Economy of the enterprise - Pokropivny SF

3.2. Methods of enterprise management

Concept and classification of management methods. Practical implementation of management functions is carried out using a system of management methods. To put in place an organized system in order to obtain the necessary result, it is possible only through the influence of the governing body or person on it. At the same time, certain instruments of coordinated impact are needed, which ensure achievement of the set goals. These tools are called management methods .

Management methods are ways to influence individual employees and work collectives in general, which are necessary to achieve the goal of the firm (enterprise, organization).

Management of the company (enterprise, organization) is aimed at people, the range of their interests, primarily material. Therefore, the basis for the classification of management methods is the internal content of motives, which is the basis of production or other human activities. In terms of content, the motives for action can be divided into material, social and motivational motives. In accordance with this, economic, social-psychological and organizational management methods are distinguished.

A meaningful characteristic of management methods. All these management methods are organically interrelated and are used not in isolation, but in a complex manner. However, economic methods should be considered as the leading ones. Organizational methods create the prerequisites for the use of economic methods. Socio-psychological methods complement the organizational and economic and create in the aggregate the necessary arsenal of management tools for the enterprise.

1. Economic methods of management are such methods that realize the material interests of a person connected with his participation in production processes (any other activity), by using commodity-money relations. These methods have two aspects of implementation.

The first aspect characterizes the management process, focused on the use of the economic segment of the environment created at the national level. The essence of this aspect:

  • The formation of a system of taxation of business entities;
  • Definition of an effective depreciation policy ensuring the renewal (reproduction) of tangible and intangible assets of the enterprise;
  • The establishment by the state of the minimum level of wages and pensions, and so on.

The second aspect of economic management practices is associated with a managerial process that focuses on the use of a variety of economic levers, such as financing, lending, pricing, penalties, etc.

2. Socio-psychological methods of management realize motives of social behavior of a person. The level of modern production, the growth of the general educational and professional and qualification level of workers are the cause of significant changes in the system of value orientations and in the structure of motivation of people's labor activity. Traditional forms of material incentive gradually lose their priority stimulating effect.

Increasing importance is assumed by such factors as the content and creative nature of work, the possibility of initiative, public recognition, moral encouragement, and so on. Therefore, understanding the patterns of social psychology and the individual psyche of the employee is a prerequisite for the effective management of production or any other type of activity.

Practical implementation of socio-psychological management methods is carried out with the help of various methods of social orientation and regulation, group dynamics, conflict resolution - situations, humanization of labor, etc.

3. Organizational management methods are based on motives of a compulsory nature. Their existence and practical application is conditioned by people's interest in the joint organization of labor. Organizational management methods are a complex of ways and methods of influencing workers based on the use of organizational relations and the administrative power of management. All organizational methods of management are divided into regulatory and administrative .

The content of regulatory methods consists in the formation of the structure and hierarchy of management, the delegation of authority and responsibility to certain categories of employees of the firm, determining the guidelines for the activities of subordinates, providing methodical instructive and other assistance to performers. Administrative methods of management cover the current (operational) organizational work and are based, as a rule, on the orders of heads of enterprises (organizations). They provide for the definition of specific assignments for executors, the distribution of these tasks between them, monitoring of implementation, holding meetings on the current activities of the firm (enterprise, organization).

Professionally skillful application of economic, socio-psychological and organizational methods of management in most cases provides a fairly efficient management.