Department of commercialization of scientific and innovative developments management and control

IV period - information age (from 1960 to the present time (40-60s).
1.2.2. Quantitative or management school. Management concepts
Empirical school of management.
On the basis of this school, the main goal was to study the management of companies, government, and military organizations, and then to spread it, and therefore to improve management. Proponents of the empirical school did not reject the importance of theoretical principles, but emphasized the importance of the analysis of management experience. Based on specific management situations, special management education methodologies were developed.
Technocratic management theory (1950-1960s). Famous schools in this direction:
1) class theory: proponents of this concept divide society into powerful classes and subordinate gangs.
2) theory of technocracy: concept idea - management of the future is management technocracy - representatives of science and technology.
3) theory of industrial team: the study of issues of managerial activity, techno-structure, efficiency.
Representatives of this school consider management as a process of logic, which can be expressed in mathematical form. Nowadays, mathematical methods are used in all areas of management science.
As a process, management research leads analysis to make extensive use of systems methods. The use of a system approach in management is related to the theory of general systems in solving management problems. He assumes that leaders should consider the organization as a unit of interrelated elements: people, structure, technology, resources. The basic idea of ​​systems theory is that no action is taken in isolation from others. Their solution is related to each other. The systems approach was afraid that a solution in one area would affect another.

LECTURE 2. MANAGEMENT PROCESS AND ORGANIZATIONAL ELEMENTS
An organization must be created for the manager to carry out his activities.
Over time, the concept of the organization has also changed several times. Initially, the organization was considered to be the structure of any system. When "management" was separated into a separate independent science, the word "organization" was associated with a certain role structure, functions, rights and obligations. That is, the concept of "organization" should be understood as an enterprise, firm, office and other parts of work.
There are many concepts, we can distinguish some of them:
1. Organization is a process through which management system is created and maintained.
2. The organization is a system of mutual relations, rights, obligations, goals, executions, they have their impact in the work process.
3. It is a group with common goals.
To be considered an organization, parts of work must meet the following requirements:
1. There must be a group of more than two workers.
2. A group must have at least one useful purpose.
3. There must be group members who work together and hard to achieve the goal.
Elements of organization
Also, an organization is a group of people whose activities should be aimed at achieving a certain common goal.
2.2. A combination of the organization's life cycle
According to the combination of the organization's life cycle, the organization's activity goes through several stages, that is, from its creation and growth to its termination or radical modernization.
1- phase — creation of the organization. This phase is characterized by goal selection, management method; its main task - entering the market, organizing labor - is related to increasing income to the maximum value.
2- phase — youth and adulthood. Distinctive features: the main goal is temporary income and rapid growth; the main task is to strengthen and focus on the market share; labor organization — income planning, increasing services and wages.
3- phase — maturity. The main goal is systematic, balanced growth and individual image (reputation) formation; As a result of the division of powers, management achieves efficiency (decentralized management), the main task is growth in various directions. Capture the market, take into account different interests; labor organization - division and cooperation; reward for individual performance.
4- phase — the aging of the organization. This is the highest level of ascension. The main goal is to maintain the achieved results, efficiency is achieved through the coordination of actions in management. The main task is to ensure stability, organize a free labor regime, and increase income.
5- phase — restoration of the organization. It is intended to restore all functions; its growth is achieved through the community; the main task is rejuvenation; in the organization of labor — implementation of NOT (MITE), work with the collective.
2.3. Elements of organization. Brief description of organizations
An organization can be defined as the action between members and the transformation of resources into a desired product. Management can be considered as a means of attracting and maintaining balance.
All organizations differ from each other in every way (function, methods, principles of management, etc.). But they also have common definitions.

1. Resources. The purpose of any organization is to have and use resources to achieve tactical and strategic goals. Key resources are people (labor resources), fixed and circulating assets, technologies and information.

