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Implementation of computer-aided branch management systems
Engineering Costs and Production Economics,
! 5 (1988) 241-244
Elsevier Science Publishers B.V., Amsterdam
--
241
Printed in Hungary
~~PLE~ENTAT~ON OF COMPUTER-ADDED MANAGEMENT SYSTEMS Gustav Czechoslovakian
BRANCH
Tomek
Technical University, Prague, Czechoslovakia
INTRODUCTION
Modern computing technology has so far mainly found application in Czechoslovakia in the processing of statistical, record-keeping and scientific data as well as in administration, especially in wage computing and accounting. It has been, to some extent, used to control technological processes. To a much lesser degree it has been used in the management of more extensive and complex systems or processes. As early as the mid-seventies, an urgent need became manifested to increase the effectiveness of integrated management of complex systems, the functioning of which ensures implementation of principal objectives of the steadily developing socialist society. Among other things, in 1975 this led to the incorporation, in the state programme of economic research, of a task to ensure the application of computing technology for the management of various producing as well as non-producing sectors. The task was understandably formulated with a view to the basic principles of the socialist system in which all economic and other working activities are aimed, in a planned manner, at ensuring steady improvement of the population’s standard of living, materially, culturally, educationally and socially. To this end: -- The above continuously innovated strategy of socialism is being implemented through fulfilment of stage-wise (five-year as well as annual) plans for individual sectors. - Sectoral plans are so oriented as to democratically ensure, in ail territorial regions of the
-
state, identical economic, cultural, educational and other opportunities for ,all citizens. Thus, a sector embraces integrated elements of a planned. all-round development of society, which is being, however, continuously influenced by many factors of different origin and dynamics, e.g. population growth, scientific and technological development, cultural development, etc.
EXPERIENCETHEORY AND
PRACTICE
The above specific characteristics of a socialist society raise also specific demands with respect to the building of automated systems of management of sectors-both producing and non-producing! Because of its very substance, the set task differed widely from demands arising in connection with the application of computing technology for integrated management of any extensive, complex and dynamic system in the non-socialist woitd-be it economic or other systems. It was, therefore, first of all necessary to create our own theoretical basis for the buiIding of sectoral automated management systems in the CSSR. To start with, it was necessary to undertake a profound analysis of concrete modalities of functioning of individual sectors in relation to the interests, needs and specific possibilities of the developing socialist society. It also involved an examination of laws, conditions and dynamics governing the necessary transfo~ations of these conditions, intentions and opportunities.
241
Only on the basis of the knowledge acquired was it possible to formulate views on information needs for adequate management of various sectors under the conditions of developed socialism; to undertake attempts aimed at creating adequate information systems for the management of specific sectors; and, to thus obtain factual and fundamental experience with respect to: -
-
-
-
realistic possibilities to increase, within the given social conditions, the effectiveness of sectoral management through creating adequate information systems; indispensable attributes for such systems; factual and fundamental prerequisites for their creation and, especially, for their practical application for effective sectoral management; paramount necessity and factual, methodological and technical requirements of machine processing of the information required for satisfactory management of sectors as well as of any other complex and dynamic systems; many-sided and wide applicability of outputs of the corresponding processing of required info~ation and to the creation of factual and other conditions for their really effective use in sectoral management.
GENERATION OF MANAGEMENT INFORMATION Management at any level can under all circumstances act rationally and effectively only on the basis of clear de~nition of the objectives of the managed system. However, a specific feature of sectoral management in a socialist society consists in the fact that both strategic and partial objectives must be established on the basis of generally valid developmental intentions of the society, in accordance with its basic principles and with a view to the existing circumstances, This is possible only at the level of institutions above sectors (governments, planning bodies, etc.). Only suprasectoral objectivized management information (the state devel-
opment plan together with a set of other standards) form, therefore, in a socialist society-and also in the currently designed new system of management structures--obli~tory bases for the operation of the management structures in individual sectors. Only through the transformation of suprasectoral management information do sectoral management systems determine both the long-term and annual tasks for individual sections of sectoral activities as well as conditions for the fulfilment of the assigned tasks by all elements of the managed system. In so doing, all that is required. mass or individual, differentiated as to their substance or otherwise di~erentiatcd activities performed within different time link-ups and under the conditions of wide dislocation should be at all times, through the functioning of all elements of the management system, effectively oriented towards the fulfilment of the defined social function of the sector concerned. This applies to the contents and volume and qualitative parameters of the outputs as well as to the required economic and other parameters of the implementation activities. At all times in the spirit of a valid suprasectoral management information, including cases of possibly necessitated changes of this supreme standard. The effectiveness of thus conceived management activities understandably emanates from the authority of the supreme social representation. Of no less importance, however, is conscious attitude by those participating in any required activities (both managing and managed) to the ultimate objectives of such activities and, thus. to principal objectives, needs and interests of the society concerned. In a socialist society, the intensity of this attitude is a factor which exerts an influence on any management act. This is why its growing application represents an important part of all programmes aimed at the development of socialist democracy. Information on the response of a managed object to management information (common feedback information inevitable for any management, whose generation for the closest higher management level belongs to the duties of any management body) in a socialist society includes also sets of other specific information on the capabilities of the managed object.
