Concept of scientific researching and studying the subject of management

E. Baratashvili Doctor of Economics, Full Professor at Georgian Technical University Head of Economics and Business management Department

Global, political, economical and social transformations started in Georgia since the end of eighties of XX century resulted essential changes in the management of entrepreneurial, commercial and other type of activities.

In the times of Soviet Union, the main attention was paid to using of imperative-administrative methods, both at micro and macroeconomic levels. This was fully relevant to the demands of socio-economic and political formation. The situation has entirely changed at the modern stage. Nowadays, every organization, in spite of its forms of the property, fields of activity and goals, is compelled to function in the constantly changing and inverse environment. In this case, market and its regulation issues are important for the organization. Therefore, organization’s activity mainly should be conducted using economic methods of managing. Therefore, naturally in the leading universities of Europe and America, big attention is paid to the studying of management that is a recognized discipline of business administering in international education field. One of the main requirements of management study programs of celebrated foreign universities is that students not only must have theoretical knowledge, but also they should possess practical skills of management. Georgia is taking first steps toward formation of market economy and unfortunately it cannot boast with the situation in this field. Business development is unimaginable without using modern concepts of management. Progressive development of economic relations is giving a first place to managerial relations among all entrepreneurial-economic factors. Managerial activity is one of the significant conditions for high-performance functioning of any organization existing in modern world.
The task covers management system of economy of Georgia, especially elaboration of main theoretical and methodological principles of management improvement at organizational level and implementation of it in our economy life. This must not imply only mechanical transferring of western practices; instead it should consider creative search of new directions and approaches of economy system that will be relevant to local conditions and modern situation. It is doubtless that formation of market economy in Georgia intensifies the role of management both on macro and micro economical levels. Fundamental studying of management allows students to easily orientate in many life situations, to use its recommendations and to successfully act in business. Considering the abovementioned, national enterprises and organizations already understand the necessity of using modern concept of management. However, there is a lack of professional managers today. Unfortunately, this situation might be seen in every field of activity. Demand for such qualified personnel is quite high at Georgian labor market. Wise development of country’s economy and clever running of business requires professionalism of management field. Humanities-social faculty of department of economy and business management at Georgian Technical University is playing a major role in this case. It will prepare bachelors, masters and doctors in this field. Studying of management at humanities-social faculty of Georgian Technical University must be developed on the basis of relevant educational programs for every level of studying. Educational program must take into consideration transitive period of Georgia. All the above mentioned allows students to analyze environment and think of effective using of own profession, to evaluate existing and possible opportunities of Georgian market. Preparation of highly competitive professionals in the field of business and management implies establishment of modern knowledge of management and using newest technologies for study purposes. Studying peculiarities of the current events of this field is given essential role in the preparation system of humanities-social faculty.
The aim of this discipline is to give deep fundamental knowledge to the students, to help them to work out the skills for managing company’s economic activities, to master management issues, and to develop logical and analytical thinking.
Course of Management basics is obligatory for all the bachelor specialties of business and management faculty. Wide fundamental, scientific and practical preparation.
Course of management basics is obligatory for bachelors of every specialty of business and management faculty. For studying management in undergraduate studies, students are required to have practical, fundamental and scientific preparation under the conditions of market economy. They should have relevant theoretical knowledge in the fields such as theory of economics, micro and macro economics, higher mathematics, statistics, and marketing. Students should speak foreign languages and be familiar with modern computer technologies. Bachelor should be able to analyse managerial activities and present it to the management. For this aim he/she should successively study evolution of managerial thinking, stages of the development of management theory and practice, modern management theories, management functions, management system, role of organizational structure in management, psychological aspects of managerial relations, models and methods of decision-making, information support issues of management, principles of strategic planning, organizational forms of the firms; basics of motivation, and conflict management, together with modern methods of labour resources and production management. As a result students should have an idea of various scientific-methodological approaches of various schools of management and theoretical conception and management directions. This can be done by discussing management by the stages of its development.