2. Dependence on internal and external environment. This is one of the important definitions of organization. No organization operates separately, without paying attention to external changes. Activity is related to changes in the external environment. They influence the activity of the organization.
D ifferentiation of internal and external environmental factors of the organization:
The external environment can affect the organization in various ways. Therefore, we need to note the important factors and be able to respond to them.
The internal environment means the situational factors of the organization. Organizations are systems created by people, and their internal factors are the results of management solutions. This can be understood as the economic organism of the organization, its structure.
An organization, by definition, is a group of people who share common goals. We can consider the organization as a means to achieve the goal, it allows to achieve the goal through the team. Organization means creating a certain structure, which achieves the set goal and mediates its effectiveness. For the organization to fulfill its goals and plans, it is necessary to create a structure of many elements.
Goals are the final state or desired result that the work team strives to achieve.
The organization has at least one common goal, which all members of the work team strive to achieve. Organizations, organizations with several interconnected goals are called complex. In the process of planning, the management of the organization develops the goals and informs the members. All members of the organization participate in this process.
A mutual goal setting agreement helps the members of the organization know what each one is used for.
Organizational structure is a logical relationship between management levels and cross-functional areas, which are structured in such a way as to achieve the goal in an easy way.
A task is a given work or its part (operation, process), which must be performed in a predetermined manner and time.
From a technological point of view, tasks are assigned to positions, not workers. In accordance with the organizational structure, each position is assigned a number of tasks, which serve to achieve the goal.
Interrelationships, structures and objectives of positions. Technological base is a unit of technological processes of production.
The activity of the organization is formed in the form of technologies and includes three processes:
1. Obtaining raw materials and resources from the external environment.
2. Turning raw materials into products.
3. Transfer of the product to the external environment.
Technologies perform the task of connecting tasks with objectives, division of labor, horizontal and vertical management.
Technology is the combination of capabilities, supplies, infrastructure, tooling skills, and appropriate knowledge to make changes in materials, information, and people.
Tasks and technologies are interrelated. We use a certain technology to perform the task.
In every work team there will be formal relations as well as informal relations.
If official relations are determined by orders, decrees, informal relations are not determined by anyone or anything. Therefore, the management process led to the creation of a functional official organization. But it is important to know that within any formal organization there are also informal organizations that can influence the policy of the organization. A member of each work team can belong to many groups at the same time.
A group of people created by the will of a leader to achieve a goal are called formal groups.
Their first task is to perform concrete assignments and tasks. Relations between people are regulated by various regulatory documents: laws, decrees, orders, etc.
Informal groups are scattered groups of people formed to achieve a goal.
Relationships in such groups are seen through personal characteristics (behavior). Group members are united by common views, interests and passions.
Informal groups exist in every organization. They can influence the official organization. When many people are members of an informal group, their power increases. Although loyalty, formal relations and talent have nothing to do with formal organizations, their influence on the internal environment of formal organizations is significant. If there is a large number of people's movements, then the role of the informal government will increase. The abuse and use of this power is evident in informal relations (also called "mystery" telegraph). No word spreads as fast as informally. It is through this method that an informal group can promote its goal (this is called informal communication).
Another technique used by an informal group is mobility or immobility. In management practice, there are many examples of organizations being "brought to their knees" by disenfranchised management (this does not include trade union-sanctioned demonstrations).
Disenfranchised groups can have negative effects on people. At the same time, if informal groups have the character of extreme intelligence, some organizations can escape from the crisis. The meaning of this is that the informal group can drag the development of the organization forward or backward. The task of the manager is to have the ability to reduce the influence of these groups and direct their energy in a good direction. The activities of an informal group can be supervised by a manager. To do this, the manager must fully understand the goals of the informal group. If the manager has good reasons and reasons about the informal group, then it becomes possible to develop a strategy of behavior.
The manager should understand that informal organizations appear based on the following basic principles of human psychology: they appear when people interact with each other. The basis of their activity is the concept of small groups. Reciprocity creates emotion, and emotion creates consensus. The basis of an informal organization is interpersonal relations.
In this way, an informal organization of people can work for you and against you. How can you make such an organization work for you?
First, the manager must recognize that an informal organization exists.
Second, the informal organization should seek to understand the value of being an assistant manager.
Thirdly, informal organizers should be identified and managed.
Fourthly, the goals of formal and informal organizations should be combined.
Fifth, the manager must remember that there is an informal organization regardless of how it operates.
Reasons why people join an informal organization can be explained as follows:
1. Feeling of dependence. Satisfying the need for a sense of belonging is our strongest emotional need. Most formal organizations consciously deprive people of social connections, so workers turn to informal organizations to make these connections.
2. Mutual aid. Naturally, he can turn to his official leader. However, some people think that the leader has a bad opinion of him (here the principle of "don't create problems for the leader" comes into play), others are afraid of criticism, etc. In one way or another, people prefer to help their team members.
3. Protection. People have known since time immemorial that strength lies in unity. For this reason, membership in an informal organization is considered natural from the point of view of protection.
4. Communication. People want to know what is happening around them. In most formal organizations, the internal communication system is weak, sometimes the management consciously withholds some information from subordinates, so it becomes the only source for the informal organization to obtain information informally (based on various rumors).
5. Warm attitude. People often join informal groups with whom they have a warm relationship.

