Chapter two
General Principles of
management
1.
Division
of Labor:
·
Principle:
Specialization enhances efficiency,
allowing individuals to perform their work more effectively.
·
Application: Assign
tasks based on individual strengths and expertise to optimize performance. For
example, in a software development team, designate specific roles like coding,
testing, and design to individuals with corresponding skills.
2.
Authority
& Responsibility:
·
Principle:
Managers must issue orders to
achieve goals; authority is derived from the manager's position, and
responsibility is the obligation associated with authority.
·
Application:
Delegate authority to subordinates
who are willing to assume corresponding responsibility. In a project management
scenario, empower team leads with the authority to make decisions within their
domain of expertise.
3.
Discipline:
·
Principle:
Organization members must adhere to
established rules and agreements.
·
Application:
Foster a culture of respect for
organizational rules and agreements. For instance, implement a code of conduct
that emphasizes punctuality and professionalism in the workplace.
4.
Unity
of Command:
·
Principle:
Each employee receives instructions
from one superior to maintain effective management.
·
Application:
Clarify reporting structures to
avoid conflicting orders and ensure stability. In a manufacturing setting,
ensure that production line workers report to a single supervisor to prevent
confusion.
5.
Unity
of Direction:
·
Principle:
one manager using a single plan
should direct Operations with the same objective.
·
Application:
Align tasks with common objectives
and group similar activities under one manager. In a marketing department,
coordinate advertising and promotions under a single manager to ensure a
cohesive strategy.
6.
Subordination
of Individual Interest to the General Interest:
·
Principle:
Individual or group interests
should not supersede the overall interests of the organization.
·
Application:
Prioritize organizational goals
over individual or group preferences. For example, in a sales team, emphasize
team targets over individual sales quotas.
7.
Remuneration:
·
Principle:
Compensation for work should be
fair and satisfying to both employees and employers.
·
Application:
Establish equitable and
satisfactory remuneration practices. This might involve conducting regular
salary reviews and providing performance-based bonuses.
8.
Centralization:
·
Principle:
Decision-making authority should be
balanced between centralization and decentralization.
·
Application:
Find the optimal degree of
centralization and decentralization based on the organization's needs. For a
multinational corporation, centralize strategic decisions while decentralizing
operational decisions for regional responsiveness.
9.
Scalar
Chain (The Hierarchy):
·
Principle:
The line of authority runs from top
management to the lowest levels.
·
Application:
Follow the chain for communication,
but allow cross-communications if agreed upon and superiors are informed. In a
project team, ensure that information flows through the hierarchy but allow
team members to communicate directly for quick problem solving.
10.
Order:
·
Principle: Organize
people and materials in the right place at the right time.
·
Application:
Ensure proper placement of people
and materials, aligning individuals with suitable roles. In a restaurant,
organize kitchen staff for efficient meal preparation and front-of-house staff
for effective customer service.
11.
Equity:
·
Principle:
Managers should be fair and kind to
their subordinates.
·
Application:
Promote fairness and kindness in
managerial interactions with subordinates. In a corporate setting, ensure equal
opportunities for professional development and recognition.
12.
Stability
of Tenure of Personnel:
·
Principle:
High employee turnover leads to
inefficiency; ensure orderly personnel planning and timely replacements.
·
Application:
Implement strategies for stable
employee tenure and succession planning. Develop programs for employee
retention and career development to reduce turnover.
13.
Initiative:
·
Principle:
Subordinates should be given the
freedom to conceive and execute plans, accepting the possibility of mistakes.
·
Application:
Encourage subordinates to take
initiative and learn from experiences. In a research and development team,
provide time and resources for employees to explore innovative ideas.
14.
Esprit
de Corps:
·
Principle:
Promote team spirit to build
harmony and unity within the organization.
·
Application: Foster
a positive team culture that encourages collaboration and camaraderie. Organize
team-building activities and recognize team achievements to enhance morale and
unity.
- Question
and answers
Division of Labor:
- Question: According to Fayol, how does
specialization contribute to efficiency?
- A) Reduces diversity
- B) Enhances efficiency
- C) Increases complexity
- D) Slows down processes
- Answer: B) Enhances efficiency
- Authority & Responsibility:
- Question: What is the source of authority,
according to the principle of Authority & Responsibility?
- A) Individual expertise
- B) Managerial position
- C) Team consensus
- D) Seniority within the team
- Answer: B) Managerial position
- Discipline:
- Question: What is the primary purpose of
fostering a culture of discipline in an organization?
- A) Creativity promotion
- B) Adherence to rules and
agreements
- C) Flexibility in operations
- D) Encouraging risk-taking
- Answer: B) Adherence to rules and
agreements
- Unity of Command:
- Question: Why is it important for each
employee to receive instructions from one superior?
- A) Promotes individualism
- B) Enhances communication
- C) Creates conflicts
- D) Ensures chaos
- Answer: B) Enhances communication
- Unity of Direction:
- Question: According to the Unity of
Direction principle, who should direct operations with the same
objective?
