular importance.

Therefore, the key task is to maintain a balance of interests of various categories of specialists.

The organizational level of staff motivation is determined by the organizational structure and culture of the company, which makes it possible to identify the dependence of staff motivation on the balance of official authority and responsibility.

An important feature of motivation at the organizational level is the need for regular correction of the existing set of material and non-material incentives in accordance with ongoing organizational changes, regardless of their nature and direction.

So, a systematic approach to staff motivation at the organizational level involves:

maintaining the value of material and non-material incentives;

changing the forms, methods and modes of stimulation as an element of any organizational transformations;

maintaining a balance of powers and responsibilities of employees in the performance of their duties.

In state bodies, in order to stimulate labor, a civil servant, depending on the conditions for his public service, is provided in the cases and in the manner established by federal laws and the laws of the constituent entities of the Russian Federation, living space, official transport or monetary compensation for transport costs. (Federal Law "On the Fundamentals of the State Service of the Russian Federation")

3. The influence of the leader on the effectiveness of management

3.1 The main qualities of a leader

According to the author, the most important factor The quality of management is the personality of the leader himself, his abilities, socio-psychological characteristics, the level of sociability, the ability to find a common language with subordinates and organize their work. The way managers work and the effectiveness of managing an organization is influenced by the assessment of their activities, their work experience, motivation and the level of tasks assigned.

Not everyone can become a manager, entrepreneur, leader, especially in a market economy. To do this, a person must meet a number of requirements.

The effectiveness of managerial activities of the head depends on his abilities. According to the definition of psychologist A.N. Leontiev, abilities are such properties of an individual, the totality of which determines the success of a certain activity.

In my opinion, ability psychologists distinguish between specific abilities and general ability of a person. But the success of the leader's activity also depends on his experience (knowledge, skills, abilities), as well as on personality traits.

I believe that a strong leader is distinguished by a high degree of heterogeneity in the methods and methods of management used, and managerial skills. The general ability for managerial activity implies the following managerial traits and skills inherent in strong leaders:

The ability to solve "non-standard" managerial problems that do not have ready-made solution recipes associated with specific, sometimes conflict situations. Decisions should be aimed at resolving conflicts. The stronger the leader, the less conflict he has.

An important role, from my point of view, is played by the ability to think big. The scale of a manager’s thinking is closely related to his job rank and is determined by what problems he works on and what categories he thinks in accordance with his position: one of the main psychological difficulties of a new manager appointed to a position is to bring the scale of his thinking in line with the new position rank. The degree of ease and effectiveness of the restructuring of the previous scale of thinking indicates the ability of the individual to manage. The more capable the leader, the easier it is for him to change the scale of his thinking, and the stronger he is, the better he will be able to realize his abilities. To become a good leader a high rank and acquire the self-awareness of such a leader, it is necessary, as a rule, to go through all the steps of the job ladder. A strong leader creatively approaches the orders of higher authorities, and if he does not agree with him, then he carefully substantiates his counterarguments.

It is also necessary to be able to ensure positive self-regulation of the management system. The head is given the right to decide on the selection and placement of personnel in his unit. The effectiveness of these decisions is directly dependent on the managerial abilities of the leader. A strong leader selects strong subordinates, a weak leader selects weak ones. In the first case, we can talk about positive, in the second - about negative self-regulation of the management system. It turns out that the harm from a weak leader is double: direct, from the low efficiency of his managerial activities and indirect, associated with negative self-regulation. Each manager and specialist can be evaluated by his business, professional qualities only by a manager or a specialist of a higher qualification.

Further, from my point of view, the ability to improve the functional arrangement of personnel is necessary. A strong leader is able to correctly evaluate the performance of subordinates. He tries not to involve weak subordinates in solving complex or important issues, helps them to understand "non-standard" situations, relying on autocratic leadership methods. Sometimes he can delegate his authority to strong subordinates, setting them tasks of a general form, while using democratic methods of leadership and focusing on their abilities and skills.

