Management is a relatively independent type of activity, the goal of which is the achievement by the business entity operating in market conditions of the goals set through the use of all types of resources using a variety of principles and mechanisms of economic impact, primarily on the extensive factors of production development. Management is a managerial activity in the conditions of the market, market economy.
The modern management theory, as well as other factors of production and their types, at the level of intra-production relations are important for any national economy and as factors of internationalization of production, since the market transformation of the economic mechanism requires careful study of world experience, management strategies and technologies at the level of basic business entities (enterprises), which is the main task of management. The need for cooperation between enterprises and foreign companies in world markets makes it necessary to apply management practices at all stages of the production and economic cycle.
Management methods, according to the statement, are a set of methods and means of influence of enterprise management bodies on the management object in order to solve urgent and strategic tasks of production activity. According to one classification, such factors of production and their types in management are distinguished as economic, resources of socio-psychological activity and administrative. According to another, they also include network (SPU), balance, according to the third classification, ideological methods are also added to these.
The methods of the first group are most widely used in management practice.
But as factors of production and their types, they have not yet found a unified understanding of their essence in economic theory.
Some scholars rightly believe that administrative resources of management are carried out by complying with directives, orders and other requirements, including regulation (management design); regulation (application of norms and rules necessary for the implementation of management activities, setting standards); instructing (providing guidance on planning, accounting, and so on); administrative actions aimed at changing some elements of the control system or it as a whole, in order to maintain the functioning of specified programs and ensure the established mode of operation of control bodies. According to some allegations, administrative methods include methods based on the use of mandatory requirements and recommendations. As factors of production and their types, these methods in their scope are limited only by organizational and legal relations. From the point of view of a number of specialists, administrative methods are based on the totality of regulatory acts of a country or region, regulatory and regulatory, technical and methodological regulations of higher organizations, plans, programs, tasks, operational management (authorities). There is a rigid scheme of a hierarchical approach to management: at the upper level, a management decision is formed for the lower levels, which is a directive for them. Moreover, this approach provides a certain degree of freedom of decision-making at all levels of the lower level of management regarding management decisions of the upper level. Optimization of decisions is carried out as a whole (or by stages) for the enterprise as a system. As a rule, such events bring a systemic effect.