First stage of management development started in the beginning of XX century and it is connected with F. Taylor’s doctrine after publishing of his book “Principles of scientific management” where he discussed scientific methods of constructing management system and its principles. By using F. Taylor’s management system American firms made clear practical importance and influence of the system on the development of an economy. However, management models offered by Taylor showed that the system was rarely used because its essence was not understandable for market structures, firms and theirs managements. Students must be familiar with the main ideas of F. Taylor’s scientific management. As Taylor’s conception influence further scientific researches in management such as Hilbert’s, Ganit’s Frank’s etc.
Second stage of the management development is characterized by new approaches, on the basis of Taylor’s scientific conception, but with principally new approaches. Classic (Administrative) school of management is put into practice. Followers of this new approach were A. Faioli, P. Urvik, D. Mun, P Slone. A Faioli first offered new concept of management that gave its functions, principles and need of theoretical studying.
Third stage of management development is known as Neoclassical and the school of human relations was developed that is associated with the names of famous scientists such as A. Faioli, D. Mun, P. Slone, E. Mayo. Sociological concept of team decision making is tested at this stage.
Fourth stage of management development took place in 1940-1960 years. In this period, managerial thinking evolved that is connected with the development of the concept of management organization on the basis of achievement of physiological and sociological sciences that have a decisive influence on human in management system.
Fifth stage of managerial thinking development is different from all previous stages as modern quantitative methods of well-grounded managerial decisions are developed that are based on wide usage of economic mathematical methods and computer technologies. For instance, D. Macgregor was first who justified his concept and proved that managers’ attitude toward their employees has significant influence on their behaviour and working climate in the organization. The priority of controlling manager is proved in theory “X”, while in theory “Y” – the principle of distributing an objectiveness (the years of the development of this conception is – 1950-1960).
The sixth stage of management development belongs to the period within 1970-1980YY. New approaches of management theory are developed by the scientists. They came to an idea that organization is an open system that corresponds both to internal and external environment. Coming out from this, more attention was paid to the types of environment and revealing interrelation between different models of management. I. Ansof’s conception of “Strategic management”, G. Salinchik’s “Concept of power structures among organizations”, M. Potter’s concept of competitiveness belong to this period.
Seventh stage belongs to eighties of XX century that stands out for appearing new sub variations of management and unexpected discovery of organizational structure as strong mechanism of management. The last has been successfully put into practice in Japan.
On the eighth stage of management development (nineties of XXth century) three main tendencies have been revealed:
1) Back to the past – recognition of material, technical market of modern enterprise;
2) Creation of social-behaviour elements – more attention was paid not only to organizational structures, but also to various forms of management democratization. Participation of ordinary employees in profit gaining, accomplishment of managerial functions and other fields of activity;
3) Strengthening of international character of management. Adoption of an open economy system by many countries, participation in competitive struggle, organization of modern activity.
According to the conception of M. Meskoni, in the course of history of management system evolution Humankind worked out only there instruments of influencing the people:
1) Hierarchy – this is an organization where main mean of influencing people is power – subordination, pressure made on people by force, and control of material welfare distribution.
2) Culture, or organization recognized and worked out by society, team values, social norms, moods, behaviour patterns, ceremonies, that force a human to act this way instead of some other one;
3) Market, or presence of horizontal network of relations based on equal rights that is based on buying and selling of goods and services, property relations, equality of interests between buyer and seller.
At every stage of management development, corresponding schools of management were formed. M. Meskoni marks out four schools that show their methods and principles of their formation:
1. School of scientific management;
2. Classical or administrative (bureaucratic) school of management;
3. School of human relations and behaviour science;
4. Quantitative (system-technical) school.
Each scientific school is characterized by elaboration of own concept of scientific researches of management. These concepts had considerable influence on the development of management.
