Available via license: CC BY 4.0
Content may be subject to copyright.
Management principles and their application as
a strategic guideline for sustainable business
development
Elena Popova1, Vladimir Bazelyuk1, Nadezhda Demina1, Alexander Demin1, and Tatiana
Letaeva2
1South Ural State University (national research university), Lenin Str., 76, 454080 Chelyabinsk,
Russia
2Technological Institute, a branch of the National Research Nuclear University MEPhI,
Kommunistichesky Ave., 36, 624200 Lesnoy, Russia
Abstract. The fundamental principles of management, as well as the
practice of their application in industrial production sphere are described in
the article in detail. The author gives an idea of the managerial principles
evolution in an enterprise-type organization (both in our country and
abroad). Special attention is paid to the managerial culture formation
theory and its influence on the entrepreneurial and strategic management
combination . The main idea of the presented work is an evolutionary
approach to effective management principles classification in relation to
business activities carried out within self-organizing micro-level systems.
Their developmental gene, as shown in the work, is the management
culture, its formation is the subject of this study. The study research area is
management science issues and its cognition methods development:
developmental factors and managerial principles of an enterprise-type
organization.
1 Introduction
In its framework, we will present a brief history of Russian entrepreneurship. It has been
discussed since the end of the first Millennium, using the example of trade activities. The
mainstay of this business type was a number of cities of Ancient Russia, with their
commercial settlements, where transactions were made and contracts were concluded.
There is also a well-known tradition of fair trade for various segments of the population,
including boyars and princes.
In the same historical period, treaties between Russia and Byzantium were concluded
(911, 944, and 971). They regulated such relations as property rights violation, debt
obligations, and inheritance.
Then – in the XV century – the notarial form of transactions was introduced, and a
hundred years later – the Customs Charter (in accordance with European law). Finally, an
active process of creating various workmen's cooperative associations («artels») and
partnerships began, including in cooperation with foreign shareholders. Another milestone
in the development of entrepreneurship was the adoption of the Bankruptcy Charter.
© The Authors, published by EDP Sciences. This is an open access article distributed under the terms of the Creative Commons
Attribution License 4.0 (http://creativecommons.org/licenses/by/4.0/).
E3S Web of Conferences 208, 03035 (2020) https://doi.org/10.1051/e3sconf/202020803035
IFT 2020
Further: the cooperative movement is expanding, and the role of banks and insurance
institutions was increasing. And finally, management appeared, as the management of
someone else's property by professional managers. This is what will be discussed further in
the framework limited by the principles of management and its application in the field of
entrepreneurship.
2 Materials and methods
The content of the research is a comprehensive one conducted in a number of universities in
the southern Urals. It is based on the modern management paradigm of an enterprise-type
organization. In this paper, it is presented as a way to make a qualitative breakthrough in
the appointment and development of non-standard creative thinking of employees of an
industrial enterprise.
The methodological guidelines of the research are also new ideas for approaches to
management activities based on such research methods use as SWOT - COPS analysis, as
well as modelling and interviewing specialists on the research topic.
3 Research results and their generalization
Managers represent a specific factor of business activity. Thanks to them, capital finds a
profitable use. «If the company is operating poorly and unprofitable, its owner can dismiss
the management» [3]. This refers to the top, middle, and low management of an enterprise-
type organization, which main characteristics are as follows (Figure 1).
A modern incorporated enterprise is characterized by various types of management
(Table 1). These principles serve as a coordinating ones, forming and setting in motion such
organization's resources to achieve its goals [4].
Table 1 shows the types of «entrepreneurial management», called by us [7]. Attention
is drawn to its functional orientation. It is also characterized by a skillful combination of
administrative and entrepreneurial methods of an incorporated enterprise managing.
Fig. 1. Basic characteristics of business organization
2
E3S Web of Conferences 208, 03035 (2020) https://doi.org/10.1051/e3sconf/202020803035
IFT 2020
Further: the cooperative movement is expanding, and the role of banks and insurance
institutions was increasing. And finally, management appeared, as the management of
someone else's property by professional managers. This is what will be discussed further in
the framework limited by the principles of management and its application in the field of
entrepreneurship.
2 Materials and methods
The content of the research is a comprehensive one conducted in a number of universities in
the southern Urals. It is based on the modern management paradigm of an enterprise-type
organization. In this paper, it is presented as a way to make a qualitative breakthrough in
the appointment and development of non-standard creative thinking of employees of an
industrial enterprise.
The methodological guidelines of the research are also new ideas for approaches to
management activities based on such research methods use as SWOT - COPS analysis, as
well as modelling and interviewing specialists on the research topic.
