The effectiveness of management decisions and its components

Effect (lat. effectus - execution, action) is a result, a consequence of any causes or actions. The effect of a management system in the general case is the total expected value of the annual growth of the organization's welfare, which is achieved through the efforts of its managers.

Management effectiveness is the cooperation of people in a consistent movement towards common goal, the value of which exceeds the cost of resources, energy or effort. Goals were previously defined as states of affairs that the organization would like to achieve in the future. “Efficiency” is not characteristic of all interactions, but only of targeted ones; therefore, this category is of a managerial nature and reflects, first of all, the degree of achievement of the set goals. Unlike the effect, efficiency is always a certain ratio (of the result with the goals or the result with the costs of obtaining it), i.e. relative value.

Management effectiveness in foreign literature is usually expressed by two key terms: Effectiveness and Efficiency. Effectiveness (English) refers to the degree to which an organization's goals, strategic or operational, are achieved; success of activities, relationships with the external environment, etc. Efficiency is understood as efficiency, which is an internal parameter of the functioning of the organization. For example, the relationship between the volume of output and the resources required for this output. The lower the resource consumption per unit of output, the more economical the organization.

The target aspect of efficiency is very difficult to separate from economy, because the formation of two aspects of management effectiveness is equally determined in organizations by the following circumstances: the quality of goal setting; the adequacy of the adopted strategies to the goals set; level of staff motivation to achieve goals; efficiency of the resources used; processes of interaction between personnel at different levels of the hierarchy; creativity and competencies of top managers, their ability to learn and manage knowledge, etc. Thus, the main objective effective management – ​​ensuring the formation and functioning of such a state of the managed system (organization), which, to the maximum extent possible, meets the requirements of the organization’s external environment and the most effective use resources and capabilities internal environment organizations.

Management decisions as a result of the management activities of managers can be assessed by simple and complex indicators. The first includes results, time, and resource costs. Complex indicators are built for a more detailed assessment, these include efficiency, intensity, productivity.

TO results management decisions include: decision quality, timeliness, degree of compliance with goals, criteria as indicators of success, customer requirements, as well as stability, accuracy, internal consistency (coherence), possibility of development, degree of improvement of the decision-making procedure, etc.

TO costs management decisions include: information costs, time costs, technical costs, labor resources, and other costs.

Efficiency represents the comparison of resources (costs) to achieve results. The main factors for the effectiveness of decisions are three groups of factors: resource use, time factor and management focus.

The first factor characterizes the structure, quality of resources, their economy in management processes and the possibility of replenishment and accumulation.

The second factor reflects the timeliness of decisions, time savings, the use of new technologies and the potential of personnel capable of solving problems quickly and professionally.

The third factor reflects the reality and significance of the goal, in accordance with which the result of the manager’s activities, his strategy, and taking into account market processes are considered economic development. The goals and needs of the management system determine: the solution’s focus on the user, the visibility of the solution for the user, the possibility of repeated reuse. Intensity is a comparison of effort and time, and productivity is a comparison of result and time.

The effectiveness of an organization is its property associated with the organization’s ability, within the framework of a normative system of social values, to formulate and achieve goals in accordance with the requirements in the form of results correlated with costs, by using appropriate means and taking into account the factors-conditions of its functioning.

Comparing the actual impact of an implemented decision with the expected one suggests the effectiveness or efficiency of the decision. The need for such a comparison is due to the fact that the effectiveness assessment this decision is one of the methods for determining the degree of stability of the internal and external environment when developing a solution, manifested as a response of the environment to its changes when developing a solution. This makes it possible not only to ensure that the decision has been implemented, but also in the event of significant discrepancies between the actual return and the expected return. necessary actions to adjust and clarify the decision process.

When choosing alternatives, it is necessary to ensure that the final formulation of the decision reflects the mechanism for measuring its effectiveness. If it is impossible to define and measure the effectiveness of a solution, it is recommended to avoid approving it, because in this case, its variables, apparently, were incorrectly defined in the process of analyzing the problem. A decision is effective if it helps you get closer to your goal. In the case of multi-purpose activities, a solution can be considered effective when a positive result is achieved and it prevails over some secondary goals. Thus, effectiveness of management decisions– this is the resource effectiveness obtained as a result of the preparation or implementation of a management decision in the organization. Resources may include finances, materials, personnel health, labor organization, etc.

There are organizational, economic, psychological, legal, ethical, technological and social effectiveness of management decisions.

Under organizational The effectiveness of a management decision is understood as the fact of achieving organizational goals through fewer employees or less time. Organizational goals are related to the implementation of the following human needs: the need for organization of life and security, management, stability, order. Organizational effectiveness and the quality of management decisions are inextricably linked.

