Company management involves the coordination of different activities in a firm to attain its objectives, for instance, profitability and expansion. It involves the management of critical resources such as funds, human resources, and equipment to make sure that the firm can attain the purposes intended by its management. Business managers lead different groups to make sure that every member carries out his or her work with perfection.
Who was Henry Fayol?
Before we talk about the principles of business administration, we should be aware where they originated and why they are still relevant in today's world. These principles were originally developed by Henry Fayol, who was a mining engineer by vocation. Having served in the field of engineering profession for a number of years, he became the general manager and eventually the director of administration.
Fourteen Principles of Business Administration: Division of Labour
Authority and Responsibility
There is one essential rule in business administration that all managers must be aware of. Managers don't just have the power to get things done but are also responsible for the results. They cannot put the blame on their employees because they are the ones with the power to make decisions. This also brings out the importance of managers putting together the right team.
Self-discipline.
Discipline is the foundation of success, not only in the business sector but also within the walls of our own homes. Employees have to conform to established rules, and this must start from day one. Including a mention of discipline in the welcome email that new employees receive is a good move. It informs them of what they are expected to do in terms of work and conduct in the workplace. Further, the notification can state what they can look forward to from their managers, and this can give the impression of justice for all.
Unity of Command
The employees ought to be given their orders by one person. When they have to take orders from two or more people, there may be confusion over which activity takes priority. If the issuing managers are of the same level of authority, there are possibilities of disagreements over whose orders should be followed. These kinds of difficulties may cause problems for the employees and lower their morale towards the task.
Unity of Direction
In most companies, various teams at times work in opposite directions and do not communicate with one another. That may lead to individuals working towards different objectives. A company can only thrive if all its staff is working towards an identical objective. All the departments have tasks they need to accomplish, but that doesn't imply they should not communicate with other departments. Teams must work together and complement one another in an effort to achieve the company objectives.
Subordination of Individual Interest
Workers at times look out for themselves more than the company's or team's goals. It is not common for there to be workers who look out for the team first. However, managers need to know that the team goal is greater and that self-interests should be secondary. Self-centeredness is something a working team cannot do without. This is a simple rule of business management that managers have to abide by.
Compensation
Although managers do not desire selfishness, they must reward good workers who perform well and make the team successful. All people desire to be rewarded for good performance. Rewards encourage employees to perform even better. Rewards need not be always in the form of money, but it must be made known to good employees so that everyone knows that good performance is rewarded. Managers must observe how all people work and always attempt to value the best employees.
Centralization
Centralisation is a process where all the decisions are taken by the top managers, and the employees just follow. This is more applied in politics rather than in businesses. There are still some companies that practice this, but it may irritate the employees.
Scalar Chain
The company structure should be explained well by the managers so that everyone is aware of their role. Managers and executives are not left out. They should communicate and behave based on their role, particularly in meetings.
Order
A firm is not just run by its employees; machines are key in the production and distribution of goods. Workers, also, need the right equipment and tools to do their work successfully. Placing the right person in the correct position is not enough. The managers must also provide the equipment required and create favorable working environments, allowing workers to excel in their jobs.
Equity.
This crucial regulation is about treating all employees equally regardless of their disability, gender, color, or race. Making employees feel special makes them work harder for the organization. Managers should observe this regulation seriously and ensure everyone treats others equally without discrimination or unfairness.
Stability of Tenure
Most companies now understand that continuously hiring and dismissing employees is not good. It erodes employee morale and reflects poorly on the company. Employees feel the need to settle into their jobs before they can excel. When they are continuously haunted by the specter of being fired for small mistakes, they are not likely to give into their best. More companies are, therefore, working to keep their employees for the long term.
Initiative
Times have shifted, and managers no longer control everything in a dictatorial way. Most firms these days desire workers to come up with ideas and think creatively. This rule brings the entire team to assist in completing projects successfully.
Esprit De Corps
This is a French term that refers to "team spirit." Henry Fayol employed it because he was envisioning a company as a living entity with a soul, which should be nurtured to remain cheerful. Although it's the final principle, its significance cannot be overstated. Managers are obligated to establish trust, understanding, and kindness within the team. Working together well enables the firm to endure hardships.
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Conclusion
The fourteen business management principles are applied by managers to run groups in a proper manner. Adhering to the rules guarantees smooth operation and success. Effective management and business development require learning these principles.
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