243
INFORMATION THE MANAGED
ON OBJECT -
Influence exerted by human participants in managed systems on the results of management decisions is at present subject to many scientific investigations in all social formations. In a socialist society, however, such influence is of direct institutionalized importance in terms of the right of the working people to co-decide on basic issues connected with the fulfilment of the set tasks. This right represents an actual possibility-and desirability-of the generation of information on the capabilities of the managed object which is being generated not only within various elements of the management system and, not only for the closest higher management level, but directly from basic levels for possibly the h.ighest level and even for the suprasectoral sphere; such information may be generated by participants in any activity. The above creates prerequisites for a steady flow of the most versatile, partial as well as conceptual, critical as well as stimulating information on the capabilities of the managed objects. The applicability of these information flows places certain demands with respect to the arrangement and processing of such information so that it can serve as a basis for proper and effective decision making on all management levels and in all components of the management system. The idea is to elaborate, for every level of management bodies, only such data on actual (continuously changing) state of the managed objects which call, in a given moment, for a management act, i.e. for an operational or even fundamental measure. This applies to immediate superior bodies as well as to higher .bodies, possibly also to the highest bodies and the suprasectoral sphere. Such a task obviously necessitates wide use of advanced computing technology in order to provide ‘every element of the management system at all management levels at the required time-limits ,with prompt information : - on the deviation and on the degree of deviation between actual performance by the given section of activities and the results required
with respect to all parameters (contents, volume, quality, time-limits, economy, etc.); on the causes of the observed deviations (positive as well as negative) of actual performance from the above requirements, i.e. on the deviation and on the degree of the deviation in performance conditions, including the difference between the required and actual quality of the management activity of the bodies concerned as well as on the influence exerted by the known external factors.
METHODOLOGICAL AND OTHER ASPECTS
The information which is to enable properremedial as well as encouraging-interventions by the corresponding management bodies must be prepared not only on time and based on true primary data. With a view to the described specific aspects of the generation of information on the capabilities of the managed objects, it must also be absolutely unambiguous as to its contents. Any data, in the entire management system and at any lapse of time, must always represent a statement on one and only one fact (on the deviation between the actual state and the standard). Only such unambiguity ensures the applicability of information in the entire management system. It calls, however, for the elaboration of standardized expressions for the designation of any possible deviation from the required characteristics of outputs as well as from the basic capabilities of the managed objects or activities; and also for the designation of other specific causes of possible deviations between actual results and the required state. An attempt at elaborating such a vocabulary of standardized expressions was made with respect to monitoring the results and quality of educational activities of individual components of the CzechoSlovak education systems. Its application confirmed the correctness of both theoretical assumptions and methodological procedures. However, it both called for and enabled deeper knowledge of substantive characteristics of the managed systems.
244 CONCLUSION
All this undoubtedly can be expected in the application of the same method for the building of automated systems of management for all sectors as well as for other complex dynamic systems under the conditions of a socialist society. At the same time, the very elaboration of an adequate instrument for effective management of complex dynamic systems brings about not only practical results, but also theoretical knowledge, for it calls for highly detailed analyses of basic aspectsof both target intentions and specific indicators which characterize the decisive factors exerting either direct or indirect influence on the quality of output processes. This in itself has led to substantial intensification of theoretical knowledge of the laws and basic conditions of management activities. It is on this basis that realistic prerequisites have
been created for ensuring effective application of the elaborated tools in the practice of management. For, as it has become obvious in the process of building sectoral automated systems of management and as it has been the case elsewhere, users’ capability and will to adequately use these tools do not come automatically. Neither can they be created by any generalized instruction. On the contrary, thorough, adequately demanding, methodologically mastered and, above all, sufficiently motivating preparations are needed. In the management systems of complex dynamic processes, too, we witness what is now in its entirety called human factor effect. And this is what had to be subjected to an analysis in the very relation to the application of sectoral automated management systems in a socialist society. The results of such an analysis can undoubtedly be considered a contribution to the entire contemporary management theory.