3 Research results and their generalization
Managers represent a specific factor of business activity. Thanks to them, capital finds a
profitable use. «If the company is operating poorly and unprofitable, its owner can dismiss
the management» [3]. This refers to the top, middle, and low management of an enterprise-
type organization, which main characteristics are as follows (Figure 1).
A modern incorporated enterprise is characterized by various types of management
(Table 1). These principles serve as a coordinating ones, forming and setting in motion such
organization's resources to achieve its goals [4].
Table 1 shows the types of «entrepreneurial management», called by us [7]. Attention
is drawn to its functional orientation. It is also characterized by a skillful combination of
administrative and entrepreneurial methods of an incorporated enterprise managing.
Fig. 1. Basic characteristics of business organization
Table 1. Organizational management use in business activity sphere
Kind
Substantive aspect
1. Production
management
Ongoing production management
The basic production assets as the capital
Optimal production plan
2. Financial
management
Working capital of an enterprise-type organization
Financial stability and solvency
Management of business activities (BA) control and analysis
3. Marketing
management
Product quality management
Basic principles of product sales management
Marketing as an effective means of increasing competitiveness
4. Personnel
management
Labor remuneration: essence, systems, principles
Motives and incentives for economic behavior
Recruitment and placement of personnel, their training and professional
development
5. Logistical
management
Stock control as a system-forming factor in logistics
Providing function of an incorporated enterprise
Design and optimization of logistics concentra
tion and distribution
systems
6. Management of
economic security
of business
activities
Comprehensive security of business activities
Economic risk assessment and classification of risks and threats for
business activities
Economic security and threats of business acquisitions
7. Organizational
management
Organizational management of an incorporated enterprise
Real-time management
Management performance assessment system
In the organizational theories classification, we have assigned business management to
their applied types (Figure 2). In addition to these, as shown here, we should distinguish
between fundamental theories (technological and institutional), which are also relevant to
the content of our work.
Теории организации
Фундаментальные
(трансакционной экономики,
контрактная, организационного
культуростроения,
институциональная,
технологическая)
Прикладные
(предпринимательского менеджмента,
коммуникационного лидерства,
инновационного менеджмента,
когнитивная, самоорганизующихся
систем)
Fig. 2. Simplified classification of business type organizational theories
First of all, strategic management can be spoken about. It examines the issues of
formation, analysis, implementation and evaluation of strategic decisions. A special role is
given to organizational cultural development.
Let's answer the question: why do we need this type of management? In the most
generalized form, the answer to this question is related to the need to reduce the level of
uncertainty in business activities by developing an innovative development strategy and
related organizational culture.
Organizational theories
Fundamental (transactional
economy, contract, organizational
culture, institutional, technological)
Applied (business management,
communication leadership, innovative
management, cognitive self-organizing
systems)
3
E3S Web of Conferences 208, 03035 (2020) https://doi.org/10.1051/e3sconf/202020803035
IFT 2020
The latter, in turn, is organically connected with ensuring the competitive potential of an
enterprise-type organization (incorporated enterprise, corporation). And here we will pay
attention to the management principle, which sounds like this: the principle of a
coordination strategy of early activity.
Coordination (as a figurative representation of the cognition and synergy of the business
activity agency center) is a generalizing function of the organization's management system.
It goes about a coherent policy for achieving goals, taking into account the need for
resources and organizational culture. We can also agree that this approach to business
activities strategic development is an intellectual part of management that can be SWOT -
and COPS - analysis, planning and performance evaluation.
Especially important is the managers', coordinating working activity and setting
resources in motion, striving to achieve the goal, and forming the organizational culture of
the enterprise. At the same time, its employees, their way of thinking and actions act as
culture-bearers. This can be seen from the diagram shown in Figure 3.
Fig. 3. Cause-and-effect relationships in business type organizations' management system
The principle of management is the fundamental principles of effective business
management. We also agree that these are established, ingrained and widespread rules that
apply within the framework of business-type management. Let us add that the principles
can also be the subject of scientific research, in which they are clarified and even
rediscovered.
As an example, we can mention such principles of personnel management as
maintaining employees' sense of self-respect, active listening, and others.
In our research, devoted to the business management principles practical application
focus is placed on other principles as well. Namely: taking into account emergence,
external addition, feedback, and making management decisions based on alternative
choices. Management is understood as creativity based on these principles. We also include
leadership (personal and collective) related to the agency center of an incorporated
enterprise.
4
E3S Web of Conferences 208, 03035 (2020) https://doi.org/10.1051/e3sconf/202020803035
IFT 2020
The latter, in turn, is organically connected with ensuring the competitive potential of an
enterprise-type organization (incorporated enterprise, corporation). And here we will pay
attention to the management principle, which sounds like this: the principle of a
coordination strategy of early activity.
