Theoretical Foundations of Management
Armen Matsakanyan

Theoretical Foundations of Management

Modern science did not start with Kepler - a description of the observed phenomena. Modern science began with Newton, who gave observable phenomena the properties of Universality and Necessity (created the Laws of Nature)

In my previous work ?The General Theory of Management. Formulation of the problem. Changing paradigm of management?

I formulated a series of questions that I could not find scientifically based answers:

?1. Management.?

What is the difference from Operation, Administration, Handling, Control, Regulation and so on?

When there is obvious necessity in it?

2. Manager.

What his most important task as a class?

What are the limits of its competences?

What is its place in the structure of the company?

Exclusive competence (only he and no one else)?

At which point the Manager appears in the company?

At what point disappears (what caused it)?

Who is the main actor of the company?

What kind of relationship is with other actors of the company??

So I had to start giving answers myself.

?The problem of creating a social theory based on the natural science approach

???????????The first problem is to separate the objective factors influencing the subject of study from the subjective factors. In other words, it is necessary to build a theory of management, so as to completely remove the influence of the "human factor". At first glance, it seems that it is impossible to do.

???????????However...this problem was solved.

The second problem is that you can go into "abstract designing?, breaking away from the" earth", that is, from people. "Abstract designing" is characteristic of numerous technocratic approaches (system approach, cybernetic, engineering, etc.). On the territory of management, these approaches do not work. I managed to solve this problem without going beyond the natural science approach.

???????????As a result, I was able to remove the human factor, at the same time not to break away from the ground – from people.

???????????Creating ?The General theory of Management?, I managed to stay within the framework of Einstein's requirements to the scientific theory and remove subjective factors.

?Principles of construction of a scientific theory proposed by A. Einstein

???????????These principles are very similar to the Hypothetical-deductive method of constructing the theory. Einstein formulated his approach in a letter to Maurice (may 7, 1952):

? As for epistemological questions, You have not understood me at all. Apparently, I didn't explain my point well. Schematically these questions I imagine so:

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????

(1) we are given E — direct data of our sensory experience.

(2) a is the axioms from which we draw conclusions. Psychologically, A is based on E. But there is no logical path leading from E to A. There is only an intuitive (psychological) connection, which is constantly "renewed".

(3) From axioms A, the particular assertions of S, which can pretend to rigor, are logically derived.

(4) Statements S are compared with E (test of experience) ...?.

The Arc Of Einstein:

A based on E!!! But there is no logical path leading from E to A!!! "Intuitive jump "from E to A is called "Einstein's Arc".

"...From Basic principles go 3 traits S, S’, S” (Statement, Assertions) to Aggregate experience (E).

S-Explains what we know. Explanation of visible things.

S’ - Prediction in new areas.

S " - a Look into the distant future...". K. V. Anokhin.

The attempt to build a scientific theory based only on empirical observations was rejected by Einstein.

From the letter of A. Einstein to K. Popper "...I think (like you, by the way) that the theory cannot be derived from observations, but can only be invented...".

This approach (Einstein's) I outlined for brevity. Since I myself came to similar (but not identical) conclusions through the study of the formation of modern science, through the disputes of empiricists and rationalists, through the works of D. Hume and I. Kant. A detailed analysis of these works would take much more space than the presentation of the theory itself. Besides, it has no direct relation to management.

The paradox is that this theory was at first created on the basis of The views of D. Hume and I. Kant, and then I was able to get acquainted with the works of A. Einstein in this area, thanks to the lectures of K. V. Anokhin.

?The theory of the Allotment of functionals

The first part of the General Theory of Management

The task of this work:

To determine and to put a limit to the concept - Manager.

To determine and to put a limit to the concept - Management.

I will do this, guided by the ideas of David Hume and Immanuel?Kant and on the basis of the criteria and principles of construction of any Scientific Theory proposed by Einstein.

To build a picture of the world of Management.

Create a new discipline "Theoretical Managology" by analogy with "Theoretical Physics" in which the fundamentals of Managology will be laid.

There are many hypotheses about what is Management.

All these hypotheses have one unifying feature. None of them even tries to substantiate their claims in a scientific way by constructing a theory according to certain rules.

It's time to create such a theory.

In accordance with the principles of scientific theory proposed by Einstein:

?Axiom:

Any organization begins with one person.

