Modern Approaches to Strategic Management Regional Social and Economic System

• Main Author: S. Kozlovskyi
• Format: Article
• Language: English
• Published: LLC "CPC "Business Perspectives" 2010-03-01
• Series: Економіка розвитку
• Subjects: strategy; management; region; economic system.
• Online Access: http://www.ed.ksue.edu.ua/ER/knt/e101_53/e101kozl.pdf

Changes in economy of Ukraine over last years demand making sound strategic decisions, strategic management becomes an absolute must. Despite of the popularity of the given matter and rather great number of publications both by foreign and domestic authors, many the important questions still remain scantily studied and debatable. The central place among them is occupied by the problem of creation of complete scientific bases of strategic management and planning by complex social and economic development of regions.The aim of the given work is a theoretical research of the question of strategic management of regional social and economic system and development of a mechanism of strategic management of regions on a basis of heuristic vector-matrix method. Also the purpose of work is the development of the region control system structure as a social and economic object using the method of ranging of strategic problems.Under new conditions of functioning and development of regional social and economic systems it is reasonable to consider and specify methodical bases of strategic management.The author suggests using the developed heuristic vector-matrix methods of analysis. The graph theory is applied as a formal device in the given methods, which is an effective means for establishing precise logic conformity of the analyzed data. The basis for the suggested method are operations with columns which display structure of interrelation of a particular version of the strategy of regional development with those factors that provide its realization. It enables to establish structure of the general (typical) regional strategy for all variants and individual factors, which display features of each region. Results of such analysis allow formulating typical and individual approaches to strategic management of the region.Quality of management of the region as a difficult social and economic system will depend on a choice of the purposes and ranging of problems that influence the achievement of the main objective the most and according to this, on definition of strategic zones of managing and direction of regional efforts to the development of these zones.A region that is a social and economic system, authority, which develops the managing influence, has complex enough hierarchical structure, with a person, who makes decision at the top level and is required from the position of strategic management to do the following:-presence of vocational training in the field of the system analysis and techniques of making administrative decisions;-ability to predict both positive and negative consequences of decisions made and estimation of administrative risk;-skill to range factors of the external and internal environment that influencing a particular situation in a region.For a regional level of management, especially under the conditions of transitional period, the most comprehensible, as the author suggests is the method of strategic management by ranging the strategic problems that allows using the concept of a tree of objectives with their subsequent ranging.Multifunctionality of any social and economic system assumes formation of multilevel system of purposes that is represented as a tree of objectives.