© Publishing House"Williams", 2006

© 1988 Harper & Row Publishers, Inc.

* * *

Foreword

teacher

The main purpose of the book Fundamentals of Management- to provide the reader with basic information about formal organizations (commercial and non-commercial, large and small) and how to effectively manage them. An effective manager always considers situational differences and, in predicting and preparing for the future, acts proactively rather than reacting to events that have already occurred.

The field of management is so broad that introductory courses tend to focus on a single conceptual approach, such as management processes. But, from the point of view of the authors of this book, such a narrow approach does students a disservice. And over the years, many teachers have been convinced that our book satisfies both their needs and the needs of their students.

Preparing for the release of this third edition, we tried to take into account the opinion of teachers who use Fundamentals of Management in the educational process, and even those who do not use this book. And we hope that the result of our efforts is a book that preserves everything that brought her great success in the past. At the same time, it has been changed so that it is even more consistent with the objectives of the basic management course.

We remain convinced that an eclectic approach that brings together the most important and common ideas and concepts from all major schools is the best fit for the real world and the most useful for students. We do not use the findings of any one school to unify the discussion; on the contrary, we emphasize the need to consider the situation as a whole when making any managerial decisions. We repeatedly point out that the manager must necessarily take into account both the interaction between different elements of the organization (i.e. internal variables) and the relationship between the organization and the external environment (i.e. external variables), as well as the fact that any of his decisions in one way or another affects all aspects of the activities of his company. And this applies not only to the highest level of management. By helping readers understand what factors determine the success of their future management decisions, we seek to improve their effectiveness at any level of organizational management.

Since all variables and functions interconnected, it is obvious that in order to correctly and comprehensively interpret this or that aspect of the organization's activities, the reader must have at least a basic understanding of all functions and variables. Essentially, this book presents the same topics as most other well-known management textbooks, but the discussion is in a different order. In essence, our approach to material organization is based on wise saying Alfred Chandler - "Strategy defines structure."

The discussion of the topics is organized by the authors in such a way as to achieve the main goal - to ensure that readers understand the need to consider the organization as a whole, and that the relationship between all elements and variables must be taken into account when making and implementing any decisions. The very structure of this book clearly reinforces the most important idea, the essence of which is that the theory and practice of management are evolutionary in nature and that even generally accepted concepts may need to be changed.

book structure

Part I of this edition includes five chapters: an overview of the book, a chapter on the evolution of management theory and practice, a chapter on the basic internal variables of an organization as an open system, and external factors environment that affect the success of the organization, as well as a new chapter on such important topic, How Social responsibility and ethics.

A detailed discussion of managerial functions begins in Part II. It deals with the so-called connecting processes: communication and decision-making. From our point of view, this order of presentation of the material allows us to emphasize the need for an integrated approach to management problems and helps readers understand the importance of situational factors. However, this part is presented in such a way that teachers who prefer to start with management functions can easily go their own way.

Part III is devoted to the main managerial functions. Two chapters deal with the planning function, two with the organization function, and two with the motivation and control functions.

Part IV has a separate section on group dynamics and leadership, which the teacher may wish to consider when discussing the function of motivation.

Part V is intended both to introduce new topics and to summarize what the reader has learned from previous chapters. Chapter 19 deals with human factors and human resource management issues. Chapters 20 and 21 discuss management operating activities organization that plays a critical role in its performance. In Chapter 22, we summarize what we have learned about effective management and show how a holistic approach can improve business performance in the future.

Thanks

First of all, we would like to especially thank for the valuable contribution to this publication the Dean of the School of Business. Franklin Purdue at Salisbury College Timothy S. Mescon. He wrote the original version of the chapter on strategic planning and the part of Chapter 10 on implementation and control in planning. We are also deeply indebted to Richard G. Dean and Thomas B. Clarke of Georgia State University for their invaluable contributions to two new manufacturing chapters. David Bruce from the same university has been very helpful in highlighting international and global business issues. You will find his materials in different chapters of this book. Many thanks also to Claudia Rawlins of the University of California (Chico) for their help.

I would like to express my gratitude to the people who provided the most interesting case studies for each chapter and part of our textbook: Caron St. John (Georgia State University), Murray Silverman, Jane Baack, and Paul Schonemann (University of San Francisco).

AND thanks a lot to everyone who, at various stages of preparing the manuscript, read it and gave useful advice for its improvement.

Michael X. Mescon

Michael Albert

Franklin Hedouri

From the publisher

You, the reader of this book, are its main critic and commentator. We value your opinion and want to know what we did right, what could have been done better, and what else you would like to see published by us. We are interested to hear any other comments that you would like to express to us.

We are waiting for your comments and look forward to them. You can send us paper or email, or simply visit our Web server and leave your comments there. In a word, in any way convenient for you, let us know if you like this book or not, and also express your opinion on how to make our books more interesting for you.

