Spaulding's eight necessities of management

Question 1

What are Spaulding’s eight necessities of management?

Answer 1

1. Cooperation and teamwork 2. Authority and responsibility 3. Division of labour 4. Adequate staffing 5. Adequate capital 6. Feasibility analysis 7. Advertising budget 8. Conflict resolution

Question 2

1. Cooperation and teamwork

Answer 2

communicating with others in an organisation and understanding what’s happening across the business with people acting in ‘complete unity’

Question 3

2. Authority and responsibility

Answer 3

people acting within the authority they are given, with one executive having the final and ultimate authority in any one department

Question 4

3. Division of labour

Answer 4

organisation divided into departments, with department heads operating according to instructions - allows new businesses to be absorbed if and when the organisation expands

Question 5

4. Adequate staffing

Answer 5

businesses need a sufficient number of staff to avoid workers being overworked, and systems of recruitment and training to ensure that new staff can be appointed as the business grows in size

Question 6

5. Adequate capital

Answer 6

businesses need adequate financial resources in order to grow in size. means reinvesting profits in to the business to support growth and expansion

Question 7

6. Feasibility analysis

Answer 7

avoiding costly mistakes through planning and assessing the feasibility of actions, by examining the needs and resources of the market before engaging in new business ventures

Question 8

7. Advertising budget

Answer 8

allocating part of the budget to advertising and promotion so that awareness of the business grows, enabling expansion of the business