Principles of Management Overview

Principles of Management

• A superior should be accountable for their subordinates' actions, and cannot delegate authority to avoid responsibility.

• Authority is how a manager accomplishes their goals. Each manager's authority should be defined clearly.

• The organization must attain its goals cost-effectively.

• The organizational structure should be simple with minimal levels to optimize communication and coordination.

• The organization should be adaptable to change. Flexibility allows the business to expand easily and economically.

• The size of various departments and the balance of centralization vs. decentralization must be proportional.

• The organization maintains stability if it can overcome the loss of key personnel without negatively impacting operations.

• Communication must happen effectively within and outside the organization to ensure effective working relationships.

• All activities with the same goal should be organized with one direction and one plan for unified coordination.

• Proper selection, placement, and training of personnel allows the organization to utilize its employees effectively.

Types of Organization

• Line, Military, or Scalar Organization

• Functional Organization

• Line and Staff Organization

• Project Organization

Henri Fayol's 14 Principles of Management

• Discipline - Respect for agreements focused on obedience, application, and respect. Managers are responsible for clear agreements and just consequences.

• Unity of Command - An employee receives orders from only one supervisor to avoid confusion and work delays.

• Unity of Direction - Every group of activities with the same goal has one leader and one plan.

• Subordination of Individual Interest to General Interest - The organization's needs come before individual needs to maintain unity and avoid conflict.

• Remuneration of Personnel - Compensation should be fair and provide satisfaction to both employees and employers.

• Centralization - Power is held by top management or a small group. Decentralized organizations allow departments and individuals to make decisions. Each organization should find a balance between centralization and decentralization.

• Scalar Chain - Hierarchy from the highest level to the lowest, with each manager responsible for maintaining a chain of command and authority.

• Order - Each person and object has a specific place in the organization. The right person and material should be in the right place for effective functioning.

• Equity - Managers should treat all employees fairly and justly to encourage loyalty and commitment.

• Stability of Tenure of Personnel - A stable workforce is an asset for the organization. Stability is maintained through responsible management, which reduces unnecessary labor turnover.

• Initiative - Employees should be encouraged to think independently and implement plans. This helps the organization improve and empowers employees.

• Esprit De Corps - Emphasis on teamwork, harmony, and understanding between employees. Effective communication is crucial for teamwork.

Levels of Management and their functions

• Employees within an organization are arranged in a hierarchy with superior-subordinate relationships.

• The number of levels in the management increases with business and workforce size.

• Each level of management has a chain of command, specific authority, and status.

• All managers perform all five management functions, but the relative importance of these functions varies across different levels of management.

This quiz covers the fundamental principles of management, focusing on accountability, authority, organizational structure, and adaptability. It aims to assess your understanding of how effective management can achieve organizational goals while maintaining flexibility. Test your knowledge on these critical concepts essential for successful management practices.