2.5. DESCRIPTION OF INFORMAL ORGANIZATIONS

Informal organizations can resemble and dissimilar to formal organizations at the same time. Therefore, it is possible to distinguish the signs that reflect the description of an informal organization:
1) social control. Informal organizations exercise social control over their members. It's about establishing and reinforcing cues about possible and impossible group patterns. Naturally, whoever violates this sign (norm) will in turn be ostracized. In this regard, the manager should know that the social control implemented by the informal organization has a positive effect on the achievement of the goal pursued by the official organization;
2) resistance to change. Resistance to change is always observed in informal organizations. This is partly due to the fact that the changes may threaten the further functioning of the informal organization;
3) informal leaders. Informal organizations also have their own leaders. Leaders of formal organizations differ from leaders of informal organizations in that they have formal authority and act within the scope of specific tasks assigned to them.
An informal leader's support is his support from the group. The sphere of influence of an informal leader may go beyond the administrative sphere of the formal organization.
An informal leader can perform two primary tasks: help the group achieve its goals, and support its activities.
In an organization, an informal group often strengthens the work team. And the head of the official organization should support such a group. For example, "Korging glass" (USA) company installed an escalator instead of an elevator in the building in order to reduce unnecessary communication between employees, "MMM" (USA) company organized clubs to reduce casual conversations during meals and other occasions. All this strengthens the sense of community here, not only during work, but also during work, cooperation and unity. Friendly relations, cooperation and mutual support during and outside of work form a healthy psychological environment in the organization.

