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ON THE SCIENTIFIC-LEGAL FUNDAMENTALS OF PHILOSOPHY OF MANAGEMENT OF BUSINESS

Автор Доклада: 
I. Bagrationi, K. Jabua
Награда: 
ON THE SCIENTIFIC-LEGAL FUNDAMENTALS  OF PHILOSOPHY OF MANAGEMENT OF BUSINESS

UDC 33+338.2+ 340+17+177

ON THE SCIENTIFIC-LEGAL FUNDAMENTALS OF PHILOSOPHY OF MANAGEMENT OF BUSINESS

Bagrationi Irma, Doctor of Philosophy, Assistant Professor
Batumi Shota Rustaveli State University
K. Jabua, Lawyer, Advocate
Georgian Bar Association

The purpose of the given research is the role of philosophy in human resource management system of economic relations, which consists in the formation at the initial stage of company development and consolidation in a subsequent fundamental ethical principles, norms and rules of human interaction, consistent with the socio-cultural and ethnic group politics of the state.

The paper underlines, that philosophical understanding of management of business takes the important place in modern business world: the huge quantity of the consulting companies earns millions dollars on the decision of local and/or global problems on treatment of business. But many companies and to this day, anyhow, ascertain the facts of presence of problems in management. The present scientific paper outlines the issue of evolution development of those philosophical conceptions, which forms the scientific-legal fundamentals/bases of the worldview knowledge of management of business.
Keywords: philosophy of management of business, philosophy of personnel management, legal norms, development of practice of management, philosophical conceptions of management.

Целью данного исследования является роль философии управления персоналом в системе экономических отношений, который заключается в становлении на начальном этапе развития компании и закреплении в последующем основополагающих морально-этических принципов, норм и правил человеческих взаимоотношений, согласующихся с социокультурным этносом и политикой государства.
В статье подчеркивается, что философское понимание управления бизнесом занимает важное место в современном мире бизнеса: огромное количество консалтинговых компаний зарабатывает миллионы долларов на решение местных и/или глобальных проблем на лечение бизнеса. Но многие компании и по сей день, так или иначе, констатируют факты наличия проблем в управлении. В представленной научной статье рассматривается проблемы эволюционного развития тех философских концепций, которые формируют научно-правовые основы мировоззренческого знания управления бизнесом.
Ключевые слова: философия управления бизнесом, философия управления персоналом, правовые нормы, развитие практики управления, философские концепции управления.

