Thursday, September 27, 2007

HENRI FAYOL'S PRINCIPLES OF MANAGEMENT

In 1916, Henri Fayol provided a list of 14 principles in his book titled 'Administration Industrielle et Generate' (written in French, later trans­lated in English as 'Industrial and General Administration). Fayol was of the opinion that all managers in all organizations, whether large or small, need to follow the principles or guidelines in managing business affairs.
The 14 principles are as follows:
1. Division of work:
The work in an organization must be divided among individuals and departments. Division of work leads to specialization. It results in accuracy, speed and neatness in work. Specialization also leads to innovation.
Henri Fayol advocated division of work, because every change of work requires adaptation or adjustment which reduces output. How­ever, division of work has it own limits which should not be exceeded.
2. Authority and Responsibility:
Fayol stressed that authority should be equal to responsibility. If authority is in excess of responsibility, then the manager may be tempted to misuse it. On the other hand, if a person is held responsible without giving him adequate authority, then he may feel frustrated.
In other words, authority should not be more and less responsibility. Again, responsibility should not be more and less authority. There should be a proper balance between authority and responsibility.
3. Discipline:
Fayol stressed the need for discipline in an organization. Discipline involves not only obedience to rules and regulations of the organization, but more importantly it involves application and dedication on the part of the employees. It also involves outward marks of respect.
Fayol wrote that the best means of maintaining discipline is to have:
Disciplined superiors at all levels,
Clear and fair agreements, and
Judicious use of all penalties.

4. Unity of Command:
It means a subordinate should receive orders from only one superior. There should not be multiple bosses. The subordinate should not be made to report to several bosses.
Fayol observed that if one subordinate receives orders from more than one superior, then everything will be in disorder. Lack of unity of command is like "Too many cooks spoil the soup."
5. Unity of Direction:
There should be 'one head, and one plan' for a group of activities having the same objective. There cannot be different plans for the same group of activities having the same objective.
For instance, if there are 10 salesmen, selling the same product in the same area, and if there are 2 sales supervisors, each in charge of 5 men, then every salesman would take orders from their respective supervisors. There will be unity of direction only when all the sales plans are coordinated at a higher level.
6. Subordination of individual interest to general interest:The interest of one employee or a group of employees should not prevail over that of the entire organization. Every employee or a group should work in the interest of the organization and not for their own self interest.
In other words, the interest of the organization should come first and then individual or group interest. This can be ensured by:
Good example on the part of superiors,
Having fair agreements, and
Constant supervision.
7. Remuneration:
Wages and salaries should be fair. It should depend on circumstances, such as cost of living, ability of the company to pay, prevailing wage rates in the industry, etc. Also, the value of the employee must be taken into consideration.
Fayol stressed that apart from financial benefits, non-financial benefits be provided such as good working conditions, canteen facilities, recreation facilities, etc.
8. Centralization:
Fayol stated that certain matters are to be centralized and others to be decentralized. There is a need to have a proper balance between centralization and decentralization. He advised that extreme centralization or decentralization is to be avoided, especially in large companies.
9. Scalar Chain:
It refers to the line of command from top level to the lowest level. He felt that scalar chain needs to be followed, but not at all times.
He stressed that the scalar chain can be short-circuited or broken if the situation so demands in the interest of the organization. He advocated the 'Gang-plank Principle'. Gangplanks should be used to prevent the delay of action. This can be explained with the help of a diagram taken from his book.