2.6. HORIZONTAL AND VERTICAL DIVISION OF LABOR

2.6.1. Horizontal division of labor
The main goal of organizing work on a scientific basis is to specialize workers to perform certain tasks (operations), which requires the creation of an appropriate form of division of labor. The work is distributed among the participants of the labor process according to professional signs. Depending on how fully and deeply the qualification is taken into account, the personal contribution and labor efficiency of the workers are determined. In terms of content, all the work is divided into different parts, that is, it is distributed according to the general production route and the work executors.
Horizontal division of labor is qualitative and quantitative differentiation and specialization of work. In essence, this forces the division of the entire work into constituent components, that is, the division of the entire production process into parts, the production of various types of labor activity, and the ability of the executors to master the skills of continuous customization with specialization.
Horizontal division of labor is carried out according to professional, functional, professional and operational — technological signs.
Professional division of labor is division of labor by profession: accountant, economist, financier, inspector.
Functionalization of work - close to the first in terms of content, each worker performs his specific work. In this case, some functions are separated and the work executors are assigned accordingly. For example, a bank manager performs general management. The head of the department manages the work of several people, the inspector of the department supervises the functions in his facility.
Vocationalization of labor is the division of labor according to occupation. For example, there are three or four categories of economists, ordinary economist, first- and second-class economist, leading economist.
The direction of the operational-technological division of labor is related to the determination of labor for certain periods of time, limiting and specializing the execution of specific labor operations. For example, specialization of sellers who sell a certain item, repair of only one part of a complex machine by a worker, etc.
In small enterprises, the main functions of the business are performed by one person (the entrepreneur himself). As the volume of work increases, the entrepreneur attracts more people.
This functional division of labor initially occurs vertically and implies at least two levels of management: managers and employees (subordinates).
However, the vertical division of labor (as subordination) cannot continue indefinitely. If the organization continues to grow, then a horizontal division of labor will appear. This is a process of internal division of labor, its implementation is carried out with the help of unique specialists and good results are achieved. Horizontal division of labor requires an increase in the number of employees in exchange for an increase in the volume of work in departments. Horizontal division of labor does not require as high a degree of subordination as vertical division.
The emergence of different forms of division of managerial labor is related to the organization of different departments in the firm. This process is called departmentalization.
Departmentalization is the grouping of key activities in closely related functions and departments. They are organized for the purpose of effective coordination of all company resources.
Horizontal division of labor is usually carried out according to functional areas and qualifications.
Functional division of labor is carried out first of all on the basis of specialization of workers according to their activities. In this case, certain functions are separated and suitable workers are assigned to perform them.
Division of labor according to the product-industry symbol is related to limitation and specialization in the performance of concrete labor operations. For example, specialization of a seller who sells a certain item; repair of only one part of a complex machine by a locksmith, etc.
Job qualification is based on the complexity of the work and the skills required to perform it in determining the labor process. In this case, the principle that no highly qualified worker should perform the work performed by a low qualified worker should not be violated. Violation of this principle leads to the fragmentation of human resources, increasing the cost of work.
2.6.2. Vertical division of labor
Because work in an organization is divided into many parts, someone must coordinate the work of the group in order to ensure that the work goes well. In this case, the issue of coordinating and integrating the activities of all elements of the organization in a purposeful manner is raised to the first place. Someone should take responsibility for determining the tasks of subordinates, controlling the work of organizational structure and units, coordinating and organizing. There are definitely two moments in such work: intellectual (preparation and adoption of a solution) and freedom (implementation in life).
The most difficult is the work of implementing the management solution. First of all, this is determined by the diversity and abundance of management work. In order to organize these works, it is necessary to bring the performance of some functions related to the stages of the labor process, which are classified by objects, to the direction of management influence, into a certain system.
Vertical division of labor leads to the following directions:
- General leadership - development and implementation of the most basic prospective directions of the organization's activities.
-Technological management — development and implementation of progressive technology. This is the rationalization of production processes based on modern methods of management, complex mechanization of production and automation.
-Economic management - strategic and tactical planning and analysis of economic activity of the organization, switching to economic accounting and ensuring its profitable operation.
-Operational management - drawing up operational plans and delivering them to the micro-team and individual workers, placing workers in their workplaces and familiarizing them with work rules, constantly monitoring the progress of the production process.
- Personnel (employee) management — selection, placement and development of labor resources of the organization.
Thus, there are two internal forms of division of labor in the organization. The first is the horizontal division of labor into parts that make up the overall activity. The second is to vertically coordinate the activities that come from the movement itself. Coordinating the work of other people represents the content of management.

LECTURE 3. THE ESSENCE OF MANAGEMENT ACTIVITY AND PRINCIPLES OF MANAGEMENT

Since the beginning of society, everyone has been trying to manage social processes, processing of moral and material conditions of society. Over time, management processes became more organized and many people were involved, special functions were implemented in the management of the state economy and the army. This is how we define the concept of "management".
Management is a process related to the purposeful influence of the LECTURE of management on the object of management in order to achieve certain results.
A LECTURE of management means a legal entity or an individual under the influence of the administration. The governance authority of the LECTURE of management, its economic and moral influence is the basis of the management process.
The object of management can be a physical-economic system and processes, which are directed under the influence of the management LECTURE.
One structure of the organization can be both a LECTURE and an object of management.
For example, in a department store, the management system is considered to be the management apparatus led by the director, and the managed system is considered to be departments (sections). In the department (section), in turn, the managing system is considered to be the management apparatus headed by the head of the department, and the managed system is the seller. At the same time, the administration (director) of the department store transfers from the management system to the managed system during the execution of the orders from the top management of the organization.
The management process is characterized by certain features:
1. Management is a continuous process in time and space.
2. Management is a goal-oriented process.
3. As a result of the control LECTURE's influence on the object, some result should be obtained that can be compared with the set goal.
Management is a coordinated activity in which many people follow the instructions of one person. For business entities that aim to obtain financial results, it corresponds to the concept of management - managing people to obtain a certain income.
The efficiency of the work in the organization is determined by the level of development of the vertical division of labor. It's about organizing the work of the leader to coordinate the activities of departments and workers. The principle of operation of the management process of the organization is presented in the scheme.
Management work is the main category of public work. As a result, managed work is separated from unmanaged work, because management refers to any joint work in the form of activity. Management, in a broad sense, is the process of planning, motivating and controlling the formation of an organization's goal and the achievement of that goal.
Thus, management work is a form of collective work that ensures the goal-oriented, coordinated activity of the participants of the joint work process and the work team as a whole.