Introduction
It is generally known, that a single enterprise - this is part of the mechanism of national economic and political system and, therefore, contrary to what some managers of small and medium-sized companies that are not located in intra-organizational vacuum. Managers at various levels of enterprise data to work with staff as a basis for taking a centrist position and his moral standards pass for enterprise-wide data. This situation is unacceptable, as they often violate the rights of the employee.
In our opinion, philosophy of personnel management shall not be contrary to the legislative framework of the state, which operates within the boundaries of the particular organization, respectively, in its development must be based on national legislation, in particular regulations governing the fundamental rights and duties of man and citizen, the rules of economic turnover, employment relations. A significant part of the foundation philosophy of management of the organization should be adopted in accordance with current legislation local regulations, the principal of which are charter, memorandum and collective agreements, the strategically formed orders and instructions of the senior management. In the event that the organization has foreign economic relations, must be considered, except for the domestic, national and foreign laws and regulations of international law.
However, legal norms are not the only reference to the philosophy of building management personnel of the company today. The modern manager in the management of personnel must take into account such elements as the religious, moral-ethical norms, business customs, experience of leading companies of similar and related sectors of the economy, national and regional peculiarities of the strategy of personnel policy at the state level, region, company and its structural unit.
Chapter I – The Ancient Theories of Philosophy of Management of Business
As we know, at occurrence of the first cooperation of people in a primitive society which has been connected with joint work, the joint coexistence, have appeared the first managers who all over again referred to as leaders of a tribe, then elders, etc. Separate attributes of administrative activity were observed in the most ancient societies, so, for example in Sumer (nearly 2700 B.C.) where besides the invention of a wheel and a birth of crafts, in process of complication of structure of a facilities, there is also an isolation of authorities among which the visible role is played with temples led by priest-hood. The priest-hood has appreciably concentrated in the hands of function of management of complex facilities. On some reliefs which have reached up to now and press of that time priest-governor who carries out religious functions is represented, observes of manufacture and receipt in a temple of products and sacrifices in the form of cattle, money and craft products. In addition to “the direct religious activity priests incurred functions of the account, planning and taxation, the decision of property questions, questions of the order treasury” (Kravchenko, 2000:47-49). They were the first managers who conducted business on planning, to the control, the account, supply. As consequence of necessity of the account of gathering and conducting data about economic operations there was writing and the account. Management right at the be¬gi¬nning of the development served as the tool of religion and the government, contained idea of the "religious-commercial" management, become by the first boundary of evolu¬tio¬na¬ry development of a control system.
As following evolutionary step in development of the control systems by the right consider board of Hammurabi, King of Babylon (1792-1750 B.C.), the uncommon statesman and the successful military organizer, it is deep and sincerely believed in the mission – extending Babylon's control over Mesopotamia by winning a series of wars against neighboring kingdoms. Although his empire controlled all of Mesopotamia at the time of his death, his successors were unable to maintain his empire. Hammurabi, as well as other Kings of Babylon up to it, “has begun the reign with traditional action - establishments of "validity", that is from a cancelling of debts and a pardon of shortages. The King has published the law, consisting of 282 paragraphs, cut in a stone in 35-th year of board Hammurabi which strictly was observed” (Kravchenko, 2000:72-74). Here it needs to be noticed, that Hammurabi is known for the set of laws called Hammurabi's Code, one of the first written codes of law in recorded history. These laws were written on a stone tablet standing over eight feet tall (2.4 meters) that was found in 1901. Owing to his reputation in modern times as an ancient law-giver, Hammurabi's portrait is in many government buildings throughout the world.
As King Hammurabi claims, “[…] I have enclosed in lips of the country true and validity. Henceforth:
(§1) If the person it is oath has accused the person, having thrown on it charge in murder, but has not proved it its accused should be killed.
(§2) If the person has thrown charge in sorcery on the person and has not proved it on what charge in sorcery has been thrown, should go to the Deity of the River and into the River to plunge; if the River will seize it, its accused can take away its house.
(§3) If the person has acted in court for the certificate on a crime and a word which it has told, has not proved, and this business - business about a life this person should be killed.
(§4) If it has acted for the certificate in occasion of grain or silver it should bear punishment of this business.
(§5) If the judge has disassembled business, has passed the decision and has made the document with a press, and then the decision has changed, this judge it is necessary to expose the claim sum which is available in this business in change of the decision which it has decided, and, it should pay in the twelvefold size; besides in its assembly should drive from its judicial armchair, and it should not come back and sit together with judges at court.
(§6) If the person has stolen property of the god or a palace this person should be killed; and also what has accepted from its hands stolen, should be killed.
(§7) If the person has bought from hands of the son of the person or the slave to the person or silver, either gold, or the slave, or the slave, or bull/ox, either a sheep, or a donkey, or something without witnesses or the contract or has accepted on storage this person - the thief, it should be killed” (Valdez, 1999:124-129).
It is obvious, that it was the time have received wide development commodity-money attitudes, development of private slaveholding facilities, there was a strengthening trade, strengthening of centralization of the state and strengthening of imperial authority.
Through one thousand years after death Hammurabi Babylon again became the center of development of practice of management. King Nabuccodonosor II (605-562 B. C.), the author of projects of the Babel Tower, an outstanding commander, the talented builder who has erected a temple to well-known god Marduk, became “the ancestor of system of industrial inspection on cotton-mills and granaries” (Cooke, 2005:142). So, in the textile industry, the system of color labels when weekly parties of an acting yarn in a new fashion aimed was used. By means of system the quantity and quality of a yarn and as term of its storage in a warehouse was defined. «The industrial-building idea», uniting functions of the state control over manufacture and construction, became following evolutionary step of development of the management, allowed, in particular, to operate grandiose building projects. It was time of full revival, economic blossoming and cultural development.
