International Journal of Economics and Law.
Pursuant to Article 14 of the Rulebook on Categorization and Ranking of Scientific Journals,
the International Journal of Economics and Law is in category M23
COST MANAGEMENT IN THE FUNCTION OF BUSINESSDECISION MAKING
Leadership startegy regarding costs is, alongside diferentiation strategy, thebasic strategy in the creation and protection of company competitive position in the developed market. This strategy is based on cost optimization that can be achieved by efficientcost management at all levels within a company. In the course of the dynamic changes incompany’s business environment, traditional calculation models have become an unreliablefoundation for business decision making. Therefore, the companies opt for modern costmanagement system application for business risk reduction achievement, additional valueincrease, financial expense reduction, ie, their competitive position improvement.This paper indicates the significance and role of efficient cost management in moderncompanies providing appropriate business decision making by the company management.This paper further provides research results on calculation and cost management weak pointsin companies in Serbia, the influence of the most important factors on cost managementefficiency, with suggestions for the improvement of the process and cost management in thefunction of company competitive position increase.
THE DEVELOPMENT OF SERBIAN STATESHIP IN THECONTEXT OF INTERNATIONAL PUBLIC LAW AND THEROLE OF THE GREAT POWERS
Posing the question regarding the statehood of the Republic of Serbia andthe role of the great powers is extremely important, in order to see possible directions offurther development of the Republic of Serbia based on the study of the historical context ofthe various circumstances that affected the Serbian statehood as such. History points us toimportant factors that we should keep in mind even in the current circumstances of the newgeopolitical order and the rules of international public law, which largely have their roots inhistory. Although the circumstances have changed, the position of Serbia in internationalrelations was constant, the reason for this should be found in the fact remains that due toits position in the Balkans, Serbia is a very important strategic hub where the interests ofthe great powers of the East and West meet. The actions of those powers can be clearly seen,both directly in bilateral diplomacy, and indirectly, through the influence of their political,economic and military alliances on the development of Serbia, with a great tendency todirectly influence the position of Serbia. In the course of its development, Serbia acquiredvarious forms of political organization as well as geographical dimensions, again under thegreat influence of the aforementioned political axes. The ever-increasing changes in the relations of major players on the geopolitical scene affected the very position of Serbia, both onthe Balkan Peninsula and on the wider political scene. In certain periods, a great influencehas been noted, more precisely the dominance of the Ottoman Empire, then later the role ofthe Austro-Hungarian monarchy. Iin recent history, during the last century until today, the direct influence of Russia and the USA has changed in different phases, so that we can saythat. Serbia, whether independent in its organization or in the composition of other jointstates, has always strived to secure its independence, sometimes with less and sometimes withgreater success. It is important that in those battles of great powers, the country’s leadershiptried to recognize its own national interests and, accordingly, position itself as a bridge, notan obstacle or a bone of contention between these powerful actors. Certainly, it was noteasy and simple to achieve, especially, it seems, in today’s current events. The Republic ofSerbia has never faced a greater challenge to defend its statehood, territorial integrity andsovereignty, especially considering the current issue of the status of the Province of Kosovoand Metohija, the issue of which has undergone major changes even though it is based oninternational UN documents, among other things, Security Council Resolutions. This issuehas gained in importance all the more, especially considering the unilateral proclamationof the independence of the Serbian Province and the recognition of the same entity, mainlyby the countries of the so-called collective West, although not all countries, especially thosewithin the EU, are in full agreement. Such a state of disunity of the European Union on animportant issue of foreign policy not only creates and fuels new hot spots on fragile European soil with a tendency to secede without the consent of the home states, but also leadsto the issue of consensual settlement of disputes of national origin, which is one of the basicprinciples of functioning of the European Union.
