Management concept:

In fact, there are many approaches to the concept of “management”. Normally, management is identical with the organizational activities of commanding, controlling, motivating, checking, adjusting… according to system theory: “management is the directional impact of the subject of management. management to a certain system in order to transform it from one state to another according to the principle of breaking down the old system to create a new system and control the system.

Textbook of Management Science- Volume 2 – Science and Technology Publishing House-2001

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Watching: What is Management

On that basis, we can understand economic management as the impact of the subject of management on the object of management in the process of conducting economic activities in order to achieve the set socio-economic goals. out. Thus, the content of the concept of economic management is understood as follows:

Economic management is the interaction between the subject of management and the object of management. In which management subjects are organizations and individuals, upper-level managers. and management objects, also known as management objects, are organizations, individuals, subordinate managers, as well as collectives and individual employees. The impact in the management relationship is two-way and is realized through activities of organizing, leading, planning, checking and adjusting… The management subject and the managed object constitute the management system. An economy or an enterprise is considered as a system with two main modules: the subject of management and the object of management. In many cases each module can be thought of as a complex system. Economic management is the process of selecting and designing a system of functions, principles, methods, mechanisms, tools, organizational structure for economic management, and at the same time building a contingent of management and maintenance staff. ensure information and material resources for management decisions to be implemented. The goal of economic management is to maximize the mobilization of resources, first of all, labor resources and to use them effectively for economic development to serve human interests.

Content of economic management.

In order to manage, the management subject has to perform many different types of work. These types of management jobs are now relatively independent, formed in the process of specializing management activities. Those can be considered as the tasks that management needs to do and are also the content of the management function. Analysis; management function to answer the question: what must managers do in the management process, also to understand the content of the management function.

Currently, management functions are often combined in two ways.

In terms of the management process, the content of management can be understood as: planning, organizing, leading, and controlling.

If according to the field of operation of the organization, the fields of management are associated with the following activities:

Marketing field management. Research and development management. Production manager. Financial management. Human resource management Quality management.

– Manage support services for the organization: information, legal, external…

Those are just the basic contents according to the organization’s activities. Depending on the field, size and area of ​​operation, other functions may exist in organizations.

As stated from the beginning, in this topic we only learn about the content of management according to the management process with the most basic and common tasks for all managers, regardless of rank or profession. , the large and small scale of the organization and the social environment. Of course, that popularity does not mean uniformity, but it is the application and use of different methods of influence that make up the diversity and diversity for management and make the difference. in each organization.

Planning:

This is the most important content, the first function of management. It is no coincidence that managers, management science theories assert so. From a decision maker perspective, planning is a particular type of decision maker that defines a particular future that managers want for their organizations. We can think of planning as the main river and other aspects of management as the tributaries from that great river. Therefore planning is the first and most important function for managers.

Planning is a complex undertaking, with a definite beginning and an end. Planning is an on-going process that reflects and adapts to changes taking place in an organization’s environment. In this sense, planning is considered to be the process of adapting to uncertainty by identifying options of action to achieve specific organizational goals. very diverse origins. The first type of uncertainty factor is called state uncertainty. They involve an unpredictable environment. The second type is uncertainty of influence, i.e. the effect of environmental changes is unpredictable and precisely quantifiable. Another type of uncertainty factor is efficiency uncertainty. That is, before the problems encountered, the organization can offer solutions and reactions but cannot choose where the consequences will go.

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In a nutshell, planning is the process of identifying goals and choosing ways and solutions to achieve those goals. Without plans, managers may not know how to organize and exploit the people and other resources of the organization effectively, even; do not have a clear idea of ​​what they need and the organization that exploits it. Without a plan, managers and their employees work without direction, losing opportunities to achieve their goals, not knowing when and where they have to do what. At that time, the inspection in the organization was very complicated because there was no standard system to compare. Also in reality, bad plans, or well-constructed ones that are not executed to the right place will adversely affect the future of the entire organization.