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Part I. Elements of organizations and management

So, we are going on an exciting journey. A significant part of the territory under study will be unfamiliar to you or even contradictory to what we, how to us Seems, we know. The limited time and space of the book further complicate matters. But despite these problems, the final destination of our journey justifies our efforts. You will master the basic concepts of management and organization, that is, a topic of great practical value and very important for almost every member of modern society.

It is generally accepted that the journey will be more successful if the traveler imagines what awaits him. And our case is no exception. Just as people study a map of a country before driving across it, so we begin in Chapter 1 with a general description of organizations, their meaning, and the nature of management. In Chapter 2, we will discuss management development, which is the main theme of this book.

When you hit the road, of course, you want to make sure that your car is in perfect order. Every motorist understands that if the brakes fail in the mountains, new candles will not help. He will probably want to check other aspects of the upcoming trip, such as whether there are gas stations along the route and what the condition of the roads is. Similarly, the manager of the organization must understand and consider how critical factors, or elements of the company, and external forces that affect her. With elements of an organization that are called internal variables, you will learn in Chapter 3, and the factors external environment, or external variables, are described in Chapter 4.

Let's continue the analogy with autotravel. Any experienced driver understands that his car can become a source of danger. Security issues worry him no less than questions technical efficiency cars. Similarly, the manager of an organization must take into account its impact on society. Chapter 5 is devoted to this topic.

Chapter 1 Organizations, Managers, and Successful Management

Introduction

In our dynamic time, managing an organization is a difficult task; it cannot be successfully solved by template formulas. The manager needs to know and understand general rules and at the same time take into account a huge variety of different variables that distinguish situations in the field of management. In this chapter, we will present basic definitions of concepts such as organization, management, and managers and briefly describe their main characteristics. We will also define the success of an organization and its main components: efficiency, effectiveness and productivity. Our goal is to create a basis for further discussion and show the general direction of our movement. As you read this chapter (like everyone else), you should try not just to remember the definitions of the main concepts, but to understand their essence.

After reading this chapter, you should be able to understand the terms and concepts listed at the beginning of this chapter.

What determines the success of an organization

Situation 1. How to win a computer game

Realizing that the computer business has a great future ahead, the two firms decided to compete. Firm A is a large American corporation that has already become a leader in the field of electronics. It can invest millions in a new business and conduct market research, hire excellent technicians and sales people, and build new factories equipped with the latest technology. Firm B has just two college dropouts whose electronics experience is limited to selling illegal toll-free long distance devices. Starting development, they do not spend a cent on research. Their initial venture capital is $1,300 from the sale of a Volkswagen bus and a pocket calculator. Their office is in the bedroom of one of the partners, and the assembly line is in the garage. Which firm will be more successful?

The answer is obvious: firm A, in our example - RCA Corporation. But you hardly saw her computers, because in 1976, after losing more than $ 300 million, she curtailed her computer production. And firm B became Apple Computer Products, which in 1982 set a record by entering the Fortune 500 list just 6 years after its inception.

Situation 2. Big name in retail

The firm is a pioneer in marketing and retail; she was the first to develop and purchase goods taking into account the wishes of consumers. She owned the first department store, which was the first to sell new idea– offer the buyer a wide range of products, most of which are made according to the company's own specifications. She is known for her "We refund, no questions asked" policy; it is the largest retail chain in the country. What is this company?

You have every reason to answer Sears. But while the above description is perfectly applicable to this largest retail chain in the US, it is not the correct answer. This is a Japanese company Mitsukoshi. Founded in 1650, it has become Japan's largest retail trading network, 250 years earlier Sears started using the advanced techniques described above.

Situation 3. How to take a steep climb

Imagine that it is the 1960s, and you, an economics student at Yale University, are writing a term paper and proposing to create an airline that will deliver small packages across the United States in one day. Your dream company should become a competitor UPS and the US Postal Service. You plan to force these powerful competitors out of business, although, according to preliminary estimates, your company will charge 40 times what they charge for delivering packages over the same distance. How do you think you would be graded for your work?

Most likely, not higher than the top three - just for the efforts. This is how the “absurd” work of Frederick W. Smith was evaluated, which, in fact, became the project of the corporation Federal Express. Smith could challenge that estimate, but he's too busy running a company that brings in $600 million a year and guarantees millions of packages a year to be delivered within 24 hours. He doesn't even have time to spend the $58 million he made in his year as CEO American corporation with the highest salary.

