Principles of Management: A Comprehensive Guide

Posted on Nov 8, 2024 in Social sciences

Principles of Management

The Scientific Management of Frederick W. Taylor (1-10)

Frederick W. Taylor’s scientific management is based on four principles:

  1. Scientifically Optimized Production: Observe, analyze, and use time studies to determine the optimal production rate. Establish scientifically based standards for positions and salaries, using incentives for exceeding those standards.
  2. Strategic Worker Selection and Training: Select the most suitable person for each position and train them thoroughly in the required procedures.
  3. Collaboration and Incentive-Based Pay: Cooperate with workers to ensure they work as instructed. Implement a differential piecework pay system, rewarding workers based on performance incentives rather than solely on position.
  4. Defined Roles for Management and Workers: Divide labor between managers and workers, assigning managers the responsibility to plan and organize work.

Henri Fayol’s Principles and Qualities of an Administrator

Qualities of an Administrator:

  • Physical: Health, Vigor
  • Mental: Intelligence, Understanding, Adaptability
  • Moral: Energy, Firmness, Loyalty, Initiative
  • Other: General knowledge, Expertise, Experience

Principles of Management:

  • Division of Work
  • Unity of Command
  • Centralization
  • Team Spirit (Esprit de Corps)
  • Hierarchy (Scalar Chain)

George Elton Mayo’s Human Relations Approach

George Elton Mayo emphasized the human aspect of administration, focusing on:

  • Addressing working groups, not just individuals.
  • Replacing negative motivation with worker participation.

Administration and Related Disciplines (11-20)

Administration is interdisciplinary, drawing from various fields:

  • Science: An ordered body of universal truths.
  • Technique: A set of rules and procedures for practical application.
  • Art: Techniques and theories that create aesthetic pleasure.
  • Economics: The study of satisfying needs within the framework of supply and demand.
  • Sociology: The study of society and social phenomena, informing management’s understanding of human groups within a company.
  • Psychology: The study of the human mind, particularly relevant to personality and relationships in management.
  • Law: Rules governing social behavior, informing management’s actions within legal boundaries (civil, fiscal, constitutional, and labor law).
  • Ethics: Moral obligations, guiding ethical management practices (avoiding false advertising, financial mismanagement, preferential treatment, and employee abuse).
  • Anthropology: The study of human groups and their influence on employee performance.
  • Politics: The science of government and its relationship with administration.
  • Accounting: Standardized procedures for recording and analyzing company operations, aiding decision-making.
  • Engineering: Application of technology to optimize production and resource management.

Ergonomics and Cybernetics (21-28)

  • Ergonomics: The relationship between machines, the work environment, and human efficiency.
  • Cybernetics: The study of neural connections and computational transmissions, relevant to information processing and computing in administration.

Administration as a Social Science

Administration is a social science with technical and artistic aspects. It has universal validity and is linked to economics and law.

Fundamental Principles of Administration

Every field has basic truths. Administration has fundamental principles that are established, accepted, and implemented.

  • Principle: A fundamental statement or general truth guiding human action.
  • Statement: The result of studying a series of phenomena when a principle is applied.

Key Principles from Management Pioneers

  • Frederick W. Taylor’s Principles (1911):
    1. Establishment of a true science of work.
    2. Scientific selection of workers.
    3. Scientific education and training of workers.
    4. Close and friendly collaboration between management and workers.
  • Henri Fayol’s 14 Principles: Division of work, authority, discipline, unity of command, unity of direction, subordination of individual interests to the general interest, remuneration, centralization, scalar chain, order, equity, stability of tenure of personnel, initiative, esprit de corps.
  • George R. Terry’s Principles:
    1. Scientific Management: Careful interpretation of data provides a reliable basis for evaluating new facts.
    2. Planning: Achieving goals requires proper planning.
    3. Organization: Includes principles of functions, supervision, dynamism, authority, and accountability.
    4. Actuation: Motivating employees, recognizing good work, and ensuring fairness.
    5. Control: Ensuring smooth operation and adherence to plans.

Definitions of Administration (29-36)

  • George R. Terry: To manage is to achieve a goal through the efforts of others.
  • Harold Koontz and Cyril O’Donnell: The direction of a group toward a common objective, leading its members.
  • Agustin Reyes Ponce: A systematic set of rules for efficiently managing social agencies.

The Administrative Process (37-43)

Different authors propose various stages in the administrative process:

  • Henri Fayol: Planning, Organizing, Commanding, Coordinating, Controlling.
  • Lyndall Urwick: Forecasting, Planning, Organizing, Commanding, Coordinating, Controlling.
  • Harold Koontz and Cyril O’Donnell & George R. Terry: Planning, Organizing, Staffing, Directing, Controlling.
  • Agustin Reyes Ponce: Forecasting, Planning, Organizing, Integrating, Directing, Controlling.
  • James Arena: Planning, Controlling, Actuation.

Key Concepts in Administration

  • Administration: Achieving something through others.
  • Objective: Achieving a specific end.
  • Effectiveness: Optimizing results.
  • Social Group: The necessity of a group.
  • Coordination: Essential for achieving objectives.

Lyndall Urwick’s Mechanical and Dynamic Stages of Administration

  • Mechanical Stage: Objectives, Policies, Hierarchies.
  • Dynamic Stage: Development, Leadership/Supervision, Operation.

Agustin Reyes Ponce’s Mechanical and Dynamic Phases

  • Mechanical Phase: The theoretical aspect of what to do.
  • Dynamic Phase: How to manage the social organism.

Planning (44-50)

Planning is essential for any organization. It involves setting a course of action, establishing guiding principles, and determining a sequence of operations and timelines.

Principles of Planning

  • Possibility: Plans should be achievable, not overly ambitious.
  • Accuracy: Plans should be precise, not vague.
  • Unity: One plan for each function.
  • Flexibility: Plans should allow for adjustments.

Types of Plans

  • Short-Term: Less than one year.
  • Medium-Term: One to three years.
  • Long-Term: More than three years.

Classifications of Planning

  • Strategic Planning: Establishes general guidelines.
  • Functional Planning: Specific plans for each department.
  • Operational Planning: Governed by strategic planning guidelines.

Planning Techniques

  • Manuals and Policy Objectives
  • Process Diagrams
  • Gantt Charts
  • Critical Path Method (CPM) and Program Evaluation and Review Technique (PERT)

Key Takeaways:

  • Planning is a concrete course of action.
  • Planning is essential for any company.
  • Plans are the result of administrative organization.
  • Short-term plans occur within one year.
  • Planning can be strategic, operational, or functional.