Solutions Gap In Socio-Economic Systems

Analysis of successful global experience in decision theory

The side effect associated with increasing or decreasing information increases the gap between the sequence of decisions taken by economic agents. Nevertheless, the problem of gaps has not been finally resolved.

The majority of decisions cannot be complete, i.e. transition from one decision to another must exist, and difficult to achieve completeness in management tasks is formed. The smoothness of task fulfilment is mostly not possible in practice, i.e. any task in decision-making is a few simple tasks, on the basis of which solutions to the whole problem are built.

In theory of decision-making it is possible to subdivide into segments: on the one hand, technical systems, on the other hand, social and economic, where processes take place in different ways.

In a technical system, decision-making has to be consistent and without gaps, as it cannot bridge the gap. In this case, the challenge is the continuum of actions that is inherent to the system ( Wu, 2016).

In social and economic systems, there is a problem associated with the specificity of economic agents who cannot make all decisions continuously because human thinking cannot solve all problems simultaneously. The problem consists of elementary actions, i.e. decisions are made on actual problems, and the connection between them and other unsolved problems is weak, i.e. there is still a lack of data and competence and as a result, this issue is not being worked out.

If we compare these systems, the decisions made in technical systems can be implemented in social and economic processes...

The solution gap is one of the complex problems of the modern apparatus of the theory of decision making, as all methods used in this area cannot explain the lack of transition between two consecutive solutions ( Akerkar & Sajja, 2009).

The general theory of acceptance is based on the stage of decomposition of one complex problem into small tasks to make it easier to solve the set goals. Loss of information as well as side effects lead to formation and distortion of data ( Shi, 2016).

What is the vertical solution gap in the economic system?

An economic agent is not always able to correctly assess and avoid these phenomena. In a national economy, the negative effects are more visible than in technical systems.

Vertical and horizontal gaps in the solution result not only in inefficiency, but also in the need for time resources to match the targets with the actual ones. These elements will be considered later in stages. Figure 1 shows the vertical solution gap in the economic system.

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Figure 1 shows the vertical solution gap that occurs when moving from a higher to a lower level. When forming a problem, this task is reduced not only to the difficulty of identifying gaps, but also to the need to fill this gap to achieve the target in the downstream area (Khalilov, 2018a, 2018b).

When making vertical decisions, the question about gaps in the lower levels arises. Information flows directed downwards need to be formed more precisely, and requirements to eliminate this negative phenomenon are increasing.

Vertical gaps in decisions are often found in state administration of the centralized type, in which management depends on the center. Nevertheless, this problem is not exhausted only because of decentralization, as there are always national goals to be implemented.

What is the horizontal solution gap in the economic system?

The national strategy does not always take into account the peculiarities of the regions, leading to the problem of a wider emergence of solution gaps at the lower level.

Let us consider the horizontal solution gap in the economic system Figure 2 .

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Figure 2 shows the horizontal solution gap. In this case there is a problem associated with the solution of economic agents on the same level or public services that have undivided powers ( Khalilov, 2017).

The problem lies in the complexity of coordination of all participants in the process. Breaking the problem into smaller parts contributes to the effectiveness of economic agents' activity in meeting the set tasks. For the most part, it is a question of forming a clear distinction between actors and powers to avoid this negative effect.

Horizontal gap in the solution of the problem is a fairly common problem of government agencies at a low level, which leads to the direct implementation of the set tasks on the ground.

Describe the characteristics and differences of these approaches among themselves

Thus, the decision making and the phenomenon of the gap are considered, this issue in the economic system allows achieving more efficient management. On the one hand, this issue affects the principles of management. It would seem that the issue should be removed from the monitoring function. The situation is getting worse, because thanks to management monitoring alone, it is not only impossible to eliminate the problem, but also to track the moments when gaps appear.

On the other hand, the business process is self-regulating, i.e. after starting a business these gaps are removed over time. To the difficulties encountered, it is possible to quickly find the right solutions for their arrangement in the enterprise.

The formation of complex strategies leads to an increase in the emergence of large masses of solution gaps in the organization.

When considering the two types of gaps in the economic system, it is possible to draw conclusions about the feasibility of a detailed study of the emergence and spread of solutions at various levels.