THE ROLE AND SIGNIFICANCE OF THE MODERNTHEORETICAL FRAMEWORK OF CONCENTRATIONFOR THE BANKING SECTOR IN THE STRATEGICDECISION-MAKING PROCESS
In this paper, the authors present the modern theoretical aspects of concentration in the market with a focus on the banking sector and the impact on the process ofmaking strategic decisions. In this context, recent empirical and theoretical researches, whichare supported by findings from international scientific and professional literature, wereanalyzed. In addition to numerous strategic decisions, decisions on the selection of businesspartners and new organizational forms, as well as decisions related to the managementof the new organization as a whole, have an increasingly significant impact on achievinga sustainable competitive advantage. In the paper, the authors additionally indicate theimportance of analyzing the level of concentration in the financial market, especially in thebanking sector. In this regard, it was stated that strategic decisions are made at the highestmanagerial levels, which aim to achieve and maintain competitive advantage, maximizeprofits and sustainable growth and development of the banking sector. Behind the concept ofconcentration in the banking sector, we find the explanation that it is a form of associationof banks, by which they come under joint control, and a certain level of economic unity is created between them, which did not exist until the moment of association, because banks,legally and economically, acted as independent subjects. Partner banks participating in themerger/acquisition process must prove that the concentration will bring market benefits,that is, that there will be no unwanted market consequences in the sector.
MODERN FORMS OF ENDANGERING INTERNAL SECURITY
Every country attaches special importance to the organization of functionsthat enable its optimal development and survival in international relations. One of the mostimportant state functions is the function of security. State (national) security, most often,is understood as the ability of a state to preserve its integrity and ensure the uninterruptedfunctioning of all its structures and sovereignly and to efficiently resolve political, economic, social and other issues necessary to ensure the survival and progressive development ofindividuals, society and state.In accordance with the phenomena that threaten the security of the state and society,as well as the opposition to these phenomena, the external and internal components of thestate security system are distinguished.
POSSIBILITIES OF MORE EFECTIVE SPENDING OF FUNDSIN THE DEFENSE SYSTEM
In this paper, we will present our views, partial analysis and our proposalsfor possible solutions for more effective spending of resources for the defense of the Republicof Serbia. We believe that this is a very important topic in the current situation, when alllevels of decision-making and execution are looking at possible ways of saving, that is, ofrationalizing the consumption of all resources. It is known that a large part of the resources of the defense system of each country, including ours, is related to the procurement of“something that may be needed someday.” This is precisely where the starting point lies forlooking at and investigating the justification for the enormously high resources of a country’sdefense system, or rather for equipping and arming with means of combat and non-combattechniques. It is a well-known fact that in the world, including our country, the consumptionof defense funds increases every year, through the adoption of the budget of the Republicof Serbia and its rebalancing during one budget year. In this way, means for defense, i.e.expenses on that basis, reach extremely high values, while far more important areas of lifesuch as education, health, social protection, science and others are neglected and relegatedto the background. The latest research and data from this field show that our country, as wellas Croatia, records the highest level of defense spending. Thus, for example, in the last few years there has been a large increase in funds for the defense system, as well as the police,while at the same time there has been a decrease in funds for education, health and socialprotection. The state, i.e. its bodies, face an extremely important task, to make appropriatedecisions at this very sensitive moment, which, according to the current situation, will helpto overcome the already evident crisis in all spheres of life and properly allocate and directthe available resources so that there are no major consequences for the economy of the country and the standard of living of citizens. It is necessary to carefully evaluate where we canspend more effectively, that is, where expenses can be reduced in order to compensate anddirect the funds in the so-called “critical areas” and we know that these areas are currentlyenergy, supply, agriculture and others.
RESEARCHING THE EFFICIENCY AND FUNCTIONALITYOF BUSINESS SYSTEMS USING STATISTICAL AND DEAANALYSES
In this paper, the authors investigated aspects of whether DEA can shed lighton relative DMU performance issues with identified, conceptually key input and outputparameters and performance measures for representative DMUs of a business system. In thisregard, the CCR and BCC models were applied at the level of representative examples. TheCCR model is probably the most widely used in DEA analyses. It is also the most famousmodel based on the assumption of constant returns, which means that every feasible activity(k, i) implies the feasibility of activity (kt, it) for every positive number t. This model measures overall technical efficiency. The BCC model is used, in DEA, in the case of increasingor decreasing returns, when the change in the input variable is proportional (more or less)to the increase in output. This model measures purely technical efficiency (the efficiency measure is independent of business volume) by comparing the jth DMU unit only with unitsof similar size in a technical context.The authors were aware that an implicit assumption in DEA is that there necessarilyexists some relationship between inputs and outputs.Companies or subsidiaries (DMUs) can show high input productivity and very successful managerial performance in organizing appropriate inputs in the relevant production processes. The situation is presented in which, when companies operate with constantreturns to scale (CRS) throughout the observed period, it can be concluded that the size ofthe company is optimal.Specific research, related to surveys and tests, described in this paper, deals with theefficiency of DMU groups (constituent decision-making units within business systems orsupply chains). There are aspects of economies of scale, allocative inefficiency and inputreengineering in production systems (as well as analysis of changes in productivity, impactof key variables on productivity, efficiency and functionality) according to the adequacy ofidentified production and business functions of the company.The research results are presented in tabular and graphical form.