Like RCA in situation 1, this firm is a giant corporation aiming to take over most of the computer market. Her image in society is even more conservative than the image RCA. Until recently, the firm had a rule that all male employees, even repairmen, had to wear white shirts and ties to work. In her 75 years in business, she has never been considered a technology leader. But while its products aren't state-of-the-art, the firm charges almost 25% more than its competitors. It does not set high mandatory sales targets; on the contrary, these figures are so small that almost all employees receive a bonus. Moreover, the firm instructs its salespeople to try to charge customers as much as possible. less money. To this end, the company sometimes resorts to such sentimental methods: renting a stadium, sellers run out onto the field, and their names and sales figures are indicated on the information board. Does this firm have a chance to compete successfully in computer business with monsters like Apple?

One day, while answering this question to a reporter, the former president of the company Apple A. S. Markkula said that his firm has three main competitors: IBM And IBM. The company described above is, of course, IBM. And when PC sales IBM rapidly took the first place in the industry and it cut off a solid piece of sales Apple, it became clear that the assessment of Mr. A. S. Markkula, alas, was absolutely correct.

Situation 5. Food for thought

Here are two firms working in the restaurant business. The first is in an old building in the old part of the city, and not even on the first floor. The food and service here are excellent, but the owner refuses to advertise. The prices in the restaurant of the second company are much lower, the chefs do not have much experience, the dishes are prepared in large volumes and heated before serving to customers. The company is located in the newest part of the city and actively advertises its services. Who is more likely to succeed?

In fact, both of these firms are undoubtedly doing well. For more than two hundred years, gourmets have considered La Tour d'Argent, which is located on the top floor of an old building and from the windows of which a magnificent view of the Notre Dame Cathedral opens, best restaurant in the world. But most people are more familiar with another institution restaurant business, which sells hamburgers under golden arches all over the world.

Situation 6. Obvious truths

According to the Declaration of Independence, "we hold to certain self-evident truths." This applies to management and to our time. It is clear that the world is rapidly changing, and in order to survive, we must also change. Therefore, managers need to be able to make decisions quickly. There is no doubt that one person cannot be the immediate superior of thousands of subordinates. However, the leaders of one organization do not consider all these truths to be obvious. When it comes to policy change, even compared to the terrible state bureaucracies, this organization can be compared to a snail trying to catch up with a hare. Apparently, its leader is not even aware of modern democratic trends. He issues verdicts without consulting mere mortals, and expects their unquestioning execution. We say "he" here, not "she" because explicit sexual discrimination precludes the very possibility of a woman reaching such a high position in this organization. In the light current trends could this organization even dream of surviving the 1980s?

No one is allowed to know their future. But if an organization has managed to survive and flourish for 2000 years, this is a serious success. So the likelihood that the Roman Catholic Church, which was discussed, apparently will continue to exist, is very high.

Why is it tiny Apple and giant IBM made hundreds of millions in the computer business, and RCA did it fail? How Federal Express achieved best service than the US Postal Service, which has far more resources and government support? How MacDonald's manage to sell millions of hamburgers for a small price every year and make huge profits, while most restaurants can only feed a few hundred customers a day? Why Sears And Mistukoshi have been leading the retail trade in their countries for many years, while others have gone bankrupt? Why has the Catholic Church been flourishing for 2,000 years when its policies could bring down any other company in just a few hours?

Management arose precisely because people have always sought to understand the reasons for the success and failure of organizations. Scientists are constantly looking for the answer to this question by trial and error. To answer it, you need to find the answer to a more pragmatic question: "What can a manager do to ensure the success of his company?".

At first glance, in all the situations described above, one can easily find an explanation for the success or failure of a particular firm. For example, one might say that RCA was wrong in trying to compete directly with IBM. But DEC, Data General And honneywell also compete with IBM and they were quite successful. We still have to repeatedly make sure that the explanations lie on the surface, but then it turns out that they are erroneous or imperfect.

The absence of easy answers does not mean that success cannot be explained and that there are no specific methods to achieve it. There are many techniques, procedures and concepts that have proven to be effective. The lack of easy answers only means that there are no methods that will work for everyone and at all times, and that what worked in the past may not work in the future. Henry Ford's concept of mass production of standard cars was one of the greatest ideas in history. But Ford was so blinded by his success that he nearly bankrupted the company by insisting on the Model T when General Motors started offering cars to buyers different colors and models. And the experience that allowed RCA to become a leader in the production of televisions and television broadcasting, proved to be useless in the computer business.

Organizations

All the above examples have one general characteristics, which also have Brownie Troop 107, King's ranch in Texas, Mount Sinai Hospital, Sony, Harper & Row Publishers, DPRK, General Motors, US Navy and your college. All of these are organizations. Organization is the basis of the world of managers and the reason for the existence of management. Therefore, we will begin the study of management with a discussion of what an organization is and why it should be managed.

What is an organization

1. Having at least two people who consider themselves part of this group.

2. The presence of at least one goals(desired outcome) common to all members of the group.

3. The presence of group members who consciously work together towards a common goal.

Combining these requirements, we get an important definition.

