Principles of Management

Fayol developed theory of management. According to him managerial excellence is a technically ability and can be acquired. He developed theories and principles of management which are universally accepted and make him universalistic. He was pioneer of the formal education in management. Fayol's principles of management meet the requirements of modern management. Henry Fayol, a french industrialist, offered fourteen principles of management for the first time in 1916. During the period of 1920-40 in the U. S. many authors did hard work in developing and testing various principles of management.Today, there is a very lengthy list of management principles and it is not possible to give an exhaustive lot of these management principles. Here, we are giving some important principles of management. The 14 Management Principles from Henri Fayol (1841-1925) are: 1. Division of Work. Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive. 2. Authority and Responsibility. The right to issue commands, along with which must go the balanced responsibility for its function. 3. Discipline.Employees must obey, but this is two-sided: employees will only obey orders if management plays their part by providing good leadership. 4. Unity of Command. Each worker should have only one boss with no other conflicting lines of command. 5. Unity of Direction. People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it. 6. Subordination of individual interest (to the general interest).Management must see that the goals of the firms are always paramount. 7. Remuneration. Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect syste m. 8. Centralization and Decentralization. This is a matter of degree depending on the condition of the business and the quality of its personnel. 9. Scalar chain (Line of Authority). A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place.Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels. 10. Order. Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection. 11. Equity. In running a business a ‘combination of kindliness and justice' is needed. Treating employees well is important to achieve equity. 12. Stability of use of Personnel. Employees work better if job security and career progress are assured to them.An inse cure tenure and a high rate of employee turnover will affect the organization adversely. 13. Initiative. Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of ‘personal vanity' on the part of many managers. 14. Spirit of Co-operation (spirit de corps). Management must foster the morale of its employees. He further suggests that: â€Å"real talent is needed to coordinate effort, encourage keenness, use each person's abilities, and reward each one's merit without arousing possible jealousies and disturbing harmonious relations. â€Å" Principles of Management Fayol developed theory of management. According to him managerial excellence is a technically ability and can be acquired. He developed theories and principles of management which are universally accepted and make him universalistic. He was pioneer of the formal education in management. Fayol's principles of management meet the requirements of modern management. Henry Fayol, a french industrialist, offered fourteen principles of management for the first time in 1916. During the period of 1920-40 in the U. S. many authors did hard work in developing and testing various principles of management.Today, there is a very lengthy list of management principles and it is not possible to give an exhaustive lot of these management principles. Here, we are giving some important principles of management. The 14 Management Principles from Henri Fayol (1841-1925) are: 1. Division of Work. Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive. 2. Authority and Responsibility. The right to issue commands, along with which must go the balanced responsibility for its function. 3. Discipline.Employees must obey, but this is two-sided: employees will only obey orders if management plays their part by providing good leadership. 4. Unity of Command. Each worker should have only one boss with no other conflicting lines of command. 5. Unity of Direction. People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it. 6. Subordination of individual interest (to the general interest).Management must see that the goals of the firms are always paramount. 7. Remuneration. Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect syste m. 8. Centralization and Decentralization. This is a matter of degree depending on the condition of the business and the quality of its personnel. 9. Scalar chain (Line of Authority). A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place.Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels. 10. Order. Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection. 11. Equity. In running a business a ‘combination of kindliness and justice' is needed. Treating employees well is important to achieve equity. 12. Stability of use of Personnel. Employees work better if job security and career progress are assured to them.An inse cure tenure and a high rate of employee turnover will affect the organization adversely. 13. Initiative. Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of ‘personal vanity' on the part of many managers. 14. Spirit of Co-operation (spirit de corps). Management must foster the morale of its employees. He further suggests that: â€Å"real talent is needed to coordinate effort, encourage keenness, use each person's abilities, and reward each one's merit without arousing possible jealousies and disturbing harmonious relations. â€Å" Principles of Management Fayol developed theory of management. According to him managerial excellence is a technically ability and can be acquired. He developed theories and principles of management which are universally accepted and make him universalistic. He was pioneer of the formal education in management. Fayol's principles of management meet the requirements of modern management. Henry Fayol, a french industrialist, offered fourteen principles of management for the first time in 1916. During the period of 1920-40 in the U. S. many authors did hard work in developing and testing various principles of management.Today, there is a very lengthy list of management principles and it is not possible to give an exhaustive lot of these management principles. Here, we are giving some important principles of management. The 14 Management Principles from Henri Fayol (1841-1925) are: 1. Division of Work. Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive. 2. Authority and Responsibility. The right to issue commands, along with which must go the balanced responsibility for its function. 3. Discipline.Employees must obey, but this is two-sided: employees will only obey orders if management plays their part by providing good leadership. 4. Unity of Command. Each worker should have only one boss with no other conflicting lines of command. 5. Unity of Direction. People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it. 6. Subordination of individual interest (to the general interest).Management must see that the goals of the firms are always paramount. 7. Remuneration. Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect syste m. 8. Centralization and Decentralization. This is a matter of degree depending on the condition of the business and the quality of its personnel. 9. Scalar chain (Line of Authority). A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place.Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels. 10. Order. Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection. 11. Equity. In running a business a ‘combination of kindliness and justice' is needed. Treating employees well is important to achieve equity. 12. Stability of use of Personnel. Employees work better if job security and career progress are assured to them.An inse cure tenure and a high rate of employee turnover will affect the organization adversely. 13. Initiative. Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of ‘personal vanity' on the part of many managers. 14. Spirit of Co-operation (spirit de corps). Management must foster the morale of its employees. He further suggests that: â€Å"real talent is needed to coordinate effort, encourage keenness, use each person's abilities, and reward each one's merit without arousing possible jealousies and disturbing harmonious relations. â€Å" Principles Of Management Most of us have to work for a living†¦. Employee motivation issues. It is easy for any individual to lack motivation. This may result from monotonous working routines, even though we work for a living. Therefore, it is essential to consider employee motivation issues so that the employees work at their best and with full dedication. For some employees, working for living is not an issue and living for working is. Therefore, managers have to ensure that the employees are motivated always and do their best when working for an organization. 7. Can an individual be too motivated?Discuss? I don’t believe that an individual can be too motivated but rather excited or extremely encouraged to do any task. This may result from a variety of factors. Mainly, new job or new project issues are taken into consideration when evaluating an employee’s motivation level. It is necessary for an individual to be motivated always. This can be to such an extent that he or she delivers an excellent quality of work every time and this can result from positive thinking at work. CASE APPLICATION- â€Å"BEST BUY† 1. Explain†¦ expectancy theory?According to Maslow’s hierarchy of needs theory, this theory covers the basic needs of an individual and thus, different employee programs under this theory place a positive effect on the employee thereby increasing their motivation and their will to work. Best Buy offers the scope of self-management and gives complete freedom to its employees in every way. The disadvantage of Best Buy’s program using Maslow’s hierarchy of needs theory is the safety that I believe Best Buy lacks. Using the reinforcement theory, Best Buy has only been initiating changes without any reward benefits to the employees.The tasks completed by the employees are noted but I don’t think they are rewarded for this, which is a disadvantage according to this theory. According to expectancy theory as well, employees should be rewarded sufficiently for their performance that lacks in Best Buy. Having to work based on incentives is fine but the company should always reward the employee sufficiently for performance that motivates the employees further rather than having a mere change in the work environment along with choices. Giving choices to employees may also promote motivation as they choose and opt for what they are comfortable in.2. Log on†¦ job characteristics model. The Business Technology Consultant in Best Buy offers a lucrative position to those who are highly skilled and knowledgeable in the area. According to the job characteristics model, it meets all the criteria and therefore, helps the employee to be continuously motivated and satisfied with the job due to its changing needs throughout. The job offers skill development, task handling technique, highlights on the importance of tasks, liberty and they also receive feedback from their peers regarding this.Another job that is worth lo oking into is the special agent requirement in the Best Buy. He is mainly responsible for the networking aspect of the company and is supposed to aid the Business Technology Consultant in the improvement of company’s IT structure. However, this job lacks a few characteristics, as mentioned in the job characteristics model. I don’t believe there is any liberty as there are specified tasks so it is hard for the employee to be motivated all the time. 3. Design†¦managerial philosophy.While the incentive program of the CEO is rewarding for its employees, another way to acknowledge the employee’s achievement and motivate them is to set a record where there is an â€Å"employee of the week† chosen and they are rewarded based on their weekly performance on various levels rather than monthly performances. I believe this employee recognition program can bring about several changes, including competitiveness in the work environment where the employees will cont inuously be at work to improve their performance levels thereby giving them a chance to succeed on a weekly basis rather than monthly. 