Architectonika of management system in agrarian sphere in conditions of sanction economy

Abstract: 

The development of management systems for the agro-industrial complex is complicated by the presence of the following negative trends that formed in the 90s: deterioration of rural infrastructure, low material and technical equipment of agricultural enterprises, the lack of highly qualified specialists and a massive outflow of the able-bodied population from the village. 

The study was carried out on the basis of generally accepted methods of analysis and interpretation of the results obtained. Consideration of the development of management systems is necessary for the adaptation of existing management systems for enterprises in the agro-industrial complex in the context of the introduction of economic sanctions to ensure the country's food security, the development of rural areas and their infrastructure. In the course of the research, theories and approaches to managing subjects of various levels of management were reviewed and analyzed. The fundamental differences of various control systems are highlighted and systematized, their weak and strong sides are established. The author classified the types of sanctions in the context of legal and economic sciences. Having studied and analyzed the existing terminology in the field of sanctions and economics, the author for the first time gave a definition of the sanctioned economy characterizing it as a system developing within the framework of the socio-historical formation of the state, functioning on the basis of the existing productive forces and production relations, the strategy and tactics of economic activity of which covers all links commodity production and distribution of material goods, existing within the framework of economic and legal measures of influence of a destabilizing nature for violation of any world norms, as well as with the aim of imposing the policy of the interested state (group of states). A classification within the framework of international relations is presented, which differs from the concepts of sanctions for legal entities and individuals, as well as states, in a more complete content and classification on economic grounds of measures of influence. The article also ranks the sanctions for export sanctions, import sanctions and economic isolation sanctions.

Keywords: Management system, agro-industrial complex, sanctions, agrarian sphere.

Introduction

The evolution of management systems began from the very beginning of the conscious mankind activity due to the constant complication of relations and systems of labor cooperation in production systems. The development of scientific and technological progress, labor specialization and cooperation make management systems acquire increasingly complicated forms, becoming integrated into complex hierarchically organized structures that exist in conditions of uncertainty and multifactorism. So they determine the specifics of the agro industrial complex activity. Each country forms its own management system, which has unique differences from others, and is closely connected with the political, social and economic life of the state. However, these factors do not play a decisive role in the formation of specific types of management activities due to the vertical subordination in a hierarchical management system, which initially forms the leading role of an individual – a leader. Owing to the close interconnection of each of the factors and the difference in their influence on the formation of the population worldview of a particular country and economic relations in society, it is impossible to assess the significance of each of them in the management system development.

Theory:

H.O. Repp in the scientific report stated that “management is a conscious, active, creative, labor activity aimed at achieving the set goals. Management of an economic system is a complex process in nature, continuous in execution time and clearly directed towards a specific goal. It is a process of influence of a control system on a controlled object, carried out according to a certain technology using various forms, methods and means in order to achieve the best economic and social results ”(Repp, 1994). He also notes that “the management system of an industry (Fig. 1), an enterprise or an institution is a specific set of these elements, which are in qualitative and quantitative ratios, interrelationships with each other, forming certain integrity, unity. It is characterized by the presence of causal links between the elements, governing and controlled subsystems, the dynamic nature of the system "(Gerchikova, 1997)

External environment

The main elements of the subject management system: management goals, objectives and functions management apparatus structure information and technical support management system staffing management system scientific support Management process (technology, methods, solutions)

Management objects

Figure1. Diagram of the industry management system.

In the process of evolution of management systems at the micro and macro levels, various theories of organizing management economic activities of institutions and countries have been proposed by scientists. Table 1 examines and analyzes the main and most popular theories of managing business entities.

Table 1.-Theoretical aspects of management organization

Theory	Authors	Essence	Economy level
Situational approach (Gerchikova, 1997), (Moreno- Luzon, Peris, 1982), (Aldrich, 1972), (Papworth, milne, boak, 2009), Samtselson, 1984)	F. Taylor, A. Fayol, A. Church, G. Emerson, G. Ford, P. Drucker, K. Knight, M. Star	The search for efficient production management mainly due to the internal reserves of the enterprise (association), considered as a closed system	Entity
Complex approach (Blauberg, Sadovsky, Yudin, 1970), O'Connor, McDermott, 2011), (Sadovsky, 1980)	A.A. Bogdanov, E. de Bono, G. Simon, P. Drucker, A. Chandler, S. A. Chernogor, Malyuta A.N.	The search for an effective management solution is carried out due to the most important factors of the external and internal environment.	Entity
Strategic management (Andrews, 1971), Ansoff, 1991), (Barney, 1986), (Caves, Porter, 1977)	Ackoff, G. Mintzberg, M. Porter	Considers an enterprise as an open system, the success of which is determined by the effectiveness of the internal organizational and economic mechanism, on the one hand, and the ability to adapt to the external environment, on the other	Entity
Monetarist theory (Friedmen, 1973), (Friedmen, 1958), (Maier, 1970), (Milton, 1974)	M. Friedman, K. Brunner, G. Simons, I. Fisher, F. Knight	Opposes any state intervention in the economy, in particular against the use of fiscal policy, accompanied by an increase in budget deficits	Macroeconomics
Keynesian theory (Samuelson, 1984), (Tobin, 1992)	John M. Keynes	Acts as a theoretical basis for government intervention in the spheres of production, distribution and consumption	Macroeconomics
Theory of supply (Thurow, 1993) (Wannicki, 1989), (Atkinson, Robert, 2006)	A. Laffer, J. Gilder, M. Evans, R. Mundell	Asserts that management efficiency is determined by reducing production costs	Macroeconomics
Rational expectations theory (Buiter, 1981) (Lucas, Sargent, 1991)	R. Burrow, R. Lucas, N. Wallace, T. Sargent, L. Leiderman, P. Minford, J. Mutt, W. Butter	Along with the state economic policy, the authors of the new classics call the imperfection of information, its limitations and distortion as a destabilizing factor in the economy.	Macroeconomics