Coordination (as a figurative representation of the cognition and synergy of the business
activity agency center) is a generalizing function of the organization's management system.
It goes about a coherent policy for achieving goals, taking into account the need for
resources and organizational culture. We can also agree that this approach to business
activities strategic development is an intellectual part of management that can be SWOT -
and COPS - analysis, planning and performance evaluation.
Especially important is the managers', coordinating working activity and setting
resources in motion, striving to achieve the goal, and forming the organizational culture of
the enterprise. At the same time, its employees, their way of thinking and actions act as
culture-bearers. This can be seen from the diagram shown in Figure 3.
Fig. 3. Cause-and-effect relationships in business type organizations' management system
The principle of management is the fundamental principles of effective business
management. We also agree that these are established, ingrained and widespread rules that
apply within the framework of business-type management. Let us add that the principles
can also be the subject of scientific research, in which they are clarified and even
rediscovered.
As an example, we can mention such principles of personnel management as
maintaining employees' sense of self-respect, active listening, and others.
In our research, devoted to the business management principles practical application
focus is placed on other principles as well. Namely: taking into account emergence,
external addition, feedback, and making management decisions based on alternative
choices. Management is understood as creativity based on these principles. We also include
leadership (personal and collective) related to the agency center of an incorporated
enterprise.
In this case, this principle can be specified (in business terms) as follows: think
globally, act locally. The latter concerns «business management», and the first – strategic
one, presented by us in the form of the following components (Table 2).
Table 2. Structural presentation of strategic management
Kind of management
Substantive aspect
Innovative Kinds and functions of innovation management
Classification of innovations and innovation processes
Innovation management as a system
Innovative manager in the coordinates of business success
Managing subsystem of innovation management
Assessment of the cultural factor role in the implementation of
the innovation strategy
Cultural development Organizational cultural development
BC (ППБК)-vision as a tool for strategic management of an
enterprise-type organization
Four main management rings (a retrospective look at their
formation)
Culture-building management as the basis of organizational
culture-building of business activity
Personnel selection in the process of organizational cultural
development
Generalized algorithm of works on organizational cultural
development in the business system
Culture-building management should be ahead of innovation one (as part of the
organization's strategic activities to ensure competitive potential). Otherwise, there will be
resistance from some of its members to introduce innovations, since this is often
accompanied by some employees' dismissal or their relocation and professional
development (retraining). In a more specific form, you can read about this in the work of
one of the authors of this article [9].
As a certain generalization of the research results, we present Table 3, entitled
«Organization management principles». First, these are the principles of creating a good
organization by A. Fayol, whose work was published in our country 80 years ago [11].
Secondly, these are the principles of corporate management published by A. D. Weinberg
20 years ago [1]. Third, it is their modern sound (according to a survey of some top
managers from South Ural business organizations).
The first group of principles focuses primarily on the rationality of relations between the
manager and his subordinates, while the second group focuses more on the openness of the
organization, focused on business success. It is important, according to the author of their
publication, «the desire that all members of the organization work with the greatest
impact».
Nowadays (in Russian business), some of the principles from the first two groups are of
particular importance. But they also include: social responsibility [8], the desire for
leadership in organizational culture [10] and (as already noted) a coordination strategy for
early activity.
5
E3S Web of Conferences 208, 03035 (2020) https://doi.org/10.1051/e3sconf/202020803035
IFT 2020
Table 3. Organization management principles
Principle
80 years ago
20 years ago
Nowadays
1.Unity of management
2. The transfer of authority
3. Unity of subordination
4. Matching the level of responsibility and
subordination
5. Subordinates' number limiting
6. Communication system certainty
7. Definiteness of expressed tasks
8. Selectivity of information
9. Execution obligation and control
10. Business planning
11. Management bodies availability
12. Organizational structure flexibility
13. Responsive to external and internal
changes
14. Optimal distribution of forces and
resources
15. The desire to ensure that all members
of the organization work with the greatest
impact
16. Adjustment of current work in order to
achieve business success
17. Development and adoption of the most
effective solutions
18. Social responsibility
19. Striving for leadership in
organizational culture development
20. Early activities coordinative strategy
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
According to our survey, in which 42 respondents took part, other principles were
mentioned. But we limited ourselves to the nine listed in Table 3, which are the original
leaders from the entire list of principals declared in the survey process. Other surveys
conducted with our participation were also taken into account [2, 6].
4 Conclusions
As a conclusion, we will name the principles of management, which we distinguish among
many well – known ones: single authority, motivation, leadership, scientific character,
responsibility, proper selection and placement of personnel, efficiency and social
responsibility. These are also the principles that we propose to use in practice, namely:
social responsibility, the desire for leadership in organizational culture and the principle of
coordination strategy of early activity, which is directly related to strategic management.