Economic The effectiveness of a management decision is the ratio of the value of the surplus product obtained through the implementation of a specific management decision and the costs of its preparation and implementation.

Social The effectiveness of a management decision is the achievement of a favorable social effect and (or) the avoidance of an unfavorable social effect for a larger number of people and society in a shorter time, with fewer employees or at lower financial costs. Social effects realize the following human needs: needs for information, knowledge, creative work, self-expression, communication, and recreation.

Technological The effectiveness of a management decision is the fact of achieving an industry, national or world technological level of production or performing technological management operations due to a shorter time or lower financial costs.

Psychological The effectiveness of a management decision is the achievement of the least internal resistance of people (employees) to the implemented decision, the achievement of other psychological goals. Psychological goals realize the following human needs: needs for love, family, free time.

Legal The effectiveness of a management decision is the achievement of maximum compliance of the features and consequences of the implemented management decision with established legal norms, rules, acts, or the reduction of costs associated with possible non-compliance of the decision with legal acts.

Ecological the effectiveness of a management decision is determined by the degree to which the adverse impact on environment features and consequences of the implemented management decision. Environmental responsibility fulfills a person’s need for safety, health, organization of sustainable development of life, and his physiological needs.

Ethical the effectiveness of management decisions is formed in the field of business ethics, as well as generally accepted morality and ethics. Making decisions taking into account ethical efficiency means the desire of the decision maker to comply as much as possible with the accepted standards of morality and ethics, and the rules of business ethics for doing business.

Political The effectiveness of a management decision lies in the fact that the decision maker, when making and implementing a management decision, successfully coordinates the interests of various influence groups (elites, authorities). Political effectiveness takes into account the individual's needs for faith, patriotism, self-empowerment, and self-expression of governance.

In addition, the effectiveness of management decisions can be determined at the hierarchical levels of the organization by the number of affected personnel and organizations; in accordance with this, the effectiveness of management decisions is distinguished at the level of production and management of an organization, group of companies, industry, region, country.

A management decision is the result (product) of management activity. Therefore, for SD also valid the most important indicators, used to characterize conventional products: efficiency, effectiveness and productivity (Fig. 4.1).

Efficiency production is determined by the ratio of the effect (result, increase) and the costs of obtaining it.

Efficiency reflects the organization’s ability to produce products that meet or exceed specified time or quantitative parameters.

Performance labor is an indicator of economic efficiency labor activity personnel. It is defined as the ratio of the quantity of products produced to the costs of its production.

The formation and achievement of the necessary indicators is based on efficiency. Effectiveness comes from the word effect, which means the impression someone makes on someone. This impression can have organizational, economic, psychological, legal, ethical, technological and social overtones (Figure 4.2).

The effect can be observed or shaped. Typically, the effect (result) is compared with costs in comparable terms. For example, in 1994, 30% of the population (120 thousand people) of city N took part in the mayoral elections, with 1.2 thousand activists involved in the election campaign, and in 1999 - accordingly 45% (180 thousand people .) population and 900 activists. The organizational effect is 60 thousand people, and organizational costs have decreased by 300 activists.

The ratio of effect (result) and costs characterizes efficiency any activity or phenomenon. Efficiency can be positive or negative. In the given example of the election campaign in 1999, there is a positive effect and a reduction in organizational costs. This is possible as a result of improved technology for conducting a propaganda campaign, high professionalism activists.

Thus, we can talk about organizational, economic and other efficiency (Fig. 4.2).

One type of efficiency can change at the expense of another. Thus, by reducing economic efficiency, it is possible to increase social efficiency. A manager should pay equal attention to all types of efficiency, since taken together they can significantly enhance the resulting efficiency. The effectiveness of the company as a whole consists of the effectiveness of sustainable development, the effectiveness of products, the company’s ability to produce it, and a high image among suppliers, counterparties and clients.

SD efficiency is the ratio of a new resource or an increase in an old resource as a result of the process of preparing or implementing a management decision in an organization to the costs of this process. Resources can be: a new division of the company, finances, materials, personnel health, labor organization, etc. Costs can be old divisions, personnel, finances, etc. The basis of each type of efficiency is the degree to which the needs and interests of the individual, team and company are satisfied in general (Fig. 4.3).

Similar to the classification of general effectiveness, SD effectiveness is divided into organizational, economic, social, technological, psychological, legal, environmental, ethical and political (see Fig. 4.2).

Organizational effectiveness of SD – it is the fact of achieving organizational goals with fewer workers or in less time. It is associated with the implementation of the following needs:

· for a person – this is the need for organization of life and security, management, stability, order;

· for a company – this is the need for labor (demand for products), organization and safety.

The result of organizational effectiveness can be a new department, an incentive system, a group of excellent production or management organizers, a new order, etc.

