Pub Date : 2019-10-18DOI: 10.33422/icrmanagement.2019.10.963
B. Swain
Each organization craves an effective and sustainable lifespan. The state of effectiveness and sustainability of an organization is dependent on its own culture. Organizational culture is a set of shared meanings, assumptions, values, and norms (Schein, 1992: Hofstede, 2001; Luo, 2005; Erkutlu, 2011; Campbell and Göritz, 2014). Therefore, the culture can be construed as the substratum, which guides an organization in its decision making and helps an organization in determining the nature of its every course of action. Further, organizational culture not only influences the behavioural manifestations of the stakeholders (internal as well as external) but also invigorates the relationship between the stakeholders and the organization. Since the organizational culture is critical to the holistic growth of an organization, it is required to be robust. The robustness squarely depends mainly on two items: Structure and Principles. Organizational structure is made up of various stakeholders from the bottom to the top and a well-knitted relationship between them. The principles are the values and norms which bring all the stakeholders with diverse objectives and unite them under one roof with a well-knitted and meaningful relationship. The current study is an endeavour to develop models for the structure and principles with an objective to usher a robust organizational culture. The study finds that the sociological perspective Functionalism has the potential to contribute to the genesis of the structure. The functionalism states that each member of the society is unique in its own way and therefore, has a unique role to play into the Being of a society. In the similar fashion, the principles are to be conceived taking attributes of Deontology – a dominant ethical perspective, which postulates dutycentric actions.
每个组织都渴望有效和可持续的生命周期。组织的有效性和可持续性取决于其自身的文化。组织文化是一套共同的意义、假设、价值观和规范(Schein, 1992; Hofstede, 2001;罗,2005;Erkutlu, 2011;Campbell and Göritz, 2014)。因此，文化可以被解释为基础，它指导组织的决策制定，并帮助组织确定其每一个行动过程的性质。此外，组织文化不仅影响利益相关者(内部和外部)的行为表现，而且还激活了利益相关者与组织之间的关系。由于组织文化对组织的整体成长至关重要，因此它必须是健壮的。稳健性主要取决于两个方面:结构和原则。组织结构是由从下到上的各种利益相关者和他们之间编织良好的关系组成的。这些原则是价值观和规范，将所有具有不同目标的利益相关者团结在一个屋檐下，建立良好而有意义的关系。目前的研究是努力发展结构和原则的模型，目的是建立一个健全的组织文化。研究发现，功能主义的社会学视角有可能对这种结构的起源做出贡献。功能主义指出，社会的每个成员都有自己独特的方式，因此，在社会存在中扮演着独特的角色。以类似的方式，这些原则被认为具有义务论的属性——一种占主导地位的伦理观点，它假定以责任为中心的行为。
{"title":"Exploration of a Model of Robust Organizational Culture: Inputs from Functionalism and Deontology","authors":"B. Swain","doi":"10.33422/icrmanagement.2019.10.963","DOIUrl":"https://doi.org/10.33422/icrmanagement.2019.10.963","url":null,"abstract":"Each organization craves an effective and sustainable lifespan. The state of effectiveness and sustainability of an organization is dependent on its own culture. Organizational culture is a set of shared meanings, assumptions, values, and norms (Schein, 1992: Hofstede, 2001; Luo, 2005; Erkutlu, 2011; Campbell and Göritz, 2014). Therefore, the culture can be construed as the substratum, which guides an organization in its decision making and helps an organization in determining the nature of its every course of action. Further, organizational culture not only influences the behavioural manifestations of the stakeholders (internal as well as external) but also invigorates the relationship between the stakeholders and the organization. Since the organizational culture is critical to the holistic growth of an organization, it is required to be robust. The robustness squarely depends mainly on two items: Structure and Principles. Organizational structure is made up of various stakeholders from the bottom to the top and a well-knitted relationship between them. The principles are the values and norms which bring all the stakeholders with diverse objectives and unite them under one roof with a well-knitted and meaningful relationship. The current study is an endeavour to develop models for the structure and principles with an objective to usher a robust organizational culture. The study finds that the sociological perspective Functionalism has the potential to contribute to the genesis of the structure. The functionalism states that each member of the society is unique in its own way and therefore, has a unique role to play into the Being of a society. In the similar fashion, the principles are to be conceived taking attributes of Deontology – a dominant ethical perspective, which postulates dutycentric actions.","PeriodicalId":316917,"journal":{"name":"Proceedings of The International Conference On Research In Management","volume":"127 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130812926","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-18DOI: 10.33422/icrmanagement.2019.10.964
Tatsuya Kimura
Many companies are using the Net Promoter Score (NPS) proposed by Reichheld (2003) as a replacement for traditional customer satisfaction indices to measure the relationship between customer loyalty and company growth. It is because of its simplicity of structure and ease of use for management; however, there are many criticisms that this scoring concept does not consider the culture and consumer characteristics of the country where it is used. In general, surveys are often affected by response bias, where participant responses may be influenced by various factors unknown to the researchers, one of which is response style. This study aims to examine the adaptability of the NPS in the Japanese market from the perspective of measurement criteria to avoid the current bias, thereby proposing the new concept as an adjustment. Focusing on the response style of Japanese consumers, the author investigates a more appropriate adaptation of the NPS measurement scale based on empirical analysis of customer response data from multiple companies and proposes a new measurement framework in Japan, the Promoter Score Japan (PSJ).
