Chapter 10Personnel Management 10.1ManagementPrinciples:Administration and Organization Principles10.2Centralization and Decentralization10.3Sper!isor" and #eadership St"les10.$%mportance o& Commnication10.'%n&ormation S"stem &or decisions10.(Moti!atingandDirecting:hman elements)e!alation and merit ran*ing10.+Personnel selection) testing and training10.,-radenionsandrelation.ith management10.1Management principles%n the Middles Ages /and e!en ntil recentl" in man" contries0 the &amil" nit .as the 1asic prodction organization. A s*illed cra&tsman taght his sons a trade) and the &amil" .as *no.n 1" its particlar trade and s*ill. Modern srnames as Carpenter) 2oldsmith) 3tcher) 4armer) and -a"lor are e!idence o& this de!elopment. Pro1lems o& administration .ere o& interest to stdents o& go!ernment e!en in ancient 2ree* and 3i1lical times. 4ormall")%n 1++() Adam Smith .rote 5-he 6ealth o& 7ations8 in .hich he de!eloped important economic concepts. 9e emphasized the importance o& di!ision o& la1or .ith its three chie& ad!antages: /10 an increase in the de:terit"/s*ill in per&orming tas*s) especiall" .ith the hands0 o& e!er" .or*man; /20 the sa!ing o& time lost in passing &rom one t"pe o& .or* to the ne:t; and /30 the 1etter o& ne. machines. -he de!elopment o& the &actor" s"stem reslted in an increased interest in the economics o& prodction and the entreprener./scienti