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PRINCIPLES OF THE MANAGEMENT
Different scholars offer different sets of principles of management. The most famous are the following fourteen. But the main principle should be read as follows: "there is nothing rigid or absolute in management affairs, it is all a question of proportion." Accordingly if you view the following list of these principles as a set of important topics and sometimes applicable guidelines for managers, you will be keeping close to the spirit in which they were originally suggested.
1. Division of work. Within limits, reduction in the number of tasks a worker performs or the number of responsibilities a manger has can increase skill and performance.
2. Authority. Authority is the right to give orders and enforce them with reward or penalty. Responsibility is accountability for results. The two should be balanced, neither exceeding nor being less than the other.
3. Discipline. Discipline is the condition of compliance and commitment that results from the network of stated or implied understandings between employees and managers. Discipline is mostly a result of the ability of leadership. It depends upon good supervisors at all levels making and keeping clear and fair agreements concerning work.
4. Unity of command. Each employee should receive orders from one superior only.
5. Unity of direction. One manager and one plan for each group of activities having the same objective is necessary to coordinate, unify, and focus action.
6. Subordination of individual interests to general interest. Ignorance, ambition, selfishness, laziness, weakness, and all human passion tend to cause self-serving instead of organization-serving behavior on the job. Managers need to find ways to reconcile these interests by setting a good example and supervising firmly and fairly.
7. Remuneration of personnel. Various methods of payment may be suitable, but amounts should reflect economic conditions and be administered to reward well-directed effort.
8. Centralization. Like other organisms, organizations need direction and coordination from a central nervous system. But how much centralization or decentralization is appropriate depends upon the situation. The degree of centralization that makes best use of the abilities of employees is the goal.
9. Scalar chain (line of authority). The scalar chain is the chain of command ranging from the top executive to the lowest ranks. Adhering to the chain of command helps implement unity of direction, but sometimes the chain is too long, and better communications and better decisions can result from two or more department heads solving problems directly rather than referring them up the chain until a common superior is reached.
10. Order. Both equipment and people must be well chosen, well placed, and well organized for a smooth-running organization.
11. Equity. Kindliness and justice will encourage employees to work well and be loyal.
12. Stability of tenure of personnel. Changes in employee assignments will be necessary, but if they occur too frequently they can damage morale and efficiency.
13. Initiative. Thinking through a plan and carrying it out successfully can be deeply satisfying. Managers should set aside personal vanity and encourage employees to do this as much as possible.
14. Esprit de corps. Build teamwork.
1. Dwell on the importance of each principle in the work of a manager. Try to exemplify your answer.
T E X T 3
Read the text. What is the main idea of the text? Divide it into logical parts. Define the key-sentence of each part.
No school, professor or book can make you a manager. Only you can do this, and you can become a manager only by managing. Of course, you can learn the skills that are extremely helpful, particularly in such clearly defined areas as accounting, statistics, law, and finance. But this will not make you a manager. Experience is the only teacher. Experience is, however, is not the uniformly effective teacher. An old aphorism criticizes the person who has worked for 20 years but has only reexperienced the first year 20 times. Learning is not automatic. What schools can do, and what books can do is to provide you with some insights and intellectual tools to be applied against your experience. Most of you are practical people; certainly most managers are. You are concerned about doing things than about thinking about them. You are more concerned with action than with contemplation. Most business students and managers are uneasy about theory. It is abstract and difficult, too unrelated to real problems, it seems, ‘too academic’ and just ‘too theoretical’. But theory is very important because you and all men and women of action are also theorists. No matter how pragmatic you consider yourself, no matter how rooted in reality a manager views himself, you and he operate on theories. You all possess your own theories about motivation, authority, objectives and change. You will need them – and you will have them whether you know it or not. You will be a better manager if you are aware of your assumptions and you examine them periodically and modify them when necessary. Nothing is as practical as a good theory. A great deal of management theory and practice must be described as ‘common sense’. For the objectives of management may be defined as the formulation of priorities and plans.