?Statements:

Now consider what happens in an organization consisting of one person. All processes of such an organization occur inside the head of this person. Let's see what happens there? What is the structure of such an organization?

Conventionally, this structure can be divided into three large parts.

The first part is the functionals that are directly related to the activities of the organization. Commercial block, financial block, Production block, Logistic block, etc.

The second part is the factors that form this Personality. I will name her worldview. Family upbringing, Education, Professional experience, People who influenced the worldview, Social education, etc.

The third part, which "... develops programs of behavior, provides and regulates their implementation and participates in monitoring their successful implementation ..." "Lectures on general psychology" (A.R. Luria, 2006). “Part of programming, regulation and control of activities” - (the part where decisions are made and actions are controlled), makes decisions, acting on the basis of all the information. This part has free access to both the first part (the functionals of the organization) and the second part (ideological). Access is non-linear and instant!

?Scheme 1. The structure of the original organization

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First Phase.

This is the stage where the organization consists of one person. All organizational processes take place in one head. They occur quickly, harmoniously, efficiently and instantly. This is the "model of functioning of a Perfect Organization ".

?Second Phase.

Over time, the volume of incoming information and the amount of necessary actions exceed the ability of one person. At some point, there is a quantitative and qualitative overflow of human capabilities. Each person has such an overflow occurs in different moments.?

One of the factors that affects this is described by" Miller's law " (journal of Psychological Review 1956). According to which short-term human memory, as a rule, cannot remember and repeat more than 7 ± 2 elements.?If the number of elements is more than seven (at least, nine), then the brain splits the elements into groups so that the number of memorized elements was from 5 to 9.

Exceeding this parameter leads to the need for "information unloading". The fateful decision is made-to hire the first worker who has to" unload " the original organization, having accepted a fragment of the functional from the first part. Suppose this “Accounting” - a fragment of the Financial functional.

The first phase transition is occurs.

What happens next? The original organization - transmits a piece of information from the first part of "The structure of the original organization" (Functionals of the organization) to the first employee. In order to transmit this fragment, the Original organization must separate this fragment from its holistic System, where all three parts interact continuously.

This selection of the fragment strikes at the efficiency of the whole System. A fragment of the necessary information for its optimal operation falls out of the system. Begins the destruction of the "Perfect Organization". Such transfer of a functional fragment to the First Employee is not a benefit for the Original Organization. The first Employee receives only a piece of information, and all other parts of the system remain with the Original Organization. Therefore, its work is also not optimal.

Important note. The first employee is not a Manager, he is a subject specialist.

At this stage, management as a phenomenon of the organization is absent!

Here's what happens in practice:

Figure 2. Transfer of functional fragment from the original organization to the first employee

The Original Organization

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??The original organization passes a fragment of the functional (accounting), to the first employee. The first employee receives the functional of the original organization-accounting (fragment of the first part).

To perform this functional, the first employee needs to have all three parts. The second and third parts of the original organization can not physically transfer. Therefore, the first employee uses his second and third parts.

?The first employee

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At transfer of a fragment of functional of the original organization to the first worker very important parts of the original organization are not transferred:

1. From part one-information about other functionalities.

2. Part two completely.

3. Part of the third fully.

Not having access to all of the above parts of the original organization, the first employee begins to make inadequate decisions from the point of view of the original organization.

It starts the collapse of the organization.

The collapse of the organization begins with the hiring of the first employee. Decay informational, organizational and functional.

To overcome the beginning of the collapse of the original organization has to constantly exchange information with the first employee, to coordinate with him every action and every decision.

As long as the scope of tasks and information allow the original organization and the first employee to directly exchange information and coordinate their actions, the organization develops without a Manager.

After hiring the first employee for the same reason you hire the second, third, etc. All of them are "Warpets" (term meaning a Key Technical Specialist) and not Managers! The task of information exchange and coordination is becoming more complex.

There comes a time when the organization grows so that the proportion of time and energy expenditure of the Primordial Organization and the Warpet on the coordination processes begins to exceed the share of their time and energy expenditures on performing their own functionality. It is at this moment that an objective need arises for a Manager as a phenomenon of organization. There comes the third stage.

?Third Phase.

First time emerges the Manager. One of the main tasks for the Manager, at this stage, is the liberation of the original organization and "Warpet" (term meaning a Key Technical Specialist) from the endless coordination and exchange of information and the suspension of the collapse of the organization by restoring broken ties at all three levels: information, organizational, functional.