Other important personality traits and characteristics of a leader include:

His ability to dominate in the team;

Self-confidence;

Emotional balance;

Responsibility;

sociability and independence;

3.2 Authority and leadership

The effectiveness of leadership activities largely depends on the authority of the leader. The opinion that with the receipt of a certain post the leader automatically acquires authority is erroneous.

Strong employee support is the key to effective leadership. To be a good leader is, first of all, to be on good terms with subordinates. They have the most accurate idea of leadership style. The way a leader looks in their eyes explains all his successes and failures. Subordinates are well aware of the difference between working with a bad and a good leader. With good leadership, their work becomes more interesting, and the results achieved reinforce a sense of professional pride. With poor leadership, subordinates serve their labor service.

democracy of communication between a manager and subordinates, colleagues at work;

its availability, attentiveness;

the ability to create a friendly atmosphere of trust;

courtesy and correctness in handling;

accuracy and responsible attitude to this word.

Considerable importance is played by smartness and accuracy, clarity and organization in the manner of behavior. But the external side of actions must correspond to the internal moral convictions of the leader. Only under this condition, the norms of office etiquette can help the leader communicate with people more effectively. Constant communication between the leader and his subordinates raises his authority and the level of trust in him. Approximately 3/4 of the manager's time is spent on communication with performers, as well as with higher and lower standing leaders.

The sociability of a person is characterized by the ease of getting into contact with other people, the absence of isolation, isolation. Moreover, sociability as a personality trait must necessarily be accompanied by an emotionally positive "plan" of communication. A person who easily enters into contact, in a business relationship with other people, but at the same time causes an emotionally negative "plan" of communication in partners, can be called contact, but cannot be called sociable. Unlike a sociable person, a contact person communicates out of necessity, depending on the conditions and circumstances of a particular production, his communication is mandatory, forced.

To study the influence of the sociability of the leader's personality on the effectiveness of team management in terms of production and socio-psychological indicators, psychologists studied about 200 primary production teams, brigades, sections of industrial enterprises and their leaders. A hypothesis was put forward: the increase in sociability should have a positive impact on production and especially on the socio-psychological indicators of the activities of managers. As a result of research on certain methods and scoring, five levels of manifestation of the sociability of managers were identified (on a 24-point scale)

ultra-low (isolation) up to 4 points;

low sociability 5-9 points;

moderate sociability 10-14 points;

high sociability 15-19 points;

ultra-high (sensitivity) over 20 points.

Of the 200 surveyed managers with ultra-low sociability, it turned out - 6% of managers; with low - 26.5%; moderate - 55%; high - 12.5%; ultra-high - 0%.

Depending on the level of manifestation of sociability, the effectiveness of leadership is manifested in two areas: production and socio-psychological. It turned out that leaders with 8-10 and 14-15 points of sociability achieve high production efficiency, and high socio-psychological efficiency, with 6-9 and 14-15 points, depending on the level of organization and harmony of the team.

3.3 Proper organization of labor as a factor in improving management efficiency

A leader is not only a good specialist, but also an organizer of the work of his subordinates. To organize the work of others is to distribute specific tasks among them. This form of relationship between superior and subordinate is called delegation of authority. The effectiveness of the work of the subdivision subordinate to him and, accordingly, the quality of the work of the leader himself depend on how much the leader knows the art of delegation of authority. In my opinion, a leader who cannot or does not want to use delegation methods is not a real leader. He must learn to do the work with the hands of his subordinates. You can delegate responsibility and power, but do not forget that if the work is not done or is done poorly, then the head of this unit will still be punished as a sole commander.

Delegation should be used in the following cases:

1) when a subordinate can do this job better than a leader. At the same time, one should not be afraid of recognizing that subordinates are better at something. There is nothing terrible in this for the reputation of the leader, especially since no one still thinks that the leader understands everything without exception better than anyone else. The main thing is the ability to use the knowledge of your subordinates with maximum efficiency;

2) when excessive employment does not allow the manager to deal with this problem himself;

3) when it is necessary to free up time and energy to do important things that are of paramount importance. At this time, all other tasks should be delegated to subordinates.