- A) Multiple managers
- B) Cross-functional teams
- C) One manager using a single
plan
- D) Individual contributors
- Answer: C) One manager using a single
plan
- Subordination of Individual
Interest to the General Interest:
- Question: What should be prioritized,
according to the Subordination of Individual Interest to the General
Interest principle?
- A) Individual preferences
- B) Organizational goals
- C) Group consensus
- D) Equal distribution of tasks
- Answer: B) Organizational goals
- Remuneration:
- Question: According to Fayol, what should
compensation for work be?
- A) Competitive in the market
- B) Satisfying to employees only
- C) Satisfying to both employees
and employers
- D) Equal for all employees
- Answer: C) Satisfying to both employees
and employers
- Centralization:
- Question: What does the principle of
Centralization advocate for in decision-making authority?
- A) Total decentralization
- B) Balance between centralization
and decentralization
- C) Absolute centralization
- D) No decision-making authority
- Answer: B) Balance between centralization
and decentralization
- Scalar Chain (The Hierarchy):
- Question: According to the Scalar Chain
principle, where does the line of authority run?
- A) Only from top management
- B) From top management to the
lowest levels
- C) From lowest levels to top
management
- D) In a circular pattern
- Answer: B) From top management to the lowest
levels
- Stability of Tenure of Personnel:
- Question: Why does high employee turnover
lead to inefficiency, according to the Stability of Tenure of Personnel
principle?
- A) Encourages innovation
- B) Ensures flexibility
- C) Creates a sense of instability
- D) Enhances employee morale
- Answer: C) Creates a sense of instability
- Initiative:
- Question: According to Fayol's Principle of
Initiative, what should subordinates be given the freedom to do?
- A) Strictly follow orders
- B) Only execute predetermined
plans
- C) Conceive and execute plans
- D) Seek approval for every
decision
- Answer: C) Conceive and execute plans
- Esprit de Corps:
- Question: What is the main objective of
promoting Esprit de Corps, as per Fayol's principles?
- A) Encourage individual
achievements
- B) Build harmony and unity within
the organization
- C) Foster competition among teams
- D) Prioritize individual interests
- Answer: B) Build harmony and unity within
the organization
- Division of Labor Application:
- Question: How can the Division of Labor
principle be practically applied in a manufacturing environment?
- A) Assign all tasks to each worker
- B) Rotate tasks daily among
workers
- C) Assign tasks based on
individual strengths
- D) Eliminate specialized roles
- Answer: C) Assign tasks based on
individual strengths
- Authority & Responsibility
Application:
- Question: In a software development team,
how can the Authority & Responsibility principle be applied to enhance
efficiency?
- A) Centralize decision-making with
the team lead
- B) Delegate authority to all team
members equally
- C) Empower team leads with
decision-making authority
- D) Restrict authority to the most
senior team member
- Answer: C) Empower team leads with
decision-making authority
- Unity of Command Application:
- Question: Provide a real-world scenario
where following the Unity of Command principle would be crucial for
effective management.
- A) A marketing campaign planning
- B) Collaborative project
management
- C) A manufacturing production line
- D) Academic research projects
- Answer: C) A manufacturing production line
- Subordination of Individual
Interest Application:
- Question: How can the Subordination of
Individual Interest principle be applied in a corporate setting to enhance
teamwork?
- A) Encourage individual
achievements
- B) Prioritize individual goals
over team goals
- C) Emphasize team targets over
individual goals
- D) Discourage collaboration
- Answer: C) Emphasize team targets over
individual goals
- Order Application:
- Question: In a retail business, how can the
Order principle be applied to improve organizational efficiency?
- A) Randomly organize products on
shelves
- B) Place products wherever there
is available space
- C) Organize products based on
customer preferences
- D) Ensure proper placement of
products for easy access
- Answer: D) Ensure proper placement of
products for easy access
- Equity Application:
- Question: How can the principle of Equity be
practically implemented in performance evaluations within an organization?
- A) Ignore individual performance
- B) Base evaluations solely on
seniority
- C) Promote fairness and kindness
in evaluations
- D) Implement a competitive
evaluation process
- Answer: C) Promote fairness and kindness
in evaluations
- Initiative Application:
- Question: In a customer service team, how
can the Initiative principle be applied to improve service quality?
- A) Strictly follow predefined
scripts
- B) Discourage employees from
taking independent actions
- C) Encourage employees to take
initiative in problem-solving
- D) Limit decision-making authority
to managers only
- Answer: C) Encourage employees to take
initiative in problem-solving
- Esprit de Corps Application:
- Question: Provide an example of a
team-building activity that aligns with the Esprit de Corps principle.
- A) Individual recognition
ceremonies
- B) Competitive team challenges
- C) Organizing a team retreat
- D) Encouraging internal
competition
- Answer: C) Organizing a team retreat