ANNEX OF AN EMPLOYMENT CONTRACT DUETO CHANGES IN WORKING CONDITIONS
This paper tries to point out the specifics of one institute from the labor relations segment, namely the changed working conditions and the changes that these newconditions entail in the formal sense, that is, the change in the employment contract betweenthe employee and the employer. It is a relatively new institute in the field of labor relationsin our area, which has certain specificities, and this can lead to the termination of the employment relationship, although the termination of the employment relationship is not theintention of the employer when he raises this issue (at least in most cases it is not, but abuseof contract, of course, is). However, due to the sensitivity of workers to any violation of theirrights regarding employment relationships, disagreements often arise that lead to the termination of the employment relationship. The opinion of the author of this paper is that bothparties should realistically look at all the circumstances that arise in such a situation, andhere we are primarily thinking of the worker. Iin a way, workers should with “cool-heads”look at what is offered to them as an option in the new employment relationship, and afterthat make a decision whether to accept the offer or not. In any case, the worker is left withthe possibility to try to prove the illegality of the changed conditions at the competent court.
THE WAYS OF ORGANIZING THE MOST IMPORTANTTYPES OF STATE AUTHORITY
The state, in general, is an organization that governs certain territory andhuman resources in that area. It is usually characterized by authority, the right to makelaws and a monopoly on the use of force within its borders. The state has its own legislative,executive and judicial bodies, which mutually function to maintain order and peace in thestate territory and provide services to its citizens.The basic functions of the state include governing the territory, regulating social relations,creating laws, ensuring public safety, regulating economic activity, education, health care,managing foreign relations and protecting human rights.A state performs these functions through the exercise of the most important types ofstate power, namely legislative, executive and judicial power. The legislative power meansthe authorities that pass laws and other legal acts, which relate to the functioning of the stateand the life of citizens, while the basic function of the executive power is to manage the stateapparatus, fulfill the laws and decisions made by the legislative power and manage variousaspects of state administration. The judiciary exists as a kind of guarantee of respect for lawsand their application in an equal way to all citizens, regardless of their position in society.The traditional understanding of the organization of state power is based on two opposingsystems, namely the system of division of power and the system of unity of power. The system ofdivision of power originates from the idea that different powers should be exercised by differentbodies independent of each other. There are three models that include a presidential system, aparliamentary system and a mixed system of government organization. These systems implythe existence of the three most important state authorities, which cooperate to a greater orlesser extent and limit each other in order to prevent abuse of power by some of them.Contrary to the system of division of power, it is possible to organize the most importantstate authorities on the system of unity of power, which is characterized by the existence of one, central body that has significantly greater powers compared to other authorities. Thissystem is largely abandoned today.
BUREAUCRACY AND TECHNOCRACY IN THE WORKPLACE
Work is the most important human activity performed every day in order toprovide the best possible quality of life and continuous progress in all fields of society. Whileworking, a worker uses his/her skills and knowledge necessary to simplify and facilitate thejob process as much as possible. Therefore, this paper deals with the concepts of bureaucracyand technocracy, as well as with their influence on the performance of work at workplaces.It seems that the mentioned terms are inextricably linked, since a wide range of jobs impliespossession of professional knowledge, abilities and skills in order to be able to carry out worktasks efficiently. A large number of theorists view the bureaucratic type of organization asthe ability to achieve the highest degree of effectiveness as well as corresponding advantages.Some of the common features of bureaucracy and technocracy are the following: they ensurehigh effectiveness and efficiency, but also enable application of knowledge, modern methods,calculations and activities that are characteristic for performing a wide variety of jobs. In thispaper the author explains who has power in the workplace, for what purposes that poweris being used and by what means, but also defines the procedures and ways to achieve theobedience of others within a certain working environment.
