THEORETICAL ASPECTS OF THE ESSENCE OF GOVERNANCE DISCLOSURE, ITS TYPES AND COMPOSITIONS

Abstract

In the context of a market economy and dynamic changes in the operating environment every business is confronted with the establishment of a clear management mechanism that can respond and adapt to the factors of influence and turn them into positive effects. The combination of all factors leads to the fact that the company should look for effective management decisions that will affect its production and economic activities, will help to overcome crisis phenomena, which will lead to diversification of technological processes and partial reorientation in order to increase competitive position in the target market. In order to achieve this goal, business entities need to develop a mechanism for making management decisions that will enable the efficiency of economic activity and increase competitiveness in the short-term. Today the management system is one that needs to be constantly innovated through the introduction of modern techniques and technologies. The key elements in this are the subjects and objects of management, among which there should always be interconnectedness, interdependence, they should be information oriented on top innovations in management and be ready to react quickly to changes with minimal losses in order to achieve the result. Therefore, the question arises in a more detailed study of the definition of «governance» by revealing its nature and constituents.
The article presents the interpretation of the «management» concept from the perspective of various foreign and domestic economists. Approaches to its definition are analyzed and the enterprise management system is examined: how it works, what are its key elements and how to get the maximum benefit. The main types of management are classified and their interaction is presented. The types of management that allow to understand the hierarchy of management and the fact that one type does not completely replace another and only complements it in order to realize general and specific functions based on the relevant rational principles in leadership of different organizations, taking into account current trends in business development, management practice and industry specificity.