For prosperity and success, any company must conduct its activities based on the basic principles of organization management. Let’s take a closer look at each of them.
Division Of Labour
The essence of the method is revealed in the division and specialization, due to which it becomes possible to increase productivity and improve quality.
Thanks to the division of labour, everyone knows their place in the organization, skillfully performs their work, doing it better than other workers.
Unity Of Leadership
It lies in the pursuit of one goal and the balance of centralization and decentralization. There are no “pure” structures, and there must be a balance in the organization when one complements the other.
After all, the advantages of centralization lie in the coordination of all parts of the organization, in apparent subordination to one control centre.
In turn, decentralization makes it possible to transfer some of the powers and responsibilities to the lower levels of the structure. And this makes the system more flexible increases its adaptability.
It is also an important point. In this case, the whole organization wins because:
- No need to waste precious time on training, an adaptation of beginners,
- no performance degradation
- the company’s income does not decrease.
Motivation And Stimulation Is The Key To Success
Each employee will strive to do the job better, faster, better if he has a clear motivation. At the same time, management needs to study subordinates and understand what incentive is a driving factor for them.
For example, for one employee, material incentives (bonuses, wage increases) are essential, while for another, career advancement, praise from superiors, increased powers, and so on can act as an incentive.
Striving For Mutual Well-Being
The basic principles of managing an organization should include the desire for mutual well-being. The organization exists for the benefit of its employees, and employees should strive to increase the well-being of their company.
Consider Japan. There is such a thing as “lifetime employment” when a person works all his life at one enterprise. At the same time, a person entirely devotes himself to the company, imbued with its goals, ideas, traditions. He “gives all the best” altogether, and for this, he receives certain benefits from the enterprise. An employee’s career begins at the lowest levels, but subsequently, he gets a rapid career rise, privileges, respect from management and salary increases.
And if a person was fired in Japan, it was a real tragedy and shame for him.
We are talking about the development of a particular employee and the organization’s development as a whole. These two concepts are inextricably linked because if an employee develops professionally, his competitiveness grows.
It is possible to promote the development of employees through pieces of training, seminars, training courses. Such employees have a lot of experience, knowledge and skills, and they get the job done faster and better.
With such professionals, the company has new prospects a more advantageous position in the market.
This principle states that management should be carried out at the lowest cost while achieving high results.
The organization must be efficient, and this means that its activities should lead to the desired result, which can be assessed for profitability.
Current conditions for the existence of organizations dictate new principles in management. These include the following points.
Each organization produces goods or services for a specific segment of consumers. Their satisfaction, tastes, and preferences depend on the organization’s profitability and success.
You need to constantly conduct market research and customer satisfaction research to keep abreast of consumer expectations and requests.
If you ignore this most important landmark, you can soon become bankrupt.
Expansion Of Spheres Of Influence, Search For New Markets And Niches
Every company should strive for a dominant position in the market. This is possible by expanding spheres of influence (achieved through competitive advantages).
It would help if you were implemented in new market segments to focus on your customers. It is also possible to expand production or offer related services.
Orientation To The Future And The Result
This principle emerges from the organization’s mission and is implemented through strategic planning.
The company cannot live only for today, and it must act strictly according to the strategic plan of its development.
The Use Of Universal Values In Management
An organization consists primarily of people, a team. Guided by generally accepted norms and values, you can create a harmonious environment within the company.
If the employee’s values are the values of the organization, this doubles the success.
In addition, universal human values are also crucial for the consumer. He wants to see a loyal company that tries for him.
Initiative And Search For Non-Standard Solutions
The initiative should be welcome in the organization. Moreover, it can come from the management and a simple worker. The search for non-standard solutions enables the company to reach a new, higher quality level.
Non-standard solutions can relate to any activity area, from production to sales and marketing of products, from management within the structure to expansion of market share.
Moreover, non-standard ideas can be so successful that they allow the organization to increase profits and become a monopolist in the industry.
The use of these or similar principles will allow management to take their company to the highest level, to make the success of their employees the success of the company.
How The Application Of Management Principles Helps An Organization Achieve Success
Following announced or not announced, but understandable by default to most employees of the organization, the principles of management creates conditions in the organization under which employees understand what they want from them. The management principles can be different, calling forward to development, or vice versa, hindering growth.
By themselves, the principles of management, understandable to most employees, allow you to get a synergistic effect from the majority’s joint efforts in achieving the management system’s goals. They allow you to direct the energy and strength of people in the direction you need. I repeat, the same order “where” may not always be for the better, alas.
The opposite of managing an organization based on stated or unstated principles will be “unprincipled” management. It will lead to the fact that it will take a lot of effort to control staff work, starting from the moment goals are set. The objectives of individuals and groups will be so different that all together will not allow directing the company in the direction necessary for the leaders.
That is why management principles and adherence to them simplify control creates a condition for setting and implementing management goals that develop the organization in a given direction. But, as you know, the management system is the system for achieving the set goals. So the principles of management can be put as the basis for setting goals, developing plans, deploying goals in an organization. This allows the organization, in the end, to achieve success in the direction of its development chosen by it.