Management levels
Most firms have three levels of management: top, middle and bottom.
The impetus for the division of management into upper, middle and lower levels gave industrial Revolution in Europe in the 18th century. First, the upper and lower levels of management stood out. The word "master" has become terrible and hateful. Masters were more often selected according to physical data than to the ability to deal with people. The middle link has emerged as firms have grown in size and complexity, and as management approaches have become more meaningful.
Managers of each level perform the same functions: planning, organization, leadership, motivation, control. The difference is only in what value they attach to this or that function. The top-level manager devotes more time to planning and organizing than lower-level managers. The middle-level manager devotes more time to leadership and control than the top-level manager. The lower level manager spends most of his time motivating and controlling his subordinates. However, most managers perform all five management functions.
So, it is impossible to separately study or master the management functions of the upper, middle or lower levels. When talking about one of them, in essence, we are talking about all three.
It should be emphasized that it is impossible to clearly and precisely define each of the three levels of management. Therefore, we give only working definitions, because each firm determines the levels of management in accordance with its own characteristics. Here, it is probably worth recalling the influence of the following factors: organizational structure, the number of employees, the essence of the business itself, etc.
Top level managers middle and large firms focus on planning for the future, setting goals, determining courses of action, rules and procedures for their implementation. They are responsible for the prosperity of the company and therefore must plan, direct and control its activities.
The top level of government includes the president and vice presidents. It is clear that the company may have several vice presidents responsible for certain areas of its activity - production, sales, supply, finance, personnel or advertising.
Middle managers head departments or divisions. They must organize their work so that the goals of the company are achieved, and its policies are implemented, select and maintain good workers. They are primarily responsible for managing the day-to-day activities of their units. The middle level of management includes managers of offices, workshops and warehouses, senior foremen, heads of technical control and product quality departments. In many large banks, their branches are run by vice presidents. They are responsible for the operation of bank branches and belong to top-level managers. The branch manager reports directly to the vice president of branch operations and is a mid-level manager.
Lower control level is the level of officials directly guiding the work their subordinates. At this level, the functions of planning and organization are implemented in the actions of the manager, stimulating and directing the activities of employees. Typical titles of positions occupied by managers of this level: foreman, foreman, team leader, purchasing agent, forwarder. It is often said that such a lower-level manager is "in the middle", since he is located between the direct executors and the top and middle managers. Lower-level managers play a very important role in the firm. But usually the higher management does not pay due attention to the serious problems of the lower-level managers. These problems include low wage, congestion, lack of authority, weak professional training ordinary workers, as well as the fact that they may not meet the requirements for them.
The newcomer starts his activity as a manager of the lower level. If he stays in this position for one to five years, he can be promoted up the ranks to a middle manager. In this position, he will be considered a novice manager (all managers consider themselves novice during the first ten years of their activity). No matter how useful and important the training of leaders in universities and courses, it will never replace concrete practical work. This is true even for those with a master's degree from Harvard Business School. To become a good manager, you need to correctly combine the theoretical training received during your studies with practical experience.
Middle-level managers are primarily responsible for performance And efficiency operations they control. Efficiency means the ability to get the job done with minimal wastage of materials and time. Efficiency is the ability to do a job and do it well. It is the middle managers who must ensure that the work is done both economically and efficiently. As they say, the result is important. Managers are fired most often for their inability to achieve the intended results.
What do mid-level managers usually do for most of their working day? First, they plan and allocate work for the next day or week. Secondly, they communicate between production staff and higher leadership. Third, they make day-to-day decisions that ensure profitability production and other operations. Fourth, and very importantly, they lead other people - either lower-level managers or (in small organizations) ordinary workers.
Middle or lower level managers may also be involved in acquiring ordered materials and components and checking their quality, in working with personnel, in holding meetings on safety, product quality, deficiencies in work, distribution of profits, in preparing reports on financial and production activities. , in solving large and small, but always numerous problems. Some problems, such as poor planning, are due to the personal shortcomings of the manager, others are due to the shortcomings of his subordinates, such as neglect of work. A number of problems arise through the fault of management or other departments. Many problems are caused by government legislation or customer requirements, and management requires lower-level management to resolve them. Under these conditions, they should consider any problem as an opportunity to show their ability to cope with difficulties.
A serious study of the issues of management levels is offered by N.I. Kabushkin.
Despite the fact that all leaders of the organization perform managerial activities, it cannot be said that they are all engaged in the same type of activity. labor activity. Individual managers have to spend time coordinating the work of other managers, who, in turn, coordinate the work of lower-level managers, and so on. to the level of a manager who coordinates the work of non-management personnel - people who physically produce products or provide services. Such a vertical deployment of the division of labor forms the levels of management (Figure 3).
Control
top management
Control
middle management
Control
grassroots
link
Figure 3. Management levels
The shape of the pyramid shows that there are fewer people at each successive level of government than at the previous one.
Highest level management of the organization may be represented by the Chairman of the Board of Directors ( supervisory board), president, vice president, board. This group of managerial employees provides for the interests and needs of the owners of shares, develops the policy of the organization and contributes to its practical implementation. In this regard, top management can be divided into two sub-levels: authorized management And general leadership .
middle managers management ensure the implementation of the organization's functioning policy developed by top management, and are responsible for bringing more detailed tasks to divisions and departments, as well as for their implementation. The specialists in this group usually have a wide range of responsibilities and have a lot of decision-making freedom. These are heads of departments, directors of enterprises that are part of the organization, heads functional departments.
The lowest level of management represented by junior leaders. These are managers who are directly above the workers and other workers (not managers). These can be foremen, foremen, controllers and other administrators responsible for bringing specific tasks to the direct executors. The ratio of time spent on the performance of the main management functions differs by management levels (Figure 4).
Figure 4. The ratio of time spent by levels and management functions
It should be noted that at all levels of management, managers perform not only purely managerial, but also executive functions. However, with the rise in leadership specific gravity executive functions are reduced. Calculations show that at the highest level, execution takes about 10% of the total time budget of managers, at the middle level - 50%, at the lowest level - about 70% (Figure 5).
Figure 5. Classification of time spent by managers by type of activity and levels of management
This distribution of the total time budget is due to the fact that managers of all three levels have two task areas: management tasks And specialty assignments(Figure 6). This means that the head of any level of management spends a certain percentage of time on making decisions. management decisions and certain - to make decisions in the specialty.