! 5 (1988) 241-244
Elsevier Science Publishers B.V., Amsterdam
--
241
Printed in Hungary
~~PLE~ENTAT~ON OF COMPUTER-ADDED MANAGEMENT SYSTEMS Gustav Czechoslovakian
BRANCH
Tomek
Technical University, Prague, Czechoslovakia
INTRODUCTION
Modern computing technology has so far mainly found application in Czechoslovakia in the processing of statistical, record-keeping and scientific data as well as in administration, especially in wage computing and accounting. It has been, to some extent, used to control technological processes. To a much lesser degree it has been used in the management of more extensive and complex systems or processes. As early as the mid-seventies, an urgent need became manifested to increase the effectiveness of integrated management of complex systems, the functioning of which ensures implementation of principal objectives of the steadily developing socialist society. Among other things, in 1975 this led to the incorporation, in the state programme of economic research, of a task to ensure the application of computing technology for the management of various producing as well as non-producing sectors. The task was understandably formulated with a view to the basic principles of the socialist system in which all economic and other working activities are aimed, in a planned manner, at ensuring steady improvement of the population’s standard of living, materially, culturally, educationally and socially. To this end: -- The above continuously innovated strategy of socialism is being implemented through fulfilment of stage-wise (five-year as well as annual) plans for individual sectors. - Sectoral plans are so oriented as to democratically ensure, in ail territorial regions of the
-
state, identical economic, cultural, educational and other opportunities for ,all citizens. Thus, a sector embraces integrated elements of a planned. all-round development of society, which is being, however, continuously influenced by many factors of different origin and dynamics, e.g. population growth, scientific and technological development, cultural development, etc.
EXPERIENCETHEORY AND
PRACTICE
The above specific characteristics of a socialist society raise also specific demands with respect to the building of automated systems of management of sectors-both producing and non-producing! Because of its very substance, the set task differed widely from demands arising in connection with the application of computing technology for integrated management of any extensive, complex and dynamic system in the non-socialist woitd-be it economic or other systems. It was, therefore, first of all necessary to create our own theoretical basis for the buiIding of sectoral automated management systems in the CSSR. To start with, it was necessary to undertake a profound analysis of concrete modalities of functioning of individual sectors in relation to the interests, needs and specific possibilities of the developing socialist society. It also involved an examination of laws, conditions and dynamics governing the necessary transfo~ations of these conditions, intentions and opportunities.
241
Only on the basis of the knowledge acquired was it possible to formulate views on information needs for adequate management of various sectors under the conditions of developed socialism; to undertake attempts aimed at creating adequate information systems for the management of specific sectors; and, to thus obtain factual and fundamental experience with respect to: -
-
-
-
realistic possibilities to increase, within the given social conditions, the effectiveness of sectoral management through creating adequate information systems; indispensable attributes for such systems; factual and fundamental prerequisites for their creation and, especially, for their practical application for effective sectoral management; paramount necessity and factual, methodological and technical requirements of machine processing of the information required for satisfactory management of sectors as well as of any other complex and dynamic systems; many-sided and wide applicability of outputs of the corresponding processing of required info~ation and to the creation of factual and other conditions for their really effective use in sectoral management.
GENERATION OF MANAGEMENT INFORMATION Management at any level can under all circumstances act rationally and effectively only on the basis of clear de~nition of the objectives of the managed system. However, a specific feature of sectoral management in a socialist society consists in the fact that both strategic and partial objectives must be established on the basis of generally valid developmental intentions of the society, in accordance with its basic principles and with a view to the existing circumstances, This is possible only at the level of institutions above sectors (governments, planning bodies, etc.). Only suprasectoral objectivized management information (the state devel-
opment plan together with a set of other standards) form, therefore, in a socialist society-and also in the currently designed new system of management structures--obli~tory bases for the operation of the management structures in individual sectors. Only through the transformation of suprasectoral management information do sectoral management systems determine both the long-term and annual tasks for individual sections of sectoral activities as well as conditions for the fulfilment of the assigned tasks by all elements of the managed system. In so doing, all that is required. mass or individual, differentiated as to their substance or otherwise di~erentiatcd activities performed within different time link-ups and under the conditions of wide dislocation should be at all times, through the functioning of all elements of the management system, effectively oriented towards the fulfilment of the defined social function of the sector concerned. This applies to the contents and volume and qualitative parameters of the outputs as well as to the required economic and other parameters of the implementation activities. At all times in the spirit of a valid suprasectoral management information, including cases of possibly necessitated changes of this supreme standard. The effectiveness of thus conceived management activities understandably emanates from the authority of the supreme social representation. Of no less importance, however, is conscious attitude by those participating in any required activities (both managing and managed) to the ultimate objectives of such activities and, thus. to principal objectives, needs and interests of the society concerned. In a socialist society, the intensity of this attitude is a factor which exerts an influence on any management act. This is why its growing application represents an important part of all programmes aimed at the development of socialist democracy. Information on the response of a managed object to management information (common feedback information inevitable for any management, whose generation for the closest higher management level belongs to the duties of any management body) in a socialist society includes also sets of other specific information on the capabilities of the managed object.
