INDICATIVE PLANNING AS A TOOL OF ALTERATIONS PROCESSES MANAGEMENT

Abstract

The purpose of the work* is to build models of indicative management. Indicative planning and management imply soft administration and give elements of the system the opportunity to maintain their superiority in fl xibility and rapid response capacity. The indicative planning model implies selective intervention in the areas where there is an imbalance of positive and negative factors. Indicative planning also combines the study of the current economic situation; the tasks, objectives, strategies and programmes to accelerate economic growth and development as well as macroeconomic projection for the economy as a whole. Thus, the art of planning is quite an active intervention in the economy with the purpose of overcoming main problems without exceeding herewith the existing authorities of the state apparatus and without breaking the fundamentals of economic development management.The result of indicative planning is the indicative plan which regulates: a) prognostic values of the subject area indicators under the conditions of inertial or innovation scenario; b) types of regulators to be applied by the executive powers to exert influence on the dynamics of indicators under the innovation scenario; c) indicators of the scale and the degree of depth of regulators application. The main functions of the indicative plan for country’s social and economic development are substantiation and elaboration of ways and methods of government regulating influence on the future trajectory of national economic development. The extrapolation of bygone trends should not prevail in the indicative plan development technology. The primary task is to reverse current negative trends in the socio-economic development, to overcome depression and stimulate economic growth. The indicative plan development starts with formulating the country’s socio-economic development objectives for a given perspective and assessing disposable resources that can be used in the objectives implementation.In the article the model of indicative planning and management that can be applied at all levels of the economy is introduced. The result of this model is a set of recommendations for management decisions.

Keywords

• indicative management
• economic-mathematical modeling
• analysis and synthesis of management decisions