Development of the organization: methods, technologies, tasks and goals

2024 Author: Howard Calhoun | [email protected]. Last modified: 2024-01-17 18:37

The ability to efficiently and rationally manage the company's development processes in relation to its social, organizational, managerial, technological level is a significant process in the functioning of modern Russian companies.

Concept

The development of domestic firms is understood as:

• the process of transferring the management of an organization from one level to another, contributing to the strengthening of competitive positions, significance in the market;
• a system of change within an organization that is holistic.

The presence of a clear concept of development in the company's policy provides it with the influence of a success factor. The development of such a set of measures is an urgent issue at the stage of crisis phenomena both within the enterprise and in the country's economy as a whole. The lack of a development strategy in managing their activities is called the mistake of many modern Russian companies.

In the essence of the concept of "development of an organization", the following key elements can be distinguished:

• mission;
• strategic concept;
• goals;
• general strategy.

Mission isthe main reason for the existence of the company, an understanding of what it was created for. The strategic concept involves the influence of a huge number of factors due to which the company can achieve its intended goals. Under the goal of the company understand the final results that the company expects to obtain in the short and long term. The strategy is a system of measures aimed at achieving the company's final results.

Goals and objectives

The goals of the development of the organization include social and economic, which provide an increase in the competitiveness and sustainability of the company in the external environment. Among the main ones are:

• performance improvement;
• capitalization growth;
• achieving market leadership;
• exit to foreign sites.

Goals can be specified by a number of tasks:

• achieving high socio-economic indicators;
• organizational change.

Technology of change as the basis of development

Technology is built on the basis of adaptation to the requirements of the client, that is, on the desire to meet his needs and expectations, which is one of the reasons for initiating the process of changes in the organization and the formation of a set of rules for managing the development of the organization. At the same time, it should be noted that changes in enterprises occur constantly. They are the result of necessary actions takenin order for the company to stay in the market, to maintain or improve its position among competitors. In this case, you should be based on the search for new concepts, and not on using solutions that have already been tested.

The main reasons for attempts to adapt and develop the organization are the following external and internal changes:

• Demographic: change in the age structure and number of employees, reaching retirement age, insufficient level of education of the existing workforce, employment of workers of other nationalities.
• Technological automation of procedures, computerization, new communication and environmental technologies.
• Market-based: changing consumer preferences, developing competition, integration, globalization.
• Socio-political: changing employee preferences, political situation, wars, counter-terrorism.
• Related to human resources: conflicts between employees, lack of job satisfaction, change in company management, absence from the workplace of employees for various reasons.
• Related to relationships in the organization: conflicts between management and subordinates, managers and owners.

Demographic change and development

Changes due to demographic factors may necessitate:

• introducing new methods and tools to minimize losses associated with the departure of experienced and qualified employees;
• revealingknowledge transfer and learning mechanisms;
• automating and simplifying work to adapt to staff skill levels;
• new methods of communication as a result of the opening of foreign branches.

Technical changes

On the other hand, technological progress imposes the use of modern communication tools that automate or eliminate often complex procedures, allow other use of employees who were involved in analysis and calculations. Changes brought about by technological progress include not only machines and tools, but they have a significant impact on the structure of the organization, its culture and functioning.

Market changes

Market forces mean that leading companies must not only adapt products to customer preferences, but also create new needs in order to maintain their position relative to their competitors. The speed of introducing new versions of products requires a complete change in the approach to the organization of design, pre-production, product implementation and delivery. Along with the reduction of the life cycle, organizations provide the customer with an increasing range of opportunities for product customization, which entails a significant complication of the production process.

Changes caused by market factors also affect the socio-political situation to a certain extent, and this, in turn, forces enterprises to make changes, for example, in motivation systemsworkers for whom free time is becoming more and more valuable. Global trends related to the risk of terrorist attacks or a surge in e-crime also play an important role for the organization.

Personnel changes

Failure to adapt HR policies and management practices to the specific organization and changing environment can also lead to the need to implement solutions that increase job satisfaction, retain valuable employees, reduce absenteeism and reduce conflict between management and the team.

