Almaty Management University

PhD, Senior lecturer, Aiman M. Kazybayeva

Economic content of management quality

Modern conditions and processes of globalization dictate increased requirements to the state and development of the pharmaceutical enterprises, as the main activities of pharmaceutical companies subjects to the law of consumer preferences.

Appropriate directions of functioning and development of pharmaceutical enterprises are based on the active use of adequate management mechanism in their activities, which is based on the diagnostics of the efficiency measurement, and the management quality of concrete organization and development a set of measures for its improvement. Management quality today is a factor of systemic organization of the enterprise, ensuring its growth, profits, productivity, market success, competitiveness and financial stability. Despite the fact that the history of the research of the category "quality" has more than one hundred years, but until now scientists has heated discussion on this issue in the light of current approaches in the development of management theory and practice. The concept of "category of quality" had long and unfinished path of representation: from the basic of all existent, objective, systematic, functional to integral.

Each following review of the category of "quality" enriched the content of quality as the one side of the universe. Firstly, the category of "quality" was understood as existence of the thing, that is to say as formation of relations of thing properties to the characteristics of the world ground. Subject to the correspondence of properties of the thing and properties of the basis, then the possibility and probability of the existence of this thing was admitted. If there is no match, then the existence of the thing is impossible, and it should either cease to exist or change and appear in other quality. The category of "quality" is used in various fields of study, especially in management. The evolutionary process of this category in the theory and practice of management is quite diverse. Multidimensionality of the category characterizes a comparative analysis of the concept of "quality", conducted on the material of the accepted definitions from the existing different branches of knowledge and science. All the diversity of existing interpretations of the category of "quality" can be united into the following groups, listed in Table 1.

Table 1 – Modern approaches to the classification of “quality”

The approach to the definition of the category of "quality"	Characteristic of the category of “quality”
Quality as absolute estimation	Quality is the synonym of excellence
Quality as a property of production	Quality is a derivative of any quantifiable product parameter
Quality as performance capability	Quality is the ability of a product or service to perform its functions
Quality as correspondence to price	Quality is defined as the ratio of usefulness and price of a product or service
Quality as conformance to standards	Quality is defined as correspondence to the technical standards and conditions, which include target and allowable values of certain parameters of the product or service
Quality as customer satisfaction	Quality is defined by such concepts as the expectation and consumer needs
Note – it is made by the author, using sources (Shewhart Walter Andrew, 1931; Feigenbaum А., 1986; Juran J.M., 2004; Harrington D., 1990; Nikitin V.А., 2002)

The approach, which characterizes the quality as an absolute assessment of production. In this widespread meaning quality is considered as a synonym of excellence. In the 20s, Walter Shewhart physicist at the US company "Western Electric" made a significant contribution to the birth of the concept of "quality control". In his book "Economic management of industrial products' quality" he determined quality as “goodness, efficiency of product,” i.e., quality of the goods, in his opinion, is absolute, admitted by everyone, factor of an uncompromising conformity of the goods to certain standards" (1931, p. 372).

According to this approach, the quality cannot be measured, because it is an commodity item. Companies often thanks to the efforts of advertising their goods create the impression that their products have the absolute quality, but perfection – is abstract and subjective category, its perception is not unique. Therefore, such a definition of quality cannot be taken as a basis of objective evaluation of the products or services properties. The approach, which characterizes the quality as the derivative of any quantifiable parameter of the product. It was believed that the quality certainty of products depends primarily on its structure, nature of the elements link of the product as a whole, as well as the composition of its elements. In some cases, even the under extension of "quality" is used to single property. The product is considered as a set of the individual qualities or properties. In general terms, the "quality" of the product is in the complex of its properties.

The property is the way of expressing a particular side of the product in relation to other products with which it interacts. Product property consists, therefore, to produce particular action in another product, and finds itself by unique way in that action. The quality is higher, if this parameter is higher. For example, it is considered that the more cylinders engine has, the higher quality is. Thus, A. Feigenbaum considers that the quality of products or services can be defined as a general set of technical, technological and operational characteristics of a product or service by which a product or service will meet the requirements of the consumer when using (1986, p. 251). However, this definition is too narrow, since it does not reflect the practicality of products for the consumer and the other sides of the product.