243
INFORMATION THE MANAGED
ON OBJECT -
Influence exerted by human participants in managed systems on the results of management decisions is at present subject to many scientific investigations in all social formations. In a socialist society, however, such influence is of direct institutionalized importance in terms of the right of the working people to co-decide on basic issues connected with the fulfilment of the set tasks. This right represents an actual possibility-and desirability-of the generation of information on the capabilities of the managed object which is being generated not only within various elements of the management system and, not only for the closest higher management level, but directly from basic levels for possibly the h.ighest level and even for the suprasectoral sphere; such information may be generated by participants in any activity. The above creates prerequisites for a steady flow of the most versatile, partial as well as conceptual, critical as well as stimulating information on the capabilities of the managed objects. The applicability of these information flows places certain demands with respect to the arrangement and processing of such information so that it can serve as a basis for proper and effective decision making on all management levels and in all components of the management system. The idea is to elaborate, for every level of management bodies, only such data on actual (continuously changing) state of the managed objects which call, in a given moment, for a management act, i.e. for an operational or even fundamental measure. This applies to immediate superior bodies as well as to higher .bodies, possibly also to the highest bodies and the suprasectoral sphere. Such a task obviously necessitates wide use of advanced computing technology in order to provide ‘every element of the management system at all management levels at the required time-limits ,with prompt information : - on the deviation and on the degree of deviation between actual performance by the given section of activities and the results required
with respect to all parameters (contents, volume, quality, time-limits, economy, etc.); on the causes of the observed deviations (positive as well as negative) of actual performance from the above requirements, i.e. on the deviation and on the degree of the deviation in performance conditions, including the difference between the required and actual quality of the management activity of the bodies concerned as well as on the influence exerted by the known external factors.
METHODOLOGICAL AND OTHER ASPECTS
The information which is to enable properremedial as well as encouraging-interventions by the corresponding management bodies must be prepared not only on time and based on true primary data. With a view to the described specific aspects of the generation of information on the capabilities of the managed objects, it must also be absolutely unambiguous as to its contents. Any data, in the entire management system and at any lapse of time, must always represent a statement on one and only one fact (on the deviation between the actual state and the standard). Only such unambiguity ensures the applicability of information in the entire management system. It calls, however, for the elaboration of standardized expressions for the designation of any possible deviation from the required characteristics of outputs as well as from the basic capabilities of the managed objects or activities; and also for the designation of other specific causes of possible deviations between actual results and the required state. An attempt at elaborating such a vocabulary of standardized expressions was made with respect to monitoring the results and quality of educational activities of individual components of the CzechoSlovak education systems. Its application confirmed the correctness of both theoretical assumptions and methodological procedures. However, it both called for and enabled deeper knowledge of substantive characteristics of the managed systems.
244 CONCLUSION
All this undoubtedly can be expected in the application of the same method for the building of automated systems of management for all sectors as well as for other complex dynamic systems under the conditions of a socialist society. At the same time, the very elaboration of an adequate instrument for effective management of complex dynamic systems brings about not only practical results, but also theoretical knowledge, for it calls for highly detailed analyses of basic aspectsof both target intentions and specific indicators which characterize the decisive factors exerting either direct or indirect influence on the quality of output processes. This in itself has led to substantial intensification of theoretical knowledge of the laws and basic conditions of management activities. It is on this basis that realistic prerequisites have
been created for ensuring effective application of the elaborated tools in the practice of management. For, as it has become obvious in the process of building sectoral automated systems of management and as it has been the case elsewhere, users’ capability and will to adequately use these tools do not come automatically. Neither can they be created by any generalized instruction. On the contrary, thorough, adequately demanding, methodologically mastered and, above all, sufficiently motivating preparations are needed. In the management systems of complex dynamic processes, too, we witness what is now in its entirety called human factor effect. And this is what had to be subjected to an analysis in the very relation to the application of sectoral automated management systems in a socialist society. The results of such an analysis can undoubtedly be considered a contribution to the entire contemporary management theory.