Economic efficiency of SD – this is the ratio of the value of the surplus product obtained as a result of the implementation of a specific SD and the costs of its development and implementation. The surplus product can be presented in the form of profit, cost reduction, or obtaining loans. Economic efficiency is associated with the implementation of all human needs in the company.

Social efficiency UR can also be seen as the fact of achieving social goals for more people and society in a shorter time with fewer workers, at lower financial costs .

Social efficiency is related to the following needs:

· for a person – this is the need for creative work, love, communication, self-expression and self-display;

· for a company it is a need for faith and self-development.

The result of social efficiency can be a good socio-psychological climate in the unit, mutual assistance, and informal relationships.

Technological efficiency of SD – the fact of achieving certain results (industry, national or global technological level of production) planned in the business plan in a shorter time or with lower financial costs. It is determined by the following needs:

· for a person – this is the need for creative work, knowledge, information, self-expression;

· for the company - this is the need for self-development and interest in modern production.

The result of technological efficiency can be modern methods of creative work, competitiveness of products, and professionalism of personnel.

Psychological effectiveness of SD – the fact of achieving psychological goals for a larger number of workers or a population in a shorter time, with fewer workers, or at less financial cost. It is associated with the implementation of the following needs:

· for a person – this is the need for love, family, free time, patriotism, faith, communication;

· for a company – this is the need for stability, security, faith, and the development of organizational culture.

Psychological results effectiveness may manifest itself in corporate culture company, mutual assistance, patriotism and loyalty.

Legal effectiveness of SD is assessed by the degree to which the legal goals of the organization and personnel are achieved in a shorter time, with fewer employees or with less financial costs. Efficiency is realized based on the following needs:

· for a person – this is the need for security, organization and order, for the organization of life and activities;

· for a company, this is the need for security and management.

The result of legal efficiency can be a transition to legal business, work in the legal field.

Environmental efficiency of SD – This is the fact of achieving the environmental goals of the organization and personnel in a shorter time, with fewer employees or at lower financial costs. It is determined by the following needs:

· for a person – this is the need for safety, health, organization of sustainable development of life, physiological needs;

· for the company - this is the need for a surplus product, stability, and the creation of an acceptable standard of living for employees.

The result of environmental efficiency can be the production of environmentally friendly products, decent working conditions.

Ethical effectiveness of SD – the fact of achieving the moral goals of the organization and personnel in a shorter time, with fewer employees or with less financial costs. Ethical goals realize the needs and interests of a person in observing moral standards behavior of surrounding people.

Political effectiveness of SD – This is the fact of achieving the political goals of the organization and personnel in a shorter time, with fewer people or at less financial cost. Political goals realize the following human needs: faith, patriotism, self-discovery and self-expression, management.

The effectiveness of SD is divided by the levels of its development, coverage of people and companies. They highlight the effectiveness of SD at the level of production and management of a company, group of companies, industry, region, and country.

In a company's activities, a necessary condition for effective functioning is the balance of interests of all business participants: owners, managers, staff, counterparties, clients, etc. With a common interest, each of them has his own interest, which must be respected and taken into account by its other participants.

Management of the effectiveness of SD is carried out through a system of quantitative and qualitative assessments based on real indicators, norms and standards of efficiency of products and the activities of the company itself. Such indicators, norms and standards include data in the field of:

· the company's activities as a whole;

· meeting the needs and interests of staff;

· the company's activities in a specific market;

· management, service and production activities;

· direct production;

· production of certain types of products (services, information and knowledge);

· use of material and intellectual resources;

· public relations company.

In the process of economic and financial activities of organizations, situations constantly arise when there is a need to choose one of several possible options for action. As a result of such a choice there will be a certain decision.

In conditions market economy there is a high degree of uncertainty in the economic behavior of market participants. Therefore, methods of prospective analysis play an important role here, allowing management decisions to be made based on assessing possible future situations and choosing from several alternative options decisions. The development and implementation of effective management decisions will be the most important prerequisite for ensuring the competitiveness of the organization’s products and the organization itself in the market, as well as creating an optimal structure of the organization, implementing sound personnel policies and rationalizing other aspects of the organization’s activities.

Choice correct and effective management decisions represents the result integrated use economic, organizational, legal, technical, information, logical, mathematical, psychological and other aspects.

Based on all of the above, we come to the conclusion that management decisions are a way of constantly influence of the control subsystem on the controlled subsystem, that is, the subject of management to the object of management. This impact ultimately leads to the achievement of intended goals.

Based on the above, we can give the following definition of a management decision.

Management decision in an organization, it is an act of a management subject (the head of an organization or a group of managers), aimed at choosing from several alternative options for the development of an organization one option that ensures the achievement of intended goals at the lowest cost.

All management decisions can be divided into two types:

• traditional decisions that have taken place several times before; in this case, you should choose one of the already available alternative options;
• non-traditional, non-standard management decisions; their development is associated with the search for new alternative options.