The effectiveness of using delegation methods depends on whether the manager manages to avoid the following mistakes:

Failure to explain. It depends on how correctly the subordinate learns the primary information whether he will cope with the task. Therefore, the manager, after explaining, must find out whether the subordinate understood everything. If at the same time he asks the question: “Did you understand everything?”, then you can be sure that the answer will follow: “Yes, since”, even if this is not so, it will be difficult for the subordinate to admit that he did not understand anything not to question their intellectual abilities in the eyes of the leader. Therefore, it is better to ask: “Have I explained it clearly enough to you?” This wording will cause a response and the subordinate may say: “Yes, but I would like to clarify something.”
Refusal to use feedback. The manager needs to find an opportunity to attend one of the events assigned to the subordinate.
The manager's grouchiness about dissatisfaction with the work done by subordinates gets on his nerves. Therefore, before expressing dissatisfaction, concrete proposals should be made to change the situation.
Fear of losing authority. A leader's truthful admission that he does not know something will not deal a strong blow to his authority, but if he ever says that he knows the only acceptable solution to problems, then he will be more easily believed.
Loss of self control. The leader should never lose control of himself, even in those (necessarily rare) cases when he arranges a dressing down of subordinates for the purpose of prevention.

The effectiveness of delegation is ensured when the manager clearly understands what results he expects from his subordinates and in what form these results should be achieved, as well as in what time frame. Based on this, he must organize control, which, along with strict discipline, is the main prerequisite for effective delegation. Delegation is not a way to avoid responsibility, it is a form of division of managerial labor, which makes it possible to increase its efficiency, facilitating the work of the manager. But it does not remove the final decision from him; the duty that makes him responsible.

Conclusion

The goal of any organization is to achieve high results. To do this, it is necessary to improve the efficiency and quality of management.

Since the task of management is to purposefully influence the managed object to ensure the achievement of the set goals, the effectiveness of management can be assessed by the degree of achievement of these goals: by the final results of production activities (in terms of profit), by the quality of planning (improvement of budgeting indicators), by the efficiency of investments ( return on capital), by increasing speed. Also, the effectiveness of management can be expressed and evaluated not only by the final economic results of the work of the entire company, but also by such parameters as the speed of decision-making and the implementation of specific steps, the return on the implementation of the decision, measured in cost indicators, capital turnover, etc.

Many factors influence the effectiveness of management.

The structure of the organization is an essential factor in the quality of management, which must be taken into account, since a properly selected and well-functioning structure greatly facilitates the management process and increases its efficiency.

The resources available to the organization, their quantity and quality are a significant factor in the quality of management. Both material and spiritual resources influence the possibilities of successful activity of the company. Equally important is technology as a means of transforming raw materials into desired products and services.

But the main factor in increasing management efficiency is staff loyalty. The leader must build his work with personnel in such a way as to contribute to the development of positive results of the behavior and activities of each individual and try to eliminate the negative consequences of his actions. Motivated staff is the key to successful work and the progressive movement of the company to implement its strategy and strengthen its position in the market. Motivation can be distinguished at the personal, group and organizational level.

But to a greater extent, the effectiveness and quality of management and its effectiveness depend on the personality of the leader himself, his abilities, qualities, the ability to find a common language with subordinates and organize work. A strong leader is distinguished by a high degree of heterogeneity of the methods and methods of management used, as well as managerial skills. The ability to manage activities implies the presence of a number of managerial traits and skills inherent in strong leaders. This is the ability to solve non-standard tasks, to think big, the ability to ensure positive self-regulation of the management system, to improve the functional placement of personnel. Psychological qualities can also be distinguished: the ability to dominate in a team, self-confidence, emotional balance, responsibility, sociability and independence.

With all these qualities, the leader will be able to become a leader and authority for his subordinates, properly organize the labor process, build the structure of the organization, establish the circulation of information and the communication process, and find ways to provide the company with the necessary resources and technologies.

List of sources used

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CONTROL IN THE ORGANIZATION

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LOANS AND INVESTMENT FOR THOSE WHO STARTING A BUSINESS

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