Six elements of management

Six Elements of Management

Six Elements of Management. With the development of the market economy, competition among enterprises has become more and more intense, so enterprises must not only improve the quality of their products In addition to quality, we must also pay attention to the optimization of management models. So do you know what the 6 elements of management are? Let’s take a look. Six elements of management 1

Six elements for establishing a management model

How to establish a management model? First, we must determine the relationship between the management model and the business model.

Management model and business model have the same purpose, which is strategic realization.

The management model emphasizes organizational execution. Organizational structure, corporate culture, human resources, and management and control mechanisms are all closely related to people. However, the business model addresses how the enterprise operates and reflects the operating mechanism of the enterprise. Because the business system, profit model, key resource capabilities and cash flow are not directly related to people, the management model is how to use management to effectively drive the growth of the enterprise after building the business model. Management model includes strategy, organizational structure, management and control mechanism, human resources, corporate culture and performance.

The most important feature of a good business model and management model is that the quality and ability of average people can create good results.

In order to operate the enterprise more efficiently, the relationship between the business model and the management model must be properly handled. The business model is to structure the strategic realization of the enterprise from the perspective of engagement, and the management model is to deconstruct management from the human dimension and let management To provide efficient services for business operations, there are the following six elements.

Element 1: Strategy.

Strategy determines the development direction of an enterprise and is the method and path for an enterprise to achieve its long-term goals. This is the common starting point for enterprise operation and management improvement, that is, enterprises must position themselves based on resources and capabilities.

Consistent with the role of corporate positioning in the business model, we will not go into details here.

Element 2: Organizational structure.

In accordance with the requirements of the enterprise's strategy, the organizational structure determines which departments and positions the enterprise is composed of, what are the goals, powers and responsibilities of the departments and positions, and how to define their mutual relationships.

From a vertical perspective, the organization, including the construction of leadership, the training of key cadres, and the promotion of grassroots cadres must be designed from top to bottom.

From a horizontal perspective, the division and design of each function, such as the marketing department, manufacturing, procurement, information technology department, etc., must be based on the company's strategy.

For example, from a lean perspective, the value stream is divided into internal manufacturing, and the value stream manager coordinates the operation of production planning, manufacturing, equipment, and logistics. It is necessary to improve communication efficiency and break down departmental walls in traditional organizations.

Element 3: Management mechanism.

Management mechanism refers to the enterprise’s management process and corresponding systems and standards. Common ones include strategic process, business planning process, budget management process, production operation process, new product design and development process, and sales management process. wait.

The core role of the management mechanism is to build the company's operational processes, systems and forms, and how to avoid breakpoints and out-of-control points in the built processes.

Because the process is implemented and executed by people, links where people are lazy and inactive must be optimized and designed.

Element 4: Corporate culture.

Corporate culture refers to the common values ??and codes of conduct of company employees.

Because human energy is limited, during the implementation process, there must be areas where supervision and implementation are not in place. These links must be managed by taking into account corporate culture and using invisible rules to constrain human behavior. .

Element 5: Human resources management.

Work related to recruitment, training, selection, assessment and motivation of human resources.

Human resources should do a good job in selecting, recruiting and retaining people, formulating reasonable salaries and promotion channels for personnel, retaining people with material, spiritual and future benefits. This is the core of HR Work.

Element 6: Performance.

Performance is supported by sales revenue, core profit indicators and operational control indicators.

The relationship between the above six major elements can be expressed as: strategy is realized through organizational structure, management control, human resources and corporate culture, and performance is the result of the strategy. 6 Elements of Management 2

What is management?

1. Forecast. Analyze and predict various situations that may occur in the next step. The best possibility, the worst possibility, and the average possibility can be classified into at least three categories. Forecasting is the basis of all work.

2. Plan. Make your own plans based on forecasts. Divide steps, goals, and assign responsibilities to people. Without a plan, you are like a headless fly. A plan is an outline, and the work is very specific and intricate. With a plan, you have a basis and a starting point, so you can grasp the key points and grasp the direction.

3. Organization. Organization is to integrate resources from all aspects, concentrate scattered resources, and extract available ones to form a joint force. People, money, things, time, social relationships, etc. are all objects of organization.