The approach, which characterizes the quality as correspondence to the purpose of the product, is the ability of a product or service to perform its functions. The American scientist J. Juran defined quality of products or services as their fitness for use. Herewith the drawback of this approach can be illustrated by the following example. The large American company, manufacturing household appliances, signed a contract for the supply of refrigerators in Japan, which were in high demand in the United States and were considered high-quality appliances. However, in Japan this company was down and out as refrigerators were too big for small Japanese apartments - they simply do not pass through metal doors. Thus, the product, capable to perform all necessary functions for 100% in the country of origin, was useless for the Japanese customer (Juran JM, p. 237). This approach also is subjective and does not reflect the usefulness of the product.

The approach, which characterizes the quality as the compliance of cost. In this case, the quality is defined as the ratio of the usefulness of the product and its price. J. Harrington defined quality as meeting the expectations and preferences of consumers for the price, which they have and can spend, when they have a need for this product (1990, p. 89). From this point of view, qualitative is the only one product that by its useful consumer properties corresponds to competitors' products, but is sold cheaper or overcomes similar products of competitors at the same price according to its characteristics. This approach sets main goal to manufacturers - to find a balance between the formation of the necessary consumer properties in the finished product, on the one hand, and decrease manufacturing and non-manufacturing costs, on the other hand.

The approach, which characterizes the quality as compliance with standards. According to this manufacturing approach, quality is defined as the compliance of the product characteristics with technical standards and conditions, which include the target or permissible values of certain parameters of the products or services (Nikitin V.A., p. 49). However, the technical standards and conditions are meaningless, if they do not meet the requirements of customers, their expectations and possibilities. The approach, which characterizes the quality of the degree of satisfaction customers’ needs, determines the quality with the use of such concepts as the expectations and preferences of consumers. Since the beginning of the XX century the theory of consumer choice began to develop, according to which the consumer is the central figure of the economy. All his requirements are protected by national legislation (consumer protection).

Thus, the validity and possibility of practical application of this approach has limitations, which are connected to the fact that each consumer individually perceives the characteristics, properties and efficiency of this product. U.E. Deming answering the question “what is the quality?”, replied that "quality can be determined only using the rating system of the person, who uses the product, who judges its quality" (2011).

Russian and Kazakhstani scientists, concerned with the issue of quality in its various aspects, also repeatedly appeal and continue to appeal to the conceptual body, with regard to different objects of quality content research. For example, the Russian writer V.Yu. Ogvozdin offers the following definition: "Quality is a set of objectively existing properties and characteristics of product or service, the level of which is determined by the grade or other quality assessments that characterize use value of products" (1999).

Really qualitative products, according to Rakhimzhanova A.J. must not only meet the already established (set) customer requirements, but also forecast the unconscious, even to the consumer, potential needs. To achieve this level of quality well-known multinational companies direct their efforts, domestic enterprises of the republic should strive to such level of quality (Rakhimzhanova A. J., 2000).

Since the 1990s, a significant impact on the increase in interpretations of the term "quality" has a foreign management. In this regard, the translation of the term quality is expressed as: «quality (Eng.) - the quality, the degree of quality, the quality factor, meeting specifications, quality category, high quality, property" (Raizberg B.A., Lozovskiy L.Sh., Starodubtseva E.B., 2010). Such characterization of the term "quality" has the disadvantage that it comprises the combination of various kinds of concepts. The narrowing of the concept of "quality" to set of properties and characteristics of the goods leads to the semantic coincidence of the content of "quality" and "property", and it is not true and leads to a simplification of this category and dilution of its content. A systematic view will be presented to the concept of "quality" as an economic category. The definition of "quality" in the economic dictionary is formulated as follows: "quality is a set of object properties that determine its ability to satisfy certain requirements in accordance with its purpose" (Muller V.K., 1990).

The meaning of this definition is that the object comprises a set of properties or characteristics, which satisfy the desired requirements or demands in the application of the object. It should be noted that in this formulation object except characteristics that meet certain requirements, may have other ones, which have not been requested, but are present in the object. This definition focuses on compliance with the object, his existence and the possibility of using, according to the needs and requirements of the external environment.

If there is compliance of the object properties with the requirements of the environment, this means that the "quality" of the object also exists. This definition is much better than the interpretation of the "quality" only as a set of properties of this object. Let us analyze the characterization of the concept of "quality": firstly, if in this definition of "quality" the key words are: "a set of object properties," it leads to a narrowing of the meaning of "quality" as a category, as it was mentioned above. The quality of the object is fixed as a set of specific properties of the object, and this is important. However there are other words in this formulation of "quality", which significantly complete the content of this category. Secondly, if that certain definition includes such keywords as: "a set of object properties that determine its ability to satisfy certain requirements", why the concept of one more object capability is introduced, doesn’t a set of desirable properties really cover the requirements for this object? Thus, in the statement the focus is on what the object has except properties, and some ability to meet the requirements, caused by the object properties.

