The social market economy is the economy which is based on the principles of free competition, a free choice of subjects of consumption, freedom of disclosure and prosperity of the personality. It provides aspiration to capital investment rationalization, readiness for consumption expansion. The social sense of a market economy consists in that any success of economy serves the best satisfaction of needs and requirements of society.
The mechanism of management of society represents historically certain system of the organizations, tools, forms and methods of implementation of activity of society, with the relations and ways of motivation of activity of certain members of society, social groups and institutes inherent in it.
Planning methodology. It is the tool of knowledge of social and economic processes and active impact on them. It is carried out on the basis of development and realization in the course of practical activities of the principles of logic, methodological approaches and methods of scientific development of forecasts, projects, programs and plans.
That fact that planning acts as a subfunction of such function of management, as preparation and adoption of administrative decisions. In system of the main functions of management this function takes a priority place as process of management begins with it.
It must be kept in mind that increase of a standard of living is end in itself. As, first, the person strives for more qualitative solutions of any problem at the expense of receiving profit and salary increase, secondly, economic growth creates new workplaces, thirdly, economic growth facilitates structural changes in a national economy and NTP, in - chetver-tykh promotes, economic growth serves as a guarantee of social security.
The mechanism of the prices appeared the highly effective instrument of coordination of management. Expansion of decision-making process by producers for the adaptation to market conditions does not guarantee mistakes. However it disturbs adoption of large-scale decisions.
At the level of the enterprises planning and forecasting acts as the instrument of realization of market strategy of management, acting as an important condition of increase of efficiency and profitability of activity of the enterprises.
Planilogiya is closely connected with technical and natural sciences. The branch and functioning sciences use and develop the provision of all-methodological sciences of science of planning taking into account features of a subject.
Average and long-term forecasts proceed as from quantitative, and high-quality changes. In medium-term forecasts quantitative quality standard, and in long-term - kachestven-but-quantitative is given.
Owing to competitive fight the profit of the subjects who developed new technologies is limited in time. The subjects which are catching up pioneers during competitive fight deprive of pioneers of their advantages. Therefore the strong profit in the conditions of the continuous competition is achievable at those who aspires to innovations. The market economy is worked great mischief by restrictions of competitive fight.
Management in functional aspect represents the system showing the contents in the following functions: Preparation and adoption of administrative decisions. Organization of management of decisions. Stimulation of implementation of decisions. Account and analysis of the course of management of decisions. Control of process of implementation of the made decision. Operational management of process of implementation of decisions.
The decisive prerequisite for functioning of the mechanism of the prices is competitive fight. Information provided in market process on the contents and volume is much wider and fuller than in the conditions of the centralized management.
In the market of each type of goods there has to be enough sellers and buyers. The number of producers has to be more than 8-1 Market it is considered monopolized if 4 firms control 80% of branch.
Economic power of a market mechanism leans on the decentralized and free choice of profession, on possibilities of free decision-making concerning consumption and production of goods, on independent making decisions on use of the income and property.