T E X T 4
There have been many studies during the past few years that have attempted to identify the characteristics of successful entrepreneurs. On such study compared many of the lists already developed. Those characteristics common to all or most of the lists indicated that an entrepreneur tends to have the following characteristics:
· High level of physical energy
· Ability to set clear goals and plans to reach goals
· Strong positive attitudes
· High levels of moral strength
· Willingness to take chances
· Industrious – need to be always working at something
· Takes the initiative in starting work
· High level of reasoning ability
· Able to make decisions
· Willing to lead others
· Positive attitude towards others
· Uses time effectively
· Willing and eager to learn
· Desire to satisfy the needs of others
· Able to change and adapt to changing environment
· Able to seek and find information needed to achieve their goals
· Avoids procrastination
· Have a determined persistence
· Informed about latest trends and needs
· Willing to take responsibility
· Knows how to manage money
· Able to motivate others
· Always looking for opportunities
· Willing to recognize and reward contributions of others
· Restless eager to do something new
· Learns from failure and moves on.
Obviously not all entrepreneurs are alike, but based on a variety of studies most of the successful ones have the above characteristics.
1. What characteristics do you find absolutely necessary for every manager?
2. Which of them are inborn and which ones can be acquired?
3. What are of primary importance?
4. Do you possess them?
T E X T 5
Executives and managers who can operate effectively across cultures and national borders are invaluable players in the global business arena. As the world grows ever smaller, improved cross-cultural skills and an international perspective are critical executive qualities. As more and more companies expand abroad, competition for top talent to run new international operations will steadily intensify.
The 2010s will test the capacities of multinational corporations to react rapidly to global changes in human resources as in all other areas of the company.
Global selection systems enable a company to find the best person anywhere in the world for a given position. The system measures applicants according to a group of 12 character attributes. These twelve categories are: motivations, expectations, open-mindedness, respect for other beliefs, trust in people, tolerance, personal control, flexibility, patience, social adaptability, initiative, risk-taking, sense of humour, interpersonal interest, spouse communication.
Beyond superior technical and managerial skills, an effective international executive displays a combination of desirable personal qualities. These include adaptability, independence, leadership – even charisma.
What part can management education play in developing the international manger? A good deal. Management education can provide training in the so-called “hard” skills such as international marketing and finance and in the so-called “soft” skills such as international relationships. We can easily define certain “hard” skill and knowledge areas that the international manager will need and which are very susceptible to formal education and training approaches. These include an understanding of the global economy and foreign business systems, international marketing, international financial management, political risk analysis and the ability to analyze and develop sophisticated global strategies.
We can also point to some “soft” skill areas such as communication, leadership, motivation, decision-making, team-building and negotiation where research indicates that national cultural differences can have important effects. (The international manager is said to spend over half of his or her time in negotiation.) International managers need at least to be aware of some of the issues involved. They need, furthermore, not only to be aware of how foreign cultures affect organizational behaviour and management style, but also to understand how their own culture affects their own style.
1. Use your knowledge and logical reasoning to express your point of view why the 12 categories mentioned in the text are so important for an international manager.
2. What is meant by ‘soft’ and ‘hard’ skills?
3.Technical and managerial skills and personal qualities – do they help each other? In what way?
4.Explain the meaning of the word charisma. Give your examples of charismatic persons.
5.In what way can education contribute to ‘creating’ an internationally mobile and internationally thinking manager?
T E X T 6
Managers perform various functions, but one of the most important and least understood aspects of their job is proper utilization of people. Research reveals that worker performance is closely related to motivation; thus keeping employee motivated is an essential component of good management. In a business context, motivation refers to the stimulus that directs the behavior of workers toward the company goals. In order to achieve company goals, managers must be aware of workers’ needs.
Recruiting good people is a difficult task. It is time-consuming and costly. But a well-chosen labor force will be more productive than a poorly-chosen one. Do a good job of selecting and recruiting employee and they will stay with you. People who work a territory for years build up goodwill for the company; they become well-acquainted with the customers’ needs and are able to give advice rooted in experience. Customers place a lot of confidence in such people. A poorly-selected labor force means a high staff turnover. There are two main reasons for having to recruit: expansion and replacement. But in any case you need to prepare a "man profile". Some of the points that might be included in the man profile are:
age range qualifications
experience single or married
education level physical abilities
foreign languages appearance
Sometimes a list of characteristics and guidelines is created. The list may include the following points:
There are many sources of recruitment. The following are among them: educational establishments, employee agencies, trade associations, job centers, advertising.
1. Prepare a man profile for 2-3 different professions or trades. Add the list of characteristics including at least 7-10 points. Don’t show the notes to your classmates. Let them guess what profession (trade) you are speaking about.
T E X T 7
A manager who has an understanding of what the employee wants from work will have a better chance of having more satisfied and productive employees. Studies of employee motivation points out that people work for many different reasons. The reason or reasons a person behaves a certain way is called amotive. Employee motivation is the reason an employee works a certain way on the job. There are many explanations of what motivates employees. One theory was developed by A. Maslow. Maslow’s hierarchy of needs theory explains that an individual has many different levels of needs.