{"title":"An Introduction of the New Customer Loyalty Measurement in the Japanese Market","authors":"Tatsuya Kimura","doi":"10.33422/icrmanagement.2019.10.964","DOIUrl":"https://doi.org/10.33422/icrmanagement.2019.10.964","url":null,"abstract":"Many companies are using the Net Promoter Score (NPS) proposed by Reichheld (2003) as a replacement for traditional customer satisfaction indices to measure the relationship between customer loyalty and company growth. It is because of its simplicity of structure and ease of use for management; however, there are many criticisms that this scoring concept does not consider the culture and consumer characteristics of the country where it is used. In general, surveys are often affected by response bias, where participant responses may be influenced by various factors unknown to the researchers, one of which is response style. This study aims to examine the adaptability of the NPS in the Japanese market from the perspective of measurement criteria to avoid the current bias, thereby proposing the new concept as an adjustment. Focusing on the response style of Japanese consumers, the author investigates a more appropriate adaptation of the NPS measurement scale based on empirical analysis of customer response data from multiple companies and proposes a new measurement framework in Japan, the Promoter Score Japan (PSJ).","PeriodicalId":316917,"journal":{"name":"Proceedings of The International Conference On Research In Management","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132271287","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-18DOI: 10.33422/icrmanagement.2019.10.967
S. Hornung
This conceptual contribution identifies and deconstructs ideological rifts in management and organizational scholarship. People-oriented humanistic and critical perspectives are distinguished from the explicitly or implicitly profit-and performance-oriented mainstream. Past, present, and future manifestations of ideological antagonisms are examined. Underlying organizational paradigms are conversely oriented towards social-emancipatory belief-systems and ideals versus economic-utilitarian logics and objectives. Emancipation aspires to overcome oppression and limiting conditions, pursued in projects of humanization, such as organizational democracy, human relations, work redesign, and personality development. Utilitarian approaches emphasize economic imperatives of profits and performance, inherent in projects of economic rationalization, such as scientific management, personnel selection, leadership, and high-performance work systems. Philosophical roots, historical developments, and properties of antagonistic paradigms are reviewed. Drawing on a current academic debate, their present configuration is analyzed along the dimensions of individualism, competition, and instrumentality. These building blocks of neoliberal ideology are contrasted with humanistic ideals of individuation, solidarity, and emancipation. Exemplary applications of resulting counter-models to contents and processes of organizational research are examined. The paradigm of critical management studies is discussed as an alternative frame of reference, aimed at challenging psychologically, socially, or ecologically destructive, dysfunctional, or limiting tendencies with regard to work-related interests, ideologies, institutions, and identities, based on principles of de-naturalization, reflexivity, and non-performativity. Propositions are developed, how dialectically integrating humanistic and critical perspectives can contribute to exposing and overcoming blind spots, theoretical paradoxes, defensive biases, and hidden agendas as ideological constraints of mainstream management and organizational scholarship.