In connection with this, traditional, typical, repetitive management decisions can be formalized, that is, they can be made and implemented according to a predetermined algorithm. Hence, formalized management decision represents the result of executing a predetermined sequence of actions. For example, when a repair schedule for machinery and equipment is drawn up, they proceed from the standard, which determines the relationship between the amount of equipment and the number of repair workers. So, if the mechanical shop of a given organization operates one hundred units of equipment, and the standard for its maintenance is 10 units per repair worker, then this workshop should contain ten repair workers. Further, if the issue of investing funds in securities, then a choice is made of their individual types based on which securities provide the opportunity to receive the maximum profit per invested capital.

As a result of formalization of decision-making, the level of management efficiency increases by reducing the likelihood of making an error, as well as by saving time, since there is no need to develop this solution starting from scratch.

As a result, the management of the organization tries to formalize management decisions in case of those situations that are systematically repeated in the activities of this organization. Formalization of management decisions consists in the development of certain rules, instructions, standards that allow making and implementing competent management decisions.

Along with recurring situations, there are also atypical situations that have not been encountered before and cannot be resolved formally.

It is important to know that the majority of management decisions are between these two types, which makes it possible to use both formalized methods and the own initiative of the developers of these decisions when making these decisions.

The quality and effectiveness of management decisions are determined by the degree of validity of the methodology for solving problems, namely approaches, principles and methods.

Analysis of the economic management of organizations makes it possible to determine the need to apply the following approaches:

• systemic;
• complex;
• integration;
• marketing;
• functional;
• dynamic;
• reproductive;
• process;
• normative;
• quantitative (mathematical);
• administrative;
• behavioral;
• situational.

Any of these approaches expresses one of the directions of the management process. Let's give them a brief description.

Systems approach management assumes that any system or object is considered as a set of interconnected components that has an output, that is, a goal, an input, a connection with the external environment, feedback. In such a system, the “input” is transformed into an “output”.

In terms of use integrated approach In enterprise management, it is extremely important to take into account technical, environmental, economic, organizational, social, psychological, political, demographic areas of management, as well as their relationships. If at least one of these areas is not taken into account, then a complete solution to this problem will not be achieved. Unfortunately, an integrated approach is not traditionally followed. Thus, in the context of the construction of new enterprises and organizations, the solution to social problems is often postponed. This delays the commissioning of this facility or causes its partial use. Other examples can be given. Thus, in the process of designing new equipment, insufficient attention is paid to its environmental friendliness, which leads to the non-competitiveness of the equipment.

Integration approach management involves studying and strengthening the relationships between individual subsystems and elements of the management system, as well as between the stages of the life cycle of a control object, between individual vertical management levels, and, finally, between individual horizontal management subjects.

Marketing approach management provides for the orientation of the control subsystem towards the consumer in the conditions of solving any problems.
It is worth noting that the main criteria of the marketing approach will be:

• improving the quality of the management object in accordance with consumer requirements;
• saving money for the consumer by improving quality;
• saving resources in own production due to factors of production scale, scientific and technological progress, as well as the use of a scientifically based management system.

Functional approach enterprise management is essentially that any need is considered as a set of functions that should be carried out to satisfy it. Once the functions are defined, several alternative objects are created to implement those functions. Then, one of these objects is selected that requires a minimum of total costs during the life cycle of this object per unit of it beneficial effect.

Essence dynamic approach management essentially lies in the fact that when it is applied, the control object is considered in its dialectical development, in its cause-and-effect relationships. Here, a subsequent retrospective analysis is carried out for 5-10 or more past years, as well as a prospective (forecast) analysis.

Reproductive approach enterprise management is focused on the constant resumption of production of this type of product in order to meet market needs. When ϶ᴛᴏm this type products must have lower total costs per unit of beneficial effect than the best similar product on the given market.
It is worth noting that the main elements of the reproductive approach will be the following:

• use of a leading comparison base when planning the renewal of this type of product;
• saving the amount of past, living and future labor during the life cycle of a given type of product per unit of its beneficial effect;
• consideration of the relationship between manufactured, designed and future models of this type of product;
• proportional in quantity reproduction of elements of the external environment (mainly the macro-environment of a given country and the infrastructure of a given region);
• integration of science and production in large organizations.

Process approach management of an organization considers management functions in their interrelation. The management process is the total sum of all functions, that is, it will be a series of continuous interrelated actions.