Figure 6. Distribution of working hours by management and specialty
As can be seen in Figure 6, with an increase in the level of management, the share of tasks in the specialty falls, and in management, respectively, increases.
The above classification of management levels has the most general form. Depending on the size and type of organization, its sectoral and territorial characteristics, and other factors, the characteristics of the composition and functions of managers at each of the three levels of management can vary significantly.
A. Hosking offers a different differentiation: general management is all managers (regardless of whether they are directors or not) who are responsible for setting goals and formulating policies, for issues related to planning and organizing, controlling and managing the company as a whole; management at the division level - these are managers who perform the same functions, but at the division level, in accordance with the general tasks and goals of the corporation.
With the help of the division of labor, employees of the company can implement their own functions better, while applying less of their efforts. It also helps reduce business costs. The division of labor is both horizontal and vertical. Under the horizontal division of labor, the creation of structural divisions in the company focused on different areas of activity is assumed. With vertical separation, the implementation of work is separated from the coordination of the activities of individual performers. In this case, different levels of enterprise management are provided. Levels of enterprise management in the structure of the organization What can be considered an enterprise management organization? This is the general ordering of the company, which sets the sequence of various actions and the framework within which activities should be carried out. Under the socio-economic environment of the enterprise understand the object of management organization. This includes workers, various objects of labor, financial and information resources. To organize the management of the company, a number of tasks should be solved: select goals; form a community of citizens; determine what kind of organizational structure the levels of enterprise management are needed; create the right conditions. The main functions characteristic of the organization of company management are: achievement by the company of the chosen goals; reduction of company costs; division of labor, due to which employees better exercise their own powers. Enterprise management levels are an expression of the division of labor in companies. The trend towards specialization in the field of professional work, during which any employee (or any structural subdivision ) is called upon to perform the actions provided for it and is not involved in the performance of other functions. The following types of division of labor can be noted: horizontal and vertical. With a vertical division of labor, any manager has an area of activity for which he has to be responsible (a sphere of control), or has a certain number of employees reporting to him. In this situation, the distribution of all tasks is carried out not within the same level, but “from top to bottom” - from employees occupying the highest positions to employees at the bottom of such a hierarchy. At the same time, the higher the position occupied by the employee, the more general tasks he is engaged in; the lower the position of a specialist in the hierarchy, the more specific goals he receives. This is a natural process, because the most significant decisions from the point of view of functioning are usually made at the very “top”, that is, the top managers of the company. With a horizontal division of labor, workers are divided between different functional areas and they are entrusted with the performance of tasks that are important from the position of this functional area. A typical example is the conveyor release of goods, the case when a certain operation is provided for an individual worker, and he finds himself on the same hierarchical level with other specialists involved in the production of products. The internal levels of the enterprise management system should not be considered something stable, unchanged in the future. Managers, especially senior managers, should be aware that the organizational structure is formed in order to solve the problems assigned to the company. In the future, the position of the company in the market will change, the conditions for its functioning will also change (competitors will be added, legislation, economic and political situations will change). In addition, there is a possibility of changes in the number of employees of the enterprise. Of course, all this can lead to the fact that the tasks of the company will change. At the same time, the internal levels of production management in the enterprise should also be changed, because the previous structure is sometimes (and most often is) unsuitable for the new goals. Management in a company is usually carried out in a pyramidal structure: the lower level includes a larger number of managers, and as you move up to a higher level, their number decreases. 3 models of personnel management that will help organize employees Levels of enterprise management As a rule, three levels of management are noted. Technical level (is the lower level of management) - managers interact directly with specialists - performers, deal with specific issues; Managerial level (middle) - managers in this case are responsible for the progress of each production process in structural divisions, which include a number of structural units; managers of headquarters and functional services of the management structure, heads of auxiliary and service industries, targeted programs and projects; Institutional level (highest) - the administration of the company, engaged in general strategic management; questions strategic management- management of financial resources, selection of sales markets, development of the company, only 3-7% of the total number of managers are involved at this level. The highest level of management is engaged in the development of long-term plans, the formulation of tasks for the middle level. A significant place here is given to the company's adaptation to market dynamics, to managing the company's relations with the external environment. This link may include the president, CEO, and other members of the board. Middle managers are called upon to coordinate and control the activities of lower-level managers. They identify problems in the production, organizational and financial areas. They form creative ideas and collect the right data for decision-making by senior managers. The middle levels of enterprise management include managers of structural divisions, departments and services of the company. The lower level of management is subordinate to the middle link. Managers of the managerial level include production foremen, foremen, and group leaders. These are professional managers. narrow specialization who perform well-defined duties in the field of product release, marketing activities, material supply management, etc. They are responsible for the competent use of the resources received and the rational use of equipment and workers. Such structural levels of enterprise management allow for clear management, take advantage of the narrow, in-depth specialization of managers. At the same time, it complicates the determination of the share of the contribution of an individual lower-level manager to the overall result. commercial activities, his area of responsibility for the selected management decisions. Management specialists have developed a different theory of company management. According to them, there are the following levels strategic management enterprise: Corporate strategy. It affects the general goals of the company and its entire space. These management links are designed to perform the functions of making key decisions in the technical, economic and production areas. Most often, decision making is a function of the board of directors. This category includes senior managers. Business strategy. It is expressed in achieving success in the field of competition in the market of a particular business area. At this level, they deal with the following tasks: increasing competitiveness, responding to external factors, the choice of a strategy for the behavior of the main separate units. The decision-making body at this level is the board of directors, management of departments, CEOs. functional strategy. Forms a chain of actions aimed at achieving the chosen goal in each area in which the organization operates, the levels of enterprise management are designed to provide analysis, revision, synthesis of various ideas expressed by field managers, and actions to implement the tasks of this unit and maintain the adopted company strategy. These levels include middle management. Decision-making is in the competence of heads of departments. Operational strategy. It includes special strategies for separate structural units of the company, levels of enterprise management, containing chiefs in the field. Here they solve the problems peculiar to this separate unit. The choice of a solution is in the competence of the heads of departments and functional services. What are the levels of management of a modern enterprise today? In international practice, specialists in integrated automation production activities are divided into five levels of management modern company: At the level of ERP - Enterprise Resource Planning (company resource forecasting), various financial and economic indicators are calculated and analyzed, solutions are sought for strategic administrative and logistical problems. At the level of MES - Manufacturing