facebook
twitter
vk
instagram
linkedin
google+
tumblr
akademia
youtube
skype
mendeley
Wiki

FOR THE ISSUE OF MANAGEMENT OF INDUSTRIAL FIRM: SOCIAL AND ECONOMIC ASPECTS

Автор Доклада: 
R. Manvelidze, I. Bagrationi
Награда: 
FOR THE ISSUE OF MANAGEMENT OF INDUSTRIAL FIRM: SOCIAL AND ECONOMIC ASPECTS

UDC 33+330+338.2+17+177

FOR THE ISSUE OF MANAGEMENT OF INDUSTRIAL FIRM:
SOCIAL AND ECONOMIC ASPECTS

Manvelidze Rezo, Doctor of Economics, Professor
Batumi Shota Rustaveli State University
Bagrationi Irma, Doctor of Philosophy, Assistant Professor
Batumi Shota Rustaveli State University


The purpose of the given research is acquaintance to the practice of management conventional in the world by industrial firm and consideration of its social and economic aspects. Achievement of the given purpose, in opinion of the authors, is carried out through the decision of following problems: Considerations of a general characteristic of the industrial enterprise as open system, revealing of the most convenient for today in conditions of fast rates of privatization of the organizational-legal form; Studying the international experience of development of system of intra-firm planning, development of the basic purposes and strategy of firm; Acquaintance with the basic functions and stages of organizational designing, and also with problems of carrying out and maintenance of the control over the enterprise; Studying the international experience of management by a manpower, research and development of various directions in work with the staff as most important social aspect in management of industrial firm.
Key Words: industrial enterprise, organizational designing, management of the manpower, system of intra-firm planning.

Целью данного исследования является знакомство с общепризнанной в мире практикой управления промышленной фирмой и рассмотрение ее социальных и экономических аспектов. Достижение данной цели, по мнению авторов, осуществляется через решение следующих задач: рассмотрения общей характеристики промышленного предприятия как открытой системы, выявления наиболее удобной на сегодняшний день в условиях быстрых темпов приватизации организационно-правовой формы; изучение международного опыта развития системы внутрифирменного планирования, выработки основных целей и стратегии фирмы; ознакомление с основными функциями и этапами организационного проектирования, а также с задачами проведения и обеспечения контроля на предприятии; изучение международного опыта управления трудовыми ресурсами, исследование и разработка различных направлений в работе с кадрами как наиболее важного социального аспекта в управлении промышленной фирмой.
Ключевые слова: промышленное предприятие, организационное проектирование, управление трудовыми ресурсами, система внутрифирменного планирования.


