Module 5: Modern technologies of management and administration in the context of global and national challenges

Agile methodology as a methodology of complexity

Agile methodology is the theoretical basis for understanding the concepts and models of modern management, which is an innovative problem and requires the use of a methodology that would allow us to understand the development of management as a complex social, organismic and dynamic process.

The old concepts of management of industrial and post-industrial society are being replaced by new ones that are in line with the information and digital society. Such a methodology is the methodology of complexity as a methodology of self-organisation, based on the knowledge of philosophy, management, and organisational theory, which is called Agile methodology.

Agile methodology is a methodology of complex adaptive systems of flexible management and innovation component, based on the use of information and computer technologies and a practical and reasonable mechanism based on the principles of sustainable development.

Agile methodology 3.0 provides a roadmap for a management paradigm for sustainable development of modern society and industrial enterprises that are developing under conditions of uncertainty, stochasticity, and asymmetry of information. The management paradigm for the sustainable development of modern society includes flexible innovative management and leadership that inspires new ideas through the introduction of information and computer technologies in the context of high competitiveness and integration into the international economic space.

Agile methodology as the theoretical basis of the innovation component in promoting flexible approaches to the use of the digital component of modern management, a flexible, creative and innovative component that should be implemented in all management and administration structures based on the principles of sustainable development.

Agile methodology is a methodology for analysing complex dissipative management systems that develop in a turbulent and rapidly changing world, which is formed on the basis of the principles of social entropy, which is an indicator of both destructive and constructive principles, is associated with the need to stabilise both the economic and managerial spheres, requires self-organisation, getting out of chaos and overcoming energy dissipation.

The development of self-organising processes takes place at the stage of transition to a digital society, requires flexible management, a flexible philosophy of complexity, which forms the concept of Agile management, and contributes to increasing efficiency and effectiveness on the principles of balance, stability, information, and knowledge.

Agile methodology in solving the problems of sustainable development helps managers to overcome chaos, entropy, uncertainty, various bifurcation points and the search for an attractor (point of attraction) in the complex digital world. The formation of this attractor can be recorded by the emergence of a new managerial elite, whose training is based on the principles of self-organisation, creative and adaptive managerial thinking, which forms new concepts of digital software that acts as complex adaptive systems.

Freedom of communication and digital technologies, globalisation 4.0, technological development of the world 4.0 and new industry 4.0 force managers to use Agile methodology, which is based on software methods and principles based on the principles of cybernetics and computer science, based on the synthesis of levels of spiral dynamics, Wilber’s integral approach and others.

Thus, Agile methodology as a complex system is necessary for managers to adapt to changes in the environment – systemic changes, stochasticity, emergence. The new digital era of modern management is about thinking in terms of complex systems.

Therefore, it is necessary to:

1) to form a new digital culture and a new digital mindset of managers of organisations, institutions, and enterprises capable of operating in the systemic dynamics mode;

2) develop thinking in terms of complex systems to adapt to changes in a complex environment.

Functional method of analysing concepts and models of modern management

The functional method of analysing the concepts and models of modern management involves studying the relationship between economic phenomena, the type of managerial culture, and the interrelationships of economic development and political system. One of the first to apply the functional method in management practice was N. Machiavelli, who proclaimed the rejection of religious dogmas and ethical values in the study of management, the need to analyse real life in all its contradictions, focusing on the study of the interrelationships and interdependence of economic, political, managerial and cultural phenomena.

The functional method of concepts and models of modern management requires the study of the relationship between various management phenomena and the environment: between the level of socio-economic development and the degree of democratisation of society, between economic and political pluralism, between culture, traditions and political activity of the population. In the context of functional analysis, specific mechanisms of improvement are studied that allow management structures to achieve self-preservation in order to adapt to the environment, in particular between certain environmental phenomena and socio-economic processes.

 This method studies the relationship between the type of management system and the achievement of its sustainability. The functional method examines the mechanisms that ensure the stability and self-preservation of the management structure, with the result that each element of the management system is endowed with the function of self-preservation and stability (within its capabilities) as a social and managerial organism.