Normative approach management consists in establishing management standards for all its subsystems. These standards should be determined by the most important elements:

• target subsystem (it covers indicators of quality and resource intensity of products, market parameters, indicators of the organizational and technical level of production, indicators social development team organization, environmental protection indicators);
• functional subsystem (standards for the quality of plans, organization of the management system, standards for the quality of accounting and control, standards for stimulating high-quality work);
• supporting subsystem (standards for providing employees, as well as individual divisions of the organization, with everything necessary for successful work, to perform the tasks facing them, standards for the efficiency of using certain types of resources in the organization as a whole) The listed standards must meet the requirements of complexity, efficiency, and prospects.
  As for the standards for the functioning of elements of the external environment, the organization does not control these standards; however, it must have a bank of data standards and strictly comply with them, especially legal and environmental standards. The organization must also take part in the formation and development of a system of environmental standards.

Essence quantitative approach management consists in the transition from qualitative to quantitative assessments using mathematical and statistical methods, engineering calculations, expert assessments, a point system, etc.

Administrative (directive) approach to enterprise management involves the regulation of functions, rights, responsibilities, cost and quality standards.

The main task behavioral approach management of the organization will increase the efficiency of the organization by improving the use of its labor resources. The use of behavioral science helps improve the performance of both individual employees and the organization as a whole. The fact is that as a result of the application of behavioral science to the management of an organization, individual employees are assisted in realizing their capabilities and creative abilities, which ultimately leads to increased efficiency of the organization.

Essence situational approach to enterprise management is essentially that the degree of suitability of individual management methods is determined by the specific situation. Since there are many factors influencing the activities of an organization, both internally and externally, it is impossible to find a single best way management. Effective in a given specific situation will be the method that best suits the current situation.

These are the main approaches that determine the quality and effectiveness of management decisions.

By the way, the stages of developing management decisions

Organizing the process of developing a management decision is a complex set of works. Let's study the main stages of developing management decisions.

First stage— ϶ᴛᴏ obtaining information about the situation. This information must be complete and reliable. Incomplete or unreliable information may lead to erroneous or ineffective decisions. To more fully present the situation, not only quantitative, but also qualitative information is used.

Second phase- determination of goals.. Only after they have been determined, these goals are determined by factors, mechanisms, patterns, resources that influence the development of a given situation. A significant role here is played by identifying the priority of goals, since in the management process some goals are always selected.

Third stage— development of an assessment system. At the stage of making a management decision, it is extremely important to adequately assess this situation and its various aspects. All ϶ᴛᴏ are extremely important to consider in the decision-making process that leads to success.

Fourth stage— ϶ᴛᴏ analysis of the situation. If there is the necessary information about a given situation and about a specific goal that the organization strives to achieve, then one should begin to analyze the situation. The purpose of such an analysis will be to establish the factors influencing the development of this situation.

Fifth stage— ϶ᴛᴏ diagnosis of the situation. It is necessary to identify the most important problems that should be primarily addressed in the context of targeted process management. It is also necessary to investigate the nature of the influence of these problems on the processes under consideration. This is where the tasks of diagnosing the situation lie.

Achieving the goals of an organization constantly requires targeted influence. This is extremely important to ensure that the situation develops in the direction that is desired by the organization.

It should be borne in mind that adequate diagnosis of the situation largely ensures the adoption of effective management decisions.

Sixth stage— ϶ᴛᴏ development of a forecast for the development of the situation. You cannot manage an organization without predicting the course of events. Therefore, the most important role in the decision-making process is played by issues related to assessing the expected development of the situations being analyzed, as well as the expected results of implementing various alternative management decisions.

On seventh stage alternative management decisions are generated. In this process, it is extremely important to fully use information about the decision-making situation, as well as the results of analysis and assessment of this situation, the results of its diagnosis and forecast of the development of the situation in various possible directions of development of events.

Eighth stage contains a selection of options for management influences.

After developing alternative options for management influences, taking the form of certain ideas, concepts, technological sequence of actions, as well as possible ways implementation of various decision options, it is extremely important to conduct their preliminary analysis to eliminate unviable, uncompetitive, and ineffective options.

Ninth stage— involves the development of scenarios for the development of the situation.

We should not forget that the most important task in the process of developing scenarios will be to establish the factors characterizing a given situation and its development trends. Excluding the above, one of the main tasks here will be to determine alternative options for changing the situation and trends in its change over time, as well as identifying probable alternative options for expected changes in the situation in the presence of control actions, as well as in their absence.

Analysis of a number of alternative options for the development of the situation contributes to the adoption of the most effective management decisions, since this analysis will be the most information-intensive.

At the tenth stage An expert assessment of the main options for control actions is carried out.

An examination that provides a comparative assessment of alternative options for control actions, firstly, characterizes the degree of feasibility of these influences, as well as the possibility of achieving certain goals with their help, and secondly, makes it possible to rank control actions using the existing assessment system in ϲᴏᴏᴛʙᴇᴛϲᴛʙi with various the level of expected achievement of the goal, the necessary expenditure of labor, material and financial resources, as well as in relation to the most likely scenarios for the development of this situation.

