A Functional Approach to the Analysis of Concepts and Models in Modern Management
The functional method of analyzing concepts and models of modern management involves studying the relationship between economic phenomena, the type of management culture, and the interconnections between economic development and the political system. N. Machiavelli was one of the first to apply the functional method in management practice; he advocated rejecting religious dogmas and ethical values in the study of management, and the need to analyze real life in all its complexity, focusing on the interrelationships and interdependence of economic, political, managerial, and cultural phenomena.
The functional approach to modern management concepts and models requires an examination of the relationship between various management phenomena and the surrounding environment: between the level of socioeconomic development and the degree of democratization of society; between economic and political pluralism; and between culture, traditions, and the political activity of the population. In the context of the functional approach, specific mechanisms for improvement are analyzed that enable management structures to achieve self-preservation in order to adapt to the environment, particularly the relationships between certain environmental phenomena and socioeconomic processes.
This method is used to examine the relationship between the type of management system and the achievement of its stability. From the perspective of the functional approach, the mechanisms that ensure the stability and self-preservation of the management structure are examined; as a result, each element of the management system is endowed with a function of self-preservation and stability (within the limits of its capabilities) as a social and managerial organism.
A Structural-Functional Approach to the Analysis of Concepts and Models in Modern Management
The structural-functional approach to concepts and models of modern management is a description and explanation of their development, in which its elements are examined as part of a unified whole, within the context of which the individual components and phenomena of the management paradigm perform specific functions. According to the structural-functional approach, the examination of concepts and models of modern management must achieve a certain degree of integrity, as it possesses a complex structure. Each element of this structure performs specific functions that meet the needs of the system. The activities of the elements of the management paradigm system are determined by the overall structural integrity, positions, and roles they fulfill.
The cybernetic approach is also used to analyze concepts and models of modern management; within this context, structural components such as input parameters are distinguished. At the system’s input, at any given moment, the management entity is faced with a finite set of material, labor, and financial resources; the system’s output consists of a set of consumer values and services that are functionally dependent on the input parameters.
The optimal state is achieved when the maximum and minimum values of the objective function coincide, at which point the economic system is in a stable state of management and reaches homeostatic equilibrium. In this state, sustainable development reaches the maximum limit of its effectiveness—the most productive mode of economic growth. Therefore, the main task of the management paradigm is to identify and implement management interventions that, through the integration of external and internal factors, ensure a homeostatic state of the system’s functioning and development.
Norms, organized into institutions with a defined structure and functions, are aimed at achieving stability in the management paradigm. The goal of the structural-functional method is to quantitatively assess the changes to which the system can adapt while maintaining its core functional responsibilities, thereby contributing to the preservation and regulation of the system.
The structural-functional approach to concepts and models of modern management is based on viewing a society’s economic system as a holistic system with interdependent elements, each of which performs specific functions, ensuring their balance.
The structural-functional method involves studying the functional interdependencies of the elements of the economic system, the unity of government institutions, the alignment of their actions (functioning) with the needs of economic agents, and the identification of how these needs are met in the formation of an adequate paradigm for the sustainable development of industrial enterprises and their adaptation to a changing environment.
An Institutional Approach to the Analysis of Concepts and Models in Modern Management
Until the early 20th century, the institutional approach prevailed in management science alongside the normative approach; today, the institutional approach holds a leading position. It focuses on the study of institutions through which managerial activities are carried out, with the aim of identifying legal norms, analyzing the fundamental laws of management, and understanding the purpose of an organization as a cohesive entity.
This method was developed by C.L. Montesquieu, J. Locke, E. Burke, and T. Jefferson. In this approach, the main focus is on governance institutions, the analysis of which is based on established, socially rooted forms. These forms, or institutions, on the one hand, are a logical continuation and consolidation of social relations and norms, and on the other hand, are intended to introduce a stabilizing element into governance. The institutional method focuses on the study of institutions through which political, economic, and administrative activities are carried out and by means of which administrative activities are regulated. The institutional method is necessary for developing a comprehensive understanding of how the institutional subsystem influences the functioning of the administrative system as a whole.
