Sunday, August 26, 2007
14 Principles of Management
Henry Fayol had given us 14 principle of General Management Theory in the year 1916. What're them? 1. Division of Work Specialization allows the individual to build up experience and to add value to the Organization. Thereby his productivity goes higher. 2. Authority The right to issue commands, along with which must go the balanced responsibility of the function. 3. Discipline Employees must obey, but this is two sided. Employees will only obey if management makes them to obey the efficient leadership. 4. Unity of Command Each worker must be having single point of contact and obeying orders. There must not be to many line of commands which will make the things complicated and conflicting. 5.Unity of Direction There must be a palpable direction and target to follow. Unity of command ensure that flow of expression of Unit goal to achieve. This is essential to ensure the direction and achieving unity of the Organization. 6.Payments Regular payments and wages has to be disbursed to the workers and is needed to be enhanced on a regular basis. 7. Sub-ordination of Individual Interests: Management has to ensure that the goal of the Organization is paramount and clear to all the leaders. 8.Centralization or Decentralization This is the point which is needed to be decided by the management to ensure all the above points discussed earlier and quality of personnel. 9. Scalar Chain A hierarchy is needed for the unity of direction. But lateral communications will always happen in an Organization as long as it's within the Superior's knowledge. Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the Organization. It should be overstretched and consisting of too many layers. 10. Order Both material and social order are necessary. The former minimizes lost time and useless handling of materials. 11. Equity In running a business a "Combination of kindliness and justice" is needed. Treating employees well is an important aspect to achieve equity. 12. Stability of Tenure of Personnel Employees work for the better job security and their productivity increase if a career growth path is defined well and progress is assured to them. An insecure tenure and higher employee turn over would surely 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. Esprit De Corps Management must foster the morale of its employees. He further suggests that, "Real Talents are needed to be co-ordinated , encouraged the keenness, use each person's abilities, and reward each one as per merit Now the question is why I'm discussing the basic 14 points here?. Most probably these are known to the boys of 1st Sem management classes or most of the managers. Sometimes, we know and do so many things but loose and forget the tracks of basics. I had seen many Organizations who could have prospered more what they're now. Unfortunately, they're having few lacuna in their system which wouldn't have allowed them to accept changes and they'll or sooner would be perished in the oblivion of people's meomry. The the video footage how people accepted changes positively. This is a video clipping available in YouTube Cisco Change Mangement Training Video "Change is the only constant and inevitable things to happen" so, managers are needed to cope up with change and Management should allow them to imbibe changes for the benefit of the Organization. Hence, change will not stop, either the Organization would have to change for the further growth or the go down and would be forgotten by the people. The erosion of an Organization can be sniffed by the good mangers and leaders, this starts with the people and from their dissatisfaction, higher people turn around and distrusts. Personally I had seen people who're working with Infosys, Tata Steel & Motors in India and Google , Microsoft in US. There are many, but I took few names here because I found many of my friends and colleagues who're working these places who dreams,, sleeps and eat their company and their roles. At the same time, I had seen many who're working in other places, they try to pretend as satisfied employees and try to get engaged think eat and drink about company, but unfortunately their dissatisfaction crops up at the back end of mind with the employer.