Execution Systems (manufacturing process control systems), tasks are solved in the field of product quality management, forecasting and checking the sequence of operations technological process, production and labor resources within the limits of the ongoing technological process, maintenance of production equipment. The indicated levels of management of a modern enterprise are attributed to the tasks of the automated control system (automated enterprise management system) and technical means, due to which such tasks are performed - office personal computers (PCs) and workstations in the services of the company's leading employees. The next levels of enterprise management solve problems related to the category of automated process control systems (automated process control systems). SCADA - Supervisory Control and Data Acquisition (a system for collecting information and dispatch control) is the level of tactical current management, within which they solve problems of choosing the optimal solution, conducting diagnostics, implementing adaptation, etc. Control-level - local control level, implemented on the following TSA: software - operator panels, PLC - programmable logic controllers, USO - communication devices with the object. HMI-Human-Machine Interface (human-machine communication) - performs visualization (graphical representation of information) of the process. Input / Output - Inputs / Outputs of the control object, which are various sensors and actuators (D / IM) of individual technological installations and working machines. Production management: what is the secret successful leadership How the levels of enterprise management are formed Formation of the levels of enterprise management is carried out within the framework of the production-territorial principle, the essence of which is expressed in the fact that the entire management apparatus is divided vertically into separate levels, and horizontally at all levels their managerial links are formed. The levels of enterprise management determine the direct sequence of subordination of management bodies from the lower levels to the upper ones. All levels of enterprise management are headed by employees involved in general management in this area. On the basis of the principle of unity of command, he is subordinate to the head of a higher level, receives orders and tasks from him for execution. Top-level managers form an institutional level, which is considered the highest level of management, where forecasting for a long period of time takes place, decisions that have important consequences for the enterprise are selected, responses are made to changes that have begun and are expected in the near future, etc. The highest levels of enterprise management have another characteristic feature - it is here that issues are resolved in the field of interaction between the enterprise and its external environment, which includes competitors, the state, public associations and so on. At this level, decisions are chosen by top-level managers (top managers: rectors of universities, presidents and vice-presidents of companies, directors). Top-level management solves the problem of making decisions that are vital for the organization, or its large structural unit. Typically, such decisions are of a strategic nature: in comparison with solving tactical problems, they are aimed not at choosing ways to achieve the set goals, but at determining the goals of the company itself. The highest levels of enterprise management are distinguished by the fact that the managers on them have little contact with different people: they communicate within the company with other top-level managers, as well as with some of their subordinates. At the same time, this situation does not indicate that their activities are simpler and easier than the work of managers at other levels. They have a huge responsibility. The middle and lower levels of enterprise management differ in that the erroneous decisions of their leaders affect certain aspects of the company's work, i.e. lead to local problems, then the mistakes of top-level management can cause the company to go bankrupt. For this reason, one of the most important skills needed for top-level leadership is considered the ability to take risks. Not all people are willing to take risks. Middle managers form the managerial level, which is considered next level where the work of different employees and structural divisions is coordinated to achieve the goals set for the company. At this level, decisions are made by middle managers (these include directors of separate divisions, heads of departments, deans at universities). The middle levels of enterprise management include managers who coordinate and control the work of lower-level bosses and help top-level managers make key decisions. Therefore, they are intermediaries between top and bottom management. Let's examine their functions in more detail: Middle management is often involved in decision-making by top-level managers. They express their ideas related to certain innovations, collect information needed to solve the problem, evaluate the decision made. Top management has only the most general information about the work of the company, often they do not understand the problems that exist in the company or appear in the course of making the wrong decision. Of course, middle-level managers have more information about the company's activities. They are well aware of how the structural unit works, the work of which they manage. The difference between top and middle managers is that the first ones deal with the affairs of the company as a whole, while the second ones have more complete information about a certain area of the company's work. And lower-level managers have very private information about the enterprise. Another task assigned to middle-level managers is mediation - with their help, the higher and lower levels of enterprise management are connected. Most often, a competent interpretation of the decision made by top managers is entrusted to middle management. It is they who manage to endow instructions from above with a form that is optimal for the lower level of management. In this situation, middle-level managers are engaged in the distribution of certain tasks and choose the timing of their implementation. The goals set before them represent the details of the decisions of top managers. Middle-level managers are forced to communicate very often, which is primarily due to the fact that they perform the functions of mediation between other parts of the management system. For this reason, they need to be able to isolate the essential information and separate it from what is not important. In the event that companies employ a large number of employees, the middle levels of enterprise management often include additional links. For example, there are often situations when some middle-level managers coordinate the work of lower-level managers, and the second - the activities of middle-level management. The latter are often considered top-level managers: their position is higher than that of the standard middle-level managers, but they do not belong to the highest level of management, because are under his control. It should be noted that the improvement of technology and other reasons have led to a gradual reduction in the number of middle-level managers. However, they are still needed. The situation is only that their powers are subject to the most significant changes. At the same time, lower-level managers form the technical level of enterprise management: at this level, the usual labor activities; this level can be correlated with the daily activities available in each company. decisions at this level are made by lower level managers (foremen in workshops, heads of subdivisions, in higher educational institutions - by heads of departments, etc.), and their work is considered at the level of current management. The main feature of the work of lower-level managers is expressed in the fact that they are called upon to: deal with problems related to the expenditure of resources in individual situations; check the quality level and timing of various production operations. The main difficulty that arises for a lower-level manager is expressed in the fact that he is forced to very quickly move from one activity to another. In this regard, he needs to quickly resolve issues, because. Most often there is no time to think and find the optimal solution. The lower levels of enterprise management involve the formation of special relationships between managers and their subordinates. The leaders of this link are forced to solve the tasks and check the work of employees, as well as to be mentors and leaders. And just such managers, consciously or unconsciously, are assigned the task of training young specialists and new employees. Managers of the middle and upper levels do this much less often. All levels of enterprise management include functional structures that perform specific functions in the field of management. the main task of such units is expressed in the preparatory work on the formation of managerial decisions for the manager of this level. In the case of using a single-level structure, managers directly control the activities of performers. During the use of a two-level structure, the highest levels of enterprise management are formed - the performance of the work of executors is added. Business Opportunity Management: How to Protect a Company from Bankruptcy Analysis of enterprise management levels Analysis of the management level determines the operation of the management system, its compliance with the management object, and the ability to choose fairly balanced decisions. These characteristics of the management system are considered a key condition for the