Special features of managerial work can be distinguished:
1) The mental work of management personnel consists of three activities:
— organizational-administrative and educational work (reception and transfer of information, delivery of solutions to those who perform work, supervision);
— analytical and constructive work (receiving information and preparing solutions);
— information and technical work (documentary, educational, computational and formal-logical operations);
2) not direct, but indirect participation in the creation of material wealth (that is, through the work of other people);
3) the LECTURE of work is information;
4) labor tool — organizational and computing techniques;
5) the result of work - management solutions.
In the process of managing the organization, managers, specialists, and support personnel are allocated depending on their functional role.
The work of the leader is the highest level of management. Leaders coordinate important issues related to the organization's activities, make decisions and coordinate the work of subordinates.
Specialists perform the task of preparing and implementing management decisions.
Auxiliary personnel (those performing technical work) provide information services to the management apparatus.
Persons engaged in management activities are also classified according to other characteristics, including the composition of the team they lead, their direction, their position and level in the management system.

3.2. MANAGEMENT HIERARCHY

The traditional management system is mainly organized according to the hierarchical principle. In most companies, leadership, rights and responsibilities, and different levels of management are clearly defined. High, middle and lower levels of management are separated. In sole proprietorship companies, the boss is also a top manager. Functional units and branches, departments are subordinated to the middle manager, and small teams and groups are subordinated to the lower manager.
The composition of functions, rights and obligations at each level of management is unique. The top level — president, vice president, board of directors — is the top of the company's management pyramid. At the top level, goals, policies are formulated, decisions are made on issuing new shares, establishing foreign branches, capturing new markets, and similar major issues known as strategic management. A senior manager will have benefits such as buying the company's shares at a low price.
The second level of the company's management is responsible for the development and implementation of operational plans and the implementation of decisions made at the top level. Middle managers have a wide range of opportunities to implement plans. For example, what new equipment to buy, how to use media for advertising, etc. solve issues independently. This level includes managers of various departments.
Third, the main one is operational management. It is the lower level of management. It includes foremen, foremen, etc., who directly supervise servants and workers. managers enter. At this level, managers are involved in the implementation of operational plans developed in the middle level. In large firms, corporations, joint-stock teams, hired managers are used at all levels of management, the general meeting of shareholders and team councils have legislative rights, and sometimes the function of strategic management is performed.
All organizations (no matter how small) require one or more managers for other employees. Conditionally speaking, the company has a management hierarchy, that is, a structure consisting of upper, middle and lower levels. The pyramid shown in the picture shows that there are more managers at the lower level of management than at the upper level.
Senior managers are representatives of the top management who are responsible for all company activities and have the greatest rights. As an example, it is possible to cite the president of the company, who defines the mission of the organization, develops long-term plans, and can protect the company in the external environment by forming policies. High-level managers are different in the same corporations, i.e. vice-president, acting vice-president, chairman of the board of directors, their work is similar in content. The top management can be divided into ambassador manager or general management level. The responsibility of the middle manager includes the development of plans necessary for the implementation of the general issues indicated at the top level of management and the coordination of the work of lower managers. The middle level of management includes the enterprise manager, department and other department managers.
Lower level managers (managers-supervisors) are embodied in the lower level of management. They supervise the workers by implementing the plans developed at the top level of management. At this level, the following positions are combined: shop foreman, section foreman, group leader and department head in the form of an office.
As more components reduce production waste and decentralize their operations, management reduces jobs at the middle level and transfers more management functions to lower-level managers.

3.3. OBJECT AND LECTURE OF ADMINISTRATION
The management process consists of a management object and a LECTURE. This means that the desired organization is a two-system unit: the relationship between the managed and the manager is a relationship between people.
Thus, the management object means the organizational structure on which the management influence is directed. Management LECTURE is a body or person exercising management influence.
In this regard, one structure of the organization can be both an object and a LECTURE of another.
For example, in a department store, the management apparatus under the leadership of the director is considered to be a managerial system, and the managed parts are divisions (sections). In turn, in the department, the head of the department (section) is considered to be the management apparatus, and the manager is the salesman. At the same time, the administration (director) of the department store can move from the managing system to the managed system. This situation occurs during the implementation of orders from the higher authority.
Thus, the LECTURE of management means legislation and legal administrations. With the help of various laws and legal decisions, objects of state influence are distinguished by several signs:
According to the level of the issues to be resolved - economy of the republic, sectors, regions, companies.
By types of managed activities - income, capital investment, prices, various markets, personal consumption, etc.
According to the address of influence - private national companies, various foundations, research centers, educational institutions, etc.