Data from the survey of leading top managers from the southern Urals indicate that their
practical application makes it possible to ensure both the efficiency of business activities
and competitiveness in the industrial goods market (both regional and departmental).
A number of approaches to assessing industrial organizations' management
effectiveness are known, namely: the optimality of decisions made, the cost-effectiveness
of the change management process, the impact efficiency over the managed object, and the
information transmission and processing reliability. However, a more common approach is
based on the correspondence of management activities (of course, if these principles are
really such from the point of view of their approximation to reality).
6
E3S Web of Conferences 208, 03035 (2020) https://doi.org/10.1051/e3sconf/202020803035
IFT 2020
Table 3. Organization management principles
Principle
80 years ago
20 years ago
Nowadays
1.Unity of management
2. The transfer of authority
3. Unity of subordination
4. Matching the level of responsibility and
subordination
5. Subordinates' number limiting
6. Communication system certainty
7. Definiteness of expressed tasks
8. Selectivity of information
9. Execution obligation and control
10. Business planning
11. Management bodies availability
12. Organizational structure flexibility
13. Responsive to external and internal
changes
14. Optimal distribution of forces and
resources
15. The desire to ensure that all members
of the organization work with the greatest
impact
16. Adjustment of current work in order to
achieve business success
17. Development and adoption of the most
effective solutions
18. Social responsibility
19. Striving for leadership in
organizational culture development
20. Early activities coordinative strategy
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
According to our survey, in which 42 respondents took part, other principles were
mentioned. But we limited ourselves to the nine listed in Table 3, which are the original
leaders from the entire list of principals declared in the survey process. Other surveys
conducted with our participation were also taken into account [2, 6].
4 Conclusions
As a conclusion, we will name the principles of management, which we distinguish among
many well – known ones: single authority, motivation, leadership, scientific character,
responsibility, proper selection and placement of personnel, efficiency and social
responsibility. These are also the principles that we propose to use in practice, namely:
social responsibility, the desire for leadership in organizational culture and the principle of
coordination strategy of early activity, which is directly related to strategic management.
Data from the survey of leading top managers from the southern Urals indicate that their
practical application makes it possible to ensure both the efficiency of business activities
and competitiveness in the industrial goods market (both regional and departmental).
A number of approaches to assessing industrial organizations' management
effectiveness are known, namely: the optimality of decisions made, the cost-effectiveness
of the change management process, the impact efficiency over the managed object, and the
information transmission and processing reliability. However, a more common approach is
based on the correspondence of management activities (of course, if these principles are
really such from the point of view of their approximation to reality).
References
1. A.D.Weinberg, New businessmen of Russia. Reforms of managers' education (1996)
2. Management and management features of the social sphere in the national economy,
96 (2008)
3. A. N. Popov, G. M. Dement'iev, Management as a cognitariat and the basis for the
national wealth formation, 64 (2008)
4. V. A. Pirozhkov, Modern organization's management, 212 (1998)
5. A. N. Popov, G. A. Yarin, Institutional theory of the firm: a managerial approach to
the study of the national wealth formation processes, 499 (2012)
6. A. N. Popov, G. N. Pryakhin, Theoretical foundations of cultural development
management, 26 (2008)
7. A. N. Popov, S. G. Serikov, Business management: nature, modeling, performance
evaluation, 164 (2006)
8. Principles of organizational –economic strategic development (ОЭСР) corporate
governance, 624 (2000), www.rid.ru
9. G. N. Pryakhin, Economic grounding for organizations' management culture
development, 236 (2005)
10. G. N. Pryakhin, I. Yu. Sazonov, A. A. Popova, The leadership role in ensuring
business success, 34 (2004)
11. A. V. Fayol, The doctrine of management. Trans. from English, 70 (1924)
12. V. Hoyer, How to do business in Europe. Trans. from English, 252 (1990)
13. V. V. Bazelyuk, E. V. Romanov, A. V. Romanova, Theory and practice of physical
culture, Moscow: Theory and practice of physical culture and sport, 1, 29 (2017)
14. V. V. Bazelyuk, E. A. Popova, T. V. Letaeva, A. A. Demin, Theory and practice of
physical culture. - Moscow: Theory and practice of physical culture and sport, 8, 99
(2019)
15. T. V. Letaeva, E. A. Popova, A. V. Romanova, D. V. Fedulov, Theory and practice of
physical culture, Moscow: Theory and practice of physical culture and sport, 1, 43
(2017)
7
E3S Web of Conferences 208, 03035 (2020) https://doi.org/10.1051/e3sconf/202020803035
IFT 2020