Introduction
The urgency of research on management of the industrial enterprise and its social and economic aspects in new conditions of an economic reform is defined first of all by a proceeding becoming of market economy, that in turn demands reorganization not only forms and methods of managing, but also thinking of all categories of the workers participating during management by a facilities. Value of this problem leaves both in theoretical, and in practical aspects on the foreground not only because over 70 % of all workers are incorporated in work collectives where creates approximately 90 % of the national income, but also complex enough, unstable position of work collectives in a present condition of domestic economy. 
Radical reform of management not only at an economic level, but also in the basic part of economy - the enterprise is required. Despite of a proceeding stage of privatization of many large industrial targets, change of organizational-legal forms, for the present it was not possible to include the industrial enterprises in a market mechanism as its high-grade mechanism. Transition to the market is impossible also without creation of the new mechanism of managing at a level of the enterprise providing its stability, and flexibility, its susceptibility to changes of market condition and various innovations. Formation of such mechanism by a trial and error method – is a process of the expensive and long. Therefore a necessary condition of the sanction of tasks in view is scientific search, the analysis, generalization of practice and a substantiation of such control system of the enterprise which could provide increase of a production efficiency and saturation of the market by the high-quality goods accessible to the mass consumer. 
As we know, one of basic elements of a market economy is the firm (enterprise). The firm is understood as the economic subject who is engaged in industrial activity and possesses economic independence (in decision-making that, as well as in what sizes to make where whom and on what price to sell production). The firm unites resources for manufacture of the certain economic blessings with the purpose of maximization of profit (Fernstrom, 1997:92). In difference from naturally developed market order of firm are based on a hierarchical principle of the organization of economic activities. The market isolation of means of production, firm - assumes their concentration. In the market an indirect quality monitoring, inside of firm - straight lines dominate. The market excludes dictatorship; it is based on economic stimulus, the firm, on the contrary, assumes one-man management and is based on administrative forms of management.
What does the industrial firm represent? For today the most widespread type are two types of the enterprises are the state enterprises and the enterprises-corporations. The corporation is the firm having the form of the legal person where the responsibility of each proprietor is limited by its contribution to the given enterprise. The corporation “exists irrespective of its owners-shareholders. If they do not like the policy spent by corporation, they have the right to sell the share, but, as a rule, not in a condition to liquidate the company as those. Therefore modern corporations are characterized by known stability. They keep the specific resources irrespective of will and desires of separate shareholders. Alongside with doubtless advantages of corporation possess and quite tangible lacks. Corporations open ample opportunities for various abusing. There is a break between function of the property and function of management. Fine and average holders usually do not possess the necessary and sufficient information for realization of the effective control. In corporation there is a washing out of the property rights as opportunities of the control over activity of "command" are weakened. Holders of a control share holding can carry out the control only for the maximum managing directors. Opportunities of "opportunistic behavior" are extended” (Gradon, 2004:225). Aspiring to personal enrichment, the maximum managers participate in extremely risky operations, and sometimes go and on direct abusing authority (frauds with securities, having poured the capital to affiliated companies, doubtful industrial activity, etc.). However, as a rule, such abusing is possible only in the certain limits. As the deterrent the market acts. There is a threat of "absorption" of the given firm of other and full change of a command (anyway, its top echelon). Besides, the prestige of managers of the company on a labor market that can lead in the long term to sharp reduction of their incomes falls. Now in conditions of transition to market system of managing many state enterprises undergo significant reformation and change the organizational-legal form, turning in joint-stock companies of the open or closed type and company (partnership). The modern large industrial enterprise represents complex industrial social and economic system in which characteristics of system are inherent all: an input, an output, process, the purpose, a feedback, etc. 
In the social attitude the enterprise represents itself as a social subsystem of a society, on it interaction public is carried out, collective and personal interests; there are attitudes of friendly mutual aid. Economically the enterprise is the isolated part of the industry which is possessed certain operatively-economic independence and carrying out the activity on the basis of full cost accounting. The economic system of the enterprise includes economic attitudes of the enterprise with the state, the higher organization, suppliers and consumers, the financial organizations. 


Chapter I - System of Intra-firm Planning 
As is known, managerial process consists in planning, the organization of actions on performance of plans and the control over end results. Many industrial firms on own experience were convinced, that planning is the means allowing them to define character, forms and sequence of the future actions during the long period. Bosses who form starting positions for achievement of optimum distribution of intra-firm resources, first of all, participate in work on intra-firm planning delegate the powers necessary for an effective utilization of these resources. From persons by whom powers are delegated and resources are given, the creative approach to use of resources is required. Progress in this direction depends on skill of managers to use the newest theoretical positions, various analytical toolkits for search of the best communications of the present with the future, for the decision of problems of definition of the purposes. Industrial firms in every possible way aspire to raise validity of plans, seeing in it an additional source of the growth. Large corporations use the services of planning and for the control of performance of obligations suppliers. 
Many foreign experts continuously emphasize that sense of intra-firm planning, finally. It is reduced to definition of decisions which are required to be accepted today for maintenance of effective activity of firm, its growth in the future. The sense of planning is precisely enough defined by Professor Hugo Diemer from the Texas University: "Function of planning - to look ahead; to plan - means to define in advance the future rate of actions" (Diemer, 1995:134). By his definition, planning includes decision-making concerning: “A choice both short-term, and long-term strategy of firm; developments of focusing lines and actions which help to carry out objects in view or to overcome menacing situations; Establishments of standards of operative activity which are used as base for control; revision of earlier plans in a view of varying conditions” (Diemer, 1995:147).
At a formulation of an overall objective are guided by the requirement of reception of the certain volume of profit which is established as a result of the critical analysis strong and weaknesses of activity of the companies in view of the unexpectedness concealed in uncertainty of external conditions. In this work the method of construction of "a tree of the purposes" is used (Lawrence, 1999:259). As the basis of "tree" the main strategic concepts of firm serve. They consistently branch, defining more private and at the same time more specific goals for each subordinate control link. Proceeding from it, each manager should define the specific goals. When the purposes are formulated, conditions for an assessment of works of managers - on successes in performance of tasks in view are created. Than below a step of hierarchy, especially concrete there are purposes on the character, an orientation, the covered period. For the manager each specific goal opens an opportunity for its individual creativity which development should be promoted by sufficient organizing independence. 
Many scientists and economists of the different countries recognize that planning – “the most difficult and responsible site in all work on the organization of efficient control not only because process of definition of the purposes, a final choice of a direction of activity and development of the corresponding program in conditions of the market is exclusively combined, but also owing to complexity of all subsequent work on performance of plans because of variability of a conjuncture and necessity of specification and updating of plans” (Solomon, 1992:154). They warn industrial firms against simplicity and recommend defining, on the one hand, at the organization of system of planning interrelation of problems and steps on creation of hierarchy of plans, and with another to provide the monitoring system of work of firm and necessary corrections. 


