What steps does the management process involve? Fundamentals of management processes

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

The relevance of the question of the stages of the leadership process is due to the fact that it runs like a red thread through all the activities of the organization. The efficiency of management processes can be compared to a clock. A well-oiled and clear mechanism will lead to the planned result. At the same time, a good management system is characterized by flexibility - the ability to adapt to new conditions.

The essence of control

Management means the management of an object (enterprise, resource) or a subject (person). Management as a process is a combination of various activities, coordination, maintenance of order necessary for the successful operation of the enterprise, the achievement of goals and development.

The management process includes the solution of a tactical and strategic task:

• a task related to tactics requires maintaining the harmony, integrity and effectiveness of the elements of the managed entity;
• strategy means development, improvement and positive change of state.

Characteristics of management processes

The management process is continuous and cyclical. It consists of managerial labor, subject matter, means and final product. The management of any object is associated with the periodic repetition of individual stages of work. These may be the phases of collecting and analyzing data, developing a management decision, organizing its implementation.

Technology of the management process is improving along with the development of the organization. If the leader is late in making decisions, then the management process becomes chaotic, inertial.

A closed sequence of management actions that are repeated to achieve goals is called the management cycle. The beginning of the cycle is the identification of a problem, the result is the achievement of a working result. The frequency of management processes helps to find common patterns and principles for organizations of different profiles.

Management principles

The fundamentals of management processes are expressed through fundamental principles. They are objective and consistent with the laws of management. The list of general management principles that can be found in textbooks is not small. Among them are:

• focus;
• feedback;
• transformation of information;
• optimality;
• promising.

The formation and operation of the management system is based on several other principles.

Division of labor	Management functions are separated from each other and become the basis for the management structure. There are departments, teams that perform different, but common types of work.
Combining functions	Combination of operations in managerial functions. The relationship of the functions of the governing bodies with the internal structure.
Centrism and independence	The management process and organizational structure remain centralized and independent of the external environment.
Subordination in the control system	The information flow connects the higher, middle and lower levels of management by steps.

The implementation of the principles contributes to the effective unification of managerial functions, strengthening ties at all levels of government.

Management functions

Professional activities of managers are gradually reflected in managerial functions.

Function grouping	The management process includes activities
Common (universal) functions	Planning, implementation of forecasts, coordination, organization, control, accounting function and others. Contribute to the development, improvement and interconnection of management processes.
Special functions	Administration, personnel management, motivation. As tools for general functions, they helporganize productive activities.
Utility functions	Maintenance of management processes for the successful functioning of all levels of management.

By the nature of the activity, functions are distinguished that are used in various areas related to production, the economic part, the economy, and technology.

Henri Fayol divided the management functions of an industrial organization into 6 groups: administrative, commercial, production, accounting, insurance and accounting activities.

Steps of the management process

Each managerial action and decision is accompanied by the unity of information, goals, society and other aspects. The essence of management reflects the management cycle, which can be represented as a set of stages.

The management process includes steps that alternate continuously.

Identification of the problem	Forecast	Goal setting	Management decision
Analysis of the situation, making a “diagnosis” of the problem	Determining a likely scenario	Development of goals and objectives, strategies to achieve them	The process of developing and making the best decision

In addition to the above steps, the management process includes actions to implement a management decision.

Planning	Creating a system of activities to achieve the goal
Organization	Mobilization of employees to complete tasks, distribution of roles
Motivation	Stimulating or inducing performers to work
Control and accounting	Observation, coordination and processing of results
Regulation	Ensuring communication between employees

7 steps in the HR process

Management tasks in the field of human resources are diverse. The personnel management process consists of seven stages.

• Planning staffing for all functions of the enterprise.
• Attraction of personnel, formation of a personnel reserve, selection and hiring.
• Work motivation. Creation of material (salary, bonuses) and non-material system of motivation for the formation of a stable team.
• System of adaptation and career guidance of employees. As a result, everyone should quickly get into work, know corporate goals, understand the essence and requirements for their activities.
• Evaluation of employees and labor. Evaluation of knowledge, skills, skills for effective work. The system for evaluating the work of each and informing the team as a whole.
• Relocation, career planning, job rotation.
• Training staff to replace leaders. Advanced training of managerialworkers.