School scientific management, authors of which are Frederick Taylor, Frank and Lillian Hilbert, Harington Emerson, Henry Ford, Henry Hunt, is characterized by creation of new conception that is expressed in the following:
a) Main features of defining subject of management science – development of management as independent science and type of activity: object – enterprise subsystem, subject – organization of enterprise in order to gain maximal profit; separation of planning as separate process of enterprise management.
b) Working out of study methodology and approaching to enterprise as management process, revealing of regularity of increasing labour force efficiency.
c) Elaboration of scientific methods (rules) (examination, experiment, timekeeping, economic calculations).
d) Revealing of enterprise organization principles (rules) (selection of employees by their ability to accomplish specific task), providing staff with sufficient inventory, division of working process into separate operations, rationalization of labour operations.
Weakness of scientific management school is mechanical conceptions:
a) Organization is considered as unity of separate working processes in the field of material production;
b) Every element of working process (machine tool, instrument, worker, materials) – is mechanically brought to each other by means of precise engineering calculations;
c) Worker is considered as technical element of production process, without any connections, non-entrepreneurial movements, which are characterized to a machine.
Familiarity with the above listed issues allows a bachelor to make grounded decision, define main directions of management in an organization. In the course of studies student must pass professional practice and submit yearly essay and degree work that enables him/her to deepen the theoretical knowledge, and develop the skills of searching, elaborating and analysing necessary data.
To my mind, in MA course of management field, two main tasks should be solved: of qualified scientific-teaching, staff must be prepared in management field; specific-usable specialized preparation of the staff in management field.
Considering the above mentioned, undergraduates will thoroughly study basic fundamental disciplines for two years. Attention will be paid to their preparation in specific field. They should be able to have deep analytic approach in the process of studying any aspect of management.
Besides the conception offered by scientific schools of management, some new conceptions appeared that have a new approach to management issues. New original conception of management concerning life cycle of organization is worth of noting.
Conception of I. Adizezi concerning life cycle of organization (LCO) is considered as serious research and presents a consulting instrument that enables to diagnose the problems of an organization and to conduct organizational changes for solving these problems. Main purpose of concept is to explain ongoing changes in the organization. Scientists have elaborated and presented quite a number of models of LCO. However, up today there is no agreement among researchers concerning its definition, number of stages and approaches. The reasons of such variety might be seen in the objects of studies selected by the scientists.
For instance, one of the first models of LCO was dedicated to life cycle of a governmental organization. Further researches were conducted for creation of LCO models both for commercial and non-profit organizations. In the course of several decades life cycle of enterprises has been the centre for scientific researches, while in recent years special attention is paid to the life cycles of SMEs (small and medium sized enterprises). Early literature of organization’s life cycle was rather theoretical than empirical. The opinions of the researchers concerning LCO stages sharply differed. For instance different authors offered models with three, four, five, six, seven, eight and nine stages. Various authors underline the group of unique characteristics of each stage. Despite discrepancy of opinions in the number of stages, there is one common idea in the conclusion of the researches. Firstly, the successiveness of the stages is regular. Secondly, each stage – is a result of previous one and move backwards is not an easy task. Thirdly, every model discusses organizational characteristics and wide spectrum of variables.
A stage of life cycle represents wide group of characteristics of organizational activity. The essence of LCO is to understand changes of these characteristics in time. For quite a long period organization may stand on the same stage of development or even return to the earlier stages of its development; it might become bankrupted at early stages, or rapidly traverse to the stage of decay or abolishment.
Two main approaches toward life cycles of the organization might be separated under the conditions of modern world. First approach is of empiric character and covers studying of specific cases by means of quantitative methods. Quite often, these researches differ from each other by the objects of studies or types of organizations. Second approach considers using of LCO conception in order to integrate it with other field of management research.
