Management revolution. Its consequences

Today it is difficult to believe that the economicthe system was not always based on capitalist principles, for even in the era of the Soviet Union, its economic features were traced to certain features. For example, the so-called "managers" exercising control over the work of state-owned enterprises can very well be compared with the top managers who now manage the corporations. It promoted the formation of top managers as a special class of society, just the administrative revolution that took place during the era of great industrial discoveries.

However, it should be noted that when it is mentionedthe term "managerial revolution", one should keep in mind not only those events that marked the appearance of top managers, but also a number of other events that influenced the formation of modern management. In fact, these latter events are more correctly called the fifth administrative revolution, although to simplify the terminology, sometimes the word "fifth" is omitted.

Let's take a short digression into the history and see,how the formation of the management class took place, and what management revolutions existed in management. As a result of the first revolution, writing was first introduced, which means that economic operations began to be documented, which allowed them to be analyzed and recorded. The second revolution, which also occurred in the distant days of our era, gave birth to the first set of laws regulating commercial relations, giving them a systemic character, and thus simplifying the decision-making process.

The third revolution strengthened the role of the state inmanagement. As a result, there appeared institutes engaged in planning and management, and this can be considered a breakthrough of humanity on the way to building a unified economic system. After that, nothing changed for a long time, and the fourth revolution came to us together with the end of the Middle Ages and the flowering of capitalism. As a result, the entrepreneurial class flourished, which became the core of the economy, as well as the source of all its achievements and problems. In those days, entrepreneurs independently made managerial decisions.

However, as economists predicted at the time,such as Smith, for a long time could not continue, so the fifth administrative revolution became more a revolution rather than a revolution, but an evolutionary development of the already established economic system. As a result, it was formed, as already mentioned, a class of professional managers.

Thanks to this, entrepreneurs were able tothe responsibility of managing the enterprise, ceasing to play a significant role in its development. Thus, capitalism passed to the phase when the role of the owner ceased to have a significant significance in economic processes. To date, if the owners are completely excluded from the economic system while retaining other sources of financing, the economic model will not suffer in any way.

Certain progress in this direction has alreadyToday, financial institutions play a leading role in management, since the fate of the company and the direction of its development largely depend on their decision, while the company acquires the form of a self-governing structure. If previously the income of the owner was a priority, then today is the company's profit, regardless of how it is distributed.

Thus, the fifth administrative revolutionsignificantly changed the world, despite the fact that the formal economic system has not changed, it is still about capitalism, in fact, its essence has been subjected to major changes.

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