An effective personnel management process is impossible without the development and enhancement of the professional potential of workers. This factor becomes decisive in production and labor productivity.

Project management

Project management processes are a collection of functions and defined activities.

Goal setting and forecast

Planning

Management and distribution of resources

Motivation and control of performers

Operational and ongoing management

The whole project and each performer can be evaluated using a number of indicators. These are the volume, period and quality of the work performed in accordance with the deadlines, the amount of invested resources (material, financial), the staffing of the project team, the expected level of risk.

Project management processes are related to the following tasks:

• formulation of project goals;
• search and selection of solutions for the implementation of the project;
• create a structure (team of performers, resources, timeline and budget);
• communication with the external environment;
• leading a team of performers and coordinating the progress of work.

Information management

Information is a collection of knowledge, information about any event, fact, phenomenon or process. In production management, information becomes a necessary means of communication,communication between employees.

The great importance of information in the management system is due to its universality. It is not only the subject and product of managerial work, but also a collection of data on the state of the management system, internal and external environment.

Information management processes are the stages of collecting, transmitting, transforming, processing and applying information. Storage and destruction of the infobase are singled out as separate processes.

Risk management

Risk management in any firm is not a one-time event, but an ongoing necessity. Risk management has become a stage of business management, without which it is impossible to make a profit and achieve goals. The risk management process includes five steps of targeted action.

Market Analysis

Alternative risk management methods

Choice of management methods

Implementation of risk management measures

Monitoring and improving the risk assessment system

In practice, these processes are not always performed in this order or can be performed simultaneously.

The overall picture should be supplemented with feedback for each of the stages, meaning a return, if necessary, to the passed stage. The final stage is related to the conclusions and the final assessment. The results should be used when working on the assessment and minimization of risksin the future.

Management of production technology

Process control systems depend on the organizational structure, which is presented in modern enterprises in three versions.

• The centralized method of management involves the concentration of functions in departments. In production, in fact, there is only a line management. Therefore, centralization is applicable only in small production.
• Decentralization - the structure of the management process is associated with the transfer of all functions to the shops. Workshops become partly independent divisions.
• The combination of centralization and decentralized system is used by most manufacturing enterprises. Operational issues are resolved in workshops or bureaus, while management methods and quality control remain with the management departments. The workshops have their own management apparatus and conduct the entire technological process.

Financial management

The financial management system should be present even in a small company and consist not only of accounting. The management process includes five areas of financial work.

Business process control	Helps identify possible cash losses
Create a finance department	The financial structure and the allocation of financial departments is a clear distribution of responsibility, effective control of cash flows.
Controlling the movement of money and goods	Implemented through a financial cash flow plan.
Introduction of management accounting	Introduced after the development of indicators to assess the state of finances, the effectiveness of departments.
Budget Management	The management process includes planning a budget based on analytical information from financial departments.

Analysis of the management process

The main purpose of management analysis is to provide management with information to make informed decisions. It includes three areas of analysis:

• retrospective (examines information about past events);
• operational (analysis of the current situation);
• forward-looking (short-term and strategic analysis of the possible situation in the future).

Improving the management system

The process of improving the management system is based on the analysis of management and accounting data. To assess its effectiveness, it is necessary to calculate a number of coefficients: controllability, level of labor automation, labor efficiency, economic efficiency of management, management effectiveness, labor productivity.

Improving the management system is an inevitable process for a successful organization. At this stage, the management process includes, for example:

1) management auditsystem;

2) verification of compliance with the law, international standards, recommendations of the Bank of the Russian Federation;

3) development of measures to improve the management system and update internal documentation;

4) cooperation of the board of directors with shareholders and the formation of proposals.

The current state of society and the economy contributes to the rethinking of management and managerial professionalism. For the manager, active work on the development of personnel, the main resource of the enterprise, becomes relevant. A successful manager knows how to look into the future, be flexible in making decisions in the face of a completely unpredictable external environment.