02: PLANNING Flashcards
Process of developing, organizing, and evaluating the activities required to achieve a desired goal. Organization’s purposeful effort to maximize the future success. May involve more than just the top-level managers.
PLANNING
STEPS IN THE PLANNING PROCESS:
- Orient the planning process to a singular direction or purpose (Vision/Mission)
- Assess the organization’s current situation or status
- Set goals
- Identify and develop strategies to achieve these goals
- Establish the objectives that will support the progress toward these goals
- Define the responsibilities and timelines for each objectives
- Write, communicate, and discuss the plan to individuals and units involved
- Monitor progress toward meeting goals and objectives
A French industrialist, the first to develop a theory on general management which is widely used today. His greatest contribution was his discussion of management principles and elements in 14 Principles of Management.
HENRI FAYOL
PRINCIPLES OF MANAGEMENT:
- Specialized jobs are assigned to various departments and /or positions. It implies a narrowly defined job for each employee.
DIVISION OF WORK
PRINCIPLES OF MANAGEMENT:
- Employees should have authority for ensuring the performance and completion of tasks assigned to them. Those with authority over some functions should also be held responsible for these functions.
AUTHORITY AND RESPONSIBILITY
PRINCIPLES OF MANAGEMENT:
- Refers to the limitation on the number of subordinates that a manager can effectively administer and control. There are only so many employees a manager can effectively supervise. A lower-level manager can oversee 8-20 employees, while the upper-level manager can supervise 4-8 employees. The lesser the number, the greater amount of communication between the managers and the subordinates.
SPAN OF CONTROL
PRINCIPLES OF MANAGEMENT:
- Employee must report to a single direct supervisor that is responsible. There must be an established chain of command, and every worker needs to be supervised by one and only one direct supervisor. A corollary of the above is the rule against “by passing”. The rule states, supervisor should avoid giving orders directly to subordinates of their subordinate.
UNITY OF COMMAND
PRINCIPLES OF MANAGEMENT:
- Group activities should have one boss and one plan with the same objective. Employees must understand and be willing to work toward the business’s goals.
UNITY OF DIRECTION
PRINCIPLES OF MANAGEMENT:
- Interest of one individual or group of individuals should not outweigh the interests of the business.
SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST
PRINCIPLES OF MANAGEMENT:
- A fair method of payment that affords the maximum possible satisfaction to both employees and the employer. The principle is based on “equal pay for equal work”
REMUNERATION
PRINCIPLES OF MANAGEMENT:
- The extents to which authority is concentrated. The principle of management ensures that major policies and decisions are made only by the top management.
CENTRALIZATION
PRINCIPLES OF MANAGEMENT:
- Ultimate authority lies at the top and communication flows downward.
SCALAR CHAIN
PRINCIPLES OF MANAGEMENT:
- Ensures employees are assigned and resources are allocated properly in the organization
ORDER
PRINCIPLES OF MANAGEMENT:
- Involves fair and kind treatment of employees
EQUITY
PRINCIPLES OF MANAGEMENT:
- Unnecessary labor turnover can be the cause and the effect of bad management. Employees should be given enough time and opportunity to prove their worth o the company.
STABILITY TENURE
PRINCIPLES OF MANAGEMENT:
- Unnecessary elements that complicates the plan or the activity should be eliminated from all activities as well from the processes and the procedures .
SIMPLICITY
