1.Generaral characteristic of the of the management of foreign economic activity process

Management of FEA – a distinct process consisting of planning, organizing, actuating and controlling of FEA, performed to determine and accomplish state objective by the use of human beings and other resources.

Management of foreign economic activity as a process, management consists of three aspects:

1)Management is a social process. Since human factor is most important among the other factors, therefore management is concerned with developing relationship among people. It is the duty of management to make interaction between people – productive and useful for obtaining organizational goal.

2)Management is an integration process. Management undertakes the job of bringing together human physical and financial recourses so as to achieve organizational purpose. Therefore, is an important functional to bring harmony between various factors.

3)Management is a continuous process. It is a never ending process. It is concerned with constantly identifying the problem and solving them by taking adequate steps. It is an on-going process.

Management of FEA consists of following stages:

-Identification of activities

-Departmentally organizing the activities

-Classifying the authority

-Coordination between authority and responsibility

2. Types of operations and procedures in management of fea

Business procedure – is a collection of related, structured activities or tasks that produce a specific service or product (serve a particular goal) for a particular customer or customers.

Components of a procedure:

1)Events. Events are the conditions which must exist for the procedure to be performed. It is something that happens as opposed to something that is done on purpose. It can think of as the effect which occur after sufficient cause is provided. Each process starts and end with an event.

2)Task. A task is the smallest unit into which the activity can be broken down. Breaking it down is not feasible for the purpose at hand. The business procedure describes the different activities as well as the interrelationship between them. It is important to note that inter-relationships are more important than the tasks.

3)Decisions. There might be certain decisions which may have to be taken as the part of a procedure. Leaving the decisions up to the people involved has undesirable consequences. It is likely that in the absence of clear guidelines, the decisions taken by different people will be different. This will create inconsistent experiences for the customers and bring down quality.

4)Inputs. Until gives inputs, a procedure cannot function. The correct inputs are like the correct food for the process. Just like eating unhealthy food makes us unhealthy, giving wrong inputs makes the process unhealthy and inefficient. Here are some common inputs required by a process.

5)People. Procedure require people with the correct aptitude and attitude. This is why braking down of tasks is so important. In a process driven organization, you can arrange for an unskilled person to do the mundane jobs while a skilled person can be deployed to do the important jobs. Matching skills with task requirements brings down costs and increases efficiency.

6)Information. The correct information needs to be made available to all the entities in the procedure. The worker must have the skill and must be well versed with the procedure. The Manager must get continuous feedback to ensure that the production is on target and as plant.

7)Outputs. The outputs from the procedure must be continuously monitored. This will help in measuring the effectiveness and efficiency of the process and suggesting changes as and when required.

Process Levels:

1)S1: this level is comprised of the basic activities that the organization needs to do. A better way to understand this would be to consider it the operation department of an organization. It assumes that all inputs have been provided as and when required is concerned with efficiency processing of those inputs and they conversation into the desired outputs.

2)S2:this level is composed of all the supporting functions like HR, finance and marketing etc. the objective of this level is to ensure that S1 gets all the inputs like men, money and materials as and when required. Any delouse or bottlenecks at this level have there effect on the efficiency of S1 activities. These groups of activities are also called “Support Functions” in contemporary management jargon.

3)S3: this level is concerned with oversight and control over S1 and S2 activities. There primary functions is control over the operation of the organization. This is the most important part of the internal organization of any firm. If the control procedures are not efficient enough, the principal-agency problem rears its ugly head. Simply put this best interest of the organization may not be the best choice for an employee. Therefore control systems are required to prevent this from happening by keeping a vigilant watch.

4)S4: this is the beginning of higher order systems. The focus here is more focuses towards the environment. The existence of any organization is contingent upon environment. For instance there must be a certain level of demand to consumer the output of the firm, certain level of materials and men to provide input for the firm and so on. Any changes in the factors have consequences on the organization. Therefore, S4 processes are meant to keep a watch on the environment and provide information so that necessary changes and alteration can be made. This is usually the middle management of the organization.

5)S5: this level looks in the internal and external situation of an organization and tries to align both of them. These processes are usually called “strategic” in nature and under the direct oversight of senior management. The primary activity here is decision making and effects are seen throughout the organization and its environment.