Modern foundations of enterprise management theory

The successful activity of any enterprise, from the largest international holding company to a private entrepreneur, primarily depends on the effectiveness of management. To remain competitive and cost-effective, enterprise management must use modern management methods that have a scientific basis.

The essence of the management process

The basic principles of the science of control are studied by cybernetics, which assumes a single control scheme that is characteristic of any control object. In accordance with this, the control entity generates signals in the form of an order or command, which are transmitted to the control entity. He, in turn, perceives these commands and acts in accordance with them. In order for the control subject to know that his signal has been received and understood, a feedback channel must be organized. Depending on the signal received through this channel, the control entity generates new commands.

When it comes to the economic field, the subjects of management are the heads of enterprises and their divisions, collective governing bodies or specialist managers. In this case, the management objects are factors that characterize production: fixed and working capital, labor, material and natural resources, scientific, technical and information potential.

The control effect is provided through normative acts, plans, programs, decrees, instructions, orders. To increase efficiency, material and moral incentives are also used. Feedback is carried out as direct observation and control by the control object. To this end, current, statistical and accounting reporting is being carried out, monitoring is being carried out, indicators of the efficiency of using production factors are determined and analyzed.