At the same time as the need for change, there is a natural resistance to it, caused by fear of the unknown, failure, climate of distrust, risk of loss of status and security by employees, protection of the interests of worker groups, change of leadership, disintegration of employee relations, personal conflicts or inappropriate pace of change. Definitely, the least resistance occurs in the case of adaptation, and it increases with an increase in the degree of radical change and the uncertainty of its consequences.

Development patterns

The general model for the development of the organization's activities was presented by L. E. Greiner, who pointed to the occurrence of growth stages and crises alternately in a certain order, which is reflected in the table below.

Stages of growth and crises in the organization according to L. E. Greiner:

Growth stage	crisis
increase through creativity	leadership crisis
increase through guidelines	crisis of autonomy
increase by delegation of rights	crisis of governance
increase through coordination	bureaucratic crisis
increase through collaboration	crisis?

Grainer showed that most organizations do not learn from their experience over time. They cannot or are unable to overcome the crisis and remain at a certain stage of development. The use of quality management tools and techniques can allow an organization to anticipate the coming crisis while moving carefully between successive stages of growth.

Stages of development

Each company has its own specific cycle, defined as a development program for the organization. However, there are life cycle theories that show similarities in the development of enterprises.

At the heart of the organization's development strategy is the concept of the life cycle.

He is a concept in the field of management theory. The classic, most popular theory, representing an evolutionary perspective, is the theory of life cycles of the organization of the American theorist Larry Grainer.

The development of the organization was presented to him asa sequence of evolutionary periods interrupted by revolutionary events. Greiner's model indicates that any solution that seems ideal at the moment contains the germ of a crisis. The typical life cycle theory of organizations suggests that they develop in several stages. More often than not, they start out as small creations. From the moment they start growing, the first problems appear. The creation phase is followed by organizational maturity, followed by the final phase, namely the decline of the organization. Each stage has its own center of gravity, and each stage ends with a crisis.

Economic Development

Within this direction, the company faces two tasks:

• economic growth;
• financial strength and liquidity.

An indicator of the good state of the financial sector of the company is the economic balance of the system, in which there is an optimal combination between the elements of equity and borrowed capital.

Development of personnel

At the initial stages of the organization's development, its staff is characterized by the lack of a clear specialization in the performance of labor functions. The personnel policy, the system of motivation and training are not sufficiently developed.

As the company develops, the number of its staff grows, structures and departments are formed that create a diagram of the company's organizational structure. There is a division of labor, regulations are being developed.

The most significant point is development through the training of personnel in the organization, improving itsqualifications.

Role of audit

The process of control and audit plays an important role in the development of an organization.

Internal audit is an independent advisory and review activity aimed at optimizing an organization's operations and adding value. The internal audit of an organization helps it achieve its development goals through a systematic and methodical approach to monitoring the risk system. The main goals and objectives of internal audit are presented below:

• Assessing and improving the effectiveness of risks, control and development management;
• Independent advisory and review activities to improve operational efficiency and value;
• independence and objectivity;
• systematic and methodical approach.

Elements of an audit

The main elements of internal audit in an organization are:

• Helping an organization achieve its goals, which are usually defined by what the company wants to achieve within a given timeframe using available resources. Success depends on achieving these goals. Therefore, they must have certain features, including measurable, well-defined, relevant, real, and time-bound.
• Assessing and improving the effectiveness of risks, control over them. All three processes are closely related to each other and are aimed at achieving the company's goals.

Management of an organization is a process carried out by management, whichlies in the approval and direct control. An important role at this stage is played by the existing scheme of the organizational structure of the company, which allows you to delegate authority in the process of developing the company.

Risk management is closely related to management, but it is a process carried out by management to address uncertainties that may affect a firm's ability to achieve its objectives.

Control is a process carried out by management to reduce the level of risk in the following ways:

• Independent consulting and review activities aimed at improving the operational efficiency of the organization and increasing its value. These areas include an objective examination of the evidence in order to provide the company with an independent assessment of risk management procedures.
• Independence and objectivity. Independence refers to the status of the internal audit function within an organization. Objectivity, on the other hand, refers to the attitude of individual auditors and means that they can make an impartial, objective decision.
• Systemic and methodical approach. In order to improve the functioning of the organization, advisory and review activities should be carried out in a special systematic way using certain methodologies.

There are three main stages of an internal audit:

• planning staff training in the organization;
• doing tasks;
• information about the results of the study.