Realizing of individual potential, creative talents, personal future fulfillment
Self-prospect, respect of others, recognition, achievement
Friendship, affection, acceptance
Security, protection from physical harm, freedom from fear of deprivation
Food, water, air, rest, sex, shelter (from cold, storm)
This theory suggests that when one level of needs is satisfied, the next level has the greatest influence on a person’s behaviour.
Frederik Herzberg developed another theory of job satisfaction. It suggests that job satisfaction and job dissatisfaction come from two different sets of factors. One set he referred to as ‘motivating’ factors, and the other set he called ‘hygiene’ factors. The motivating factors (recognition, achievement, responsibility, opportunity for advancement, and the job itself) relate to internal satisfaction and influence employees to improve their performance. The set of hygiene factors (salary, company policies, working conditions, and relationships with other employees) are separate from the job itself. He suggests that hygiene factors must be present in order to prevent job dissatisfaction, but it is that motivating factors that influence employees to maximize their performance on the job.
These theories show that employee performance is a complex topic to understand. Developing a work environment where the employee meets the needs of the business and the business meets the needs of the employee is what the most successful managers work at.
1. Are there other needs which you would add to the hierarchy? Where? Why?
2. Which of the following would motivate you to work harder ( bihgger salary, good team, job security, holidays, opportunities to travel, good working conditions, interesting, creative work, promotion opportunities, threat of redundancy, fringe benefits, hard working boss…)Choose your top five and rank them in order of priority.
3. Scripture maintains that man does not live by bread alone, but the need hierarchy suggests that man lives by bread alone when there is no bread. What does it mean?
The following two texts are devoted to the problem solving. Read both texts and prepare a summary- recommendation (or instruction) on “How to solve a problem”.
T E X T 8
If you have some problems the first steps to do are to analyze the reports and the cases. Your general approach to case analysis and reports should be as follows:
1.Define the problem. The problem is always a blocked managerial objective. What objective (profit, growth, cost control, etc.) is being undermined in the situation?
2.Analyze the causes. What factors are causing the problem of blocked achievement of objectives (inadequate communication, poor motivation, indefinite plans, sloppy controls, interpersonal conflicts, fear of change). This should not be the search for villains, however, because individuals are seldom the sole or fundamental cause of problems.
3. Develop alternatives. Evaluate the alternatives. What action might be taken to remove the causes and solve the problem? Remember that these alternatives should deal with causes, not symptoms of the problem.
4. Evaluate alternatives. Evaluate the alternatives according to appropriate criteria:
- How well does the alternative meet management’s objective?
- How much time and organizational resources are required?
- What are the costs?
- Does the alternative conform to personal and organizational values for equitable and responsible behavior?
- What is the probability of the success?
5. Select Alternatives (or combination) What are the weak points of the alternative?
6. Recommend a Detailed Plan of Implementation. Who should do what? When? How?
Three more points should be taken into account. Past history. In many cases it is often useful to look at historical data in order to gain some indication of future conditions. Expert opinion. It is often possible and useful to obtain opinions from individuals considered to be knowledgeable. Manager’s own judgment. In many cases a manager will simply have some ‘gut feeling’ about possible future conditions. And an analysis of a cross section of opinions may provide you with a good decision.
T E X T 9
Problems can be located in only two placed – in the work situation and in people. Problems in the work situation can be further subdivided into those located in plant, machinery and equipment, and problems located in procedures, methods and ways of working. Problems with people can be subdivided into those located in individuals and those in groups.
Problem work situation people
procedures, individuals groups
ways of working
Locating the source of a problem is not a simple task because different people see the same problem caused by different reasons. Nevertheless, your first task in a problem-solving meeting is to agree on the source of the problem.
When the source of the problem has been located, a decision has to be made. Decisions are of two types: quality decisions, and acceptance decisions. Quality decisions are those which may be regarded as good decisions and will solve the problem. However, the word "good" is open to argument here. Decisions can only be judged retrospectively. You cannot say "This is a good decision", only, “That was a good decision". For this reason the word "quality", rather than good, is used to describe a decision which, when implemented will be efficient. Acceptance decisions are those which will be accepted by the people involved in the problem.
The majority of decisions tend to fall in the middle, where quality and acceptance are of equal importance. Who takes the decision then? The majority of problems are being solved during meetings. Here are seven sections to guide you in the conduct of such meetings.