4.Suppose that you are the store manager†¦.. What are you going to do? In order to succeed with the customer-centricity, it is important to focus on customers more than the employees but they too should be given importance for their work. Providing immediate customer care and solutions to customers followed by a detailed insight into the products they want to buy can help in the succession of customer-centricity. Furthermore, it can be said that customers should be satisfied in every way and this means doing anything to achieve this motive. Therefore, customers are not only treated as first class citizens but important visitors to the store.The welcoming atmosphere created along with prompt customer service can help in the success of customer-centricity program. CHAPTER 17: Thinking about management issues: answer 5 Trust revolves around individ ual’s personal characteristics as well as the outside specific situations. Inclusion of both is essential to make decisions and therefore, both should be taken into account. It is the individual’s personal characteristics that draw attention towards trust. Outside specific situations strengthens the trust and therefore, play an essential role in the building of trust.Both are equally important to uphold trust in an individual. CASE STUDY DISCUSSION QUESTIONS 1. Describe†¦ might be? Ricardo Semler shows an innovative method for business strategies to succeed. His strategy helps in giving liberty to the employees to do whatever they want and this always motivates the employees, as they are already familiar with the organization’s objectives. I see many drawbacks though. There is no target and no management. This mostly leads to chaos and businesses should be built on the model of bureaucracy and the performance of all should be evaluated.Semler trusts all his employees and it is very rare that his kind of strategies would work for everyone in the business market. This is risky. There have been several successful businesses where bureaucracy has yielded successful results. 2. What challenges†¦addressed? â€Å"Hands-off† leader faces management problems and extreme chaos. There is no discipline or code of conduct. Therefore, such challenges can be addressed by ensuring there are proper codes of conducts, even as a â€Å"hands-off† leader to ensure that discipline is maintained in an organization.Being adults doesn’t imply the meaning that one should be completely independent. Objectives of the companies can be met in several ways but if they are achieved by proper means with proper idea proposal, we know what techniques are employed by the employees in achieving success. Proper monitoring is essential for tracking the success of growth and development for the organization. 3. How could†¦ Discuss? I certainly don’t think Semler’s method of running a business could actually serve as a helpful strategy to fulfill the criteria of proper etiquettes in business management.I can’t see future leaders identifying with Semler’s way of doing business as any method that lacks disciplines and proper codes is not a reliable or a professional way of doing business. It may be able to achieve short-term success but not long-term success. Leadership training is absolutely crucial for any organization and businesses with excellent leadership have been outstanding results of business success throughout, which is why we emphasize on leadership in business. 4.What could†¦. leadership? Ricardo’s leadership gives the employees their own space to out their creativity and innovation into practice without the extensive paperwork of approvals and disapprovals. This feature of Ricardo’s leadership can be very benefiting due to its motivating influence on the employees . Free flow of creativity helps the employees to freely exercise their rights to lead the organization towards success. CHAPTER 18 Thinking about management issues 4. When do†¦rights†?Electronic devices such as computers, videogames, video cameras and telephone monitoring step over the line from â€Å"effective management controls† when the devices used intrude the privacy of others. Therefore, it is absolutely essential not to infringe upon privacy of others as this is considered absolutely unethical. Privacy of one’s personal space is a right that every individual owns and therefore, it should not be infringed in any way. 5. â€Å"Every†¦Explain? I do believe every individual in an organization plays a vital role as they are responsible for contributing their efforts to the organization.Hence, every individual’s role counts. Control is something that the leaders of an organization do based on what kind of output they want to receive. These are not just managers but every supervisor in an organization who looks after certain tasks and groups for the completion of the tasks given to them. Therefore, control is not only restricted to managers but to every employee who has tasks to accomplish and is responsible for a group of people working under him or her. Ethical dilemma exercise I believe I’d opt for option A as I believe that is the most ethical thing to do.Viewing adult graphic content using company’s internet facilities is against the rules of the organization and this matter should be dealt with seriousness. Today, the manager is found to view such things on the internet. Some other day, we will have other employees of the organization doing the same thing. The sooner the issues are highlighted to the authorities concerned, the rest of the staff will be aware of the consequences of doing such acts and thus, this will not be repeated by other employees as well. Awareness is definitely important in this r egard and cannot be taken lightly.CHAPTER 19 1. Using†¦ tour? In order to enhance productivity, it is essential for the manager to learn more about operation management. Somewhere in the sun tour has to have certain input elements in order to process the output. Using exhibit 19-1, we know that the input elements would consist of people, technology, capital, equipment, materials, information that would further be processed and transformed into goods and services. This helps in the effective functioning of an organization followed by proper management of productivity.