{"title":"Beyond Managerialism: Contributions of Humanistic and Critical Perspectives to Organizational Scholarship","authors":"S. Hornung","doi":"10.33422/icrmanagement.2019.10.967","DOIUrl":"https://doi.org/10.33422/icrmanagement.2019.10.967","url":null,"abstract":"This conceptual contribution identifies and deconstructs ideological rifts in management and organizational scholarship. People-oriented humanistic and critical perspectives are distinguished from the explicitly or implicitly profit-and performance-oriented mainstream. Past, present, and future manifestations of ideological antagonisms are examined. Underlying organizational paradigms are conversely oriented towards social-emancipatory belief-systems and ideals versus economic-utilitarian logics and objectives. Emancipation aspires to overcome oppression and limiting conditions, pursued in projects of humanization, such as organizational democracy, human relations, work redesign, and personality development. Utilitarian approaches emphasize economic imperatives of profits and performance, inherent in projects of economic rationalization, such as scientific management, personnel selection, leadership, and high-performance work systems. Philosophical roots, historical developments, and properties of antagonistic paradigms are reviewed. Drawing on a current academic debate, their present configuration is analyzed along the dimensions of individualism, competition, and instrumentality. These building blocks of neoliberal ideology are contrasted with humanistic ideals of individuation, solidarity, and emancipation. Exemplary applications of resulting counter-models to contents and processes of organizational research are examined. The paradigm of critical management studies is discussed as an alternative frame of reference, aimed at challenging psychologically, socially, or ecologically destructive, dysfunctional, or limiting tendencies with regard to work-related interests, ideologies, institutions, and identities, based on principles of de-naturalization, reflexivity, and non-performativity. Propositions are developed, how dialectically integrating humanistic and critical perspectives can contribute to exposing and overcoming blind spots, theoretical paradoxes, defensive biases, and hidden agendas as ideological constraints of mainstream management and organizational scholarship.","PeriodicalId":316917,"journal":{"name":"Proceedings of The International Conference On Research In Management","volume":"57 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128421077","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-18DOI: 10.33422/icrmanagement.2019.10.968
Attama Boonpalit
Aware of the lack of tourism trial and marketing, this project aimed to develop a Phetchaburi Royal Projects Trail Application to accommodate convenience tourists’ information finding. It was hope that this application can be used as a main tool to promote Phetchaburi tourism. This project divided the study into 2 phases. Phase 1: A Royal Projects’ Trail application was developed based on primary and secondary data. It was designed to be easy to use and fit the mobile screen with simply functions. Phase 2: Using PAR (Participatory Action Research) techniques such as workshops to enhance tourism development stakeholders’ participation by providing opportunities for giving information and gaining knowledge about how to market tourism via mobile app. From the 3 workshops, there were a total of 113 cooperatives’ members from Cha-am District, Tayang District and Talard District attending the workshops. It can be concluded that to initiate networking among tourism stakeholders in Phetchaburi Province we should begin with the cooperatives organizations in the areas for public relation and coordination to their members because the majority of farmers in Phetchaburi are members of the local cooperatives. Members of the cooperative are voluntarily involved in activities recommended by the organization. In addition, every cooperative organizations in Phetchaburi working in coordination with others, therefore; starting the public relation of the mobile app to the three cooperative organizations is a good start to sustain the app by extending users to other cooperatives, sponsored the app and moving toward smart city and smart tourism destination.
{"title":"Promoting Phetchaburi Tourism Using the Royal Projects Trail Tourism Application as a Main Tool","authors":"Attama Boonpalit","doi":"10.33422/icrmanagement.2019.10.968","DOIUrl":"https://doi.org/10.33422/icrmanagement.2019.10.968","url":null,"abstract":"Aware of the lack of tourism trial and marketing, this project aimed to develop a Phetchaburi Royal Projects Trail Application to accommodate convenience tourists’ information finding. It was hope that this application can be used as a main tool to promote Phetchaburi tourism. This project divided the study into 2 phases. Phase 1: A Royal Projects’ Trail application was developed based on primary and secondary data. It was designed to be easy to use and fit the mobile screen with simply functions. Phase 2: Using PAR (Participatory Action Research) techniques such as workshops to enhance tourism development stakeholders’ participation by providing opportunities for giving information and gaining knowledge about how to market tourism via mobile app. From the 3 workshops, there were a total of 113 cooperatives’ members from Cha-am District, Tayang District