Chapter II - Organizational Designing and the Control 
That plans have been realized, someone, obviously, should execute actually each of the problems following from the purposes of the organization. For this purpose the management is obliged to find an effective way of a combination of the key variables describing problems and people. Statement of the purposes and maintenance with their policy, strategy, procedures and rules promotes the decision of this problem. The motivation and the control also play an essential role in maintenance of efficiency of performance of tasks. However the organization as process represents function which is the most obvious and directly is connected with regular coordination of many problems and, accordingly, formal mutual relations of people, their carrying out
What place in the theory of management borrows the control? The effective control assumes constant interaction with all other functions of management - planning, organizational activity, distribution of resources and a management of people. The organization of the control is considered one of the challenges facing to modern management. It is connected with expansion and complication of activity of major concerns, concentration and diversification. The administrative control, being a necessary condition of functioning of any economic mechanism, in modern conditions receives the further theoretical development and practical perfection on the basis of improvement of methods of the administrative account and the automated processing of the information, application of analytical methods of decision-making the system analysis. 
In essence in any field of activity of industrial firm, including production management, selling, the finance, the staff, etc., the general both specific methods and procedures of the control can be found. At the same time various levels of management have absolutely various information needs.
Efficiency of the administrative control plays the major role in maintenance of ability to live of industrial firm. The problem of the administrative control consists in maintenance of achievement of the planned purposes, realization of scheduled decisions by the organization of streams of the industrial information (Sundaramurthy, 1990:289). The control includes gathering, processing and an estimation of the information on results of activity of various industrial divisions, drawing up of the reporting, revealing of deviations from the established purposes and the reasons of these deviations and definition of the actions necessary for achievement of the purposes. 