3.4. PRINCIPLES OF MANAGEMENT

The principles of management of the organization determine the requirements for the system, structure and organization of the management process. That is, management of the organization is carried out through the basic rules and regulations followed by managers at all levels. These rules define the "way" of manager behavior.
Thus, the principles of management can be imagined as the main ideas, laws and rules of behavior of leaders on the implementation of management tasks.
It is appropriate to divide all principles of management into two groups - general and private groups. The general principles of management include the principles of applicability, systematicity, multifunctionality, integration, and the assumption of values.
Principle of applicability — Management develops a specific activity manual for all employees working in the company.
The principle of systemicity — Management encompasses the entire system, taking into account the external and internal interactions, interdependencies and openness (transparency) of its structure or system.
The principle of multifunctionality — Management covers different aspects of activity, i.e. material (resources, services), functional (organization of work), meaningful (achieving the final goal) aspects.
The principle of integration - within the system, the attitudes and views of employees in different ways should be integrated, and outside the company they can be divided into their own worlds.
The principle of assuming values ​​— Management is connected with the social environment with certain ideas about values ​​such as hospitality, honest (honest) service, and the beneficial ratio of prices and services. It is necessary not only to take into account all of this, but also to organize activities in full compliance with the above-mentioned general principles.
The main private principle of management is the principle of optimal adjustment of centralization and decentralization in management.
The principle of harmonizing centralization and decentralization requires the skillful use of individualism and collegiality in management. The essence of sole leadership is that the leader at a certain stage of management uses the right to solve issues within his authority alone. The manager of the organization is given broad powers necessary to perform the management tasks assigned to him, the work for which he is personally responsible.
Collegiate work involves the development of a team decision based on the opinions of leaders of various levels, as well as those performing a specific task.
One of the important tasks of management is to maintain the right balance between leadership and collegiality. The effectiveness of management and the ability to give practical results largely depends on its correct solution.
The principle of scientific basis of management envisages a scientific perspective when socio-economic changes are being planned in the organization. This principle requires that all management actions be based on the application of scientific methods and scientific approaches.
The essence of the principle of plannedness is to determine the main directions and proportions of future development of the organization. Planning (in the form of current and future plans) involves all parts of the organization. The plan is considered as a set of economic and social tasks that must be solved in the future.
The principle of the unity of rights, obligations and responsibilities provides that each employee must perform the task assigned to him and periodically report on the work performed. Everyone in the organization has certain rights and is responsible for the performance of the tasks assigned to him.
The principle of private autonomy (autonomy) and freedoms assumes that all initiatives come from free economic LECTUREs who carry out management work according to their own will within the framework of current legislation. Freedom of business includes freedom of occupation, freedom of competition, freedom of contract and other freedoms.
The principle of hierarchy and feedback is to create a multi-level structure of management, in which the first (low-level) link is managed by its own body, which is under the control of the management bodies of the next level. They, in turn, are subordinated to and under the control of the next-level authority. Accordingly, the goals for the lower levels are determined by the authority that is higher in the hierarchy of management bodies.
The essence of the justification principle is as follows: the more carefully managers implement the incentive and punishment system, consider it taking into account contingencies, and consolidate it by organizational departments, the more effective the justification program will be.
One of the important principles of modern management is the democratization of management - the participation of all employees in the management of the organization. The forms of such participation may be different: payment of contribution to work; investment in shares; unified administrative management; joint management decisions, etc.
According to the principle of compliance of the management system with state laws, the organizational and legal forms of the firm must meet the requirements of state (federal, national) legal documents.
The principle of organizational integrity of the object and LECTURE of management views management as a process of influence of the LECTURE of management. It should form a single complex system, be able to reach the external environment, have alternative communication and communication.
According to the principle of stability and mobility of the management system, radical changes should not occur in the management system when the external and internal environment of the organization changes. Stability is primarily determined by the quality of management strategic plans and management agility, and the ability of the management system to adapt to changes in the external environment.
The management process should be dynamic as well as stable, that is, it should take maximum account of changes and demands of consumers for products and services.