intensification of production activities, the success of its current and future development. During the analysis of the management link, the operation of the management system in general and the activities of its components are considered, such as the organizational structure of management, the levels of enterprise management, the composition of managerial personnel, their level of qualification and organization of work, the technical equipment of the activities of managers, etc. The task of the analysis is considered to be the substantiation of the rational structure of the governing bodies, the observance of the compliance of the managerial staff with the features and content of the management functions, rational measures for centralization managerial functions, reducing the time for data processing and the time to make a choice of management decisions. An important assessment of the level of enterprise management includes conducting an analysis of the organizational structure, starting with a description of the company. The parameters of the firm and its production structure are designed to determine the structure of management bodies and the number of managers. Analytical indicators that determine the current state of the governing bodies are: the ratio of provision with managerial personnel in general for the company and for each functional group; the share of managerial employees in the total headcount of the company; their average number and proportion in shops and in individual sections; control factor. Control ratio in separate subdivisions determines, for example, the number of employees per foreman, shift manager, workshop, etc. At the same time, the analysis of the levels of enterprise management includes such a special section as an assessment of the level of centralization of management functions. This indicator is calculated in general for the company and separately for the existing functional groups. Analysis of technical equipment and management methods It determines the breadth of the use of advanced achievements of scientific and technical thought (the best equipment), new management techniques, etc. in management work. The analysis begins with an assessment of the quantitative and qualitative aspects of the technique used in management, the possibilities for its improvement. With the help of the level of technical equipment, an indicator of the degree of mechanization and automation of managerial work is determined. Its characteristic is the level of complex (or partial) mechanization of the data processing process, the level of automation of data processing and the preparation of solutions. It is precisely with the help of automation of the work of managers that the basis is formed for studying alternative development options and choosing rational solutions. Analysis of the composition and organization of labor of management employees It is carried out by assessing the level of qualification of employees of the management apparatus, its compliance current requirements industrial activity and science. Needs are determined to increase the skill level of managerial employees for individual functional groups (accountants, planners, etc.), a set of measures is being developed to increase the skill level. An analysis of the organization of labor activity of managerial personnel is carried out, based on a description of the management process, managerial functions performed by each employee, documentation and workflow schemes. In the course of the analysis, reserves are found for improving technology management process by streamlining the list and flows of documents, their unification, timeliness of processing. They also find reserves for improving the organization of the work of managers. Analysis of management effectiveness Based on comparison of management costs with the final results of the company's work. The indicator of the effectiveness of the management methods used in the company is calculated as the ratio of the volume of sales of goods to the amount of management costs. The higher the value of this indicator, the more successful the management methods used in the company. Successful consider those levels of enterprise management, which ensure: the growth of labor productivity; growth of capital productivity of the main production assets; turnover acceleration working capital; profit growth.
Effective management in modern conditions and its importance.
Management is:
A) Best Use Process organization resources to achieve its specific goals through the tools of planning, organizing, leadership (motivation) and control.
B) The process of converting the most effective way organization resources into products with a market value .
Manager tasks:
l Set targets
l Organizes
l Motivates people and builds contacts
l Assesses
l Develops people and oneself
l Responsible for….
Effective management (I do not claim 100% compliance this concept exchange rate) - includes the concept of A, with a small caveat: any investment in the organization, thanks to management, should give the maximum result (COP). The specifics of effective management for modern organization It also consists in using a relevant organizational structure, a system of incentives and motivation, as well as the correct selection of personnel, set goals and assigned tasks, to ensure the most efficient use of the organization's resources, using the principles of resulting synergy in the context of the organization's changing external environment. And all this, taking into account various anthropogenic variables at various stages, both in the life of an organization and in the production process in particular.
The main stages in the development of professional management.
In the world:
1850s- The phenomenon of management is still unknown, at this time, enterprise management inseparably follows ownership. There are individual cases, individual geniuses of management, but as such, science, or the sphere does not yet exist.
1880-1910 – Development of ideas scientific management» Frederick Taylor, the emergence of the first business schools. The birth of such a science as management. The beginning of the application of management theory to industrial practice.
1920-1930 – Penetration into all spheres of production. Development of new ideas in management such as Budgeting and Logistics. Creation of the classical Administrative School of Management, the School of Human Relations. Classical examples of the triumph of management in the West (GM, Ford, GE).
Mid 20th century - present day. – Understanding the overall usefulness of management as a key factor in the successful, efficient and effective operation of the organization. Opening MBA schools, the emergence of an intersectoral personnel market (in management). Highlighting rather than mental differences, but managerial ones, in determining the success of an enterprise. Opening of GSOM SPbSU =)
In Russia:
Initial formation(late 80s - early 90s). Chaotic and primitive forms of business, lack of vocational education at the managers.
mature(1995-1999). The growth of entrepreneurial firms. Regular management and the growth of the Russian Association for Business Education.
Accelerated professionalization, (2000 - present), conducting offensive strategies, creating business periodicals, creating strong Russian brands.
Management levels in an organization
Top-level, Supreme (strategic)
Medium, tactical
Lower, operational
Now about each separately:
Highest level:
Independence in decision-making, their significance. Report only to the owner or the board of directors. Typical representatives are CEOs, directors of business areas, functional directors, university presidents.
According to Pepper, the highest level:
l Match the right people and determine the program for their development
l Choose the right strategic goals
l Correctly define the dynamic values of the organization
l Finding your business models
Average level:
Responsible to the highest level in the performance of duties within the headed units. Carries out management of current activities through the lower-level management system. Typical representatives: shop manager, dean of the faculty.
Bottom link:
Direct management of operational personnel, subordination and responsibility to middle management.
Representatives: head of department, head of department.
Key division factors: the size of the organization, the nature of its activities, structure, delegation.
5. Vertical gradation by knowledge/skills.
Skill types:
Conceptual– analytics, foresight, information filtering, idea generation, development of methods for their implementation, etc.
People skills- communications, psychology.
Technical– knowledge of the course of the technological process, methods of distribution of duties within the framework of the division of labor. Knowledge of the technology used and the ability to use it yourself.
| Management levels | Required Skills | Main areas of responsibility |
| Strategic (senior managers) | Concept Skills | Interaction with the external environment of the organization Development of organizational vision Acceptance strategic decisions |
| Tactical (middle managers) | People skills | Coordination and integration of actions |
| Operational (low level managers) | Technical skills | Monitoring of operating personnel and production processes |
Efficiency.
Narrow sense - efficiency (as such): The ratio between inputs and outputs. The answer to the question: "how to achieve the maximum result with the minimum expenditure of resources?". "Doing things right!". That is - less wastefulness, greater efficiency, greater returns. Synergy. The desire for multiplicity of total investments and their prevalence over the simple sum of individual investments, in combination with the payback of actions in relation to the expected effect.