We should explain to undergraduates that due to deepening of globalization processes, existing conceptions of management are improved and it is necessary to develop new scientific conception of management that would consider imperfections of the given conception of scientific schools of management. New concept must be maximally relevant to globalization and regional processes.
Main aim of undergraduate program is to develop analytical thinking and skills of undergraduates that is connected with optimal decision making in the field of management. Undergraduate program must be flexible, with high quality of preparation and content. Undergraduate student must work out skills for theoretical and practical working in the field of business management. For this aim, undergraduate student must master modern methods of scientific research, develop problem-setting and scientific research skills, acquire high professional knowledge that ensures his/her working in business administrating and scientific-research activities. Following disciplines are obligatory for undergraduate studies: innovative management, investment management, regional management, staff management, marketing management, financial management, project management, strategic management, human resources management. Realization of undergraduate program requires proper organization of study process. In management studies of undergraduate program, it is recommended to have small groups of 3-5 students (for specialization aims) and large groups up to30 people.
Duration of each course must not exceed one semester. Lecturer must decide organizational issues of specific discipline considering existing teaching literature and level of undergraduates’ preparation. Professional practice should be given a special attention in the preparation of masters of management. This ensures strengthening of theoretical knowledge gained in the university and receiving of managerial experience. Preparation of yearly essays and degree work should be given a considerable attention that should reveal undergraduate’s skills to solve managerial tasks in the conditions of real activities.
We reckon it reasonable to teach “management and administration” and “competitive management” for doctoral candidacy. At the same time, conception of studying must be based on the experience of world’s leading universities in this field. Unfortunately, nowadays in Georgia, such structure is not operating in the field of management and administration. However, general structure on which doctoral candidacy should be based is known. The aim of doctoral candidacy should be preparing of such specialists who will have creative approach, critically analyse existing information and spread received results by means of publications, teaching and putting into practice. The handbooks published by our university “Management and administration” (2007) and “Principles of management and administration” (2009) serve this aim. Despite the fact that there are quite a number of theses in this field, academic content of doctoral candidacy will be rather different from previously existing structures. Doctoral candidacy is the unity of studying-scientific processes and not only scientific research. Therefore, third stage of higher education in management and administration is to be developed over again. We should take into consideration the experience of world’s leading universities and their adaptation with our conditions. The main format of studying at doctoral candidacy should be workshops, where students will be able to present themes independently, hold discussions, and exchange ideas. Study and research process should be simultaneous. Research must cover 60-70% of studying in doctoral candidacy. Doctoral candidates must present essays several times during the studying that tests their skill to analyse gained information, compare facts and think critically. Doctoral candidate should regularly participate in conferences and symposiums and publish scientific articles. The result of their researches will be thesis work that reflects the results of the research of priority problems.
Highly qualified academic staff, preparation of young specialists and their training aboard, providing students with literature and computer technique is necessary for successful teaching of management in Georgian Technical University. Special trainings for academic staff conducted by Georgian and foreign experts with practical experience is of special importance. Study process should be conducted in conformance with modern requirements. It is necessary to conduct middle and final examinations by means of testing that might be unity of tests and analysis case. Practical studies should be based on discussion of cases. This gives an opportunity to check students’ familiarity with the study data. Cases should cover issues on current themes of management. By means of analysing cases, students will gain skills of understanding real-time situations and make adequate decisions. Main attention in the analysis of cases should be given to logicality and succession of arguments. It is important to implement business-imitative plays for undergraduates doctoral candidates that develop the decision-making skills of the students.
The main aim of studying management discipline is to develop students skills of data gathering and interpreting, preparing of scientific reports and presenting them, in addition with the skill of using scientific knowledge and information critically and analysing the problem. All the above mentioned develops students’ critical thinking, ability to optimally use resources, and make adequate decisions in real-time situations.
To my mind, implementation of the presented conception enables to conduct study process in Georgian Technical University at high level and ensure preparation of highly qualified, competitive specialists in management field considering the modern requirements.
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