Management, Strategy, and Innovation

In a market economy, the role of management in organization is truly significant since the meaning of management is to obtain the final result of the company’s activities with minimal costs and with the greatest impact at all stages of the management process. Management’s aim is to ensure the smooth functioning of the enterprise management system. The content and meaning of the functions of the management system are to anticipate the consequences, plan goals, organize the process, manage resources, coordinate actions and monitor the performance of tasks. Many people underestimate the impact of management on the development of the organization.

Pasch’s article describes innovative management strategies, therefore, according to the article, the role of management is characterized by the effectiveness of organization; it is formed from three main components: economic effect, social effect, and overall socio-economic effect. The economic effect determines the cost form and allows you to see direct changes in the form of volume growth, reduction of production costs, increase in profits (Pasch, 2020). The social effect determines the qualitative improvement of working conditions, reducing the number of occupational diseases, which, in turn, saves financial resources and reduces the cost of paying various social guarantees.

The overall socio-economic effect characterizes the result of activity in the form of economic indicators – a progressive increase in volumes, a reduction in the cost of production and total costs of the enterprise, production stability, profit growth, a stable position of the enterprise in the market. Small businesses and businesses, in general, when solving certain production tasks, strive to reduce costs as much as possible and increase efficiency at all stages of management. The following production costs of the enterprise differ: material (raw materials, fuel, semi-finished products, energy); labor (salary, time used for production) and financial.

One of the main results of interaction between a person and an organization is that a person, analyzing and evaluating the results of his work in the organization, revealing the reasons for successes and failures in interaction with the organizational environment, analyzing the experience and behavior of his colleagues, thinking about the advice and recommendations of his superiors and colleagues, makes certain conclusions for himself, which in one way or another affect his behavior, lead to a change in his behavior to adapt to the organization, in order to achieve better interaction with the organizational environment.

The perception and evaluation of one’s experience and the process of adaptation to the conditions and requirements of the organizational environment are largely individual. In the same environment, people behave differently. A person seems to have two degrees of freedom in building his behavior in the organization. On the one hand, one has the freedom to choose the forms of behavior: to accept or not to accept the forms and norms of behavior existing in the organization; on the other hand, one can accept or not accept the values of the organization, share or not share its goals and philosophy.

The law of unity and integrity of the management system states that it must have organizational and functional unity. It must contain all the necessary elements. Implement all functions. Following the law of ensuring the necessary number of degrees of freedom of the management system must be flexible enough, have the necessary internal resources, and have certain stability and rigidity. The number of degrees of freedom of control subsystems is limited by the framework of laws adopted in the country, the norms of executive power, national customs, and traditions.

A prerequisite is that the number of degrees of freedom of the control subsystem must always exceed the number of degrees of freedom. Otherwise, the control subsystem can become a brake in developing both the controlled subsystem and the entire organizational system as a whole (Pasch, 2020). The law of ensuring the necessary diversity of management systems is that management systems must have the necessary diversity following the needs of the organizational system as a whole and under the needs of the managing and managed subsystems. Despite the typological commonality of management systems, significant differences between them are possible and necessary due to various factors of different nature – industry, climatic, ethnic, demographic, professional qualifications, personal qualities of the head. The law of correlation of managing and managed subsystems means that they must correspond to each other in terms of functional and structural capabilities, goals, directions, and tasks of the development and functioning of the organizational system.

Organizational culture is beliefs, norms of behavior, attitudes, and values, which are those unwritten rules that determine how people should work and behave in a given organization. Analyzing the organizational culture structure, E. Shane identifies three levels: superficial, internal, and deep. Familiarity with organizational culture begins at the surface level, which includes such external organizational characteristics as products or services provided by the organization, the technology used, the architecture of production facilities and offices, the observed behavior of employees, formal language communication, slogans (Pasch, 2020). At this level, things and phenomena are easy to detect, but not forever; they can be deciphered and interpreted in organizational culture.

In conclusion, the role of management and the effectiveness of the entire management system should not be underestimated since they are characterized by an increase in efficiency, optimization of labor, material, financial costs in the production process and serve to achieve one main goal – making a profit by the enterprise. The designated concepts of modern management are not only production technologies, but, first of all, a philosophy, a way of personnel’s attitude to their work. Both concepts and others allow us to introduce a culture of quality and, as a result, the competitive advantages of a modern organization in everything.


Pasch, T. (2020). Strategy and innovation: the mediating role of management accountants and management accounting systems’ use. Journal of Management Control, 30(2), 213-246. Web.

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