An Anthropological Approach to the Analysis of Concepts and Models in Modern Management
The anthropological method is in many ways the opposite of the sociological method and is based on the premise that management is determined not by social factors, but by human nature as a generic being with basic needs—for food, clothing, safety, and freedom. When analyzing management phenomena, the anthropological method focuses on studying the irrational, instinctive, and biological motivations behind management, which are rooted in human nature.
The anthropological approach dates back to Aristotle’s time and his view that the sources of governance lie in the collective nature of human beings. This approach is rooted in human nature; it is widely used in the analysis of mechanisms, institutions of power, and social control, and focuses primarily on the challenges of adapting and transforming traditional control mechanisms during the transition to modern economic systems. The anthropological method provides a key to studying issues such as the relationship between human type (stable traits of intellect and psyche) and the influence of national character on the governance process—and vice versa.
Today, the anthropological method is based primarily on the following principles:
1) the constancy and invariance of the fundamental generic qualities of human beings as biological, social, and rational (spiritual) beings who are inherently endowed with free will;
2) the universality of human beings and the unity of the human race, regardless of ethnic, racial, social, geographic, or other differences;
3) the inalienability of natural human rights and their priority over society and the state.
With regard to the analysis of management problems, the anthropological approach requires that we not limit ourselves to studying the influence of the social environment on rational motivation, but rather identify irrational, instinctive, biological, and other motives rooted in human nature. Proponents of this approach see its purpose as studying the influence of the surrounding social environment and the rational influence of people on the management system, as well as the influence on it of biological, instinctive, and other motives underlying human behavior.
The Substantive (Ontological) Method of Analyzing Concepts and Models of Modern Management
The substantial (ontological) method involves identifying the fundamental basis of the world’s existence, as well as the relationship between domination and subordination in its various manifestations. Among the vast number of definitions of management, those emphasizing the interaction between power and governance predominate. A definition of the ontological method can be formulated by examining the very definition of ontology as a philosophical category.
Any philosophy is, first and foremost, a generalized picture of the world that encompasses the most fundamental knowledge about the world of its era. Ontology, as one of the fundamental components of philosophical and managerial knowledge, represents an extrapolation of psychophysiological dualism onto the world, viewing it as a composition of substances that are different in nature. Ontology is the science of being, its forms, fundamental principles, the most general definitions and categories of existence, and the interaction between the surrounding world and human consciousness. Substance—the essence of what underlies it—signifies the foundation of all that exists, the inner unity and diversity of concrete things, events, phenomena, and processes through which the world, existence, and humanity exist.
The Normative-Value-Based Method of Analyzing Concepts and Models of Modern Management
Since ancient times, management thought has been based on a normative-value approach, which has not lost its significance today. The normative-value-based method involves evaluating political, economic, and managerial phenomena from the perspective of ethical values such as the common good, justice, and freedom, which form the foundation of sustainable development.
The shortcomings of the normative-value-based method lie in the relativity of value judgments, which depend on a person’s worldview, social status, and individual characteristics. The normative-value-based method is valuable to us because it introduces ethical dimensions into management science. It involves clarifying the significance of managerial phenomena for society and the individual, and evaluating them from the perspective of the common good, justice, freedom, respect for human dignity, and other universal humanistic values that form the foundation of humanistic management.
The normative-value-based method focuses on developing an ideal model of managerial activity and ways to implement it in practice; it requires appealing to what is proper and desirable, to ethical values and norms, and shaping managerial institutions in accordance with them. The normative-value-based method has been criticized by scholars for idealizing management, its detachment from reality, and the speculative nature of many management projects and frameworks. The main drawback of this method lies in the relativity and subjectivity of value judgments, as well as their dependence on a person’s worldview, social status, and individual characteristics. However, despite certain limitations, the normative-value-based method is essential for management science, as it adds an ethical and human dimension to management, introduces a moral principle into management, and serves as the foundation for further stable development.