SUMMARY

• 14 Principles of Management

  • Authority and Responsibility
  • Discipline
  • Unity of Command
  • Unity of Direction
  • Subordination of Individual Interests to the General Interests
  • Remuneration
  • Centralization
  • Decentralization
  • Scalar Chain
  • Order
  • Equity
  • Stability of Tenure of Personnel
  • Initiative
  • Espirit de Corps
• Authority


  Right to give orders and power to exact obedience
• Responsibility


  Involves being accountable
• Discipline


  Requires common effort of workers, penalties should be applied judiciously to encourage common effort
• Unity of Command


  Workers should receive order from only one manager
• Unity of Direction


  Entire organization should be moving towards a common objective in a common direction
• Subordination of Individual Interests to the General Interests

  Interests of one person should not take priority over the interests of the organization as a whole
• Remuneration


  Cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining worker's rate of pay
• Centralization


  Lowering the importance of subordinate role
• Decentralization


  Increasing the importance
• Scalar Chain


  Authority scale
• Order


  All materials and people related to specific kind of work should be treated equally for the sake of efficiency and coordination
• Equity


  All employees should be treated as equally as possible
• Stability of Tenure of Personnel

  Retaining productive employees is a high priority of management
• Initiative


  Management should take steps to encourage work initiative
• Espirit de Corps


  Management should encourage harmony and feelings of employees
• Organization


  People working together and coordinating their actions to achieve specific goals
• Goal


  A desired future condition that the organization seeks to achieve
• Management


  The process of using organizational resources to achieve the organization's goals by planning, organizing, leading, and controlling
• Organizational Resources


  • People
  • Machinery
  • Raw materials
  • Information
  • Skills
  • Financial capital
• Managers


  The people responsible for supervising the use of an organization's resources to meet its goals
• Organizations must provide a good or service desired by its customers
• Organizations providing desired goods/services

  • Campbell Soup providing quality food products
  • Physicians, nurses and health care administrators providing healing from sickness
  • McDonald's providing burgers, fries and shakes
• Organizational Performance


  Measures how efficiently and effectively managers use resources to satisfy customers and achieve goals
• Efficiency


  A measure of how well resources is used to achieve a goal
• Effectiveness


  A measure of the appropriateness of the goals chosen (are these the right goals?), and the degree to which they are achieved
• Henri Fayol was the first to describe the four managerial functions when he was the CEO of a large mining company in the later 1800's
• Four Functions of Management

  • Planning
  • Organizing
  • Leading
  • Controlling
• Planning


  The process used by managers to identify and select appropriate goals and courses of action for an organization
• Steps to good planning

  • Which goals should be pursued?
  • How should the goal be attained?
  • How should resources be allocated?
• Organizing


  Managers create the structure of working relationships between organizational members that best allows them to work together and achieve goals
• Leading


  Managers determine direction, state a clear vision for employees to follow, and help employees understand the role they play in attaining goals
• Controlling


  Managers evaluate how well the organization is achieving its goals and takes corrective action to improve performance
• Management Levels


  • First-line Managers
  • Middle Managers
  • Top Managers
• First-line Managers


  Responsible for day-to-day operation. They supervise the people performing the activities required to make the good or service
• Middle Managers


  Supervise first-line managers. They are also responsible to find the best way to use departmental resources to achieve goals
• Top Managers


  Responsible for the performance of all departments and have cross-departmental responsibility. They establish organizational goals and monitor middle managers
• Downsizing


  Eliminate jobs at all levels of management
• Empowerment


  Expand the tasks and responsibilities of workers
• Self-managed teams


  Give a group of employee's responsibility for supervising their own actions