Principles of management

Principles of management

Check whether you follow the below important management principles for running your business profitably:

  1. 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.
  2. 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.
  3. Discipline: Obeying orders is certainly important for running the business smoothly and achieving goals. Ensure that all the employees adhere to regulations and instructions.
  4. 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.
  5. 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.
  6. Subordination of individual interest: Ensure that organizational interest is ahead of the individual interest of the workers.
  7. Remuneration: Ensure good remuneration so that employees stay motivated.  There should be non-monetary remunerations like rewards and recognition.
  8. The degree of centralization: The extent of centralizing decision making should be based on the size of the business and nature of urgency.
  9. Scalar chain: Ensure that the hierarchy level is clearly established in your business. The employees should be able to freely contact their supervisors.
  10. Order: There should be a safe and proper place for every material.  Also, ensure proper person is recruited to the proper designation.
  11. Equity: Employees must be treated fairly in all matters.  There should not be any bias.
  12. 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.
  13. 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.
  14. Esprit de corps: Ensure good team spirit.  This will help in mutual understanding and harmony in the workplace.