Management principles: basic theses of the effective functioning of the production structure
Management is an integral element and the most important function of any organized system. The fundamental principles of management are a set of methodologies and a set of tools designed to ensure the preservation of a clearly structured organization, to support the mode of its activities and development. It is up to competent, qualified management that the full-fledged implementation of the company's programs and the achievement of the goals of its activities depend. The effectiveness of the functioning of any socio-economic education is determined primarily by a number of conditions and factors, often called the term “basic principles of enterprise management”. Often there are no inflexible and absolute values in management.Almost never the same management principles work in identical conditions. Constantly we have to take into account the rapid change in the economic situation both within the enterprise and in the external market environment. The skill of a talented manager, requiring extraordinary thoughtfulness, extensive experience, outstanding decisiveness, considerable composure and analytical skills, is the ability to operate simultaneously with a significant number of various variable elements.
The behavior of the main and most difficultly predictable subject of management - a person (employee) - is also subject to certain principles, internal convictions, business and moral and ethical qualities that determine his attitude to the realities of the socio-economic structure. The principles of management should ideally be exclusively objective and not depend on the will and wishes of individuals. But when it comes to the human factor, theory often conflicts with practice. Therefore, the principles of management can not be considered a certain constant, constant value and absolute truth, leading to the prosperity of the socio-economic community of people.They can be regarded only as a fairly effective tool that allows at least a little impact on the super-complex world of the individual and team. The principles of management can also tell the management team a reasonable measure of influence on the controlled socio-economic system and predict the team’s reaction to a particular volitional decision and management action. Even the most talented and experienced manager, who is well aware of management theory, cannot be insured against the emotional reaction of rejection in response to his actions.
Principles of financial management
For any enterprise (organization) engaged in commercial activities, making a profit is the main goal. In this regard, the principles of financial management are of paramount importance. They make it possible to optimize production or the services provided, assess the profitability of the economic system, analyze the risks and benefits of investing, the speed of capital turnover. In addition, they help to effectively manage free financial resources and production facilities.Simply put, competent financial management is the key to the dynamic development of any socio-economic system. And the most important principle here is to determine the ratio of current working capital and the dynamics of accumulation of financial resources, as well as the injection of production capacity. In accordance with this principle, the amount of financial resources that can be directed to the development of an enterprise without a decrease in economic efficiency, the size of the wage fund, and much more is determined.