Broad meaning - effectiveness: Achieving the set goal, "breaking" the company's own "records" in terms of indicators that are critical for determining the success of the company. "Do the right thing!".
Ineffective management: poor performance and poor performance or performance but low performance.
Management decisions.
It is the main tool for the manager to perform work in the organization. Each problem can somehow or indirectly affect almost all areas of the company or several groups of people (I do not claim to be 100% accurate in this definition) . Each problem has its own criterion for determining its complexity. The key ones are:
I. Complexity
II. Relationship of aspects
III. Multiplicity of goals
The problem itself is the discrepancy between the desired and the actual. The decision-making process is the identification of a problem and the choice of one of the alternatives.:
1. Problem identification
2. Determining the criteria influencing the decision and assessing their importance
3. Identification of existing alternatives
4. Analysis of available alternatives
5. Choosing one of the alternatives
Problems are divided into two types: structured and unstructured.
For the structured, we use programmed solutions, for the unstructured, we improvise.
Characteristics of structured problems:
l Simplicity
l Easy to identify
l Habitual
l Availability of clear and sufficient information
Characteristics of unstructured problems:
l Novelty of the problem
l Incomplete and/or ambiguous information
l Uniqueness, originality
l Possible precedent
Programmed decisions, procedures:
l Repeatability
l Ease of adoption (low cost)
l There may be no option evaluation step
l Ability to use procedures, rules or policies
Non-programmed solutions:
l Lack of ready-made solutions
l The need for a non-standard approach
Important picture:
8. Management decision making and its styles. The decision algorithm is in the previous question.
Factors that influence the decision:
l Awareness (certainty/uncertainty)
l Time factor (urgency or forward-looking)
l Personal characteristics(risk tolerance, experience, intuition)
l Bounded rationality of the decision maker
l Factors related to information
l Time factor
l Personal characteristics
l Organizational context
Decision styles:
l Directive
l Analytical
l Conceptual (conceptual)
l Behavior-oriented (behavioral)
Directive style - everything is done according to the instructions. Accounting for a small amount of information, high speed decision-making, the number of alternatives is minimal, the active use of power and hierarchical connections, the tendency to use prescriptions and elements of common, already working internal systems.
Analytical style - we do everything carefully, with an eye on the consequences. Taking into account a large amount of information, a large number of alternatives, trying to minimize risks by developing alternatives, the possibility of using a non-standard solution.
Conceptual style - everything is within a certain concept. The desire to obtain the maximum amount of information, consideration of many alternatives, openness to new ideas, orientation to the future.
Behavioral style - we think, we agree, we estimate, we act. Receptivity to other people's ideas, importance of approval from others, organization of exchange of opinions.
In most cases, styles are mixed.
There are also two decision models:
Rational and boundedly rational.
Rational: Choice of maximum profitable option of all available.
Relatively simple problem
Limited number of alternatives
Minimum time limits
Low costs for finding and evaluating alternatives
Bounded-rational: Instead of the optimal (rational) decision, one is made that satisfies the decision maker .
Information about alternatives and the consequences of their choice is often significantly limited and unreliable.
Human capacity to process available information is limited
Temporary restrictions
l Overconfidence
l Calculation for immediate remuneration
l Anchor effect (selection of one course and belonging of all subsequent actions only to it)
l The desire to confirm one's innocence
l Accessibility
l Giving weight to sunk costs
Criteria for evaluation decision:
l Quality
l Timeliness
l Acceptance by others
l Compliance ethical standards
Information to think about:
Clear problem definition ® The solution cannot be predetermined by the very formulation of the problem.
Understanding that solutions may vary (including breakthrough ones)\
Management as a science.
As a scientific direction began to exist since the time of Taylor. When did the first concepts of applying knowledge of this kind in practice appear.
It is still undergoing rapid development. It started in the middle of the 20th century. The impetus for this was given by such luminaries of science as P. Drucker, I. Adizes (he lives to this day). The specificity of management as a science is that it also takes into account the practical research of managers, finding new concepts when they are applied to certain situations -> management is constantly supplemented. Also, given the existence of other fundamental sciences, by the time management was created, it absorbed a lot:
l Economic theory → industry competition
l Psychology → behavior of people and groups of people in an organization
l Sociology → power and influence, networks
l Mathematics → quantitative methods of decision making…
It also includes related sciences, such as:
l Management theory and organizational theory
l Theory of management and organizational behavior
Why study management?:
Know the logic of decision making, the use of concepts
A source of knowledge, to be informed about where the "legs grow" from this whole thing =)
Relying on existing writings– to continue work in this direction for a possible “breakthrough” in science.
You have to pass the exam!!!
Similar information.
Page 26 of 28
Management levels.
Most firms have three levels of management: top, middle and bottom.
The impetus for the division of management into upper, middle and lower levels was given by the industrial revolution in Europe in the 18th century. First, the upper and lower levels of management stood out. The word "master" has become terrible and hateful. Masters were more often selected according to physical data than to the ability to deal with people. The middle link has emerged as firms have grown in size and complexity, and as management approaches have become more meaningful.
Managers of each level perform the same functions: planning, organization, leadership, motivation, control. The difference is only in what value they attach to this or that function. The top-level manager devotes more time to planning and organizing than lower-level managers. The middle manager spends more time leading and controlling than the top manager. The lower level manager spends most of his time motivating and controlling his subordinates. However, most managers perform all five management functions.
So, it is impossible to separately study or master the management functions of the upper, middle or lower levels. When talking about one of them, in essence, we are talking about all three.
It should be emphasized that it is impossible to clearly and precisely define each of the three levels of management. Therefore, we give only working definitions, because each firm determines the levels of management in accordance with its own characteristics. Here, we should probably recall the influence of the following factors: the complexity of the organizational structure, the number of employees, the essence of the business itself, etc.
Top level managers medium and large firms focus on planning for the future, setting goals, determining courses of action, rules and procedures for their implementation. They are responsible for the prosperity of the company and therefore must plan, direct and control its activities.
The top level of government includes the president and vice presidents. It is clear that the company may have several vice presidents responsible for certain areas of its activity - production, sales, supply, finance, personnel or advertising.
