The concept of management, which appeared in the 30s of the previous century, is translated from English as management or management. Management involves the development of the most effective organization management system (according to GOST R ISO 9000, this term includes companies, firms, corporations, enterprises, associations, institutions, charitable organizations and other structures, in addition, they can be grouped, and it also applies to structural units ) and monitoring the results of its activities. The essence and content of management should be attributed to three main areas: government agencies, business and non-profit organizations.
Effective modern business management is based on the use of specific tools used to achieve results. The concept and essence of management include such a category as a three-level system approach to management aimed at implementing the main functions of management: managing business, managers, processes and employees. These functions should be performed simultaneously, not only effective, but mainly effective and provide an optimal balance of diverse needs and goals of the business. The terms "effectiveness" and "efficiency" should be interpreted in accordance with GOST R ISO 9000. The organizational function of management is planning. With its help, synchronization and a combination of human, material and financial resources are carried out. All three factors must be involved in obtaining results that are determined by the organization’s goals.
Planning is based on three levels of perspective: objectives, goals and mission. It is difficult to draw a clear line between them. When planning tasks, the organization expects to get results in the planning period. Achieving goals allows you to achieve certain improvements outside the planning period, but not far from its time frame. The mission covers unattainable ideals, approximation of which is included in the organization’s leadership plans. The essence and content of management involves the implementation of plans at all levels (by defining measures, the relationships between units, the distribution of powers and responsibilities), as well as coordination and monitoring of implementation.
The ability to achieve the goal with minimal cost determines the effectiveness of the organization’s management as a whole, as well as the basic management tools and each manager at all levels of the organization’s management . The essence and content of management in market conditions are aimed at solving practical problems, which are measured at the stages of planning and evaluating the results, ensuring economic efficiency of the business, and also helping to strengthen the organization’s position in the relevant market segment, its products or services. To do this, it is necessary to organize a management control process to ensure that the actual results are as planned.
The main organizational methods or management tools are financial and budget control, as well as market control mechanisms. That is, finance, budget and marketing are the tools with which the impact on the business processes of the organization. The essence of financial management is to control the commensurability of costs of production and trading activities aimed at implementing a specific goal, and its financial results. At the same time, various options for financial investments are calculated and compared, allowing you to get the maximum profit with minimal cash costs and financial losses. The financial levers are profit, depreciation, rent, contributions to the authorized capital, discount, dividends and more. Thus, we can say that the essence and content of management lies in the effective economic management of the organization, which allows us to achieve our goals not by any means, but with a minimum amount of costs, and abandon goals that are not economically justified.