and Talard District attending the workshops. It can be concluded that to initiate networking among tourism stakeholders in Phetchaburi Province we should begin with the cooperatives organizations in the areas for public relation and coordination to their members because the majority of farmers in Phetchaburi are members of the local cooperatives. Members of the cooperative are voluntarily involved in activities recommended by the organization. In addition, every cooperative organizations in Phetchaburi working in coordination with others, therefore; starting the public relation of the mobile app to the three cooperative organizations is a good start to sustain the app by extending users to other cooperatives, sponsored the app and moving toward smart city and smart tourism destination.","PeriodicalId":316917,"journal":{"name":"Proceedings of The International Conference On Research In Management","volume":"36 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127914295","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-18DOI: 10.33422/icrmanagement.2019.10.962
Zizi Goschin
. Economic crises periodically disrupt the economic activity, severely putting to test the resilience capacity, and the ability to overcome hardships by adapting and changing. This happens everywhere, from micro (firm) level to macro (country/region) level alike. A large and continuously growing literature was dedicated to understanding the reasons behind the crises, their mechanism, effects and, most of all, the solutions. What if the answer lies not in solving the crisis after it started but in preventing, or at least preparing in advance for economic shocks by building resilience during good times, so that the impact of economic crises can be attenuated? Starting from these considerations, the paper focuses on regional economic specialization and its opposite – economic diversification, two business strategies already acknowledged in the literature as relevant factors for the capacity to mitigate economic crises. We tested the hypothesis of resilience-inducing economic diversification in the Romanian economy, using NUTS3 level data and found that more diversified regional economies were better at coping with the hardships triggered by the recent recession.
{"title":"Crisis Management or Crisis Preparedness? The Importance of Economic Diversification in Building Resilience to Economic Crises","authors":"Zizi Goschin","doi":"10.33422/icrmanagement.2019.10.962","DOIUrl":"https://doi.org/10.33422/icrmanagement.2019.10.962","url":null,"abstract":". Economic crises periodically disrupt the economic activity, severely putting to test the resilience capacity, and the ability to overcome hardships by adapting and changing. This happens everywhere, from micro (firm) level to macro (country/region) level alike. A large and continuously growing literature was dedicated to understanding the reasons behind the crises, their mechanism, effects and, most of all, the solutions. What if the answer lies not in solving the crisis after it started but in preventing, or at least preparing in advance for economic shocks by building resilience during good times, so that the impact of economic crises can be attenuated? Starting from these considerations, the paper focuses on regional economic specialization and its opposite – economic diversification, two business strategies already acknowledged in the literature as relevant factors for the capacity to mitigate economic crises. We tested the hypothesis of resilience-inducing economic diversification in the Romanian economy, using NUTS3 level data and found that more diversified regional economies were better at coping with the hardships triggered by the recent recession.","PeriodicalId":316917,"journal":{"name":"Proceedings of The International Conference On Research In Management","volume":"240 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116207557","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-18DOI: 10.33422/ijarme.v2i4.274
A. Aytekin
Tourism, the smokeless industry, has increasing importance in the development of countries because it creates added-value and employment. In Turkey, one of the World's most visited countries, the importance of this sector makes itself felt in economic crisis periods. On the other hand, in terms of investors, tourism companies always have the potential to be included in their portfolios. In this context, the aim of this study evaluates the financial performances of tourism companies publicly traded in BIST. For this purpose, the data of 2014-2018 were obtained from the Thomson Reuters Datastream database. The current ratio, quick ratio, cash ratio, debt ratio, total debt/equity ratio, net margin, return on equity, interest coverage ratio, total asset turnover, inventory turnover, and receivable turnover were used as financial ratios. The CRITIC method, one of the objective weighting methods, was applied to determine the importance level of financial ratios. A hybrid model consisting of MAUT, PROMETHEE and TOPSIS was used for evaluation of the companies. These techniques are based on different perspectives and algorithms. In this model, Borda was applied for aggregation of each techniques' ranking values. Thus, the financial performance of the tourism companies for the years 2014-2018 was evaluated more effectively. In conclusion, the company with the best financial performance is Marmaris Altinyunus (MAALT) in this period.
