Principles of Management free essay sample

Bill Ford took over Ford Motors in 2001 as the CEO, when the company was struggling with falling sales around the world – in a time when the company desperately needed careful planning and their execution. Bill Ford revised and updated the company’s tactical plans – cutting costs, gaining back the experienced staff, catering to specific market niches and more. Some of these targets have been met, a good number of them still need work. There are great challenges ahead for Bill Ford, but perhaps he can show the great management abilities of the Ford family and turn around the situation. Based on information in the case, what are some of Ford’s strategic goals? What are some of Ford’s tactical goals? After Bill Ford’s assuming of the position of CEO, Ford Motors have faced some revisions and updating of its strategic and tactical goals. Ford Motors have been experiencing falling sales and inadequate funding for its operations. It is about developing people , working with them reaching objectives and achieving results. In deed all the research in to how managers spend their time reveals that they are creatures of moment, perpetually immersed in the nitty –gritty of making things happen. d)Henry Fayol has proposed that to manage is to: †¢To forecast †¢To command †¢To coordinate †¢To control Fayol also suggests that a set of well-established principles would help concentrate general discussion on management theory. He emphasises, however, that the principles must be flexible and adaptable to changing circumstances. He recognised that there were no limit to the principles but advocated 14 of them. Division of work/ labour. This means that a worker is given only a small portion of the work in which he becomes a specialist. A high degree of specialisation should lead to efficiency Authority and responsibility: Authority is the right to command and power to exercise obedience in order to get wok done. Responsibility is the accountability of the authority so that the official authority is not misused. Responsibility is the corollary of authority. Discipline: Fayol considered discipline as an outward mark of respect observed in accordance with employment agreement and organisational rules. The management must decide on the most appropriate form of sanctions on cases of offences against discipline. Unity of command: Each organisational member should receive orders from one superior only; if not, authority is undermined and discipline, order and stability threatened. Unity of direction: In order to provide for unity of action, coordination and focusing of efforts, there should be one head and one plan for any group of activities with the same objective. E. one department, one manager. Subordination of individual interest to general interest: The interests of one employee or group of employees are subordinate to the interests and goals of the organization. The interest of the Organisation must take priority whenever there is a conflict of interests. Remuneration of personnel: Salaries the price of services rendered by employees should be fair and provide satisfaction both to the employee and employer. Centralization: The objective of centralization is the best utilization of personnel. The degree of centralization varies according to the dynamics of each organization. Scalar chain: A chain of authority exists from the highest organizational authority to the lowest ranks. Order: Organizational order for materials and personnel is essential. The right materials and the right employees are necessary for each organizational function and activity. Equity: In organizations, equity is a combination of kindliness and justice. Both equity and equality of treatment should be considered when dealing with employees. Stability of tenure of personnel: To attain the maximum productivity of personnel, a stable work force is needed. Initiative: Thinking out a plan and ensuring its success is an extremely strong motivator. Zeal, energy, and initiative are desired at all levels of the organizational ladder. Esprit de corps: Teamwork is fundamentally important to an organization. Work teams and extensive face-to-face verbal communication encourages teamwork. There are other ten neew principles for effective administrative management. They include: a)Manage information through people. b)Change is a constant and must be managed. c)Technology is the future. d)Relationships matter. e)Investment in training and development is important. )Measure only against the best. g)The market is global h)Unity of direction is important i)Equity is expected. j)Initiative is important. FUNCTIONS OF MANAGEMENT. According to Mamorial, management functions are extended to 10 and derived from the term POSDCORB. But the general one are the first five. 1. Planning: this function includes forecasting and selection of objectives with the pol icies, procedures and programmes for achieving them. It involves the assessment of the furture and making decisions for that future. 2. organising: this is concerned with the division of work and allocation of duties, authority and responsibility. . staffing: it involves looking for the right candidates recruiting, orienting, rewarding, disciplining, maintaining, training or terminating or managing the separation process. 4. Directing: it involves guiding and supervising subordinates. These subordinates must be oriented in to the understanding ways, guided towards improved performance and motivated to work effectively towards enterprise goals. 5. Coordination: this is the unification of efforts and ensuring that all activities of the business are in pursuance of the same policy. Policy is a major decision of a company that can be a plan. 6. Controlling: this is the process involved in setting up standards, the regulation comparison of physical events with standards and then taking the corrective action. 7. Budgeting: this involves activities of allocating the available resources to various units of the organisation. 8. Commanding: this involves giving instructions to ensure that decisions are carried out. 9. Communication: this is concerned with the transfer of information between different people in a business. 