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Saturday 20 July 2013

14 Bricks of Organization

The 14 steps towards Success!!

Division of Work-- Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive.
1) Henry Fayol has stressed on the specialization of jobs. 
2) He recommended that work of all kinds must be divided & subdivided and  allotted to various persons according to their expertise in a particular area. 
3) Subdivision of work makes it simpler and results in efficiency. 
4) It also helps the individual in acquiring speed, accuracy in his performance. 
5) Specialization leads to efficiency & economy in spheres of business.

Authority-- The right to issue commands, along with which must go the balanced responsibility for its function.
 1)  Authority & responsibility are co-existing. 
2)  If authority is given to a person, he should also be made responsible.
3)  In a same way, if anyone is made responsible for any job, he should also have concerned authority. 
4)  Authority refers to the right of superiors to get exactness from their sub-ordinates whereas responsibility means obligation for the performance of the job assigned.
5) There should be a balance between the two i.e. they must go hand in hand.
6) Authority without responsibility leads to irresponsible behavior whereas responsibility without authority makes the person ineffective.
Discipline-- Employees must obey, but this is two-sided: employees will only obey orders if management play their part by providing good leadership.
1.   According to Fayol, “Discipline means sincerity, obedience, respect of authority & observance of rules  and regulations of the enterprise”.
2.   This principle applies that subordinate should respect their superiors and obey their order.
3. It is an important requisite for smooth running of the enterprise.
4.   Discipline is not only required on path of subordinates but also on the part of management.
5. Discipline can be enforced if -
      a.)There are good superiors at all levels.
b.)There are clear & fair agreements with workers.
c.)Sanctions (punishments) are judiciously applied.
Unity of Command--Each worker should have only one boss with no other conflicting lines of command.
Unity of Direction-- People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it.

Subordination of individual interest (to the general interest)-- 
   1)  An organization is much bigger than the individual it constitutes therefore interest of the undertaking      should prevail in all circumstances.
     2)   As far as possible, reconciliation should be achieved between individual and group interests.
     3)   But in case of conflict, individual must sacrifice for bigger interests.
     4)   In order to achieve this attitude, it is essential that:-
           -       Employees should be honest & sincere.
           -       Proper & regular supervision of work.  
           -       Reconciliation of mutual differences and clashes by mutual agreement.
                   For example, for change of location of plant, for change of profit sharing ratio, etc
Remuneration-- Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect system.
1.) The quantum and method of remuneration to be paid to the workers should be fair, reasonable,   satisfactory & rewarding of the efforts.
2.)  As far as possible it should accord satisfaction to both employer and the employees.
3.) Wages should be determined on the basis of cost of living, work assigned, financial position of the business, wage rate prevailing etc.
4.)  Logical & appropriate wage rates and methods of their payment reduce tension & differences between workers & management creates harmonious relationship and pleasing atmosphere of work.
5.) Fayol also recommended provision of other benefits such as free education, medical & residential facilities to workers.
Centralization (or Decentralization)-- This is a matter of degree depending on the condition of the business and the quality of its personnel. 
Negative shades of Centralization as follows:-

  • Dictatorship
  • Productivity may go down
  • Less flexibility
  • Burden of whole organization
  • Time log
  • Less Innovation
  • Impose power leads to corruption
  • Lack of accountability

where as Decentralization leads to empowerment and distribution of power to team .It has 0% power.As a Manager one should practice becoming the expertise of both . 

Scalar chain (Line of Authority)—
1)  Fayol defines scalar chain as ’The chain of superiors ranging from the ultimate authority to the lowest”.
2)  Every orders, instructions, messages, requests, explanation etc. has to pass through Scalar chain.
3)  But, for the sake of convenience & urgency, this path can be cut shirt and this short cut is known as Gang Plank.
4)  A Gang Plank is a temporary arrangement between two different points to facilitate quick & easy communication as explained below:
5) In the figure given, if D has to communicate with G he will first send the communication upwards with                         the help of C, B to A and then downwards with the help of E and F to G which will take quite some time and by that time, it may not be worth therefore a gang plank has been developed between the two.
6) Gang Plank clarifies that management principles are not rigid rather they are very flexible. They can be moulded and modified as per the requirements of situations.
Order--Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection.
1.)This principle is concerned with proper & systematic arrangement of things and people.
2.)Arrangement of things is called material order and placement of people is called social order.
3.)Material order- There should be safe, appropriate and specific place for every article and every place to be effectively used for specific activity and commodity.
4.)Social order- Selection and appointment of most suitable person on the suitable job. There should be a specific place for every one and everyone should have a specific place so that they can easily be contacted whenever need arises.
Equity.--In running a business a ‘combination of kindliness and justice’ is needed. Treating employees well is important to achieve equity.
1.)  Equity means combination of fairness, kindness & justice.
2.)  The employees should be treated with kindness & equity if devotion is expected of them.
3.)  It implies that managers should be fair and impartial while dealing with the subordinates.
4.)  They should give similar treatment to people of similar position.
5.)  They should not discriminate with respect to age, caste, sex, religion, relation etc.
6.)  Equity is essential to create and maintain cordial relations between the managers and sub-ordinate.
7.)  But equity does not mean total absence of harshness.
8.)  Fayol was of opinion that, “at times force and harshness might become necessary for the sake of equity”.
Stability of Tenure of Personnel--Employees work better if job security and career progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely.

 1) Fayol emphasized that employees should not be moved frequently from one job position to another i.e. the period of service in a job should be fixed.

2)    Therefore employees should be appointed after keeping in view principles of recruitment & selection but once they are appointed their services should be served.
3)    According to Fayol. “Time is required for an employee to get used to a new work & succeed to doing it well but if he is removed before that he will not be able to render worthwhile   services”.
4)    As a result, the time, effort and money spent on training the worker will go waste.
5)    Stability of job creates team spirit and a sense of belonging among workers which ultimately increase the quality as well as quantity of work.
Initiative--Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of ‘personal vanity’ on the part of many managers.
1)  There should be proper co-ordination of work at all levels.
2)  Subordinates should be encouraged to develop informal relations among themselves.
3)  Efforts should be made to create enthusiasm and keenness among subordinates so that they can work to the maximum ability.
4)  Efficient employees should be rewarded and those who are not up to the mark should be given a chance to improve their performance.
5) Subordinates should be made conscious of that whatever they are doing is of great importance to the business & society.
Esprit de Corps-- Management must foster the morale of its employees.

  1. It refers to team spirit i.e. harmony in the work groups and mutual understanding among the members.
  2. Spirit De’ Corps inspires workers to work harder.
  3. Fayol cautioned the managers against dividing the employees into competing groups because it might damage the moral of the workers and interest of the undertaking in the long run.
  4. To inculcate Espirit De’ Corps following steps should be undertaken -
            ·  There should be proper co-ordination of work at all levels.
      ·  Subordinates should be encouraged to develop informal relations among themselves.
      ·  Efforts should be made to create enthusiasm and keenness among subordinates so that they can work to maximize limit.
      · Efficient employees should be rewarded and those who are not up to the mark should be given a chance to improve their performance.
     ·  Subordinates should be made conscious of that whatever they are doing is of great importance to the business & society.




1 comment:

  1. Nice .. I gave presentation on the same topic in my sociology classes last week. I would have definitely taken help of this . :)

    ReplyDelete