Academic journal article Review of European Studies

The Model of Changes Management Information System Construction

Academic journal article Review of European Studies

The Model of Changes Management Information System Construction

Article excerpt


The article views the interaction of three components: power, business and population when organizing business processes in the region. It views an optimal model of interaction which can generate additional possibilities for all the participants. In modern society, with the development of competition, the improvement of technologies external business environment has become more dynamic and changeable. This requires organizations to a more flexible approach to strategic management of the business, periodic adjustments of goals and objectives, organizational development, revision of the degree of centralization of key functions, as well as changes in staff motivation system. According to Dzh. Kotter, most companies and divisions of large corporations have come to the conclusion that they should pursue moderate reorganization, at least once a year, and the root-every four or five years. At the end of the XX century. Within the framework of management science started to allocate an independent field of knowledge-management changes. At the beginning of the new century, the need for a scientific study of the problems of organizational development, change management and change became apparent, and with the onset of the 2008 global financial crisis, improving the performance of organizations is becoming a vital action.

Keywords: management, market, region, business

1. Introduction

Effective functioning of companies depends not only on the activity of top managers, competitive advantages and conditions of internal and external environment but also on the degree of their involvement in social, economic, cultural and political life of the region and on the interaction of top managers with the power elite. An important peculiarity of formation of holding companies in the region is the fact that many of them were formed as a result of privatization of state enterprises organized in the period of administrative planned economy. It led to monopolization of the market especially in the spheres of energetic, petroleum and gas supply as well as telecommunication.

Publications analysis: the topic was discussed in the works of the scientists Turkin (2007), Neschadin (2006), and Lapina (2005). The subjects of the research are business processes in their interaction with state structures.

2. Methodical and Theoretical Basis

Methodical and theoretical basis of the research is made of the theory and methods of innovation management, projects management, strategic management, marketing and financial management.

2.1 Practical Significance

The developed organizational and economic mechanism of development management is intended for use in the organizations carrying out the development. It is also useful for consultants and experts who deal with the problems of innovation and production management. With the help of this mechanism it will be possible to plan and carry out economic development which provides current and long-term stability and pace of development corresponding to the current market situation for an organization.

3. Discussion

Such newly created holdings as a rule have dominant position on the market, developed net of subsidiaries and to a great extent control a definite sphere in the region. Ownership structure is different in different regions: from substantial control over private investors enterprises and large financial and industrial groups to full participation of regional or municipal authorities in share capital. Independently of ownership structure of holding companies their dominant position in some spheres of a concrete region determines the specificity of their functioning and interaction with regional power elite. Management of such companies cannot be guided only by the goal of profit maximization. It is necessary to build in business model in the strategy of social and economic development of the region. As a rule such companies take some kind of encumbrances from regional authorities. …

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