Organization - a group of people whose activities are consciously coordinated in order to achieve a common goal or goals.

Formal and informal organizations

More precisely, it should be said that this definition is not just an organization, but formal organization. There are also informal organizations, i.e., groups that arise spontaneously, but their members regularly interact with each other. Informal organizations exist in all formal organizations, except for very small ones. They do not have managers, but they are so important that we have devoted a separate chapter to them. Guided by generally accepted practice, speaking of informal organizations, we will call them that way, and the term organization will refer to formal organizations.

© S. V. Korotkiy, 2019

ISBN 978-5-4493-2717-8

Created with the intelligent publishing system Ridero

Introduction

This training manual covers a wide range of management development issues such as important factor social and economic progress of Russia.

The material of the training manual is systematized in the following sequence:

– theoretical basis modern management, main schools of management and stages of development of management in the world;

– general methodological issues of management theory and practice; the content of the main functions of a manager (planning, organization, motivation, control);

– psychological and social foundations of management: psychological characteristics management, influencing the behavior of personnel, activities and communication, problems of group dynamics (power, leadership, leadership style, informal interaction in the organization, conflicts).

This structure of the textbook will allow students to master the basic theoretical provisions of modern management, to study the content of the main functions of a manager and, ultimately, to form and improve their knowledge in the field of modern management.

Section 1. Methodological foundations of management

Topic 1.1. The evolution of the development of management as a scientific direction

1.1.1. Stages of development of management in the world

Conventionally, eight stages of management development can be distinguished.

The first stage in the development of management began at the beginning of the twentieth century and is associated with the teachings of F. Taylor. In his book "Principles of Scientific Management" (1911), he first considered scientific approaches and principles for building a management system. It was under the influence of Taylor's teachings that Frank and Lillian Gilbert, Ganita, scientific works on management appeared a little later.

The second stage (1920s to the present) of management development is associated with the emergence of the administrative (classical) school of management, the founders of which were A. Fayol, P. Urwick, D. Mooney, P. Sloan. In particular, A. Fayol was the first to propose new theory management, revealing its functions, principles and the need for theoretical study.

The third stage (1930s to the present) of management development is called “neoclassical”, and it is associated with the emergence of the school “ human relations”, the founder of which is Harvard University professor E. Mayo. The formation of this school is also associated with the names of scientists A. Fayol, D. Mooney, P. Sloan.

The fourth stage in the development of management refers to the period 1940-1960. During these years, the evolution of managerial thought takes place, which is aimed at developing the theory of management based on the achievements of the psychological and sociological sciences, which have a decisive impact on a person as a subject of management.

The fifth stage (1950s to the present) of the development of managerial thought differs from all previous ones in that modern quantitative methods for making and substantiating managerial decisions are emerging under the influence of the widespread use in practice of economic and mathematical methods and electronic computers and on the basis of achievements in cybernetics and mathematics. This process is successfully developing to the present.

The sixth stage of management development can be attributed to the period 1970-1980. Scientists are developing new approaches in the development of management theory, the meaning of which is that the organization is an open system that adapts to external environment. Based on this message, relationships were established between the types of environments and various management models. This period includes theories: “strategic management” by I. Ansoff, “the theory of power structures between organizations” by G. Salanchik, “ competitive strategy, competitiveness, consumer qualities of products and resources "Porter, etc.

The seventh stage refers to the 80s, which were marked by the emergence of new subspecies in management, the discovery of the "organizational structure" as a powerful management mechanism, especially successfully used by Japan.

The eighth stage of management development refers to the 90s. At this stage, three main trends are visible:

- return to the past;

- the creation of social behavioral elements is an increase in attention not only to organizational culture, but also to various forms of democratization of management, the participation of ordinary workers in profits, in the implementation of managerial functions in other areas of activity;

- Strengthening the international nature of management associated with the globalization of the world economy.

1.1.2. Schools of Management

Traditional School of Management

Frederick Winslow Taylor (1856-1915) is the founder of the scientific approach to management and the founder of the traditional school of management.

According to Taylor, the main task of enterprise management is the maximum profit for the entrepreneur, combined with the maximum welfare of the employee. Maximum Profit for the entrepreneur is achieved by development to the highest degree of perfection, ensuring the constant nature of the realization of profit. The maximum well-being of the worker consists not only in increasing remuneration, but also in developing to the highest possible degree of productivity, which would allow him to give labor himself. High Quality which means further giving him, if possible, the work of precisely this quality, for which he is most capable according to his natural inclinations. With a scientific approach to the organization of labor, Taylor solves two opposing tasks, uniting the interests of the entrepreneur and workers: to set high wage rates and reduce the cost of labor. The resource he found is a huge difference between the amount of work that a first-class worker can do under favorable conditions and what is actually done by an ordinary worker.