Middle managers head departments or divisions. They must organize their work so that the goals of the company are achieved and its policies are implemented, select and retain good employees. They are primarily responsible for managing the day-to-day activities of their units. The middle level of management includes managers of offices, workshops and warehouses, senior foremen, heads of technical control and product quality departments. In many large banks, their branches are run by vice presidents. They are responsible for the operation of bank branches and belong to top-level managers. The branch manager reports directly to the vice president of branch operations and is a mid-level manager.
Lower control level- This is the level of officials who directly manage the work of their subordinates. At this level, the functions of planning and organization are implemented in the actions of the manager, stimulating and directing the activities of employees. Typical titles of positions occupied by managers of this level: foreman, foreman, team leader, purchasing agent, forwarder. It is often said that such a lower-level manager is "in the middle", since he is located between the direct executors and the top and middle managers. Lower-level managers play a very important role in the firm. But usually the higher management does not pay due attention to the serious problems of the lower-level managers. These problems include low wages, overburdening, lack of authority, poor training of rank-and-file workers, and the fact that they may not meet the requirements placed on them.
The newcomer starts his activity as a manager of the lower level. If he stays in this position for one to five years, he can be promoted up the ranks to a middle manager. In this position, he will be considered a novice manager (all managers consider themselves novice during the first ten years of their activity). No matter how useful and important the training of leaders in universities and courses, it will never replace concrete practical work. This is true even for those with a master's degree from Harvard Business School. To become a good manager, it is necessary to correctly combine the theoretical training received during studies with practical experience.
Middle-level managers are primarily responsible for performance And efficiency operations they control. Efficiency means the ability to get the job done with minimal wastage of materials and time. Efficiency is the ability to do a job and do it well. It is the middle managers who must ensure that the work is done both economically and efficiently. As they say, the result is important. Managers are fired most often for their inability to achieve the intended results.
What do mid-level managers usually do for most of their working day? First, they plan and allocate work for the next day or week. Secondly, they provide a link between production personnel and higher management. Third, they make day-to-day decisions that ensure profitability production and other operations. Fourth, and very importantly, they lead other people, either lower-level managers or (in small organizations) ordinary workers.
Middle or lower level managers may also be involved in acquiring ordered materials and components and checking their quality, in working with personnel, in holding meetings on safety, product quality, deficiencies in work, distribution of profits, in preparing reports on financial and production activities. , in solving large and small, but always numerous problems. Some problems, such as poor planning, are due to the personal shortcomings of the manager, others are due to the shortcomings of his subordinates, for example, neglect of work. A number of problems arise through the fault of management or other departments. Many problems are caused by government legislation or customer requirements, and management requires lower-level management to resolve them. Under these conditions, they should consider any problem as an opportunity to show their ability to cope with difficulties.
N.I. Kabushkin offers a serious study of the issues of management levels.
Despite the fact that all the leaders of the organization perform managerial activities, it cannot be said that they are all engaged in the same type of work activity. Individual managers have to spend time coordinating the work of other managers, who, in turn, coordinate the work of lower-level managers, and so on. to the level of a manager who coordinates the work of non-management personnel - people who physically produce products or provide services. Such a vertical deployment of the division of labor forms the levels of management (Fig. 3).
The shape of the pyramid shows that there are fewer people at each successive level of government than at the previous one.
Highest level management of the organization can be represented by the Chairman of the Board of Directors (Supervisory Board), President, Vice President, Board. This group of management employees ensures the interests and needs of shareholders, develops the policy of the organization and contributes to its practical implementation. In this regard, top management can be divided into two sub-levels: authorized management And general leadership.
Rice. 3. Management levels
middle managers management ensure the implementation of the organization's functioning policy developed by top management, and are responsible for bringing more detailed tasks to divisions and departments, as well as for their implementation. The specialists in this group usually have a wide range of responsibilities and have a lot of decision-making freedom. These are heads of departments, directors of enterprises that are part of the organization, heads of functional departments.
The lowest level of management represented by junior leaders. These are managers who are directly above the workers and other workers (not managers). These can be foremen, foremen, controllers and other administrators responsible for bringing specific tasks to the direct executors. The ratio of time spent on the performance of the main management functions differs by management levels (Fig. 4).
It should be noted that at all levels of management, managers perform not only purely managerial, but also executive functions. However, with an increase in the level of leadership, the share of executive functions decreases. Calculations show that at the highest level, execution takes about 10% of the total budget. time of managers, on the average - 50%, on the lowest - about 70% (Fig. 5).
Rice. 4. The ratio of time spent by levels and management functions
Rice. 5. Classification of time spent by managers by types of activities and levels of management
This distribution of the total time budget is due to the fact that managers of all three levels have two task areas: management tasks And specialty assignments(Fig. 6). This means that the head of any level of management spends a certain percentage of time on making managerial decisions and a certain percentage - on making decisions in the specialty.
As seen in fig. . 6, with an increase in the level of management, the share of tasks in the specialty falls, and in management, respectively, increases.
Rice. 6. Distribution of working time by management and specialty
The above classification of control levels has the most general form. Depending on the size and type of organization, its sectoral and territorial characteristics, and other factors, the characteristics of the composition and functions of managers at each of the three levels of management can vary significantly.
A. Hosking offers a different differentiation: general management is all managers (regardless of whether they are directors or not) who are responsible for setting goals and formulating policies, for issues related to planning and organizing, controlling and managing the company as a whole; management at the division level - these are managers who perform the same functions, but at the division level, in accordance with the general tasks and goals of the corporation.
Although all managers play certain roles and perform certain functions, this does not mean that a large number of managers in big company busy doing the same job. Organizations that are large enough to provide a clear distinction between the work of managers and non-managers usually have such a large amount of managerial work that it must also be divided. One of the forms of division of managerial labor is horizontal in nature: the placement of specific managers at the head of individual departments. For example, many enterprises have managers financial department, production department and marketing services. As in the case of the horizontal division of labor to perform production work, horizontally divided managerial work must be coordinated so that the organization can achieve success in its activities. Some managers have to spend time coordinating the work of other managers, who in turn also coordinate the work of managers, until finally we descend to the level of a manager who coordinates the work of non-managerial personnel - people who physically produce products or provide services. This vertical expansion of the division of labor results in LEVELS OF CONTROL.
Usually in an organization you can determine at what level one manager is compared to others. This is done through the job title. However, the job title is not a reliable indicator of a given manager's true level in the system. This observation is especially true when we compare the position of leaders in different organizations. A simple example: a captain in the army is a junior officer, and in the navy it is a senior officer. In some companies, salespeople are called regional or area sales managers, although they do not manage anyone but themselves.
