Principles of management
Check whether you follow the below important management principles for running your business profitably:
- Division of work: It is always prudent to split a major work into parts and allocate each part to different workers. By doing this, complications are reduced. Also, the division of work helps in specializing in particular tasks.
- Authority and responsibility: In business, decision making is not as easy like a personal decision to open an account with bitcoin trader. It is a complex process wherein one need authority to command. One is responsible for his action. So, fix the extent of authority and responsibility of every worker working in your firm.
- Discipline: Obeying orders is certainly important for running the business smoothly and achieving goals. Ensure that all the employees adhere to regulations and instructions.
- Unity of command: Every employee should report only to one boss. He should get instruction and should be answerable to one person. A worker reporting to two or more people will result in confusion on prioritizing work and will lower the morale.
- Unity of direction: All the actions of all the individuals and teams should aim towards achieving organizational goal. Hence it is vital to inform clearly on the goal and set an action plan.
- Subordination of individual interest: Ensure that organizational interest is ahead of the individual interest of the workers.
- Remuneration: Ensure good remuneration so that employees stay motivated. There should be non-monetary remunerations like rewards and recognition.
- The degree of centralization: The extent of centralizing decision making should be based on the size of the business and nature of urgency.
- Scalar chain: Ensure that the hierarchy level is clearly established in your business. The employees should be able to freely contact their supervisors.
- Order: There should be a safe and proper place for every material. Also, ensure proper person is recruited to the proper designation.
- Equity: Employees must be treated fairly in all matters. There should not be any bias.
- Stability of tenure of personnel: Ensure that people who join as employees stay for a reasonable period. Frequent change in the employees will ruin the continuity of work and hamper relationship with the third parties who deal with your business.
- Initiative: Encourage employee ideas by recognizing and gifting them. This increase their motivation. It will also serve as a cost-free tool to improve profitability.
- Esprit de corps: Ensure good team spirit. This will help in mutual understanding and harmony in the workplace.