The grounds for the introduction of the scientific organization of labor are as follows:

- insufficient productivity of most acts of daily activities leads to huge losses;

- the cure is not in the search for an extraordinary personality, but in the systematic organization of labor;

- organization of labor - a science based on laws, principles;

- the basic principles of the scientific organization of labor are equally applicable to all types of human activity.

Taylor identifies three reasons for poor worker productivity:

- the misconception that an increase in output leads to the loss of work of a significant number of employed workers;

- an erroneous system of organization of enterprise management;

- rude practical methods guides.

The type of business management (during Taylor's time) in which the worker shows all his initiative in exchange for some special incentive, is called by Taylor - "initiative-encouragement." This type of management organization is based on the fact that, while yielding superiority to the workers in matters of production, the administration frankly confronts its workers with the problem of the best and most economical production of work, i.e. in practice, the process of organizing production is at the mercy of the workers, and they see their task in making the worker show all his initiative and skill in order to realize what is possible more income for your entrepreneur.

Taylor proposes scientific management, which is based on four great basic principles of management:

1. Scientific basis of production

Development of a scientific foundation as a replacement for traditional rough-and-ready methods for each individual work.

2. Selection of workers on scientific grounds

In the “initiative-reward” type of management organization, the worker himself chose a specialty and trained in it himself, i.e. developed his individuality, choosing those tools and methods that he liked. In the scientific organization of labor, the selection of workers takes place on scientific grounds. However, the final choice of workers can only be made after testing. Taylor viewed the worker as an extension of the machine and considered main task full synchronization of man and machine.

3. Worker training

The worker who is best equipped to carry blanks is utterly incapable of understanding the fundamentals of science relating to his work. Incapable workers - to dismiss, capable - to encourage. One of the fundamental principles is the conformity of people to structure.

By maximizing the well-being of the worker, Taylor meant more to increase his productivity, since he believed that getting rich quick was not beneficial for most people.

The size of the increase in the rate depends on the nature of the work: for ordinary work of the same type, an increase of 30% is possible; at work that does not require mental stress, but strong physical stress and leading to fatigue - by 50-60%; for work requiring special education - 70-80%; in highly qualified jobs requiring high mental stress - 80-100%.

4. Close friendly cooperation between management and workers: redistribution of responsibility.

In the type of management organization "initiative-encouragement", the success of the enterprise depended on the ability to get the initiative from the workers. The administration was engaged in "knocking out" the initiative from the workers, while the process of organizing production and the production of labor lay with the workers. With a scientific approach, the implementation of the initiative took place in the order of absolute uniformity, and success depended more on the preparation of plans by the administration and lessons (tasks) for the workers, which were drawn up on the basis of plans. Management must be optimized in terms of increasing the quantity and quality of preparatory activities that will enable the worker to do the job better and faster. A layer of "non-production" employees appears at the enterprise, creating conditions for the effective work of "production" workers.

Conversations between superiors and subordinates should be conducted in a tone appropriate to their level. And the worker should be encouraged to discuss all the difficulties with the boss.

Basics of Taylor's scientific organization of labor: science instead of traditional skills; harmony instead of contradiction; cooperation instead of individual work; maximum performance instead of limited performance; the development of each individual worker to the maximum available to him productivity and maximum well-being.

Enterprise goals:

- to entrust the worker with the highest type of work, which is available to him according to his dexterity, skill, abilities and physical constitution;

- to encourage him to give the maximum of work worthy of a first-class representative of his category and strive for success;

– to encourage an increase in the rate by 30-100%.

Analyzing the most common type of organization "on a military foot", Taylor points out that in this type of organization the boss is responsible for the success of the entire workshop, but the minimum number of functions that the boss must perform cannot be found in one person. In this regard, it is necessary to abolish this type of organization, moving the mental work from the workshop to the planning and distribution departments, and leave only executive functions to the boss. This type of organization is a functional type of administration, which consists in such a distribution of management work so that each employee performs the smallest possible number of functions, which makes it possible to relatively short term prepare officials for the role of foremen, ordering and helping. The higher the position, the narrower the range of functions in comparison with the functions of the lower management staff, but they are more detailed and deeper.

If in the past the organizer was in the first place, now the system is in the first place, i.e. the role of the organizer should be reduced to establishing the organization of the system itself.

With a scientific organization of labor, resourceful and intelligent workers can grow into administrative positions. No worker should expect to be promoted until he has prepared a substitute for himself.

The scientific basis of labor lies in the well-known broad general principles and what the individual considers to be the best mechanism for the application of these principles must in no way be confused with the principles themselves. There is no single panacea to eliminate all difficulties, according to Taylor, as long as some are born lazy or incapable, while others are greedy and cruel. As long as there are vices and crimes, there will also be poverty, misery and misfortune.