Significant administrative innovations took place in Ancient Rome. It is possible to carry the organization of territorial management by Roman Empire of Dioklitian and the administrative organization of the Roman Catholic Church to them. Becoming on a throne in 284 B. C. Dioklitian has understood, that its empire became uncontrollable, that emperor has been compelled to solve many questions personally. Having rejected existing structure, Dioklitian has offered new, with a lot of levels of management which has allowed optimizing a parity of centralization and decentralization of authority. The empire has been shattered into a plenty of districts of management but so, that their known sum has been subordinated to conducting larger governmental center. Such device of management demanded multiplication of officials, but the way of management is recognized as effective (Naumov, 2001:209). The administrative device of the Roman church has brought the contribution to development of management, having created an effective network of communications. The church has entered the description of duties of clerics of different levels. And to this day it is considered as the most perfect formal organization of the Western world which contribution is highly estimated in areas management of the personnel, by systems of authority and authority, specialization of functions.
Chapter II – The Scientific-Legal Fundamentals of Philosophy of Management of Business
As is known, the appreciable contribution to development of the theory of management was brought with Italian philosopher, humanist, and writer Niccol? di Bernardo dei Machiavelli (1469-1527). It has opened principles of mutual relations of heads and subordinates, style of work of the head, gave advice on the organization of its work. There is a fragment of “Political Technology” of Niccol? Machiavelli: “Business unpo¬pu¬lar to assign to others, and popular to do; Skillfully to create enemies; To involve presented people; To entertain people shows; To participate in assemblies into which people is divided; Qualities of sovereign - restraint, discretion and favor, Virtues of sovereign: mercy, fidelity, humanity, directness and piety; Sovereign should create goods, how much it is possible, and angrily - how much it is necessary” (Kravchenko, 2000:197-204).
Ancient civilizations created preconditions of development of the concept of management, but only great industrial revolution XVI-XVII centuries has rendered essential influence on development of the theory of management. The arisen systems of a cottage industry allowed to create with use of new technologies production in own houses, however soon there were businessmen of that time who suggested providing for the certain sum manufacturers with materials. It has allowed manufacturers to concentrate directly on process of manufacture and its expansion. Eventually, there were factories and factories in which machine tools and adaptations for manufacture were placed in one territory, people and materials. Owners of the enterprises the opportunity of reception of the maximal profit began to interest (Mook, 1987:84). Therefore there was a necessity of the rigid control of industrial operations, reductions of expenses and prompting of workers to work with greater efficiency. On the other hand, the pattern of ownership when owners of the companies kept away from management of business when the uniform proprietor was replaced with shareholders, that is share owners of the capital more and more has changed.
The new pattern of ownership promoted a distance of management from manufacture and to its allocation in independent sphere of administration and management which in the further promoted allocation of two types of professional managing directors. The managing directors allocated by administrative function, formulated the purposes, a policy and problems, and the managing directors allocated by management function, supervised realization of objects in view, policies and problems. Thus, owners of the companies have transferred functions of management by professional hired managing director.
And here, in XX century on light there was a first classical theory of management which author became American Frederick Winslow Taylor who having begun a life from the simple worker - the pupil in a mechanical workshop, has grown up to chief engineer of the steelmaking company. Taylor has started to introduce principles which subsequently have laid down in its basis of "scientific management”. Taylor has formulated strict scientific system of knowledge in which basis has put four scientific principles which it named laws of management. It in practice applied the theory: timed operations of the best workers, selected correct and rational movements, ruthlessly cutting all superfluous as energy it was spent more on unnecessary, than on rational. For intensity of work paid more, premiums reached from 30 up to 100 %. All this gave a gain of labor productivity in 2-3 times, and the wages on the average grew on 60 % (Sheldrake, 2001:44). As we know, Taylor has entered system of differential payment. It offered that workers received wages according to their development that is on the basis of price-work system of a payment. It believed, that the workers, making production has more, than day time standard norm, those who does not develop norm should receive higher price-work rate, than. We think that Taylorism treats the person not as the subject, and as the factor of manufacture. It considers working as the mechanical executor ordered to it of "scienti¬fi¬cally proved instructions".
In our opinion, supporters of the theory that the world submits to laws of marketing, argue: “Those who bring money in the company, that is, marketing and sales, solve everything, under them it is necessary to be arranged to all other divisions”. Production workers with them fiercely argue: “Only the exclusive, high-quality creation in the form of the goods or services is value for the buyer for which it pays”. In turn those who are engaged in purchases, remind: “Without duly delivery of materials or the equipment anybody nothing will make”. “Just about, Nobody will make anything if there will be no the personnel capable, adequate, motivational”, is already in discussion experts on the staff join. On what answer them of the bookkeeper with some internal weariness in a voice: “Any enterprise can be ruined in case of presence of problems with tax bodies”. Economists too do not lag behind, noticing: “All works for the sake of work coordinates in economic parameters which the first signal about possible tendencies including in the market and allow correcting the general rate of movement of the company” (Mook, 1987:255). Recently it is active in dispute join Information technologies: “In our century of information technologies failure in information system can paralyze activity of all company”. Discussions that cease, inflame. The quantity of debaters all increases and grows, and such or otherwise discussion takes place to be in each company. We, probably, have already guessed that the given dispute leads to distribution of the responsibility inside of the company, to formation of the list of staff, and as to distribution of budgetary funds. That manager, who defends the importance more actively, receives more money for development, including technological perfection. By the way, recently any technological perfection is closely connected with information technologies and with integration of decisions into the uniform information environment of the company. The purpose of the given paper is reconcilement the debaters. The company is a uniform mechanism, uniform complex system which exists only in close interrelation of all parts with each other. If inside of the company there are no skews of importance it develops harmoniously in all directions.
Probably, we witnessed discussion for fun or seriously on a theme: who is more important in the business/company? It reminds Sergey Mikhalkov's children's rhyme:
“Mums different are necessary. Mums everyone is important.
Business was in the evening, there was nothing to argue” (Genkin, 2007:104).
Conclusion
From the above-mentioned we may conclude that there are many managers who are absolutely assured that know under the theory of management everything, precisely dividing situations on white and black, starting the duties, start to change all inside of the organization, criticizing the previous rate and not understanding with causes and effects. Correctly it or is wrong? During our reasoning we have answered this question, for this purpose we have considered art of administrative struggle and a number of philosophical conceptions of management. Quantity of theories of philosophy of management of business huge set, each of which promises to solve all problems in the field of management of the company, but the fashion on the theory passes, and problems remain. 