To better understand the process of a plan and the types of plans commonly used in organizations, especially businesses. We will consider the following:

Planning process

A common process for a plan is essential. It is a generalization from many different types of plans in management organizations. Management scientific theories have agreed on a process as follows:

Mission statement:

Thus the first job of planning. It is an affirmation. This is a necessity for managers where they have to provide views and ideology throughout all activities of the organization. The qualitative and long-term goals towards which the organization works. This job is aimed at directing departments and modules in the organization to work for a common goal consistent with the ultimate goal of the organization. Thereby making each individual and working group align themselves with the concept of the organization and let them understand that their work, the plan they are involved in is towards and what they are getting and having such responsibilities. with that goal. Thereby creating consistency throughout the planning process.

Research and forecasting.

This is work carried out by experts or direct managers. They need to gather information inside and outside the organization to see what the organization is facing, what needs to be done and what can be done? this is difficult and complicated work because it is the stepping stone for a plan to be formulated with specific numbers and if research and forecasts are not accurate; it means that the plan also fails us. Just imagine that the weather forecast gives false information that: the sea is calm while the ships go out to sea and suffer storms one after another. Of course, planning is out of the question; its inherent objectivity is also subjective; it can be stopped or redirected, rebalanced, but the consequences are not good. The research and forecast must create an information base for setting goals and organizing the implementation of the plan. In this task it is necessary to define what research predicts? The information obtained is information on organizational risks and opportunities, from which solutions can be drawn to reduce threats while taking advantage of opportunities and internal strengths. A general rule of thumb is to take advantage of opportunities and limit risks.

Determine the target:

After having the information from the research and forecast, the goal determination is carried out. That is, determining the end result that the organization wants to achieve. It is created on the basis of the must-haves and the possible of the organization. An objective is considered correct when it meets the following requirements:

+ Must be specific:

The said. Time limit. Quantifiable results.

+ Must be flexible: Respond to changes in the environment.

+ Calculated; quantitative: Expressed by calculated numbers; carefully calculated and balanced.

+ Feasibility: The goals set out by the organization can be achieved.

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+ Consistency: Between departments and levels, the goals are difficult to be consistent, it is an inevitable fact but the important thing is to minimize the negative impact, so the proposed objectives are acceptable and considered reasonable.

When validating a goal, it is necessary to consider the correlation between the following factors:

Owners: They care about added value and profits Employees: They care about increasing income, job security and welfare care. Customers: Demand standards for products and services such as quality, price, and accompanying services. A trend is that the needs and requirements of customers increase according to the development of knowledge, science, understanding of their life and technology needs to be born to serve that. Social: In general, environmental and ecological factors are needed, and social values ​​must be ensured.

Therefore, setting goals is part of the process of determining and establishing a force relationship between the organization and external factors.

The essence of the goal setting process is analysis; selection of separate goals prioritizing each stage of development.

Build a plan

On the basis of the identified goals, the solution options are built. Find out the methods that do the item objectives, solutions and tools for achieving the goals.

Solutions are provided on theoretical models, knowledge and experience from similar plans that organizations have done or have done, opinions of experts and scientists to be able to build innovative solutions. create planned alternatives.

In fact, facing a problem, there are many different solutions. Managers need to know how to choose the options that are considered to be positive for comparison and evaluation. Usually there should be three options to choose from, more or less; t is not good. Many options will lead to difficulty in decision making, overlapping and difficult to come up with a superior solution. While few;t options will lead to lack of information. In this job, it requires the founder to have enough experience and bravery to be able to take the risk to come up with a plan that is considered new. The proposed plans must be on the basis of complete and accurate information.

Analysis; selection of options

In order to be able to analyze and come to the best option, managers need to build a system of criteria as a basis for selection. These figures are calculated and scientifically calculated with experience and have been tested.

Those indicators can be factors of the business environment or elements of the organizational environment, the goals, objectives, and objectives of the organization. Based on this unified standard, the options are made to be compared and evaluated in terms of calculation, feasibility, efficiency, effectiveness, competitiveness, cost, revenue, profit, market share, and process. resource size…

The selected optimal solution is not necessarily the one that satisfies all of the above factors, but usually it is the one that satisfies the most of those factors.

Institutionalize the plan.