CONCEPTUALIZATION AND PERSPECTIVE OFCORPORATE GOVERNANCE OF STATE OWNEDENTERPISES IN SERBIA
Governance of companies in the Republic of Serbia in which the state is themajority or predominant owner for many years represents a big problem and an even biggerchallenge for all economic policy makers and power holders. Due to the unwanted social consequences and their political reflection, radical cuts in this area were avoided, despite periodsof great crisis and significant losses among some of the largest state-owned enterprises. Themajor financial crisis in the world in 2008 and the onset of the corona virus pandemic in 2019certainly contributed to the delay and hesitation. However, the foundations of a new policyin this area were already laid in 2020, and the Strategy of State Ownership and State SectorGovernance was adopted in 2021. At the same time, the Action Plan for the implementationof the Strategies in the period from 2021 to 2023 was adopted, so that in December 2022the Draft Law on the Management of Business Companies owned by the Republic of Serbiafinally saw the light of day. Undoubtedly, the corporatization of state enterprises and theimprovement of their operations, and above all management in this sector, are included inthe very top of national priorities. Regardless of the fact that the law has not yet entered theprocedure, the first radical move was made on April 6, 2023. The largest public company in Serbia, Elektroprivreda Srbije, was transformed into a joint stock company. In this paper, weshall consider some of the most important issues, problems and possible solutions, raised bythe above-mentioned documents, which are important for the organization, implementationand improvement of corporate governance in the public sector in the Republic of Serbia. Itis otherwise a very complex and sensitive matter, both in a practical and theoretical sense,which requires comprehensive research and complex answer, and the following text shouldbe understood as an invitation and incentive to the academic and professional public to paymore attention to them.
CONFLICT MANAGEMENT IN THE TEACHING STAFFOF A SECONDARY SCHOOL EDUCATIONAL INSTITUTION
Conflicts in everyday life are considered to be bad, they should be neutralized,solved or avoided. Management science and organizational theory say that conflicts are notunwanted. On the contrary, they are desirable to the extent that they bring about positivechanges. They are not manipulated, but managed. How it is implemented in practice dependson the national culture, the characteristics of the organization and its culture, the personality structure of individuals and their relationships in the group, that is, the organization.In successful and stable organizations, there are always conflicts, at different organizational levels, and they can be uncontrolled, spontaneous or deliberately created, with the aimof preventing the organization from becoming static. The minimum level of conflicts makesthe organization alive and creative. In organizations that are in the process of organizationalchanges, the level of conflicts is higher and they must be controlled, in order not to causenegative effects of changes, but to be useful for future performance.Education in Serbia for the last 20 years or more has been facing problems of modernization due to: new educational standards, state graduation, application of IT, methodsof financing, etc., which leads to contradictions. These contradictions arise between: new requirements for the quality of education and traditional ways and methods of teaching, theneed for new ways of management in educational institutions and the unwillingness of theexisting staff for changes, the need of modern society for rapid changes in educational institutions and the psychological unpreparedness of the pedagogical community for innovation. Resolving these contradictions often takes the form of conflict.Educational activity as a specific activity implies a difference in the interests of students,teachers, management staff, administration and parents. So, there are different intereststhat are a prerequisite for the appearance of conflicts. Is it possible to manage conflicts inan educational institution?As much as teachers know their school, i.e. their colleagues, the aim of the paper is topoint out the need to know the problems of conflicts, management and finding solutionsfor them. In order to achieve this, it is necessary to have knowledge about the forms andnature of the conflict. The paper gives an account of the experimental research on the stateof conflicts among the teaching staff, practical classes, in the high school of Graphics andMedia, Belgrade . The results show a higher percentage of avoiding, or withdrawing from,conflicts. The reason for this is that individuals do not insist on fulfilling their interests at theexpense of others, as well as a developed awareness of conflict behavior in specific institutions,such as educational ones. The age of the teaching staff also contributes to this. Teachers ofpractical classes are highly professionally prepared, which is evidenced by a favorable socio-psychological climate.