10. Motivation: this is the driving force behind actions . in involves raising of employees morale and change of behaviour and feeling mong the organisation members. STEPS IN DELEGATION 1. Identify the task to be delegated and the right persons to delegate to. 2. Assignment of tasks: this is to determine clearly what the subordinates are supposed to do and communicating the same to them. 3. Delegation of decision making authority: the authority is given to subordinates to make and implement decisions within thei r work assignments. 4. Creation of obligation: The person given the task is morally responsible to do his best since he has willingly accepted these tasks 5. Creation of accountability: being answerable to someone for your actions. BENEFITS OF DELEGATION a)When used properly, delegation of authority and responsibility to subordinates offers several advantaged as follows: b)It results in quick decisions- decentralisation of decision making authority. c)It gives executives more time for strategic planning and policy making. d)It is a motivating factor through tasks to the employees. e)It can be a training ground for executive ability e. g assisting, seconding and deputing. f)It gives managers opportunity to experience decision making and consequences of their decisions. )It enables organisations to meet the changing conditions more flexibly especially at the boundaries of their systems. IMPORTANCE OF STAFF MOTIVATION Motivating people to work involves two dimensions; providing the infrastructure within which their work is organised, and then supplying the leadership that stimulates them to give of their best. The infrastructure means: telling people what is expected of them (tasks, accountabilities and performanc e standards. ) and supplying the necessary equipments and tools to enable them function. ( training, working conditions and others. It is leadership that makes the difference: encouraging people to make decisions (empowerment) showing a close interest in them as individuals and recognising their contributions, growth and achievement. ) Individual performance is determined by three things a)Motivation (desire to do the job) b)Ability (the capability to do the job) c)The work environment. Motivation is thus importance because of its value in determining performance and because of its intangible character i. e individual behaviour is a complex phenomenon and the manager is hard pressed to figure out the precise problem and hoe to solve it. Motivation is further complicated by the fact that it is not exactly clear who is responsible for employee motivation i. e whether the manage or the employee himself. HOW TO ENHANCE STAFF DISCIPLINE: HOW TO MANAGE STRESS. Strategies to deal with stress can be best be analysed under 2 headings: Personal strategies: a number of organisational steps which can be taken to reduce the likely hood of stress due to structural and style problems. †¢They include: †¢Relaxation †¢Exercise †¢Talking to someone else †¢Take time to smell the rose- do not live in the first lane †¢Taking leave/ holidays. Count your blessings – take time to enjoy who you are and your achievements. †¢Be kind to others-it boomerangs. †¢Go for saunas, detoxify, massage and walks. †¢Breathe properly so as all the vital organs receive oxygen †¢You are what you eat, so stay healthy. †¢Avoid unnecessary anxieties, over ambition perfectionism, stimulus seeking, pressure to succeed. ?What is important in becoming stress free is to examine ones own attitudes towards personal strengths and weaknesses and this is through assertiveness and personal planning. Assertiveness is a question of standing up for your own rights, but in a way that does not violate another person’s rights. It is also concerned with expressing (making known) personal wants, feelings and opinions in honest and appropriate ways. Organisational responses to stress This applies where the stress is work related, investigate the course and take appropriate action like: †¢Change individuals job responsibilities (give more or reduce) †¢Provide greater opportunity for personal autonomy in the job. †¢Set agreed targets for employees. Provide appropriate training e. g. In time management, assertiveness. †¢Permit flexible hours †¢Improve physical working conditions. †¢Relocate employees to another office/ work base. †¢Provide counselling fac ilities. Note: many Japanese employers insist on their employees doing physical exercise before their daily work. TRANSFORMATIONAL LEADERSHIP A leader is a person who stands out in influencing the activities of a group in setting goals and making progress towards achieving these goals. Essential attributes of a line manager. Ability to understand human behavior. †¢Effective communicator. †¢Similarity with the group. †¢Ability to inspire others by example. †¢Willingness to take risks †¢Verbal assertiveness †¢Ability to tolerate criticism. †¢Skill in the art of compromise †¢Assume full responsibility for the group. Others were proposed by Herzberg include: Organisers Designising the jobs of group members, clarifying group members assignment, explaining organisational policies and rules, establishing policies, rules and procedures to coordinate flow of work and information within the unit. Liason Cultivate relationship with customers, maintaining relationship with suppliers, customers and other persons or group of individuals who are important to the unit or organisations, join boards, organisations or public service clubs that might provide useful work related controls. Resource allocator They authorise the use of physical resources such as, furnishing and equipments, authorise expenditure on financial resources and discontinue the use of unnecessary inappropriate or ineffective equipment or service Task delegator, Assigning projects t group membes, clarifying objectives and perfomance standards for task completion. Figure heads Entertaining clients/ customers and serving the outsider and stakeholders as official representative of the organisation . Spokes man Answering the letters and enquries and informing other management levels about the units activities, plans and capabilities. Negotiator Bargaining with superiors for facts, facilities, equipments and other form of support and alos with other units in the organisation for the use of staff facilities and other form of support.