No definite remedy can ensure the continued welfare of the workers and employers, because it depends on so many factors that there will inevitably be periods when both sides have to suffer to a greater or lesser extent. But with a scientific organization of labor, the period of prosperity will be longer, and strife and enmity will be less severe.

Henry Ford's views on business management

G. Ford did not become the founder of any scientific school of management, but he, along with F. W. Taylor and A. Fayol, is considered one of the fathers of modern management. And, despite the fact that a number of his principles of production and statements are diametrically opposed to the principles of modern management, his contribution to the US economy and his achievements in this area are worthy of attention. As one American journalist said: "Ford's book will not appeal to entrepreneurs, but it will help them get rich."

G. Ford (1863-1947) - a famous American industrialist who created the first car with a 4-stroke engine, went down in history as the inventor of the assembly line and one of the most honest millionaires, he pulled America out of the economic depression and became a symbol of the American economy.

Henry Ford's famous book, My Life, My Achievements, is a catechism of the Romantic mechanic. His ideas and methods of organizing production, described in this book, have been introduced into the activities of thousands of enterprises and deserve the attention of every person who organizes his own business.

G. Ford wrote that life is a journey, and people are used to living only half alive. Power and machinery, money and possessions are useful only insofar as they contribute to the freedom of life. The goal of his theory is to create a source of joy from the world.

Shareholders have the right to be only people who themselves are engaged in business, considering the enterprise an instrument of service, and not a machine that makes money. Everything that happens at the enterprise should be a personal matter of each employee. Current business issues should not be decided by the geniuses of the organization, but by the system. Production is controlled not by a person, but by the labor process. Management and leadership are identical concepts. Things cannot be controlled from above. It is necessary to avoid formalization and strive for a smaller distribution of powers. However, there is a measure of rationality for everything: the head of the workshop must reckon only with the amount of output, there is no reason to split the forces, diverting him to another area.

Most people can get the job done, but it's easy to let the title get the better of them. Too often the title serves as a sign for release from work. Much of the personal dissatisfaction stems from the fact that title holders and dignitaries are not always the true leaders in reality. Everyone is ready to recognize a born leader - a person who can think and give orders.

Poverty largely comes from dragging dead weights. To demand that more effort be expended on this or that work than is necessary is to be wasteful. Extravagance results from an insufficiently conscious attitude towards our actions or from a careless execution of them.

Basic principles of production:

“Do not be afraid of the future and do not respect the past. Who is afraid of the future, i.e. failures, he himself limits the scope of his activities. Failure only gives you an excuse to start again and smarter. Honest failure is not shameful; disgraceful fear of failure. The past is useful only insofar as it shows us the way and the means to development.

- Pay no attention to the competition. Let the one who does the job best do the work. Trying to upset someone's affairs is a crime, since it means trying to upset the life of another person in the pursuit of profit and establish the rule of force instead of common sense.

The minutes that we devote to competing enterprises are unprofitable for our own business. It is better to do your best to improve a good idea than to chase other new ideas.

- Put work for the common good above profit. According to G. Ford, the preponderance of financial interests destroys the principle of service, because all interest is directed to today's profit. But if you serve for the sake of service itself, for the sake of satisfaction, which is given by the consciousness of the rightness of the cause, then money will automatically appear in abundance. Greed for money is a sure way not to get money. The purpose of money is not idleness, but the multiplication of means for useful service.

Greed is a kind of myopia. The predatory waste of time and effort is the cause of high prices and low earnings.

To produce is to buy raw materials at reasonable prices and turn them, at possibly the least additional cost, into a good product. The laws of work are like the law of gravity, whoever opposes them is forced to test their power. You should take something that has proven its suitability and eliminate all unnecessary in it.

It is wrong to start production until the product itself has been perfected. True simplicity is associated with understanding the practical and expedient. Production must come from the product itself. Factory, organization, marketing and financial considerations themselves adapt to the fabricated product. Most manufacturers are more willing to accept a change in the product than in the methods of their production, we use the reverse method.

Exorbitantly high prices are always a sign of an unhealthy business. Every monopoly and every pursuit of profit is evil.

Speculation in finished products has nothing to do with business - it is a more decent form of theft, not amenable to eradication by legislation. If we are unable to produce, we are unable to possess.

According to G. Ford, there can be no statement more absurd and more harmful to humanity than that all people are equal. Not all people are equally gifted. G. Ford noted that everyone should be placed in such a way that the scale of his life is in due proportion to the services he provides to society.

G. Ford writes: “We never ask a person who is looking for a job with us about the past - we hire not the past, but the person. We fundamentally do not accept married women whose husbands have jobs. In a small enterprise, a person lives in an atmosphere of competition, and in a large enterprise, in an atmosphere of cooperation.

