The Principles of Management — КиберПедия 

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The Principles of Management

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Management principles are guidelines for the decisions and actions of managers. They were derived through observation and analysis of events faced in actual practice.

The Principles of Management are the essential, underlying factors that form the foundations of successful management. According to (Henri Fayol) (1841-1925) in his book General and Industrial Management (1916), there are fourteen 'principles of management'. These can be used to initiate and aid the processes of change, organization, decision making, skill management and the overall view of the management function.

1 Division of Work:

The specialization of the workforce according to the skills of a person, creating specific personal and professional development within the labour force and therefore increasing productivity; leads to specialization which increases the efficiency of labour. By separating a small part of work, the workers speed and accuracy in its performance increases. This principle is applicable to both technical as well as managerial work.

2 Authority and Responsibility:

The issue of commands followed by responsibility for their consequences. Authority means the superior right a to give enhance order to his subordinates; responsibility means obligation for performance. This principle suggests that there must be parity between authority and responsibility. They are co-existent and go together, and are two sides of the same coin.

3 Discipline:

Discipline refers to obedience, proper conduct in relation to others, respect of authority, etc. It is essential for the smooth functioning of all organizations.

4 Unity of Command:

This principle states that every subordinate should receive orders and be accountable to one and only one superior. If an employee receives orders from more than one superior, it is likely to create confusion and conflict. Unity of Command also makes it easier to fix responsibility for mistakes.

5 Unity of Direction:

All those working in the same line of activity must understand and pursue the same objectives. All related activities should be put under one group, there should be one plan of action for them, and they should be under the control of one manager.

It seeks to ensure unity of action, focusing of efforts and coordination of strength.

6 Subordination of Individual Interest:

The management must put aside personal considerations and put company objectives first. Therefore the organization goal interests must prevail over the personal interests of individuals.

7 Remuneration:

Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences productivity. The quantum and methods of remuneration payable should be fair, reasonable and rewarding of effort.

8 The Degree of Centralization:

The amount of power wielded with the central management depends on company size. Centralization implies the concentration of decision making authority at the top management. The authority sharing with lower levels is called the decentralization. The organization should strive to achieve a proper balance.

9 Scalar Chain:

Scalar Chain refers to the chain of superiors ranging from top management to the lowest rank. The principle suggests that there should be a clear line of authority from top to bottom linking all managers at all levels. It is considered a chain of command. It involves a concept called a "gang plank" using which a subordinate may contact a superior or his superior in case of an emergency, defying the hierarchy of control. However the immediate superiors must be informed about the matter

10 Order:

Social order ensures the fluid operation of a company through authoritative procedure. The material order ensures safety and the efficiency in the workplace. Order should be acceptable and under the rules of the company

11 Equity:

Employees must be treated kindly, and justice must be enacted to ensure a just workplace. Managers should be fair and impartial when dealing with employees.

12 Personnel Tenure Stability:

The service period should not be too short and employees should not be moved from positions frequently. An employee cannot render useful service if he or she is removed before he becomes accustomed to the work assigned to him.

13 Initiative:

Using the employee initiative can add strength and new ideas to an organization. Initiative on the part of employees is a source of strength for the organization because it provides new and better ideas. Employees are likely to take greater interest in the organization functioning.

14 Esprit de Corps:

This refers to the need of managers to ensure and develop morale in the workplace; individually and communally. Team spirit helps develop an atmosphere of mutual trust and understanding

Conclusion

Management in businesses and organizations is the function that coordinates the efforts of people to accomplish goals and objectives by using available resources efficiently and effectively.

Management includes planning, organizing, staffing, leading or directing, and controlling an organization to accomplish the goal or target. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Management is also an academic discipline, asocial science whose objective is to study social organization.

Control questions:

1. What does mean managerial skills?

2. Can you give more information about management function?

3. What do you know aboutprocess of management?

4. Give more information about managers.

5. What kind of management function do you know?

6. What kind of principles of management do you know?

Literature

1. English for economists and managers: textbook/ O. V. Ulyanov, S. V. Grishin; yurginskiy technological Institute. – Tomsk: Publishing house of Tomsk Polytechnic University-theta, 2011. – 111 p.

2. Besanko D.A, Brauetugam R.R, Gibbs M.J Microeconomics,2011, Chicago

3. Griffiths A, Wall S.Economics for business and management,2011, England

4. Varian H.R. Intermediate microeconomics,2010, University of California at Berkeley

5. Boyd, W. Harper. Marketing Management.- Boston, 2010

 

Planning

The purpose: Consider the main aspects planning process, types of planning and what does mean group planning

Key words: planning,sectional planning,contribution (cooperation), consistent premising, commitment, coordinated planning

Questions:

7.1 Definition. Process of planning

7.2 Principles and types of planning

7.3 Group or sectional planning

 


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