Management process is the organization of all types of economic activity of an enterprise. Based on this definition, management cannot be separated from its object, and the nature of the functions of the management cycle depends on the specifics of the production or trading process.
General and special management functions
In the process of organizing the economic activity of a company, two types of functions are implemented: those related to general (which may apply to all systems) or characteristic only of this system.
General functions relate to areas that are organized in different enterprises in a similar way, for example, control of mail delivery, cleaning of office premises, repair of office equipment. Specific functions are inherent in the management process at a particular enterprise (search for specialists for programming robot-packers or repair of conveyor belts).
Organization Management Cycle
In general, company management provides for the implementation of such tasks:
- Development of perspective and current plans.
- Organization and regulation of production (trade, consulting or other) activities.
- Motivation and coordination of staff.
- Monitoring and recording the results of the production process.
These groups of functions comprise the stages of the management cycle, which is expressed in planning, organization, motivation and control.
It is called a management cycle because this sequence of management actions is characterized by continuity. It has a beginning, then it must be repeated for a certain period of time (week, decade, month, quarter, year).
The importance of planning in the context of the enterprise
This function is rightly called the most important in the entire management process. Its implementation provides proportional volumes of production, the smooth operation of various units, as well as the rational use of available material, labor and financial resources. Actual and competent planning is necessary for organizing the correct course of production, that is, for the dynamic balance of internal production processes.
In fact, planning can be called setting goals and identifying ways to achieve them.
Types of planning: strategic
The development of plans, as the first of the stages of the management cycle, precedes everything else. Each level of organization is characterized by a specific type of planning.
At the highest level, develop strategic plans. In the field of production, a strategy is the optimal set of rules and techniques that contribute to the implementation of the mission, as well as the achievement of the general and private goals of the company. The main task of strategic planning is to determine the main course, that is, the style of the company in a busy market niche.
Determining ways to circumvent crisis situations or to take new market positions also includes such management. The management cycle, the stage of which is strategic planning, is usually quite long. Typically, the development of global plans occurs once every three, five years.
What is tactical and operational planning
At the middle and lower levels of management , tactical and operational plans are developed accordingly.
Tactical planning is the definition of intermediate goals designed to ensure the implementation of strategic objectives. This type of activity is included in the management cycle of mid-level managers.
The result of operational planning - these are the goals that are developed by managers directly at the places of execution. Their responsibilities include setting daily tasks (short-term tactics).
The described types of planning represent a general system - a general or general plan (business plan of the enterprise). Planning is the only way to reduce market risk and uncertainty.
Planning principles
Based on the fact that the entire management cycle is based on planning, it should be carried out from the standpoint of:
- Complexity. This means that the process must take into account all significant events and situations.
- Accuracy. The construction of relevant and real plans becomes possible using all available tools, tactics, procedures and forecasting methods that modern technology provides.
- Continuity (the relationship of prospective and current planning).
- Flexibility (sometimes to achieve priority goals it is necessary to abandon ballast).
- Profitability. Compliance with the proportionality of planning costs with the resulting winnings avoids unreasonably high costs.
The principle of integrity, combining the process of developing long-term and current plans, is considered the main condition necessary for the continuity of the production process, the smooth operation of the enterprise and the stability of its economic contacts.
Stage of organization
Organization is the next stage after planning, which continues the management cycle. At this level, the manager’s task is to create optimal conditions so that the activities of all team members are effective. He needs to coordinate the efforts of the staff and direct them to achieve their goals.
The implementation of this function becomes possible due to the formation of the organizational structure at the enterprise. For the successful implementation of planned activities, managers determine responsible persons and appoint performers for specific tasks. In addition, their responsibilities include ensuring that throughout the entire process there is no shortage of resources (provision of equipment, finances, labor).
A few words about motivation
An integral component of every successful enterprise is the interest of the personnel in the performance of their labor functions. The incentive of employees to work actively, their involvement in the joint achievement of corporate goals, as well as the search for ways to qualitatively improve their performance is called motivation.
The most common methods that contribute to strengthening the "fighting spirit" of the organization’s employees are encouraging:
The means of material incentives include bonuses, bonuses and benefits, additional payments and gifts.
Moral rewards include praise, public expressions of gratitude, posting photographs on a board of honor, and others.
Control - the final stage of the management cycle
After actions have been taken to achieve the goals, their result should be measured, evaluated and compared with the planned indicators.
The essence of control, which ends the management cycle, is to analyze the data and adjust further instructions.
In management practice, there are three types of control:
- Preliminary.
- Current.
- Final.
Changing the decisions made earlier and making adjustments to the algorithms, instructions and rules are the beginning of a new management cycle. After all, it is necessary to re-plan activities taking into account new parameters, distribute tasks and track their implementation. The result of the new cycle is also subject to mandatory study and analysis.
Management cycle duration
The main management cycles are characterized by the flow in space and time. Their duration can be from several minutes to months, the place of application are groups, teams of performers and the company itself.
Therefore, we can talk about two types of measurement of the control cycle:
A good manager is interested in minimizing the time spent on each cycle. Upon a detailed review, you can see that the duration of the management process is affected by the speed of the main actions: the collection, transmission and processing of information data, the cycle of management decisions (development and adoption), as well as the organization of execution.
Saving time resources is possible by simplifying organizational and documentary procedures, using technical means in the process of performing a number of procedures, as well as reducing the time available for individual operations.