1. Understand the language. Problems cannot be solved if the language is not thoroughly understood. And not simply the language of the country, but the language of the particular subject, trade, industry.
2. Get the facts. The difficulty in getting all the facts is that, often, we do not know how many facts there are. When we meet to solve problems, we are considering symptoms.
3. Locate the cause of the problem. If opinions in the meetings are strongly divided as to the cause, then you must develop possible courses of action for each.
4. State in objective terms. This is stating the problem without subjective opinion, without adjectives that indicate what someone thinks, about the statement. Where possible, the problem should be stated in quantitative rather than qualitative terms.
5. Consider possible solutions. Possible solutions are not probable solutions; they are possible. Makesure that all possible solutions are recorded for consideration.
6. Screen solutions. When a meeting makes a lot of progress, ideas flow, much discussion takes place, and solutions are sometimes tabled more in enthusiasm than in cold, logical deliberation. Screen the possible solutions. Be very careful of solutions that have been transferred from other situations. This is not a good basis for accepting the solution. What happened in another place, in another time, is unlikely to be the same in the current climate.
7.Select decisions. Some solutions are incompatible and therefore mutually exclusive. Some solutions can be combined. Determine the cost of al solutions; establish how practical they are; how many can be combined; the likely outcome of implementing them; the degree of acceptability by those who have to carry them.
3. Define your own problem (your neighbour’s, your friend’s, your relative’s) and try to find the solution to it using your own recommendation (instruction). Refer to additional literature if necessary.
T E X T 10
Meeting is an essential part of manager’s work. They are held for three main reasons: 1) to carry out training, 2) to transmit information, 3) to solve a problem.
Read the following recommendations and try to follow them in your life.
Before you call the meeting:
· Decide if the meeting is the best method of achieving the objective;
· Put the objective in writing;
· Collect all the information necessary;
· Select specific items for discussion;
· Anticipate difficulties, awkward members and prepare documents and courses of notion to overcome the difficulties expected;
· Prepare the agendas with no more than 5 objectives.
During the meeting:
- state the purpose of the meeting
- outline the objectives it is hopedto achieve
- do not impose your views on the group
- direct discussion toward the objectives
- develop participation by contrasting different viewpoints
- watch the clock and note reactionof members who appear to be loosing interest
- where opinion is divided a vote is to be taken.
After the meeting:
- the secretary of the meeting prepares "minutes"
- minutes must be an accurate account of the substance of the meeting. No opinions, no discussions, no irrelevant talk. They should be brief
- minutes should follow theagenda of themeeting.
Tips for better meeting.
1. Hold them early in the day and don’t allow phone calls to interrupt the proceedings.
2. Pay particular attention to meeting; chairs should not be plastic-covered but fabric-covered and firm.
3. If you know you are going to have a difficult person at the meeting, sit that person on your right or left. If this person is allowed to sit opposite you, the meeting will often be split into two.
4. Get everyone to contribute to the discussion but don't put people on the spot by asking, "What do you think, Jane?"
5. Place your watch on the table in front of you so that people can see you are going to run to time; start on time; finish when you say you will.
6.Avoid letting people know what you think before they have made their views known.
1. You often take part in different meetings. What are their main drawbacks? Are they held in accordance with the recommendations given in the text? What points are most often violated?
Ex.7. On the left is a list of some of the idioms used at the meeting. Look at the expressions on the right and try to find the expression which is closest in meaning to the idiom.
a. in future 1.decide
b. it’s a matter of 2.in the way described
c. make our minds up 3.always after today
d. so far 4.to find the explanation or cause
e. in reality 5.some time soon
f. above all 6.it depends on
g. get to the bottom of 7.earlier than originally planned
h. in the near future 8.one way of achieving some objective
i. in that respect 9.until now
j. a means to an end 10.during
k. in the course of 11.this is the most important thing
l. ahead of schedule 12.this is truth, not imagination
Ex. 8. What prepositions should be used below? Make up your own sentences.
1. competition … top talent
2. capacity to react … global changes
3. respect … other beliefs
4. … one degree or another
5. … the turn of the century
6. must be responsible … the environment
7. behavioral sciences can contribute … management
8. the work deals … routine
9. real success stems …
10. a person responsible …
11. a position that is consistent …
12. concern … people
13. insure … the damage
14. is concerned …
15. engaged …
16. is available …
Ex. 9. Fill in the blanks.
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