Principles of management
Introduction
Management is dynamic force which makes the business work smoothly and profitability. The
survival and success of an organization largely depends upon the quality of management. Managing well requires a good knowledge of the principles and practices of management. Efficient management is must for modern organization.
Meaning
Principles of management are the guidelines to be followed by every organization. No manager can be effective if he does not follow the principles of management. Therefore, managers in all organization whether big or small business, or non business, and all levels (top, middle or lower) must follow the principles of management. The founder was Henry Fayol DEFINITION Marry parker Follet management is the art of getting things done through people Henri Fayol to manage is to forecast and to plan, to organize, to command, to
coordinate and to control
Harold terry management is the art of getting the things done
1.Division of work
According to fayol , The intent of division of work is to produce more and better work fir the same effort . Specialization is the most efficient way to use human effort. . Fayol applies this principle of division of work to all kinds of work technical as well as managerial.
2.Discipline
According to Fayol ,Discipline requires observation of certain rules and regulation by all employees in the organization. Good superiors at all levels must have clear and fair agreements and application of penalties. They have to accept certain code of conduct while performing their jobs. In return the management has promised to increase wages of the workers when this mission is accomplished.
3.Authority and responsibility
According to Fayol Authority is the right to give order and obtain obedience, and responsibility is the one who is responsible for
certain function. Authority is both formal and informal. There should be a balance between authority and responsibility. An organization should build safeguards against abuse of managerial power. At the same time a manager should have necessary authority to carry out his responsibility.
4.Unity of command
Henry fayol
suggested that an employee should get orders from one superior only . if two superiors exercise their authority on the same employee, there will be disorder and confusion . In fast, dual command is always dangerous.
5.Unity of direction
Fayol suggested that there should be one head and one plan
for a group of activities having the same objective. In the absence of unity of direction there will be confusion among the employees. There should be same directions to all the employees doing similar activities. A particular activity must be directed with the help of a single plan.
Unity of direction
6.Centralisation
According to Fayol, extreme centralisation or decentralization of authority should be avoided and a proper balance between centralisation and decentralization should be maintained . Fayol also suggests that some degree of centralization must be introduced in order to have best result in terms of achievement of objectives .The concentration of decision making authority is called centralization.
7.Subordination of interest
THE GENERAL INTEREST OF THE ORGANISATION
MUST BE CONSIDERED PRIMARY AND INDIVIDUAL MUST BE SECONDARY.
THIS CAN BE OBTAINED BY EFFECTIVE CONTROL
AND SUPERVISION IN THE ORGANISATION.
8.Order
IT MEANS SYSTEMATIC ARRANGEMENT OF MEN
AND MATERIALS IN THE ORGANISATION .
There should be place for everything and everything
should be in its place.
IT REQUIRES PROPER SELECTION AND
CORRECT ASSIGNMENT OF EMPLOYEES IN THE ORGANISATION.
9.Stability of tenure
From the point of view of management it is absolutely
harmful to change the employees frequently as it is a reflection of inefficient management.
Managers as well as subordinates need some time to
learn and understand the job assigned to them. They will adjust the work within a short period. If they leave or are removed within a short period, the learning time will be wasted. Hence stability of personnel is necessary which means security of job.
10.EQUITY
THE PRINCIPLE OF EUITY RELATES TO THE TREATMENT OF SUBORDINATES.
MANAGERS SHOULD BE FAIR AND,FRIENDLY TO THEIR EMPLOYEE
SUBORDINATES SHOULD BE PERMITTED TO
TAKE SOME INITIATIVE IN PREPARING AND EXECUTING PLANS.
MANAGERS SHOULD ENCOURAGE
SUBORDINATES TO TAKE MORE INTEREST AND INITIATIVE IN THE WORK ASSIGNED.
IT PROMOTES NEW IDEAS AND STRENGHENS
THE ORGANISATION.
12.Esprit de corps
IT IMPLIES TEAM SPIRIT.
MUTUAL UNDERSTANDING,TRUST AND
CO-OPERATION AMONG THE EMPLOYEES LEADS TO TEAM SPIRIT.
IT LEADS TO SYNERGY.SYNERGY
MEANS EFFECT OF TWO PEOPLE WORKING TOGETHER IS MORE THAN SUM OF THE INDIVIDUALS EFFECT.
EXTENSIVE FACE TO FACE VERBAL
COMMUNICATION PROMOTES TEAM SPIRIT.
Team work
13.Remuneration
Wages and salaries should be fair Wages must be paid on time depending upon the factors
such as cost of living, ability of the company to pay, prevailing wage rates in the industry, etc. Apart from financial benefits, non-financial benefits should provided such as good working conditions, canteen facilities, recreation facilities,etc.
14.Scalar chain
According to this principal, scalar chain refers to the
line of authority and communication which moves in a straight line from the superior most authority to the lowest subordinate. Under this chain of authority, each communication moves from top to lower level and from lower to top level.
For example :
In this diagram A is the superior of the whole organization. B & K are heads of next level of management and so on. If F & O need to contact each other then acc. to scalar chain F will move to E, E to D, D to C and so on and finally to O. In some cases F can directly contact O but with the approval of E & N (immediate superiors). This is called Gang Plank