For reasons we will discuss in more detail later, the size of an organization is only one of several factors that determine how many levels of management a company must have in order to achieve optimal results. There are many examples of highly successful organizations with far fewer levels of management than much smaller organizations.
Regardless of how many levels of management there are, leaders are traditionally divided into three categories. Sociologist Talcott Parsons considers these three categories in terms of the function performed by the leader in the organization. As defined by Parsons, individuals at the technical level are primarily concerned with the day-to-day operations and activities necessary to ensure effective work without disruption in the production of products or services. Persons at the managerial level are mainly engaged in management and coordination within the organization, they coordinate the various forms of activity and efforts of various departments of the organization. Managers at the institutional level" are mainly engaged in the development of long-term (long-term) plans, the formulation of goals, the adaptation of the organization to various kinds of changes, the management of relations between the organization and the external environment, as well as the society in which the organization exists and operates.
A more commonly used way of describing levels of management is to distinguish between low-level managers (managers), or operational managers, middle managers (managers), and top managers (managers).
LEADERS OF THE LOWER LEVELS. Junior managers, also called first-level (grass-roots) managers or operational managers, are the organizational level directly above workers and other employees (non-managers). JUNIOR BOARDS mainly monitor the performance of production tasks to continuously provide direct information about the correct execution of these tasks. Managers at this level are often responsible for the direct use of resources allocated to them, such as raw materials and equipment. A typical job title at this level is foreman, shift foreman, sergeant, head of department, head nurse, head of the department of management at a business school. Most of the managers in general are low-level managers. Most people start their managerial career in this capacity.
Research shows that the job of a grass-roots manager is stressful and filled with a variety of activities. It is characterized by frequent breaks, transitions from one task to another. The tasks themselves are potentially short: one study found that the average time it took a foreman to complete one task was 48 seconds. The time period for the implementation of decisions made by the master is also short. They are almost always realized within less than two weeks. It was revealed that craftsmen spend about half of their working time in communication. They communicate a lot with their subordinates, little with other masters, and very little with their superiors.
MIDDLE MANAGERS. The work of junior superiors is coordinated and controlled by middle managers. Over the past decades, middle management has grown significantly both in number and in importance. In a large organization, there may be so many middle managers that it becomes necessary to separate this group. And if such a separation occurs, then two levels arise, the first of which is called the upper level of the middle management link, the second - the lowest. Thus, four main levels of management are formed: the highest, the upper middle, the lower middle and the grassroots. Typical middle management positions are department head (in business), dean (in college), regional or national sales manager, and branch manager. Army officers from lieutenant to colonel, priests in the rank of bishops are considered middle managers in their organizations.
It is difficult to generalize about the nature of a middle manager's work, as it varies greatly from organization to organization and even within the same organization. Some organizations give their middle managers more responsibility, making their work somewhat similar to that of senior managers. A study of 190 executives in 8 companies found that middle managers were an integral part of the decision-making process. They identified problems, initiated discussions, recommended actions, and developed innovative creative proposals.
A middle manager often leads a large division or department within an organization. The nature of his work in more determined by the content of the work of the unit than the organization as a whole. For example, the activities of a production manager in an industrial firm mainly include coordinating and directing the work of field managers, analyzing labor productivity data, and interacting with development engineers. new products. The head of external relations at the same firm spends most of his time preparing papers, reading, talking and talking, and attending various committee meetings.
For the most part, however, middle managers act as a buffer between top and bottom managers. They prepare information for decisions made by top managers and transfer these decisions, usually after their transformation in a technologically convenient form, in the form of specifications and specific tasks to lower line managers. Although there are variations, the majority of communication among middle managers takes the form of conversations with other middle and lower managers. One study of middle management in a manufacturing enterprise found that they spend about 89% of their time in verbal interaction. Another study indicates that the middle manager spends only 34% of their time alone, it also highlights that most of the time these managers spend on verbal communication.
Middle managers like social group experienced especially strong influence various changes economic and technological nature in production during the 80s. Personal computers eliminated some of their functions and changed others, allowing senior managers to receive information directly at their desks directly from the source, instead of filtering it at the level of middle managers. The wave of corporate mergers and the general pressure to become more efficient at work has also caused drastic cuts in the number of middle managers in some organizations.
SENIOR LEADERS. The highest organizational level - top management - is much smaller than the others. Even in the largest organizations, there are only a few senior managers. Typical senior executive positions in business are Chairman of the Board, President, Vice President of the Corporation, and Treasurer of the Corporation. In the army they can be compared with generals, among statesmen - with ministers, and at the university - with chancellors (rectors) of colleges.
But the hardships of such a post are also great: a person in this position, as a rule, is very lonely. After carefully studying the activities of five senior executives, Mintzberg came to the following conclusion: “Thus, the work of leading a large organization can be called extremely exhausting. The amount of work that a manager has to do or considers necessary to do during the day is enormous, and the pace at which it must be done is very stressful. And after long hours of work, the main leader (as, indeed, other leaders) is not able to leave his environment either physically (because the environment recognizes the authority and status of his position), or in his thoughts, which are aimed at continuous search new information.
The main reason for the intense pace and huge amount of work is the fact that the work of a senior manager does not have a clear conclusion. Unlike a sales agent who must make a certain number of telephone calls, or a worker in a factory who must meet a production quota, there is no point in the enterprise as a whole, short of a complete shutdown of that enterprise, when the work can be considered finished. Therefore, the top manager cannot be sure that he (or she) has successfully completed his activity. As long as the organization continues to operate and external environment continues to change, there is always the risk of failure. The surgeon may finish the operation and consider his task completed, but the senior manager always feels that something else, more, further needs to be done.
Management levels and types of leaders
Completed by 3rd year student
Faculty Business and Management
Checked by teacher
· LEVELS OF CONTROL.
Management as a concept
Horizontal and vertical division of labor
Management levels
· MANAGER AND LEADER. GENERAL AND DISTINCTIVE FEATURES.
Management and functions of a manager
leader and leader functions
· Leaders and managers. General and distinctive features.
· TYPES OF LEADERS. QUALITIES NECESSARY FOR A LEADER.
The main types of leaders
Qualities required for a modern leader
Findings and Conclusions
· LEVELS OF CONTROL
· Management as a concept
Control- this is the process of planning, organizing, motivating and controlling, necessary in order to formulate and achieve the goals of the organization (Meskon M. Kh.).