It is important to note that the eleventh stage— ϶ᴛᴏ stage of collective expert assessment. If important management decisions are made, then collective expertise should be used, which ensures the greatest validity and effectiveness of the decisions made.

Thirteenth stage— stage of developing an action plan. At this stage, certain organizational and technical measures are planned aimed at implementing the adopted management decision. At the fourteenth stage, the implementation of the developed plan is monitored. The progress of the plan should be systematically monitored, and changes in conditions or deviations in the implementation of the plan should be systematically analyzed.

At the final, fifteenth stage of developing management decisions, an analysis of the results of the development of this situation after management influences is carried out. Here, the completed management action plan is subjected to careful analysis to assess the effectiveness of management decisions made and their implementation.

Analysis of the results of management influences, along with forecasting for the future, can be the basis for a more precise assessment of the capabilities of a given organization.

Assessing the effectiveness of management decisions and methods of their analysis

Making a management decision will essentially be an intermediate phase between a management decision and a management impact. Based on this, the effectiveness of management decisions should be characterized as the combination of the effectiveness of developing management decisions and the effectiveness of implementing these management decisions.

Efficiency— ϶ᴛᴏ effectiveness of production, labor or management

A large number of private indicators are calculated economic efficiency activities of the organization’s team (there are more than sixty such indicators in total)

These indicators include profitability, working capital turnover, capital productivity, capital intensity, return on capital investments, labor productivity, the ratio of the growth rate of labor productivity and average wages, etc.

It is possible to evaluate both the effectiveness of the management apparatus of a given organization as a whole, and the effectiveness of individual management decisions. Also volume indicators, as well as specific quality indicators. Here, the effectiveness of organizational and technical measures carried out in conjunction with the adopted management decision is expressed by comparing the costs of these measures and the results obtained as a result of their implementation.

When assessing the effectiveness of management activities, the concept of cumulative economic effect can be used, since the results obtained include a certain labor contribution of members of the organization’s team with different professions.

Organizations are guided, on the one hand, by the need to satisfy the requirements of consumers of their products (works, services), and on the other hand, by improving the economic indicators of their economic and financial activities.
As a result, when assessing the effectiveness of management decisions, it is extremely important to take into account both the social and economic aspects of efficiency.

Let's study the procedure for assessing the effectiveness of management decisions using an example trade organization.

In order to correctly determine the effectiveness of management decisions, it is extremely important to carry out separate accounting of income and expenses of a trading organization in the context of individual product groups. However, in practice, maintaining such records is very difficult. Because of this, it is advisable to use the so-called specific quality indicators in the analysis, namely profit per 1 million rubles of turnover, as well as distribution costs per 1 million rubles of inventory.

The effectiveness of management decisions in a trade organization will be in a generalized way in quantitative form as an increase in the volume of trade turnover, acceleration of the turnover of goods, and a decrease in the amount of inventory.

The final financial and economic result of the execution of management decisions is manifested in an increase in the income of a trading organization and in a reduction in its expenses.

Economic efficiency

Determining the economic efficiency of management decisions, as a result of which the turnover has increased, and, consequently, profit has increased, can be carried out using the following formula:

Eph = P*T = P * (Tf - Tpl),

• Eph— economic efficiency (in thousand rubles);
• P— profit per 1 million rubles of trade turnover (in thousand rubles);
• T— increase in trade turnover (in million rubles);
• Tf- actual trade turnover that takes place after the implementation of this management decision;
• Tpl— planned turnover (or turnover for a comparable period before the implementation of this management decision)

In the example under consideration, the economic efficiency of making and executing a management decision is expressed in a reduction in the amount of distribution costs (selling expenses, or commercial expenses) attributable to the balance of goods. This leads to an increase in the amount of profit received. By the way, this efficiency can be determined by the following formula:

Ef =IO*Z = IO*(Z 2 - Z 1),

• Eph— economic efficiency of this management activity (in thousand rubles);
• AND ABOUT— the amount of distribution costs per 1 million rubles of inventory (in thousand rubles);
• 3 — amount of change (decrease) in inventory (millions, rubles);
• 3 1 — the amount of inventory before the implementation of a management decision (event) (million rubles);
• 3 2 — the amount of inventory of goods after the implementation of this management decision.

Except for the above, the economic efficiency of the implemented management decision affected the acceleration of turnover. This influence can be determined by the following formula:

Eph = Io*Ob = Io (Ob f - Ob pl),

• Eph— economic efficiency of management decisions (thousand rubles);
• And about— simultaneous value of distribution costs (thousand rubles);
• About— acceleration of goods turnover (in days);
• About pl— turnover of goods before the implementation of a management decision (in days)
• About f— turnover of goods after the implementation of a management decision (in days)

Methods for analyzing management decisions

Let's study the procedure for applying the basic methods and techniques of analysis when assessing the effectiveness of making and executing management decisions.