The vast majority wants to be led, wants others to decide for them in all cases and relieve them of responsibility. For most people, the punishment is the need to think. They do not like any changes that are not proposed by themselves. The disadvantage of all radical reforms is that they want to change a person and adapt him to certain subjects.

Public opinion is a great police force for those people who need to be kept in order. Most people can't do without coercion public opinion. It's not so bad to be a fool for the sake of justice.

An enterprise can live only to the extent that it develops the talents of its employees and their efficiency, since it is only with their help that an enterprise can be carried on. G. Ford is a supporter of utilitarian education; we believe that true education will bind the mind of man to work, and not turn away from it.

Administrative (classical) school of management

Henri Fayol (1841-1925) devoted most of his long life to the management of mining and metallurgical enterprises. Therefore, much in his eventful biography, one way or another, is connected with the technical and geological aspects of the respective industries. He was born in 1841 and studied first at the Lycée Lyon, then at the National School of Mines in Saint-Étienne. In 1860 he joined the Commentfy mine system, owned by a mining and smelting plant known as Comambault, as an engineer. All working life Fayol was associated with this plant. He stepped down as managing director in 1918 and remained director of the company until his death (1925). When Fayol left his post at the age of 77, the combine's financial position was unshakable. Last years Fayol devoted his life to the popularization of his managerial theories, just as Taylor did in his time. He founded the Center d'Etudes Administratives (Centre for Administrative Studies) and presided over weekly meetings of prominent industrialists, writers, statesmen, philosophers, and the military. One of the consequences of these meetings was the distribution by Marshal Lyauté (the French army was then in Morocco) of 2,000 copies of a pamphlet in which an attempt was made to apply Fayol's principles to army leadership. Fayol's main work "Administration, industrielle et generale" ("General and industrial management”) was published when the author was already 75 years old.

According to Fayol, activity industrial enterprises can be divided into six groups:

– Technical activities (production, dressing and processing).

– commercial activity(purchase, sale, exchange).

– Financial activity (search and optimal use of capital).

– Activities aimed at ensuring safety (protection of property and personnel).

– Accounting (audit of funds, balance sheets, costs, statistics).

– Management activities (planning, organization, command, coordination, control).

Fayol distinguished management from leadership. He wrote: “Management is an activity in which managers and employees of a corporation take part. managerial function different from the other five main functions. It should not be confused with leadership. To manage means to lead the enterprise towards the intended goal, trying to make the best use of all available reserves and ensure the stability of the six main functions. Management is one of the six functions whose stability must be ensured by management.

Defining the principles of management, A. Fayol does not claim that these principles or their implementation are immutable, nor that he gives a complete list of them. On the contrary, he writes that the number of management principles is unlimited, a change in the situation may entail a change in the rules, which, therefore, to a certain extent, turn out to be a product of this situation. He then proceeds to consider fourteen management principles that have played a special role in his career:

– Division of labor- a principle whose goal is "to produce more and better with the same effort." Specialization, according to Fayol, is one of the signs of the natural order of things, observed both in the animal world and in human communities. He believed that the division of labor should not be limited to technical activity, but should apply to all aspects of the organization's work. However, in this matter he did not go as far as the supporters of scientific management, who divided tasks into basic elements. He believed that "the division of labor has its limits, determined both by our experience and a sense of proportion."

– Power“The right to give orders and demand their execution.” Fayol distinguishes between "official" (associated with the position held, obtained "by charter") and "personal" authority (due to such qualities as intelligence, life experience, integrity and the ability to play the role of a leader). He goes on to argue that the personal authority of a first-class manager is "an indispensable complement" to official authority. Fayol states that authority is always associated with responsibility, and both presuppose the ability to make decisions and, if necessary, impose certain sanctions. All this is possible only with sufficient integrity of the person. Fayol puts it this way: “The ability to make decisions ... is determined by developed morality, impartiality and firmness ... A responsible decision always involves a certain courage ... good leader must have the determination to make responsible decisions and to transfer this determination to others ... For a high-level leader, the key to the absence of both abuse of power and weakness is the integrity of his personality and his high moral character; this wholeness, as you know, is not chosen and not acquired. Further he writes: “The courageous acceptance and consciousness of responsibility causes the respect of others; it is a kind of courage, everywhere highly valued. A clear proof of this is in the much higher appraisal of some industry leaders compared to other civil servants of the same scale of work, but - irresponsible. Nevertheless, responsibility is usually as disliked as authorities seek. Fear of responsibility paralyzes many undertakings and nullifies many qualities.

