Manage – plan, predict. Therefore, an important component of the business is planning. Of particular importance is financial planning, which determines the sources of income and directions of expenditure of funds of the enterprise to ensure its activities. But what is governance management?
Governance Management as the Development and Implementation of Effective Management Decisions
Governance management is a field of knowledge and professional activity aimed at shaping and ensuring the achievement of the organization’s goals through the rational use of available resources. Initially, management began to develop as a theory of production management and then transformed into a theory of management of people’s activity behavior.
Governance management is the direct work of every leader. The purpose of managerial management is to use the management information system in the enterprise and motivate employees to work hard. Those who work in the management system and have people under their control must have the talent of managerial management. In the early stages of preparation for the governance management, it is necessary to conduct a competent, accurate assessment of the target company, as it is not uncommon for an organization to be sold to overstate its value, which can subsequently lead to litigation.
Governance management consists in managing the activities of the organization as a whole or its independent business units (profit centers). Functional or special management is the management of certain areas of activity of the organization or its units. For example, innovation, personnel, marketing, finance, etc. The personal motives of governance managers can also become the reasons for the transaction. At the same time, they often pursue their own goals and do not protect the interests of business owners, the personal motives of top managers arise during the implementation of a transaction.
What Are the Main Goals and Tasks of Governance Management?
The main goal of governance management is to ensure a rational balance between the volume of production, growth rate, and financial resources of the enterprise; between loans and equity. To consider the concept of managerial management, it is necessary to resort to modern interpretations, to the accumulated amount of knowledge in management issues. Modern organizations, enterprises are formed and managed by professionally trained specialists.
Among the main tasks of governance management are to:
- determine the correspondence between the availability of funds and the need for them;
- choose the best sources of funding, effective ways of distribution;
- find reserves to increase income; ways to raise funds;
- establish the ratio between material and financial resources;
- ensure profitable cooperation with credit institutions, the budget, etc.
In the process of reviewing the governance management in interconnection and interdependence, the interim manager, together with employees of a company interested in improving operational efficiency, will identify risks and limit the degree of influence of toxic factors in management that negatively affect the organization as a whole. For this, the interim manager is required to be personally present directly at the facility. The presence at the facility will allow you to study the situation on the spot using “live” simulation.
The process approach of governance management considers management as a process, that is, work to achieve goals with the help of others. It is a series of continuous interrelated actions, each of which is a process in itself. They are called managerial functions, each of which is also a process because it consists of a series of interrelated actions. The control process is the total sum of all functions.