Considered by many to be the world's leading management and organization theorist, Peter F. Drucker offers a different definition. "Management - This special kind activity, transforming the unorganized crowd into an efficient, purposeful and productive group.
Management (as a process) is the impact of the subject of management on the object in order to achieve certain goals. The subjects of management can be an investor, a manager, a state, corporate or business management body. As objects of management, there can be objects of a lower level of management in relation to the subject (an enterprise of a corporation, a department of an enterprise, a subject of the Federation, etc.), a manager of a lower managerial level in relation to the subject of management, a specialist, a worker, objects and means of labor for a worker and etc.
Management is the implementation of several interrelated functions: planning, organization, employee motivation and control. The interaction of these functions with each other forms single process, or in other words continuous chain of interrelated actions .
Management as such is also a stimulating element social change, and an example of significant social change. Finally, it is management, more than anything else, that explains the most significant phenomenon of our century: the explosion of education. The more highly educated people there are, the more dependent they are on the organization. Almost all people with an education above secondary school, in all developed countries of the world in the United States, this figure is over 90% - will spend their entire lives as employees of managed organizations and will not be able to live and earn their living outside organizations.
· Horizontal and vertical principle of division of labor
Large organizations need to perform very large amounts of managerial work. It requires division of managerial labor to horizontal and vertical.
The horizontal principle of the division of labor is the placement of managers at the head of individual units, departments.
The vertical principle of the division of labor is the creation of a hierarchy of levels of management in order to coordinate horizontally divided managerial work in order to achieve the goals of the organization.
Also in this chapter we will consider 3 levels of management, or, in other words, three categories of leaders.
· Management levels
· Lower managers(operational managers). The largest category. They exercise control over the fulfillment of production tasks, over the use of resources (raw materials, equipment, personnel). Junior superiors include a foreman, head of a laboratory, etc. The work of a lower-level manager is the most diverse, characterized by frequent transitions from one type of activity to another. The degree of responsibility of lower-level managers is not very high, sometimes there is a significant proportion of physical labor in the work.
A typical job title at this level is foreman, shift foreman, sergeant, head of department, head nurse. Most of the managers in general are low-level managers. Most people start their managerial careers in this capacity.
Research has shown that the job of a grass-roots manager is stressful and filled with a variety of activities. It is characterized by frequent breaks, transitions from one task to another. Tasks themselves are potentially brief. One study found that the average time it took a craftsman to complete one task was 48 seconds. The time period for the implementation of decisions made by the master is also short. They are almost always realized in less than 2 weeks. It was revealed that craftsmen spend about half of their working time in communication. They communicate a lot with their subordinates, not much with other masters, and very little with their superiors.
· Middle managers. They supervise the work of lower-level managers and pass the processed information to senior managers. This link includes: department heads, dean, etc. Middle managers have a much greater share of responsibility.
In a large organization, there may be so many middle managers that it may be necessary to separate this group. And if such a separation occurs, then two levels arise, the first of which is called upper middle management level, second - lower level middle management.
It is difficult to generalize about the nature of the middle manager, as it varies greatly from organization to organization and even within the same organization.
A middle manager often leads a large division or department within an organization. The nature of his work is determined to a greater extent by the content of the work of the unit than by the organization as a whole. For example, the activities of a production manager in an industrial firm mainly include coordinating and directing the work of field managers, analyzing labor productivity data, and interacting with an engineer to develop new products. The head of the external relations department at the same firm spends most of his time preparing papers, reading, talking and talking, and meeting various committees.
For the most part, however, middle managers act as a buffer between top and bottom managers. They prepare information for decisions made by senior managers and transmit these decisions, usually after their transformation in a technologically convenient form, in the form of specifications and specific tasks to grass-roots line managers.
Middle managers, as a social group, experienced a particularly strong impact of various economic and technological changes in production during the 80s. Personal computers eliminated some of their functions and changed others, allowing senior managers to receive information directly at their desk directly from the source, instead of filtering it at the level of middle managers. The wave of corporate mergers and the general pressure to increase operational efficiency have also caused a drastic reduction in the number of middle managers in some organizations.
· Senior managers. The smallest category. They are responsible for the development and implementation of the organization's strategy, for making decisions that are especially important for it. Top managers include: company president, minister, rector, etc. The work of a senior manager is very responsible, since the scope of work is large, and the pace of activity is intense. Their work is mainly mental activity. They constantly have to make managerial decisions.
Usually there is a hierarchy (pyramid) of management with differentiation according to the rank of command power, decision-making competence, authority, position.
The hierarchy of management is a tool for realizing the goals of the company and a guarantee of the preservation of the system. The higher the hierarchical level, the greater the volume and complexity of the functions performed, the responsibility, the share of strategic decisions and access to information. At the same time, the requirements for qualifications and personal freedom in management are growing. The lower the level, the greater the simplicity of decisions, the proportion operational types activities.
The pyramid shape is used to show that there are fewer people at each successive level of government than at the previous one.
· MANAGER AND LEADER. COMMON AND DISTINCTIVE FEATURES
· Management and functions of a manager
Management- this is a system of management methods in a market or market economy, which involves the orientation of the company to the demand and needs of the market, the constant desire to improve production efficiency at the lowest cost, in order to obtain optimal results.
Management is also an area of human knowledge that helps to carry out the management function. Finally, management as a collective of managers is a certain category of people, a social stratum of those who carry out management work. The importance of management was especially clearly realized in the 1930s. Even then it became obvious that this activity had turned into a profession, the field of knowledge - into an independent discipline, and the social stratum - into a very influential social force. The growing role of this social force forced people to talk about the “revolution of managers”, when it turned out that there were giant corporations with huge economic, industrial, scientific and technical potential, comparable in power to entire states. The largest corporations, banks are the core of the economic and political strength of the great nations. Governments depend on them, many of them are transnational in nature, extending their production, distribution, service, information networks Worldwide. This means that the decisions of managers, like the decisions of statesmen, can determine the fate of millions of people, states and entire regions. However, the role of managers is not limited to their presence only in huge multi-level and branched corporate governance structures. In a mature market economy, small business is no less important. In terms of quantity, this is more than 95% of all firms; in terms of value, this is the closest approximation to the daily needs of consumers and, at the same time, a testing ground technical progress and other innovations. For the majority of the population, it is also a job. To manage skillfully in a small business means to survive, to resist, to grow. How to do this is also a question of effective management.
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