4. Command. With the combat plan in place, combat troops established, and logistical support in place, it's time to test your battlefield command capabilities. Unify thinking, establish systems, strictly enforce discipline, deploy division of labor, and establish a command system in all aspects, and ensure the smooth flow of command.

5. Coordination. Contradictions always exist, happen all the time, and are impossible to avoid. Any idea that there would be no contradictions is absurd and childish. In the face of conflict, what is needed? coordination. This is a deeper test for managers. Remember: coordination creates productivity.

6. Control. There will always be deviations, and most of the time things don't develop according to the path we designed. what to do? control. Managers must face any problems that arise and take action as quickly as possible. You must pay attention to your control at ordinary times, and you must build your control system, which is interconnected and cannot be disconnected. Otherwise you will definitely fail. 6 elements of management 3

There are no six elements of management, but there are seven elements of management.

The seven elements of management, referred to as the seven M's, refer to the personnel (Men), funds (Money), methods (Method), machines and equipment (Machine), materials (Material), market (Market) and Morale (Morale) seven management elements.

1. Personnel in enterprises

Refers to manual workers and mental workers whose main source of livelihood is salary income in enterprises, institutions and agencies in China, regardless of nationality , race, gender, occupation, religious belief, education level.

2. Funds

Funds refer to the capital for operating industry and commerce; they also refer to the materials or currency used by the country to develop the national economy.

Funds are expressed in currency and are used for turnover to meet the value needed to create social material wealth. It embodies the socialist production relations based on public ownership of materials.

3. Method

Generally refers to the means and behavior adopted to obtain something or achieve a certain purpose.

4. Machinery and equipment

Machinery and equipment are composed of metal or other materials, assembled from a number of parts, and powered by one or several types of power. Driven by a device that can complete production, processing, operation and other functions or functions.

5. Materials

For most companies, it has broad and narrow meanings.

Materials in the narrow sense refer to materials or raw materials, while materials in the broad sense include all items related to product production.

Such as raw materials, auxiliary supplies, semi-finished products, finished products, etc. For pharmaceutical companies, the 2010 revised GMP stipulates that materials refer to raw materials, excipients, and packaging materials.

6. Market

The market is one of the various systems, institutions, procedures, legal reinforcements and infrastructure in which parties participate in exchange.

Although parties can exchange goods and services through barter, most markets rely on sellers to provide goods or services (including labor) in exchange for money from buyers.

7. Morale

Morale is a proactive (positive) motivation to maintain volitional behavior.

In terms of internal sources, morale can be divided into three types: consciousness, cohesion and self-realization; in terms of external manifestations, morale can be divided into three types: courage, tolerance and worry.

Extended information:

1. Application of the seven elements of management:

In actual work, management is also divided into four elements, namely personnel, materials, Machinery and equipment and funds; there are also five elements, namely personnel, materials, machines and equipment, funds and methods.

There are also eight elements, namely personnel, materials, machinery and equipment, funds, methods, morale, market and management.

Although the division methods are different, the core management elements revealed are basically the same.

2. The main contents of business management:

Reasonably determine the business form and management system of the enterprise, set up a management organization, and staff management personnel; do a good job in market research, master economic information, and carry out Business forecasting and business decision-making, determining business policies, business goals and production structure.

Prepare business plans and sign economic contracts; establish and improve the economic responsibility system and various management systems; do a good job in the utilization and management of labor resources, and do a good job in ideological and political work.

Strengthen the development, utilization and management of land and other natural resources; do a good job in machinery and equipment management, material management, production management, technical management and quality management; rationally organize product sales and do a good job in sales management.

Strengthen financial management and cost management, handle the distribution of income and profits; comprehensively analyze and evaluate the economic benefits of enterprise production and operation, and carry out enterprise operation diagnosis, etc.

3. Innovative methods:

(1) Integrate management activities with the supply chain as the core.

(2) With business process management as the core, make management simple and flexible.

(3) Strategic management with business operations as the core.

4. Characteristics

(1) Management is one of the common and ordinary social phenomena.

(2) Management is one of the most important social activities.

(3) Management work is an act of both vitality and creativity.