METHODS OF REDUCING THE UNCERTAINTY OF TARGETING IN THE STRATEGIC MANAGEMENT SYSTEM

Keywords: goal, purpose, goal setting, strategic management, uncertainty, s.m.a.r.t, idef0, induction, deduction

Abstract

Strategic management has a recognized role in the management system of enterprises. But even the correct definition of strategic goals does not guarantee their achievement due to the scattering of goals on the way from the upper levels of management to the lower ones. The purpose of the study is to develop and formalize methods for reducing the uncertainty of goal-setting in the strategic management of integrated economic systems. The study is relevant for enterprises with complex organizational structures and economic conglomerates. The existing methods for reducing the ambiguity of goal-setting are descriptive and focused on the use of top managers. This causes their shortcomings and reduces the effectiveness of goal-setting in multi-level organizational structures. Based on the analysis of the reasons for the emergence of ambiguity in goal-setting, the article proposes a formal structure of the goal as a combination of parameters that set the result, time, resources, priority rank, and connection with goals at other levels. This allows you to link all intermediate goals into one system. At the same time, in practice, the complete structure of a goal is rarely set, and for effective goal-setting, it is required to restore its individual parameters. To solve the problem, three approaches are proposed – normative, deductive, and inductive. The normative approach involves the determination of the missing parameters based on the standards, orders, instructions in force at the enterprise. Deductive provides for the definition of parameters based on the analysis of available facts, and assumptions about the motives of leadership. The inductive approach provides for the restoration of missing parameters based on the analysis of historical data, which makes it possible to answer the question – "what was the best reaction in a similar situation in the past?" It was concluded that in improving the targeting of strategic management systems in an industrial enterprise, it is advisable to use the full range of methods and algorithms discussed in the article, varying their use depending on each case. Implementation diagrams of the proposed approaches are made using the functional modeling notation IDEF0. Using the methods and approaches proposed in the article will reduce the negative effect of scattering goals and thereby improve the efficiency of the management system. The results obtained cover various phases of the maturity of the goal-setting system, which makes it possible to choose those of them that most fully correspond to the conditions for the functioning of an economic object.

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Published
2020-12-15
How to Cite
Mykhailyk, D. (2020). METHODS OF REDUCING THE UNCERTAINTY OF TARGETING IN THE STRATEGIC MANAGEMENT SYSTEM. Economy and Society, (22). https://doi.org/10.32782/2524-0072/2020-22-75
Section
ENTREPRENEURSHIP, TRADE AND STOCK EXCHANGE ACTIVITY