If we use a logical generalization, we can say that the category of "quality" is a category of relationship "of something to something". Quality is the ratio of the material space requirements to the properties of the object, and if the ratio is presented and implemented, and the properties of the object are in the agreement with the requirements which material space imposes to the object, therefore, the object can exist in this space. If the requirements for the properties of an object are imposed, the ratio is fixed without deviations for the entire list of characteristics or properties, hence the "quality" of the object exists and is fixed, and if the requirements are not imposed at least at one property, the "quality" of property is absent.

The evolution of the definitions of quality has shown that the category of "quality" is multifaceted and its content varies depending on what the requirements are imposed to it. In our view, "category of quality" is integral system characteristic of fulfilled ratio of the entire range of requirements for the properties of an object, and has two states, yes or no.

Let us consider the logical reliability of presented characterization of the category "quality" in the various states in relation to the socio-economic systems (SES):

- Material and objective state of SES;

- State of social relations of SES;

- In socio-cultural state of SES;

- In the informational field of SES (Panfilov V.Z., 1976).

Mankind has been studying for a long time and continues to study the material space. It revealed a certain order, heterogeneities were allocated. In the fields of science, there are ideas about "own" space. For managers at all levels their material space is unique determined- management, economic. Thus, Elin A.V., Elina I.E. in their work "The Management: philosophical aspects" gave consideration to hierarchical classification considered the ideal space. The authors placed emphasis on the need for hierarchy, determined the content of the management process in the information space, developed a structure (2009).

Now we can consider the category of "quality" as the category in the economic space and determine its location in all states of human activity, to analyze and clarify the characterization of this concept and possible deviations for the entire economic space (2010).

In the total space of life-sustaining activity, the material part of the space is separated from the ideal part of the space by human consciousness. Any economic space as the concept of location of human activity is a way of existence, collocation and interaction of existing subjects, objects and things. All total space, which contains the material and ideal parts, is a socio-economic space. Today, the socio-economic space is defined as "a set of variety of any objects, which are called its points" (The Great Soviet Encyclopedia, 1975).

Certain conditions, mechanisms, functions, different systems as physical, organizational, informational, social and economic can be taken for these points. Concerning their variety as socio-economic space, the researchers distracted from all the properties and consider only selected properties of complex, which are determined by specific relations. Spacial and temporal relations in such complex developing objects as a society, are specially specific (Great Soviet Encyclopedia, 1975, p.118).

Problems of space were studied in the theory of social systems (Weber M., Spencer G.I., and other), in system approach (Gvishiani D.M., Ashby U.R. and others), in activity approach (Schedrovitsky G.P. Anisimoz O.S., Dudchenko V.S. and others), in the theory of open and actively developing social systems (Aseev V.G., Glushkov V.M., J. Klir and others). A study of objects of socio-economic space was made by Bogdan M., Spencer G. and other scientists. This study now confirms that a great variety of processes of system interaction of economic structures of society and state gets along it, which derive from the result of human activity at solving problems and state management, corporate governance. This space is multidimensional, it is characterized by the connection of state and society, is considered as a living environment and human socialization, group, society or community (1997).

Economy management space is called socio-economic space in case, if it is a kind of hierarchy, social and economic, integrative structure, manageability, the properties of which determine the development, mutual arrangement and interaction of business entities, and giving them the opportunity, using its resources and material resources of space, to achieve goals and manage their life activity by most efficient way (Elin A.V., Shohov A.S. b 1996).

This characterizes a special property of space - the property of space manageability. The properties of manageability, standardization of space influence on the mutual positioning, relative position of subjects and form hierarchic information structure of space. The nature of material space forms the peculiarities, requirements and methods of the realization of all professional activities of manager, and, according to M. Mamardashvili, they are defined as the position of "organized thinking, inside which laws of dependence and set of things can be formulated" (1997).

Therefore, not understanding the structure, properties and nature of the socio-economic space, in which the activity of the management personnel of enterprises is implemented, it is impossible to talk about the features of its manifestations in order to optimize the management, results, as management processes, and as a social and economic system as a whole. Analytical introduction of the concept of socio-economic space certainly is not enough. It is important to find its modeling and instrumental introduction for its application in the study of problems of management theory. In my opinion, the idea of social and economic space as a place of localization of management activity, in which it can be presented both as the activity, and the structure and the management process due to the properties of this space, in its turn, allows solving the problem of the review of management activity from the perspective of the system approach, while in the model of management activities process and management structure serve as the unity and integrity in the system of socio-economic space.

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