Comparison method makes it possible to evaluate the activities of the organization, identify deviations of the actual values ​​of indicators from the basic values, establish the causes of these deviations and find reserves for further improvement of the organization’s activities.

Index method used in the analysis of complex phenomena, the individual elements of which cannot be measured. As relative indicators, indices are necessary to assess the degree of fulfillment of planned tasks, as well as to determine the dynamics various phenomena and processes.

This method makes it possible to decompose the general indicator into factors of absolute and relative deviations.

Balance sheet method consists in comparing interrelated indicators of an organization’s performance to identify the influence of individual factors, as well as to find reserves for improving the organization’s performance. With this, the relationship between individual indicators is expressed in the form of equality of results obtained as a result of certain comparisons.

Elimination method, which is a generalization of the methods of index, balance sheet and chain substitutions, makes it possible to isolate the influence of a single factor on a general indicator of an organization’s performance, based on the assumption that the remaining factors acted under other equal conditions, i.e. just as planned.

Graphical method is a way to visually illustrate the activities of an organization, as well as a way to determine a number of indicators and a way to present the results of the analysis.

Functional and cost analysis(FSA) is a systematic research method used in research with the purpose of the object being studied (processes, products) in order to increase the beneficial effect, that is, the return per unit of total costs for the life cycle of the object.

We should not forget that the most important feature of functional cost analysis is to establish the feasibility of a list of functions that the designed object must perform under certain specific conditions, or to check the necessity of the functions of an existing object.

Economic and mathematical methods of analysis can be used to select optimal options that determine management decisions in existing or planned economic conditions.

Using economic and mathematical methods of analysis, the following problems can be solved:

• assessment of the production plan developed using economic and mathematical methods;
• optimization of the production program, its distribution between workshops and individual types of equipment;
• optimization of the distribution of available production resources, cutting of materials, as well as optimization of norms and standards for reserves and consumption of these resources;
• optimization of the level of unification of individual component parts of the product, as well as technological equipment;
• determining the optimal size of the organization as a whole, as well as individual workshops and production areas;
• establishing the optimal range of products;
• determination of the most rational routes for in-plant transport;
• determination of the most rational periods for the operation of equipment and its repairs;
• comparative analysis of the economic efficiency of using a unit of a type of resource from the position of the optimal management decision;
• determination of possible intra-production losses in connection with the adoption and execution of the optimal decision.

Let's sum up the results of the ϶ᴛᴏth chapter. The efficiency of an organization depends to a very large extent on the quality of management decisions. This makes it important for all responsible employees of the management apparatus, and above all heads of organizations, to acquire theoretical knowledge and practical skills in the development and implementation of optimal management decisions.

Development and adoption of management decisions— ϶ᴛᴏtraditionally choosing one of several alternative options. The need to make management decisions is determined by the conscious and purposeful nature of human activity. The material was published on http://site
By the way, this need arises at all stages of the management process and forms part of any management function.

The nature of management decisions made is greatly influenced by the completeness and reliability of information available on a given situation. Based on this, management decisions can be made both under conditions of certainty (deterministic decisions) and under conditions of risk or uncertainty (probabilistic decisions)

Management decision making process— ϶ᴛᴏ a cyclical sequence of actions of a management subject aimed at resolving the problems of a given organization and consisting in analyzing the situation, generating alternative options and selecting the best from them best option, and then - the implementation of the chosen management decision.

The practice of preparing and executing management decisions gives numerous examples errors at all levels of economic management. This will be a consequence of many reasons, since economic development consists of a large number of different situations that require its resolution.

We should not forget that the most important reason for the adoption and implementation of ineffective management decisions is ignorance or non-compliance with the technology for their development and organization of their implementation.

We should not forget that the cybernetic approach to the development of management decisions, which has become known as a theory of decision making, has an important role to play. It is worth noting that it is based on the widespread use of mathematical apparatus and modern computer technology.

The problem of a manager choosing an alternative is one of the most important in modern management science, but it is no less important to make an effective decision. For SD to be effective, a number of factors (Fig. 4.4):

1) adherence to hierarchy in decision making – delegation of decision-making authority closer to the level at which there is more necessary information and which is directly involved in the implementation of the decision made. Contacts with subordinates located more than one hierarchical level lower (higher) are not allowed;

2) use of focused cross-functional teams , in which the members included in their composition are selected from various divisions and levels of the organization;

3) use of direct (direct) horizontal connections when making decisions. In this case, the collection and processing of information is carried out without contacting senior management. This approach contributes to making decisions in a shorter time, increasing responsibility for the implementation of decisions made;

1) centralization of management when making decisions . The decision-making process should be in the hands of one (overall) leader. In this case, a hierarchy in decision making is formed, i.e. each lower manager solves his problems (makes decisions) with his immediate management, and not with higher management, bypassing his immediate superior.