The first and foremost task of managers as a class is to Restore the original unity of the organization in society (see diagram 1).

Managers as a class should:

1. Provide instant exchange of relevant and adequate information between Warpets

2. Provide instant exchange of relevant and adequate information between Functional and Worldview parts.

3. Provide instant interaction of Functional and Worldview parts with the part where decisions are Made and Actions Are Controlled.

4. Ensure that decisions are implemented.

?Preliminary conclusion:

This social theory is based on independent of human consciousness (objective) factors, at the same time it takes into account human "features".?In this sense, this theory is scientifically justified.

It becomes clear from the theory that most of the future discoveries in theoretical Managology lies in the field of cognitive neuroscience.

Management is a universal concept. It does not matter the nature of the organization: commercial, non-profit, state. Management laws work equally in all types of organizations.

?“The Perfect organization”

A new scientific phenomenon is emerging - the “Perfect organization.” This new phenomenon will be studied using cognitive neuroscience. Thanks to this phenomenon, there is an opportunity to formulate common principles of interaction for all employees without exception! The "flag on the hill, one for all" appears. Previously, each employee had his own small flag, someone had a bigger flag, someone had a smaller flag, but there were a lot of flags and knolls and they often contradicted each other. Now one flag at all!

On the “Perfect organization” phenomenon, it will be possible to build technologies that will measure the degree of deviation of a working organization from the Perfect on a whole set of indicators. It becomes possible to use a mathematical apparatus. Managology will become a rigorous science that can and should be taught in universities. In all universities, regardless of specialization. Because the rules of the game should be known to all employees of the organization! Management is a common affair of all members of the organization.

? Question of power

The administrative weight of a manager is variable. The larger the organization, the greater the weight of the manager, the more the final result of the organization’s activities depends on the manager.

The qualitative transition of power to managers occurs with the emergence of middle managers (MM). From this point on, the value of Warpets in obtaining the final result of the organization's activities falls sharply.

Middle managers become a key figure on which the success or failure of the entire organization depends. It depends on them how well will go information, organizational and cross-functional interaction. It depends on them in what conditions will work the Warpet In their hands the fate of the organization!

? Warpet

Instead of a faceless employee, a Warpet appears in the arena. A Warpet is someone who creates value for the client. For external customer and internal customer. Warpet is an Aktor in the organization on a par with the Manager.

The Manager and Warpet are equivalent. These are the two aktors of the organization.

So between them build relationships, not boss – subordinate, but partner - partner. Their relationship is based on the principle of "balanced mutual obligations". Warpet is obliged to perform the tasks assigned to it, and the Manager is obliged to create working conditions and provide cross-functional interaction. Therefore, the good old slogan "I'm the boss you are fool" is changed to the slogan "who is the boss is the fool".

One of the focus of Theoretical Managology will be the relationship between the Manager and the Warpet. The efficiency and effectiveness of the organization's activities depend on how well the relations between them will be built.

In the next part of Theoretical Managology, I intend to elaborate on this in more detail.

The subject specialist in the organization is a constant value.

The manager in the organization is a variable value.

? Competences

Technical (subject) competencies of the Manager are very different from the subject competencies of the Warpet. The Manager is not a super-competent Warpet! The Manager looks at the functional of his division in the telescope, the Warpet looks at the functionality of his division in the microscope. They look at the same, but see different.

The Manager must understand how the technical decisions made in his or her department will affect the work of internal customers and how they will affect the final product of the organization.

The Warpets should focus on the technical characteristics of the value he creates

? Legitimizing The Manager

Once it is possible to clearly define the functional responsibilities of the Manager, his super-task in relation to the organization, his obligations to Warpets and owners the Manager may appear legitimacy in the eyes of other employees. Recently, the legitimacy of Managers in the eyes of both workers and owners has fallen very much. The loss of legitimacy of the Manager today is one of the main reasons for the low implementation of the strategy of the organization.

? Management is a specific management of people to restore the original unity of the organization.

The Manager is one of the two Aktors of the organization, which is responsible for the final result of the organization through the provision of working conditions for Warpets and organization of interaction between departments.

The most important task of a Manager is to build a "Perfect Organization" in society.


P.S. "Warpet" in Armenia, is the level and title that every craftsman aspires to in his field.

This is the name given to any high-level craftsman: a winemaker, a shoemaker, a cook, a seamstress, and so on.

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