– Discipline- "essentially comes down to obedience, diligence, energy, certain behavior and external signs of respect, observed in accordance with the agreement existing between the company and employees." Fayol believes that discipline can take different forms in different organizations and insists that it is always one of their most essential elements. He notices that the time of contracts between the individual owner of the enterprise and the employee is a thing of the past. Instead, agreements are made between employers' associations and trade unions, in which, under the conditions of the First World War, the state also actively participates. According to Fayol, the transition from individual to collective agreements contributed to the development of certain disciplinary rules. At the same time, management was not relieved of the obligation to maintain discipline, resorting, if necessary, to such sanctions as warnings, fines, suspension from office, transfer to a less qualified job and dismissal.

4. Unity of command“A subordinate should receive orders from only one superior.” According to Fayol, double orders are in any case a source of tension, confusion and conflict. He talks about the tendency to divide command functions between individuals and the blurring of boundaries between different departments. As a result of these processes, a feeling of irresponsibility arises, and ordinary communication links lose their meaning. In certain cases, a high-ranking leader can give orders to workers, bypassing middle-level managers. Fayol writes: “If such mistakes are repeated, a situation of double subordination will arise with all its consequences, which include confusion on the part of the subordinates, irritation and discontent on the part of the leaders who are out of work, and disruption of the normal course of work.”

5. Unity of leadership- "one leader and one plan for a set of operations aimed at achieving the same goal." If the principle of unity of command required that each subordinate receive orders from only one leader, then this principle is reduced to the unity of management and plan. In the words of Fayol, “this is a condition for unity of action, coordination of forces and focus on the goal. The body with two heads, both in the social and in the animal world, is a monster and usually does not survive.

6. Subordination of individual interests to common ones- "makes you remember that in business the interest of one subordinate or a group of subordinates should not contradict the goals of the enterprise." Fayol draws attention to the fact that one of the most serious problems of management is the coordination of common and personal, or group interests. He writes about it this way: “Ignorance, ambition, selfishness, laziness, weakness and all sorts of passions lead to the fact that common interests weaken, giving way to personal interests, and this circumstance gives rise to eternal struggle.”

7. Staff remuneration -"work must be rewarded." Fayol considers factors that determine the level of payment, but do not depend on the will of the employer, such as living wage, offer work force, the economic situation and economic situation enterprises. He also considers various methods of compensation, such as time rate, piecework (piecework) payment, piecework payment, bonus, profit sharing, payment in kind and various non-material incentives. He comes to the following conclusion: “Regardless of what kind of remuneration an employee receives - money or such benefits as warmth, light, shelter, food - its meaning is to satisfy the needs of the employee.” Fayol also considers other non-material incentives, showing a certain paternalism in his view of production relations.

8. Centralization- "like the division of labor ... inherent in the natural order of things." Considering the question of what kind of structure - centralized or decentralized - an organization should have, Fayol compares it with a living organism: "In any organism, animal and social, sensations go to the brain or to the control organ, and commands go from the latter to all parts of the organism, setting it in motion." One of Fayol's main ideas was that organizations are more like living organisms than machines. Accordingly, he believed that principles should not be imposed by force, but used pragmatically according to the situation. He writes about centralization: “The question of centralization or decentralization is a question of measure, a question of finding the optimal device for a given situation ... Everything that leads to an increase in the role of subordinates is decentralization, while centralization is accompanied by a weakening of this role.”

9. Scalar chain- "the power vertical linking all levels of subordination from the highest authority to the lowest levels." More familiar terms for defining this concept would be "hierarchy" and "channels" or "lines of communication." Fayol combines these two concepts in his concept of a scalar chain, arguing the need for a higher authority and at the same time emphasizing that solving problems by referring to it is far from always the fastest, and sometimes, if we are talking, for example, about government instances, it can be too long. In order to maintain the possibility of control and avoid unnecessary loss of time, he suggests using a system of delegating rights and responsibilities to subordinates to carry out the necessary communications. This approach was called "trap", "gang plank". This method of communication between individuals of the same rank allows solving individual problems without going beyond the given hierarchical level.

The book in an accessible form sets out the basics of management - the science and practice of management. The first part is devoted to a general idea of ​​management: basic concepts, management functions, beginnings management theory, strategic management, organizational structures and control mechanisms. In the second part - acquaintance with specific directions of management such as marketing, innovation management, investment management, risk management, social and environmental management. When solving practical problems of management, intellectual tools are used - methods of decision making, optimization, econometric data analysis, expert assessments, modeling, controlling, as well as the use of information systems management. The third part of the textbook is devoted to them.

For students and teachers of universities, students of advanced training institutes, second education structures and MBA programs ("Master business administration"). And also for a wide range of readers who want to get acquainted with modern management, from students and teachers of high schools to managers, economists, engineers who independently improve their qualifications.

This textbook is an electronic version of the work:
Orlov A.I. Management. Textbook. M.: Publishing house "Izumrud", 2003. - 298 p.

PART 1. OVERVIEW OF MANAGEMENT