As already noted, the choice of the best solution is carried out by sequentially evaluating each of the proposed alternatives. It is determined to what extent each solution option ensures the achievement of the organization’s ultimate goal. This determines its effectiveness, i.e. a solution is considered effective if it meets requirements , arising from the situation being solved and the goals of the organization (Fig. 4.5):

· firstly, the solution must be effective , i.e. to ensure the most complete achievement of the organization’s goals;

Secondly, the solution must be economical , those. ensure achievement of the set goal at the lowest cost;

· thirdly, the solution must be timely . We are talking about the timeliness of not only making decisions, but also achieving goals. After all, when a problem is solved, events develop. It may happen that a great idea (alternative) will become outdated and lose its meaning in the future. She was good in the past;

· fourthly, the solution must be justified . Performers must be convinced that the decision is justified. In this regard, one should not confuse the factual validity and its perception by the performers, their understanding of the arguments prompting the manager to make just such a decision;

· fifthly, the solution must be realistic feasible , i.e. You cannot make unrealistic, abstract decisions. Such solutions cause frustration and division among performers and are inherently ineffective. The decision made must be effective and correspond to the strengths and means of the team implementing it.

In achieving the effectiveness of decisions, a special role is played by methods of communicating decisions made to executors. Bringing decisions to the executors usually begins with dividing the alternative into group and individual tasks and selecting executors. As a result, each employee receives a specific task of his own, which is directly dependent on his job responsibilities and a number of other objective and subjective factors.

It is believed that the ability to delegate tasks to performers is the main source of the effectiveness of the decision made. In this regard, there are four main reasons for non-compliance with decisions:

1) the decision was not clearly formulated by the manager;

2) the decision was clearly and clearly formulated, but the performer did not understand it well;

3) the decision is clearly formulated, and the performer understood it well, but he did not have necessary conditions and the means for its implementation;

4) the decision was correctly formulated, the performer understood it and had all the necessary means to implement it, but he did not have internal agreement with the solution proposed by the manager.

In this case, the contractor may have his own, more effective, in his opinion, solution to this problem.

The foregoing indicates that the effectiveness of a decision depends not only on its optimality, but also on the form of communication to the executors (formalization of decisions and personal qualities of managers and executors). Organizing the execution of decisions made by the management of an organization as a specific activity of a manager presupposes that he keeps decisions in sight, finds a way to influence them, and manages them. The command “to begin executing the decision” cannot be given before the manager is confident that all the parts involved in the execution have correctly understood their tasks and have all the means to carry them out.

The main point of all work on bringing tasks to the performers is to build in the minds of the performers a certain image (technology) of future work to implement SD. The initial impression of future work is formed by the performer upon receipt and perception of the task. After this, the idea (task model) is refined and enriched through its adaptation to the real and objective conditions of the internal and external environment. On this basis, the technology for executing the solution is developed (an ideal model of the executor’s activity to complete the manager’s task).

It should be borne in mind that in order for the model of the performer’s activity to be carried out in accordance with the initial idea of ​​the manager, a number of requirements are imposed on it (the model) (Fig. 4.6).

Completeness The decision model describes its compliance, on the one hand, with the manager’s plan, his decision and the tasks set by him, and, on the other hand, with the content, structure and conditions of the executive activity. The ideal option would be such a completeness of the model, in which it would be so developed that even before the start of work, the performer can mentally imagine all the intricacies of the upcoming activity.

Accuracy a model is necessary because if a task is posed abstractly, in a general form, then it is not performed at all or is performed formally. A management system in which the accuracy of the formation of operational decision models has not become law essentially disintegrates.

Reflection depth characterizes the operational model by representing in it all the dynamics of upcoming activities.

Stress resistance and the strength of the model presupposes the ability of the performer to clearly implement the action plan that has developed in his mind in any difficult situations.

Flexibility models is a criterion that seems to contradict all the listed requirements. It is obvious that an absolutely rigid, unyielding image can be acceptable in frozen and unchanging structures, which do not and cannot exist in nature and society. The problem is to choose the optimal balance between stability (immobility) and flexibility of the model.

Consistency decision model is associated with the fact that the performer most often carries out the decision alone. Therefore, his actions must be coordinated in terms of tasks, time, place, etc. with other performers.

It is known that understanding the decision and assimilation of its ideal model do not fully ensure the proper mobilization of the forces of the performers, which is why it is necessary motivate their activities. Influencing the motives that encourage performers to show activity, internal needs and complete tasks is the main point of mobilizing the workforce to implement the decisions made by the organization’s management.