Management Thought

In describing the process of management thought, economists usually distinguish the following stages: budget and financial control, management, based on extrapolation; vision changes; management based on flexible urgent solutions. Development of management thought in the first phase took place in 1900-1950, respectively, when the company received widespread control on the basis of fiscal control, which was characterized by: internal reporting lines and the planned information system and the lack of information about the external environment of the enterprise. Budgetary control was carried out in the companies by amending the amount and structure of the income / expenditure, production and marketing as it changes the current economic situation in the country and around the world while maintaining the basic activities of the company. This reaction to changes in the period under review was the most natural for the company, however, require a lot of time understanding the inevitability of change, development of new rules of behavior and adapting to her management company as a whole. In conditions increase the rate of change in the early 1950s, this type of management was simply unacceptable. From 1951 to 1960 to replace the stage fiscal control came the second phase, a characteristic feature of which was to control based on extrapolation. Budget and financial control at this stage, supplemented with forecasts, extrapolating sales in the next few years.

On the basis of the control figures given in the sales forecast, identified all the functional plans: production, marketing, logistics, etc., which are then combined into a single financial plan. The main task of the manager was to identify the economic problems that limit growth organization. The third stage of development upravlenskoy thought occurred during the 1961-1980 period and is presented in the literature as a control on the basis of foresight and determination of changes in response to them by developing appropriate strategy. For this phase is characterized by: a departure from the extrapolation of estimates, accounting volatility factor activity; analysis of internal capabilities of the enterprise and external factors, finding ways to best use internal capabilities, taking into account external constraints and compliance requirements of existing reserves of the environment and alternative solutions. The fourth stage, from early 1980s to the present day, has been named managing based on flexible emergency management decisions or in circumstances where many important problems arise so quickly that they could not immediately provide.

Distinctive features of this control system are: the emphasis to implement policy decisions and the integration of administrative actions, decentralization and democratization of management, the growing importance of intuition and gain a qualitative approach to assessment, review of the company as the subject of an active impact on the environment, the use of strategy as a key management tool development company. The third stage of control is now also called strategic planning, and the fourth – the strategic management in real time. The combination of the latter two types of control are increasingly used for domestic enterprises. Strategic planning replaces a long-term planning and a periodic control. Management in real time is designed to help enterprise managers to competently respond to unexpected changes in the immediate external and internal environment of the organization.