/ / Crisis management of the enterprise: the concept and essence.

Anti-crisis management of the enterprise: the concept and essence.

To the concept of "crisis management" isseveral different definitions. Crisis management of an enterprise is the process of using procedures and methods that are aimed at improving the economic and financial activities of an enterprise. Crisis management is designed to ensure that conditions under which the current financial difficulties of the enterprise will not become permanent.
The main factors leading to crisis situations in the enterprise, for which crisis management is necessary, are divided into two groups: internal and external.
External occur regardless of the activities of the enterprise:
1. Inflation;
2. Tax increases;
3. Change of power, changes in legislation;
4. War or force majeure situations, etc.
Internal appear in the process of the enterprise. They can be divided into groups:
1. The management team includes: ineffective management; high degree of commercial risk; underestimation of market conditions; poor management and accounting.
2. The production group includes: not high labor productivity with high wear of the operating system and high energy consumption;
3. The market group includes: excessive dependence on suppliers and customers; noncompetitive products.

In this case, crisis management is notsome kind of single anti-crisis panacea, since all the activities and anti-crisis strategy for each company is developed personally. It is very important to timely identify crisis manifestations affecting the organization’s activities. This will allow you to quickly mobilize its full potential to overcome adverse effects.
Crisis management of an enterprise is characterized by its principles, which are different from the positions of ordinary management.

The essence of crisis management lies inthe complexity of management measures aimed at preventing, diagnosing, neutralizing, as well as overcoming crisis phenomena and their causes. In other words, such management includes any active influence to ensure effective functioning, applicable in a broad and narrow sense. In a broad sense, it is a management system of a business object with the aim of countering a crisis, whereas in the narrow sense it is a system of management measures in relation to a particular enterprise that has fallen into a state of crisis, and it is imperative to establish the organization’s financial insolvency.
The essence of crisis management in management,foreseeing the danger of a crisis, analyzing its symptoms, using measures that reduce the negative effects of the crisis, as well as using its factors for further development.
The subject of the impact of crisis management are the factors of crisis, both perceived and real.
The possibility of such management is determined by:
- human factor, namely potentialresolute and active behavior of a person in crisis conditions, as well as his interest and desire to overcome the crisis, his awareness of the nature of the crisis, the nature and patterns of flow.
- knowledge of the cyclical nature of the development of socio-economic systems, allowing to anticipate crisis situations and prepare for them.

The need for such management is expressed inneeds to overcome the crisis, and mitigate its effects. To realize such a need is possible only by using special control mechanisms.
The need for such management is sometimes due tothe main objectives of the enterprise. Here the main thing is to increase the professionalism and discipline of the staff, the development of new safe technologies. With the management begins and the solution of technical problems.
Economic crisis management is also in search of - conversion, types of production diversification.