"Efficiency" and "inefficiencies" are abstract categories that are difficult to describe, both characteristics and dimensions.
If you ask the same question "What is effective management" to an economist, a production engineer, a politician, a marketing specialist, a manager and a director, then you will get different answers, only to collect which you can understand the meaning of this phrase.
What is effective management?
Before proceeding to explain the main topic, let's first figure out what "management" is.
It seems to me that the most correct definition of this word is: management is an orderly process, as a result of which a certain goal is achieved due to competent actions of the manager.
If the target is not achieved or achieved, but with serious losses( financial, temporary), then the manager failed to manage his task, which means that he was not engaged in management, but something else, therefore, in my subjective opinion, the phrase"Ineffective management" should not be used at all in politics, business, or production.
Management can be either effective, or - not at all.
"If you can not solve the problem - start to manage it."
Robert Schuller
But experts hold a different opinion, that's why in the specialized literature, effective and ineffective management is delineated.
Effective management is an abstract category that reflects the degree and dynamics of management formation, the qualitative and quantitative basis of this process.
Criteria for evaluating the effective management of
Management effectiveness is usually assessed not by one, but by several criteria, so that the evaluation is as objective as possible.
The criteria that are used to evaluate most often are:
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The targeted approach.
It is estimated how quickly and accurately the goals were achieved.
This approach is more difficult to use if you have to evaluate an organization that does not produce specific products.
Opponents of the evaluation of the targeted approach argue that the focus of all employees on the achievement of a specific goal can not be called effective management, and in the course of the activity of any company, several goals must be set, and cases where one of them contradicts the other.
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Resource approach.
It is taken into account how much the company's resources were directed to the fulfillment of a specific task.
That is, the importance of the result should be commensurate with the resources spent.
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Evaluation approach.
The company itself is analyzed:
- which place it occupies on the market;
- what annual profit has;
- than differs from the main competitors;
- how quickly managed to achieve such indicators, etc.
Timing of working hours and how to use it?
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Integrated approach.
Experts consider it to be the most accurate, because for evaluation several criteria are used at once.
Evaluation of the manager: how efficient is the manager
It is impossible to assess the effectiveness of the company's management without the characteristics of its leader, because it is he who performs the direct management function.
Academician A. Trapeznikov has proved that the chain of requirements for the leader consists of four inseparable links: he knows-can-wants-succeeds.
Most often, the effectiveness of the company's manager is evaluated by such criteria:
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Education.
The highest specialized education is most appreciated, but the level of general education( literacy, reading, ability to express one's thoughts, etc.) is important.
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Competence.
How well the manager understands the operational processes of the company, which he manages.
- High performance and the ability to completely surrender to work, despite personal moments.
- Presence of such qualities as responsibility, confidence, stress resistance, steadiness.
- Good health.
- Ability to learn quickly and be open to everything new.
- Mental and physical abilities that fit the position.
Effective People Management
This is the most important and complex indicator of the efficiency of any enterprise.
To manage the company was considered effective, it is necessary:
- to assess the availability of labor resources and to understand whether they need to be increased to achieve a particular goal;
- recruit staff for all vacant posts, selecting professionals who will work as well as possible;
- determine the salary that recruited employees will receive, this can only be done after a preliminary assessment of their abilities and prospects;
- to think over how the adaptation and training of the employee in the new team will take place;
- assess the labor efficiency: how well the employee copes with the tasks assigned to him.
What is soft skills and why are they so important to a career?
There are three types of efficiency in the management of human resources:
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Individual.
This is the base level.
Measures the effectiveness of specific employees( how quickly and efficiently they perform tasks, how they work, what methods they achieve, etc.).
Individual effectiveness is taken into account when calculating salaries, with promotion, when choosing project managers, etc.
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Group.
Not so often in companies you can find a situation where the goals employees reach independently, in complete isolation from other members of the team.
Usually tasks are performed by groups of employees, for example, departments, departments, etc.
Upon completion of the work, the performance of all groups is compared and the most effective one receives monetary or other encouragement.
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Organizational.
It is analyzed, with what efficiency the organization works, individual and group effectiveness of human resources is taken into account.
We offer for viewing the informative video
on effective personnel management:
Effective management of operating systems
Production or any other process in organizations is divided into specific operations.
The efficiency of each operation is calculated quite simply: the market price of manufactured products or services should be divided by the amount of expenditure of all resources spent on its production.
If we get a negative result, operating system management can not be called effective.
How to negotiate?
When assessing the market price of the result of an operation, you should consider:
- the cost of all the resources that were spent on its creation;
- product quality;
- its demand in the market;
- cost of materials for manufacturing products;
- money costs for transportation, storage, payment for employees who worked on its manufacture, etc.
Again, if it is not a question of specific industrial products, but of services or sales, then it is much more difficult to calculate the effectiveness of operating system management.
As you can see, to determine efficient management of or not observed in a particular company is quite difficult, especially if it's not about manufacturing plants.
To give an adequate assessment, it is necessary to use only an integrated approach.