Methods

The research data is information on theories and management systems of the agri-food sector. This information is based on the famous scientists- economists researches. Among the research methods the generally accepted method of analysis and interpretation of the results obtained can be named.

Model: Within the framework of this article, the following model is used, which makes it possible to conduct an actual analysis of the theories and management systems proposed over the years of economic science development, as well as to draw objective conclusions based on the results of this analysis.

Results

The study examines the agrarian sector of the economy, which is characterized by the following definition: “The agro-industrial complex is a set of sectors of the economy interconnected by the social division of labor that ensures the reproduction of food products and industrial consumer goods from agricultural raw materials in accordance with the needs of the society and the demand of the population. The structure of the agro-industrial complex includes three main spheres. Sphere I includes sectors supplying agriculture and other spheres of the complex with means of production, rural construction, etc. Sphere II is agriculture itself. Sphere III is the spheres which includes the industries that procure, transport, process, store and sell the final products of the complex. Sphere IV is being formed in the developed agro-industrial complex. It includes production, social, service, scientific, information and other infrastructures that do not directly create a product themselves, but are necessary for its creation and normal effective functioning (http://abc.informbureau.com/ html / aadiidiiuoeaiiue_eiiieaen.html). H.O. Repp in his writings emphasizes that “highly efficient activities in agriculture and other industries are possible only in the conditions of a scientific approach to management. The scientific foundations of management include the relevant theory, methodology and specific knowledge about the interrelated elements of management systems - principles, goals, objectives, functions, information, structure, personnel, processes, methods, technology and technical means of management ”(Repp, 1989). In view of the high importance of management systems in the sphere of the agro-industrial complex for the country's defense capability and self-sufficiency, the study of the problems of their improvement is under the close attention of both Russian and foreign scientists, which is highlighted in the works of V.R. Boeva, A.F. Sarkova, E.A. Borisov, V.F. Garkusha, V. Ya. Gorin and others. Quite accurately, in our opinion, the well-known scientist B. Z. Milner characterizes the purpose of the management system. He considers the following: "The diverse experience accumulated in different countries of the world shows that among all the resources of enterprises (material, labor, financial, etc.), it is management that is of paramount importance, the ability to develop goals, determine value guidelines, coordinate the performance of tasks and functions, train employees and achieve the effectiveness of the results of their activities” (Milner, 2002). According to S.G. Kara-Murza, from a large number of various indicators in management activities, the reliability of the management system should be especially highlighted, which is understood as the ability of the system to make effective management decisions throughout the entire time under various modes of its functioning. Reliability is manifested in the stable, trouble-free functioning of all elements of this system. It includes the following indicators: stability (reliability), readiness, flexibility, recoverability (Kara-Murza, 2002). We fully agree with this statement and believe that it is the reliability of the system and the efficiency of the decision-making by the governing bodies that are the key aspects in the effective functioning of an industry or an individual enterprise. For the effective functioning of the enterprise management system, it is necessary to fulfill a number of the following requirements: (Kara-Murza, 2002)

• existence of cause-and-effect relationships between the elements of the system;

• dynamism of the system, i.e. the system, without losing its properties, is able to vary under the influence of changes of external and internal factors;

• existence of parameters in the system, acting on which, it is possible to change the course of the process;

• ability of the controlled system not only to respond to the control action, but also to enhance it;

• ensuring the possibility of impact transmission;

• system integral character, its unity.

Analyzing all of the above, we can conclude that the management system is similar to a living organism and strives for constant evolution or improvement. But not all scientists support this approach and share the concepts of "improvement" and "development". So A.E. Gusev, in his writings, believes that: “The improvement and the development of the management system are diverse phenomena, the development of the system is deeper and, accordingly, determining. Many changes in the management system occur as a result of the improvement. However, not every improvement of the management system, and especially not every rationalization of it, can be considered as measures leading to the development of the system." (Gusev, 2002).

In our opinion, the management system improvement is impossible without its constant development and striving for the improvement. Under the conditions of a market economy and constantly emerging destabilizing external and internal factors, the system strives to modernize and search for permanent solutions, the tasks set for more effective functioning.

We believe that the management system of vital economy sectors is developing more efficiently and more rapidly under the influence of external factors, which include economic sanctions. To form the concept of a sanctions economy, let us consider the definitions of sanctions, their types and categories available in the literature. Sanctions against individuals, legal entities, as well as states are determined by a large number of wordings.

