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THE PROBLEM OF CRISIS IN MODERN MANAGEMENT

The problems of crisis management are relevant for
organizations operating in a complex, volatile, uncertain external environment,
when the degree of risk in the market is high. Many Russian companies today
have to work in such circumstances.

The crisis state of individual enterprises in the
market is natural: not all are able to withstand competition.

In Japan, for example, about three thousand small and
medium-sized enterprises stop operating in the market every month.

About the same number of new ones appear. In Russia,
about four-fifths of all enterprises by current standards should long be
considered bankrupt . Unfortunately, there are many large ones among them.

The main reason for market failure is the grossest
miscalculations of managers, low level of management, lack of experience in
market conditions, as well as the desire of many of them to enrich themselves,
their families, and their relatives at the expense of labor collectives.

Many of Russia’s difficulties are related to the fact
that we have a huge shortage of managers. Today, there are not enough qualified
managers in the country, and the quality of preparation for market activity of
most of the existing ones leaves much to be desired[1]. This lack is
especially felt in the middle management level, which is responsible for
operational work in the field of enterprise management and is responsible for
the implementation of strategic plans.

In Russia, only half a percent of managers are
employed (for comparison, in the United States-about 16 percent). Attempts to
train managerial personnel abroad or on the basis of Western programs did not
bring success: Russia does not have a developed market infrastructure,
different business traditions, its own mentality, the legacy of the Communist
past, and completely different business guidelines.

There is a well-known triad that now defines success
in business — «People-product-profit». The stability of the business, the
firm’s strong position in the market, and its finances are primarily provided
by people.

But the most important thing is that these people
should strive to perform their duties efficiently, and this in turn strongly
depends on their Manager, who is able to direct and properly motivate their
subordinates. The tasks of managers are greatly complicated in a crisis
situation.

In the extremely difficult modern conditions of
Russia, only well-trained managers and innovators can achieve real success in
anti-crisis management. In each case, success depends on the personal qualities
and merits of the Manager, who is the engine of the market economy.

One of the main issues related to crisis phenomena in
the organization is the problem of conflict resolution and prevention and their
consequences, which often cause significant losses not only in the present, but
also are disastrous in terms of enterprise development.

Today, many experts in the field of crisis management
recognize both the negative and positive roles of conflicts. The main thing is
to establish the cause and use the method of resolving contradictions that
corresponds to the specific situation.

A firm is only successful if it is in a state of
consistent and steady development. It is necessary to manage both functioning
and development processes. There are many practical examples when a firm
functions relatively well, but does not develop. There is a contradiction
between these two processes and trends, which escalates and creates a crisis
that serves as a favorable ground for the development of various types of
conflicts.

The company’s management sees the reasons for the
crisis and the possibility of getting out of it in management. The management
modernization that is currently taking place in the company is ultimately aimed
at eliminating a number of causes of crisis phenomena and the subsequent chain
of conflict situations

In the development of any organization, there is a
possibility of a crisis, which is determined not only by mistakes in the
management strategy, insufficient attention to the problems of development or
defeat in the competition, but also by objective factors related to market
fluctuations, the need for periodic modernization of technology, changes in the
organization of production, changes in personnel, or external economic and political
conditions.

In many cases, the crisis in the development of the
company can not be eliminated. It comes as an objective phenomenon that
reflects the cyclical nature of the organization’s development. But the
severity of the crisis can be reduced if you take into account its peculiarity,
recognize and see its onset in time. In this regard, each management should be
anti-crisis, i.e. based on the possibility and danger of a crisis.

The key problems of crisis management are:

— crisis Forecasting;

financial and economic regulation [1] Zubchenko L. International capital
movement in modern conditions // The economist №6. 2009

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