The Effectiveness of Management Practice in the Market of Socially Important Services

Abstract

The management system of provision of socially important services is not good traditionally in any country. Problems are objective regularities of functioning of this sector, losing sight the objective laws in interaction between consumers and producers and the established practice of management in the market of socially significant services. This article discusses the patterns of management practice that must be taken in attention so the point of view of achieving maximum efficiency in the market of socially significant services. Midpoint in analysis becomes the consumer behavior in the market of socially important services; motives for his behavior and management practice of organizations which operating in this market. The target program which developed by the state don’t tackle the real problems of this sector of the economy. These programs set performance criteria that don’t reflect customer's requirements, and consequently, the sector of socially important services will remain ineffective in the eyes of a key customer. The concept of an effectiveness of the system of supplying socially important services requires the consideration of social, professional and economic efficiency. However, economic efficiency as key criteria for organizations in the market of socially important services cannot be exclusive and unique. Only professionalism in execution of key business processes can provide long-term economic efficiency in the organization. However, many organizations in the market of socially important services where the main goal become criteria of economic efficiency, provide only short-term economic effect, destroying themselves professionally and disappearing in the market.