Newly Edited Modern Industrial Enterprise Management - (Third Edition)

Author: He Yecai
Publisher:
Publish Date: 2006-01-01
Features:
2. Nature of Enterprise Management
Enterprise management has a dual nature. Social production always takes place under a certain mode of production and a certain production relationship. The production process itself has a dual nature—it is both the reproduction of material means of production and the reproduction of production relationships. As the organization of production and operation, enterprise management also has a dual nature: on one hand, it has a natural attribute linked to large-scale social production and productivity; on other hand, it has a social attribute linked to production relationships and the social system. The former determines that enterprise management must follow the objective laws of large-scale social production, scientifically and rationally organize the various resources of the enterprise, fully utilize the role of all factors of productivity, and maximize the economic benefits of the enterprise. The latter determines that enterprise management must also keep pace with the times, adapt to changes in production relationships and society, adjust management systems and methods in a timely manner, continuously learn advanced management experiences and methods, and improve the level of enterprise management.
3. Functions of Enterprise Management
The dual nature of enterprise management determines that it has two basic functions: reasonably organizing productive forces and continuously improving production relationships. In practical production and operation management activities, these functions are specifically manifested in five aspects: planning, organizing, directing, coordinating, and controlling.
The planning function refers to the enterprise making decisions on its business goals and strategies through market research and forecasting, formulating production and operation plans, and the plan indicators to various departments and links.
The organizing function refers to reasonably organizing the various elements and links of enterprise production and operation activities, from labor division and cooperation, from intricate interrelationships, and from the interconnection of time and space, to form an organic whole, thereby achieving effective production and operation activities.
The directing function refers to implementing leadership and direction to all levels and types of personnel in the enterprise according to administrative subordination to ensure the normal conduct of production and operation activities and the achievement of business goals.
The coordinating function refers to coordinating the two types of relationships in enterprise production and operation activities: externally, it involves coordinating relationships with government departments, industry and commerce, tax authorities, banks, suppliers, and distributors; internally, it involves coordinating relationships between superiors and subordinates, functional departments, units, and employees, ensuring the entire enterprise operates well at all times to guarantee the achievement of business goals.
The controlling function refers to checking and evaluating the results of production and operation activities according to the planned targets or standards, providing timely feedback control to discover differences, taking countermeasures, correcting deviations, and ensuring the achievement of planned goals or standards.
The above five specific management functions are interrelated, interdependent, and indispensable in enterprise management work. There are different schools of thought regarding the division of specific management functions both domestically and internationally. The five-function school we discuss here was first proposed by the French management scholar Henri Fayol and is widely recognized in the field of management.
4. Content of Enterprise Management
Under the conditions of a socialist market economy, based on the division of business tasks in enterprise production and operation management activities, the content of industrial enterprise management can be divided into two parts: business management and production management.
Business management refers to the management work the enterprise undertakes to adapt its business functions to changes in the market. It mainly includes market research, market development, market forecasting, market sales, business decision-making, financial and cost management, and asset management.
Production management refers to the general term for all management work the enterprise engages in to transform labor objects into industrial products. It mainly includes production process organization, production technical preparation, material supply, and equipment management.