Chapter III - Management of the Manpower - Social Aspect in the Theory of Management
For all organizations - services greater and small, commercial and noncommercial, industrial and operating in sphere management of people has great value. Without people there is no organization. Without the necessary people any organization cannot reach the purposes and survive. Undoubtedly, that management of manpower is one of the major aspects of the theory and practice of management. The concrete responsibility for the general management of manpower in the large organizations is usually assigned to professionally prepared workers of staff departments. In order that such experts could promote actively to realization of the purposes of the organization, to them are necessary not only knowledge and the competence of the concrete area but also awareness on needs of heads of the lowest part. At the same time, if heads of the lowest part do not understand specificity of management of manpower, its mechanism, opportunities and lacks they cannot take advantage of services of experts-personnel officers to the full. Therefore it is important, that heads knew all and understood ways and methods of management of people. At definition of the purposes of the organization the management should to define also resources necessary for their achievement. Necessity for money, the equipment and materials is quite obvious. Seldom who from heads will miss these moments at planning. The need for people - too seems quite obvious. Unfortunately, frequently planning of manpower resources is conducted by inadequate image or to it is not given that attention which it deserves (Brady, 1990:314).
First step making work of the worker by as more as possible productive, vocational counseling and social adaptation in collective is. If the management is interested in success of the worker on a new place, it should remember always, that the organization is a public system and each worker is a person. In many foreign textbooks on management “Social Adaptation” it is defined "as process of knowledge of strings of authority, process of comprehension of the doctrines accepted in the organization, process of training, that comprehension that is important in this organization or its divisions" (Sundaramurthy, 1990:407). The organizations use a lot of ways, both official, and informal to enter the person into the society. Formally, during employment the organization gives the person the information on so that expectations of the candidate would be realistic. Behind it usually there is training to special labor skills and interview on a theme that is considered effective work. During the informal dialogue, new workers learn unwritten rules of the organization that possesses real authority, what real chances of promotion and growth of the compensation; consider what performance level sufficient fellow workers. Norms, the attitude to work and the values accepted in informal groups, can work either in support, or against the official purposes and installations of the organization. The organizations have constant need for maintenance of high efficiency of work of workers. Many organizations thus care and of the general quality of a manpower. One of ways of achievement of this purpose is the set and selection of the most qualified and capable new workers. However it is not enough of it. The management should spend also programs of regular training and preparation of workers, helping full disclosing of their opportunities to the organizations. Preparation represents training workers to the skills, allowing lifting productivity of their work. The ultimate goal of training consists in maintenance of the organization with enough of people with skills and the abilities necessary for achievement of the purposes of the organization. 
Following step after the worker adapted in collective and has received necessary preparation for effective performance of the work, there will be a definition of a degree of efficiency of its work. The purpose of an estimation of results of activity which can be imagined as continuation of function of the control consists in it. The estimation of results of activity demands, that heads collected the information on that, how much effectively each worker carries out the duties delegated to it. Informing these data the subordinate, the head informs them on how well they consult with the work and enables them to correct the behavior if it mismatches accepted. At the same time, the estimation of results of activity allows a management to define the most outstanding workers and really to lift a level of their achievements, translating them on more attractive posts. 


Conclusions
Thus, in the given research we have considered the basic directions of world practice of management of industrial firms, and also in this connection its social and economic aspects. The concept of industrial firm as open social system has been in detail shined, classification of the industrial enterprises is given. 
Very big attention is given in research to classical functions of management - planning, the organization, motivation and to the control. At discussion of strategic planning process of a choice of the purposes of the organization and ways of their achievement has been considered. 
The functions of management are considered not only as economic aspect in production management, but also social since management in the industry is not only management of operational systems, but also the most important - management of people. And as it will pass depends already on a company management, from their experience, knowledge, flexibility. 
Very big section is devoted to management of manpower to social production management which problem consists, in essence, in increase of a social maturity of collective. Satisfaction work of members of collective, a level of development of intra-collective attitudes, a moral and psychological atmosphere of collective, a degree of involving of workers in production management, constant interest in increase of its efficiency, a level of turnover of staff, creative activity of workers - these parameters substantially reflect a level of a social maturity of a work collective. And by means of these parameters the estimation of efficiency of social activity of the head of a work collective is usually formed. 

References:
1.Brady, F. Neil., Ethical Managing: Rules and Results, New-York: Macmillan Publishing, 1990.
2.Diemer Hugo, Industrial Organization and Management, Chicago, La Salle Extension University Press, 1995.
3.Gradon Frank, Maintenance Engineering // Organization and Management, London, Wiley Publishing, 2004
4.Fernstrom Dickson Karl, Organization and Management of a Business Enterprise, New-York, Harper & Brothers, 1997
5.Lawrence L. Bethel, Essentials of Industrial Management, New-York-City, the McGraw-Hill Companies, Inc., 1999
6.Solomon, Robert C., Ethics and Excellence: Cooperation and Integrity in Business, New York, Oxford University Press, 1992.
7.Sundaramurthy S., Industrial Organization and Management: Principles and Practice, New Zealand, United Book Company Ltd., 1990. 

7.25
Your rating: None Average: 7.3 (4 votes)
PARTNERS
 
 
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
image
Would you like to know all the news about GISAP project and be up to date of all news from GISAP? Register for free news right now and you will be receiving them on your e-mail right away as soon as they are published on GISAP portal.