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From the selected optimal solution, managers will put it into practice through institutionalization. In essence, it is legalized by legal documents to ensure its validity. The process of planning into reality is not immune to adverse reactions and to ensure the throughput implementation must be ensured by legal instruments.

Usually, the actor who chooses the optimal alternative and the one who decides to institutionalize the plan are identical. But in the case of differences, sometimes the institutionalized option and the proposed option are different. This depends on the subjective factors of the manager.

Types of business plans.

To carry out their management work, businesses need a lot of plans in different forms. According to the form of expression, an enterprise usually has the following types of businesses:

Strategy plan.

This type of organization’s long-term plan contains the following contents:

+ Viewpoints, lines and professional functions of the organization

+ Objectives, purposes; goals of the organization

+ Solutions and tools to achieve goals.

With these plans are often decided by the manager, senior leadership.

Policy; policy.

Policies are prescriptive guidelines for thinking and acting when making decisions in basic activities. A policy is intended to solve a particular problem, it represents certain instrumental solutions, and is the type of plan used frequently. A policy usually has the following characteristics:

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Expresses the value system as well as the perspective of the organization. Policy, high salary, policy, recruitment policy… is one of many typical policies of an enterprise.

+ Policies and policies always have freedom and creativity, the scope of freedom and creativity depends on the level and position of the manager, the manager’s capacity and the perception of the audience. management icon.

+ A policy given is to solve the problem, to be of a regular, repetitive nature. In order to ensure the consistency of implementation, save time and effort to focus on resources, find implementation solutions to problems that frequently arise, focus efforts on solving problems that arise for the first time or complex more difficult.

Based on those characteristics, we can see that a best and effective policy will solve many problems for businesses and need to focus on building specific policies for their organizations.

Procedure.

Is the primary type; a build once and use multiple policy. A procedure that outlines precisely and in detail a sequence of actions to be taken in a specific time sequence or management level to achieve a particular goal. Because of its rules, procedures do not have a creative scope for managers.

Rule.

Just like procedure rules contain content with do’s and don’ts. But the difference between a rule and a procedure is that a procedure does not prescribe a chronological sequence of work like a procedure. A procedure can be thought of as a sequence of rules, but there are rules that do not fall into any of them. which procedure. Wallet; For example, a business sets out a rule that only distributes wages on the first Monday of the month, that is not part of a procedure.

Programme. These are some of the policies, procedures, rules and assigned duties. The steps and procedures that can be mobilized to accomplish important goals are set in the future.

A characteristic of a program’s goals is that it is relative independence and priority goals. These goals are responsible for only one department but require the coordination of many different departments. To achieve that goal, a program requires a large mobilization of resources and clearly defined allocations: Who is in charge, who coordinates, how to budget and time limits for implementation.

A large program includes many small programs, supporting target programs is the basis for forming a new management method with high efficiency called target program management. This management method is widely developed in enterprises because it promotes the creativity and initiative of subordinates.

Funds.

A type of plan that is made with budgetary or non-monetary content such as real estate labor… but specifically digitized. There are different types of budgets, we will look at some of the types of funds that businesses often have to use.

Financial budget; Specify how much money the organization intends to spend for a specific budget year or period and from what specific sources. Financial budget includes:

+ Statement of expected income

+ Statement of cash flow

+ Balance sheet

Operating budget: Indicates the monetary value for goods and services that the organization expects to use during the budget year. These funds include:

+ Revenue budget: Forecast of future sales

+ Expense budget;: List the main activities of the unit and the amount of money allocated for each of those activities.

Cash budget: Determine the amount of cash to spend on specific activities.

+ Capital construction investment budget: Usually very large to serve long-term development needs.

Of the above types of budgets, the most difficult to identify is the revenue budget because it depends on market prices, which is always fluctuating.

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The above are common types of plans in organizations and businesses. Such plans are relatively independent, they are independent because they are designed to carry out separate goals but are directed towards the maximum goals of the organization and sometimes many types of plans are put together. by a governing entity so this independence is relative. During the implementation process, it is necessary to have a smooth and harmonious coordination between the plans to minimize the negative influence from the conflict between the goals in each plan.