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FOUNDATIONS OF MANAGING WORK AND ORGANIZATIONS PRINCIPLES OF WORK MANAGEMENT, PRINCIPLES OF EFFICIENCY, PRINCIPLES OF MANAGEMENT
AND ORGANIZATION
Henry Fayol• A French industrialist
• Developed the theory of management
• Managerial excellence is a technical ability and can be acquired.
• Theories and principles of management which are universally accepted
• Pioneer of the formal education management
• Offered fourteen principles of management for the first time in 1916
HENRY FAYOL'S 14 PRINCIPLES OF MANAGEMENT1. Division of work:
• A person is not capable of doing all types of work.
• Each job and work should be assigned to the specialist of his job
• Promotes efficiency
2. Authority and responsibility:
• Go together, the two sides of a coin
• If anybody is made responsible for any job, he should also have the concerned authority
• An efficient manager makes best use of his authority and does not escape from the responsibility
• In other words when the authority is exercised the responsibility is automatically generated
HENRY FAYOL'S 14 PRINCIPLES OF MANAGEMENT3. Discipline:
• Sincerity about the work and enterprise, carrying out orders and instructions of superiors, to have faith in the policies and programs of the business enterprise
• Does not advocate warming, fines, suspension and dismissals of worker for maintaining discipline
4. Unity of command:
• A subordinate should take order from only one boss and he should be responsible and accountable to him
• If the unit of command is violated: Authority is undermined
Disciplined in danger
Order disturbed
Stability threatened
HENRY FAYOL'S 14 PRINCIPLES OF MANAGEMENT5. Unity of direction:
• "One head and one plan" which means that group efforts on a particular plan be led and directed by a single person.
• Enables effective co-ordination of individual efforts and energy
• Create dedication to purpose and loyalty
6. Subordination of individual interests to general interests:
• The interest of the business enterprise ought to come before the interests of the praise individual workers
• Sometimes the employees overlook the interest of the organization.
7. Fair remuneration to employees:
• Wage-rates and method of their payment should be: fair, proper, satisfactory
• Reduces tension and differences between workers and management
• Create harmonious relationship and a pleasing atmosphere of work
HENRY FAYOL'S 14 PRINCIPLES OF MANAGEMENT8. Centralization and decentralization:
• One central point in the organization which exercises overall direction and control of all the parts
• The degree of centralization of authority should vary according to the needs of situation
• Centralization in small units and proper decentralization in big organization
9. Scalar chain:
• A chain of supervisors from the highest to the lowest rank
• It should be short-circuited. An employee should feel the necessity to contact his superior through the scalar chain.
• The flow of information between management and workers is a must; we cannot always depend on the established scalar chain
HENRY FAYOL'S 14 PRINCIPLES OF MANAGEMENT10. Order:
• Proper, systematic and orderly arrangement of physical and social factors, such as land, raw materials, tools and equipments and employees
• Safe, appropriate and specific place for every article and every place to be used effectively for a particular activity and commodity
• Specific place for everyone
11. Equity:
• There should not be any discrimination as regards caste, sex and religion
• An effective management always accords sympathetic and human treatment
• This will create loyalty and devotion among the employees
HENRY FAYOL'S 14 PRINCIPLES OF MANAGEMENT12. Stability of use of personnel:
• If the members of the team go on changing the entire process of production will be disturbed
• The interest of the enterprise that its trusted, experienced and trained employees do not leave the organization
• Stability of job creates a sense of belongingness
13. Initiative:
• The successful management provides an opportunity to its employees to suggest:
Their new ideas
Experiences
More convenient methods of work
• The employees discover better alternative approach and technique of work
HENRY FAYOL'S 14 PRINCIPLES OF MANAGEMENT14. Spirit of Co-operation (Spirit de crops):
• Individual and group efforts are to be effectively integrated and coordinated.
• Production is a team work for which the whole-hearted support and co-operation of the members at all levels is required
• Everyone should sacrifice his personal interest and contribute his best energies to achieve the best results
• Approach of the management towards workers' welfare: Raise the importance of the members for their valuable contribution
Effective coordination
Informal mutual social relationship between members of the group
Positive and constructive approach
STRATEGIC MANAGEMENT• Good strategies can lead to high organizational performance
THE IMPORTANCE OF STRATEGIC MANAGEMENTThe environmental shocks during the decades of the 1970s and 1980s forced managers:
• To develop a systematic means of analysing the environment
• Assessing their organization's strengths and weaknesses
• Identifying opportunities that would give the organization a competitive advantage
• And incorporating these findings into their planning
The Concept of Strategic Management
• Strategic management is the set of managerial decisions and actions that determines the long-run performance of an organization
• It entails all of the basic management functions--planning, organizing, leading, and controlling
• Strategic management is important to organizations because it:
Helps organizations identify and develop a competitive advantage
Provides a sense of direction so that organization members know where to expend their efforts
Helps highlight the need for innovation and provides an organized approach for encouraging new ideas related to strategies
The Concept of Strategic Management
Strategies are large-scale action plans for interacting with the environment in order to achieve long-term goals.
THE STRATEGIC MANAGEMENT PROCESS1. Identifying the organization's current mission, objectives, and strategies
2. Analysing the external environment
3. Identifying opportunities and threats
4. Analysing the organization's resources
5. Identifying strengths and weaknesses
6. Formulating strategies
7. Implementing strategies
8. Evaluating results
THE STRATEGIC MANAGEMENT PROCESS1. Identifying the organization's current mission, objectives, and strategies
2. Analysing the external environment
3. Identifying opportunities and threats
4. Analysing the organization's resources
5. Identifying strengths and weaknesses
6. Formulating strategies
7. Implementing strategies
8. Evaluating results
Level of Strategies• Corporate-level strategy
• Business-level strategy
• Functional-level strategy
Coordinating strategies across these three levels is critical in maximizing strategic impact
Corporate-level StrategyA grand strategy (master strategy) provides the basic strategic direction at the corporate level of the organization.
• Growth strategies Concentration
Vertical
Integration
Diversification
• Stability strategies
• Defensive strategies Harvest
Turnaround
Divestiture
Bankruptcy
Liquidation
Business-level StrategyBusiness-level strategies provide advice about specific strategies for various businesses
• A cost leadership strategy
• A differentiation strategy
• A focus strategy
Functional-level Strategy• Strategies at the functional level are important in supporting a business-level
strategy.
• Functional areas develop the distinctive competencies that lead to potential competitive advantages.
Strategy ImplementationIncludes the various management activities that are necessary to:
• Put the strategy in motion
• Institute strategic controls that monitor progress
• Achieve organizational goals
Synchronization of the factors:
• Technology
• Human resources
• Reward systems
• Decision processes
• Organization structure
• Strategic control
Thank you.Contact: [email protected]