{"title":"Evaluation of the Financial Performance of Tourism Companies Traded in BIST via a Hybrid MCDM Model","authors":"A. Aytekin","doi":"10.33422/ijarme.v2i4.274","DOIUrl":"https://doi.org/10.33422/ijarme.v2i4.274","url":null,"abstract":"Tourism, the smokeless industry, has increasing importance in the development of countries because it creates added-value and employment. In Turkey, one of the World's most visited countries, the importance of this sector makes itself felt in economic crisis periods. On the other hand, in terms of investors, tourism companies always have the potential to be included in their portfolios. In this context, the aim of this study evaluates the financial performances of tourism companies publicly traded in BIST. For this purpose, the data of 2014-2018 were obtained from the Thomson Reuters Datastream database. The current ratio, quick ratio, cash ratio, debt ratio, total debt/equity ratio, net margin, return on equity, interest coverage ratio, total asset turnover, inventory turnover, and receivable turnover were used as financial ratios. The CRITIC method, one of the objective weighting methods, was applied to determine the importance level of financial ratios. A hybrid model consisting of MAUT, PROMETHEE and TOPSIS was used for evaluation of the companies. These techniques are based on different perspectives and algorithms. In this model, Borda was applied for aggregation of each techniques' ranking values. Thus, the financial performance of the tourism companies for the years 2014-2018 was evaluated more effectively. In conclusion, the company with the best financial performance is Marmaris Altinyunus (MAALT) in this period.","PeriodicalId":316917,"journal":{"name":"Proceedings of The International Conference On Research In Management","volume":"59 35 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130239410","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1900-01-01DOI: 10.33422/icrmanagement.2019.10.969
Matthias Kretschmar
The article explains the importance of good financial market communication for a company in order to achieve its financial objectives. The focus is laid upon the communication of Mittelstand (medium-sized) companies. Due to size and ownership-structure Mittelstand companies are not capital-market oriented but rather focused on the relationship with their financing banks. Based upon a literature research the principal-agent theory shall be applied to this relationship. It will be shown theoretically that the best way to achieve the company’s objectives in a relationship with a bank is the reduction of the bank’s agency costs which arise due to uncertainty of the bank being the principal in this concept if the company does not use its superior knowledge which it gains during execution of the contract for its own purposes. The information asymmetries which are perceived by the bank incur costs as the bank has to supervise if the company acts as initially agreed upon. It will be shown that the major impact of financial market communication on the reduction of agency costs is achieved by the creation of trust. Therefore, the different theoretical approaches which explain the establishment of trust will be viewed in the light of the communication measures of company with its bank.
{"title":"Financial Market Communication and the Creation of Trust in a Commercial Banking Relationship between Mittelstand Companies and their Banks","authors":"Matthias Kretschmar","doi":"10.33422/icrmanagement.2019.10.969","DOIUrl":"https://doi.org/10.33422/icrmanagement.2019.10.969","url":null,"abstract":"The article explains the importance of good financial market communication for a company in order to achieve its financial objectives. The focus is laid upon the communication of Mittelstand (medium-sized) companies. Due to size and ownership-structure Mittelstand companies are not capital-market oriented but rather focused on the relationship with their financing banks. Based upon a literature research the principal-agent theory shall be applied to this relationship. It will be shown theoretically that the best way to achieve the company’s objectives in a relationship with a bank is the reduction of the bank’s agency costs which arise due to uncertainty of the bank being the principal in this concept if the company does not use its superior knowledge which it gains during execution of the contract for its own purposes. The information asymmetries which are perceived by the bank incur costs as the bank has to supervise if the company acts as initially agreed upon. It will be shown that the major impact of financial market communication on the reduction of agency costs is achieved by the creation of trust. Therefore, the different theoretical approaches which explain the establishment of trust will be viewed in the light of the communication measures of company with its bank.","PeriodicalId":316917,"journal":{"name":"Proceedings of The International Conference On Research In Management","volume":"196 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122057646","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1900-01-01DOI: 10.33422/icrmanagement.2019.10.965
Genadi Iashvili
The development of the public administration information sector in Georgia has made it necessary to develop greater public sector openness, whereas in the era of information telecommunication technologies the development of open governance is a strategic commitment to promoting the economic well-being of a society, the formation of a democratic environment and stability. It enhances the country's macro and micro economic environment, national competitiveness, facilitates the necessary democratic change with rational actions, promotes improvement of public administration processes and encourages broadening of public transparency, efficiency and effectiveness. It is noteworthy to say that the Georgian government has declared development of open governance as a precondition and priority for strategic development, building of a democratic, free, legal state, economic and social advancement and development of human resources. The process of open governance development has a significant impact on the functioning of the public administration system in Georgia. The analysis of the state legal normative and governance practices of modern Georgia allows us to conclude that the introduction of open governance technologies and values helps to reduce misunderstandings between the state an
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