References:

  • 1. Cooke B., Mills A and Kelley E in Group and Organization Management, Second printing, New-York, Publishing House “Prentice-Hall”, 2005(English).
  • 2. Genkin. M., Economy and Sociology of Work: the Textbook for High Schools, Moscow, “Progress Publishers”, 2007 (Russian).
  • 3. Kravchenko A., History of Management: Studies. The Grant for Students of High Schools, Мoscow: the Academic Project, 2000 (Russian).
  • 4. Mook, D. G., Basic Ideas in Management // The Organization of Action, London: “W. W. Norton & Company Ltd”, 1987 (English).
  • 5. Naumov S., Fundamentals of Management, Moscow, “Gardarika”, 2001 (Russian).
  • 6. Sheldrake J., The Theory of Management: From Taylorism up to Japanisation, Ed. V. A. Spivak, Moscow, “Dover Publications”, 2001(Russian).
  • 7. Valdez Jessica, Self Actualization through Humanistic Theories, London: “Science-Art Publishers”, 1999 (English).
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Is it Philosophical, Economical or Legal Reality?

As we know, Philosophical thought is represented in the foundations of a civilization. In a practical sense, philosophical ideas can translate into a country’s ‘recipe for living’. The scope of philosophical enquiry is broad, taking in science, anthropology, sociology, psychology, jurisprudence, economics, set theory, cognitive science and more. At the heart of philosophy is the concept of morality, which is the focus of ethics. Morality deals with the ‘ought’ of life. Instead of asking questions about the what and how of business, we might fruitfully ask about what the nature of business should be as it fits in the wider circle of life. Interestingly, it seems that circumstances make it possible for a few thinkers to have an enormous influence over a great number of people. In our estern heritage, we often refer to Greek thinkers of ancient times when we are trying to understand the meaning important thinkers gave to the problems of how to deal with the competing forces of materialism and spiritualism. What we propose to bring you is a series of images, of snapshots from the past that go some way towards explaining some of the characteristics of theWestern business psyche. Our aim is to draw a particular thread from the rich tapestry of philosophy, recognizing that readers may want to explore more widely. We recommend the following reading, which was useful to us when we were pondering why things are as they are today in organizations. Our next image reflects the times of very early Greek thinking. These were times of trading and commerce, much of it by sea, and long before the invention of many of the machines we take so much for granted today. Elements such as Fire, Earth, Air andWater, Sun,Moon and Rain were almost primordial in their relation to life’s essence. Stories of the Gods and of epic journeys provided the human counterpart to a superstitious awe of the elements. It would be so easy to discount such ‘drama and superstition’ but let us stop for a moment and see what the people of the daywere bringing into play. This was an imaginative age. Stories were woven about the elements, the heroes who braved them and the Gods who personified the human condition. These were mostly handed down orally and one might imagine the emphasis being as much on dramatic effect as on logic and accuracy. A developing theme of this chapter is the loss of these qualities in the service of mental coherence and science. As the chapter develops, we ask the reader to think deeply about two things. The first thing is about organizational environments with which they are familiar. The second is any contrast between organizational and personal or family life in terms of drama, storytelling and emotions. Questions for Discussion 1. When thinking about how to successfully implement change programs, does deep philosophical thinking help the manager and if so how? 2. Assume that you are in tune with people who say they are disconnected from an important emotional part of themselves at work. Identify which areas of management activity would support a more holistic approach. 3. It is clear that many aspects of management need to be rational and empirical. You are very comfortable with ideas such as Aristotle and you believe in dealing with concrete situations. At the same time, you have read that resistance to change by employees is often psychological and emotional. Sometimes, this is such that employees develop physical symptoms of stress and other illnesses. How would this knowledge help you (given your own preferences) if you were selected to explain the need for radical change to various sectors of the workforce?
Irma Bagrationi
PARTNERS
 
 
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