The effectiveness of management - the effectiveness of management

The effectiveness of management is a complex category. It reflects the characteristics of social, economic, organizational phenomena. The effectiveness of management is tactical and strategic, potential and real.

Tactical - this is getting results in the near future, and strategic - in the future.

Potential - a preliminary assessment, and a real one - an assessment taking into account the results obtained in a practical way.

Efficiency in this case is the result of management activity, rational use of available resources (material, labor, financial).

In the conditions of centralized management of the national economy, effective management was not included in the functions of enterprise management. All the main decisions were made "at the top" - in the offices of the State Planning Committee, various ministries and departments.

In modern conditions, the market economy does not allow the leader to be strategically irresponsible. He must independently make fundamental long-term decisions, while bearing full responsibility for their consequences.

Strategic management represents a modern concept of enterprise management, an organization that ensures the development and implementation of long-term programs. This directly affects the effectiveness of the organization, the enterprise. It is necessary to change the initial principle of activity planning , radically change the direction of movement, that is, move from the future to the present.

From the point of view of strategic management, an enterprise is an open economic system, and the prerequisites for the success of its activities are not inside but outside it. In other words, the efficiency of the work of an enterprise or organization will depend on how successful adaptation to environmental requirements will be. These can include consumer requests, actions of competitors, regulations, etc.

The effectiveness of strategic management in comparison with operational one lies in the fact that the first is the process of making and implementing strategic decisions taking into account its own resource potential, with the opportunities and threats of the external environment in which it exists and carries out its activities.

Strategic management tells the leadership much more fully what it is necessary to pay close attention at present to safely exist in the future.

Strategic management, in comparison with the traditional one, proceeds from the fact that the external environment and business conditions of the enterprise will constantly change in the future, it will not always be able to work better than in the past or the present.

So, the effectiveness of strategic management lies in the fact that it acts by ensuring the implementation of the objectives of the enterprise, organization in the process of dynamic and uncertain environmental change. This makes it possible to make optimum use of the available potential and be receptive to external requirements.

The potential of the enterprise is its ability to produce products, and in addition to internal variables it includes management capabilities.

The strategy of the enterprise is a set of rules that allows to make managerial decisions.

Structural and strategic management consists of the following five elements:

- analysis of the environment in which the enterprise (organization) operates;

- strategy and its choice;

- implementation of the strategy;

- mission and goals;

- control the implementation of the strategy.

The effectiveness of management depends on how strongly these elements are interlinked and whether they have stable feedback.