So, according to the Wikipedia encyclopedia "Sanction is a measure of influence applied to the offender and entailing adverse consequences for him" (https://ru.wikipedia.org/wiki/Sanction). According to this source, Soviet jurisprudence distinguished:

• criminal sanctions (imprisonment, etc.) imposed by a court decision;

• administrative and legal sanctions (fine, administrative arrest) imposed by administrative authorities;

• disciplinary and legal sanctions (displacement to a lower position, dismissal) imposed by officials in relation to subordinates;

• property sanctions (penalty) applied by the court or arbitration.

A big legal dictionary gives the following definition of sanctions (from the Latin sanctio - the strictest decision) - measures and decisions, as a rule, having a final character and having four main meanings (Sukharev, Krutskikh, Sukhareva, 2003):

• measures applied to the offender and entailing certain adverse consequences for him. Depending on the nature of the measures and the bodies applying them, they are divided into criminal law, administrative law, disciplinary law, property;

• structural part of the general rule of law, indicating possible measures of influence on the violator of the rules;

• a prosecutor's order authorizing coercive measures against a person suspected of a crime;

• in international law - measures of influence on a state that has violated the norms of law or its international obligations.

In the explanatory dictionary, the term sanction is defined as the approval of something by a higher authority, permission, as a measure applied by the state to the offender. The measure that is taken against the party that violated the agreement, the contract (Kuznetsov, 1998).

The Big Encyclopedic Dictionary gives the following definition (Borisov, 2003): “Sanctions are coercive measures for violating the established order of economic and financial activities have a preventive, compensatory or repressive function.

1. An Internet source defines a sanction as an element of a law norm providing consequences for the subject implementing the disposition. Sanctions can be both negative, unfavorable - punishment measures (imprisonment), and positive - incentive measures (parole, a bonus to an employee for the conscientious performance of his official duties) http://www.grandars.ru/college/pravovedenie /sankciya-normy-prava.html).

1. With regard to states, Wikipedia gives the following definition of sanctions: "International legal sanctions are collective or unilateral coercive measures applied by states or international organizations to a state" (https://ru.wikipedia.org/wiki/Sanction).

All of the above terms consider a sanction as coercive measures applied for failure to fulfill any obligations but without specifying certain measures of influence and consider this category within the framework of a legal prohibition or restriction.

L.E. Zernova and M. Farzanian, in their writings, propose to consider the sanction as an economic rather than a legal category and give the following interpretation of this concept: “An economic sanction is a legal restriction that is introduced by one country or several countries against one country or a group of countries, with the purpose of limiting economic, financial and trade activities and the adoption of certain social norms and patterns of behavior” (Zernova, 2014).

Having studied and analyzed the existing terminology in the field of sanctions and economics, we have for the first time given a definition of the sanctioned economy. It is characterized as a system developing within the framework of the socio-historical formation of the state. It functions on the basis of the existing productive forces and production relations. The strategy and tactics of economic activity of the sanctioned economy covers all links of commodity production and distribution of material goods. It exists within the framework of economic and legal measures of influence of a destabilizing nature for violation of any world norms, as well as with the aim of imposing the policy of the interested state (group of states).

L.E. Zernova and M. Farzanian propose the division of sanctions into economic and non-economic, which is presented in the following diagram (Fig. 2) (Gusev, 2002) and also present their vision of the classification of economic sanctions (Fig. 3) (Zernova, 2014).

Sanctions

Non-economic sanctions	Economic sanctions	By the size and limit of sanctions	By the number of targeted countries
	Trade sanctions	Limit sanction	Unilateral sanction
	Sanction for services	Complex sanction	Multilateral sanction
	Transport sanctions		International sanction(international sanction by UN resolution, UN Security Council sanction)
	Sectoral sanction
	Targeted sanctions

Figure 2. Classification of sanctions

Economic sanctions

Trade sanctions	Financial sanction	Sanctions for services	Transport sanctions	Sectoral sanction	Targeted sanctions
On export	On monetary transactions	On banks	On air transport	Against the energy sector	Against specific persons
On import	On precious metals operations	For payment systems (Swift, Visa Card …)	On maritime transport	Against the financial sector	Against specific individuals
On an investment			On land transport	Against the defense sector

Figure 3. Classification of economic sanctions.

Conclusion

To conclude, we can say that according to the author of the article, economic sanctions against states can be divided into export sanctions, import sanctions and economic isolation sanctions.

Export sanctions are measures of influence that restrict or prohibit the supply of a certain type of goods or tangible assets in general from enterprises of a targeted country.

Import sanctions are measures of influence that restrict or prohibit the purchase of a certain type of goods or tangible assets in general from enterprises of a targeted country.

Sanctions of economic isolation are measures of influence that restrict or prohibit the purchase and supply of a certain type of goods or tangible assets in general to a targeted country.

Thus, the author has given the definition of the sanctioned economy and its classification within the framework of international relations, which differs from the concepts of sanctions for legal entities and individuals, as well as states, by a more complete content and classification on economic grounds of influence measures.

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