In the diagram 'A' represents the top authority (superior), who is in charge of 'B' and 'L'. 'B' is the immediate superior of 'C. 'L' in turn is the superior of 'M', and so on. Suppose if 'F' wants to communicate to 'P', then he would have to go all the way up to 'A' and then down to 'P' (if the scalar chain principle is to be followed in the strict sense). This will result in a lot of paper work and time consuming, which in fact will delay action.
To avoid distortion in communication and delay in action, Fayol suggested that with the help of the 'gangplank/bridge' (dotted line,) 'F can directly communicate with 'P', provided both of them inform their immediate superior of any action taken.
10. Order:
Fayol stated that there should be order in the organization. He stressed that there should be a place for everything, and everything must be in its place. Again, there must be a place for everyone, and everyone .must be in his place
Thus, this principle requires the orderly organization and placement of men, machines and other resources. Misplacement would lead to misuse and disorder.
11. Equity:
All members of the organization should be treated equally, depending upon the performance and circumstances. In other words, there must not be any partiality in transfers, promotions, etc. Fayol stressed that managers must exercise justice and kindness while dealing with their subordinates.

12. Stability of Tenure:
Fayol pointed out that managers as well as non-managers need time to learn and understand their jobs. If they leave or are removed within a short period of time, the learning time will be wasted.
In other words, employees should not be kept temporary for a long period of lime. Employees should be made permanent so that they do not leave the organization. However, incompetent persons need to be removed or replaced and those who perform well must be rewarded
13. Initiative:
The superior must sacrifice his own vanity to encourage and inspire those under him to show initiative. Subordinates should be given freedom to come up with suggestions and ideas. This will not only add to the success of the organization but will also boost the morale of the subordinates.
14. Esprit de Corps:
The superior must encourage esprit de corps (team spirit) among his subordinates. It is the team spirit that results in loyalty, and dedication and commitment of the employees.
Fayol warned of the consequences of (a) divide and rule, and (b) abuse of written communications. It is the team spirit that often brings success to the organization.

. TRUST – The Foundation of Relationship.

TRUST – The Foundation of Relationship.


TRUST – The Foundation of Relationship. TRUST is a very important factor for all relationships. When trust is broken, it is the end of the relationship. Lack of trust leads to suspicion, suspicion generates anger, anger causes enmity and enmity may result in separation. A telephone operator told me that one day she received a phone call. She answered, "Public Utilities Board." There was silence. She repeated, "PUB." There was still no answer. When she was going to cut off the line, she Heard a lady's voice, "Oh, so this isT>PUB.Sorry, I got the number from my Husband's pocket but I do not know whose number it is." Without mutual trust, just imagine what will happen to the couple if the telephone operator answered with just "hello" instead of "PUB". NO POINTING FINGERS A man asked his father-in-law, "Many people praised you for a successful marriage. Could you please share with me your secret?" The father-in-law answered in a smile, "Never criticize your wife for her shortcomings or when she does something wrong. Always bear in mind that because of her shortcomings and weaknesses, she could not find a better husband than you." We all look forward to being loved and respected. Many people are afraid of losing face. Generally, when a person makes a mistake, he would look around to find a scapegoat to point the finger at. This is the start of a war. We should always remember that when we point one finger at a person, the other four fingers are pointing at ourselves. If we forgive others, others will ignore our mistake too. CREATING PERFECT RELATIONSHIPS? A person visited the government matchmaker for marriage, SDU, and requested "I am looking for a spouse. Please help me to find a suitable one." The SDU officer said, "Your requirements, please." "Oh, good looking, polite, humorous , sporty, knowledgeable, good in singing ! and dancing. Willing to accompany me the whole day at home during my leisure hour, if I don't go out. Telling me interesting stories when I need companion for conversation and be silent when I want to rest." The officer listened carefully and replied, "I understand you need television." There is a saying that a perfect match can only be found between a blind wife and a deaf husband ,because the blind wife cannot see the faults of the husband and the deaf husband cannot hear the nagging of the wife. Many couples are blind and deaf at the courting stage and dream of perpetual perfect relationship. Unfortunately, when the excitement of love wears off, they wake up and discover that marriage is not a bed of roses. The nightmare begins. NO OVERPOWERING Many relationships fail because one party tries to overpower another,or demands too much. People in love tend to think that love will conquer all and their spouses will change the bad habits after marriage. Actually, this is not the case. There is a Chinese saying which carries the meaning that "It is easier to reshape a mountain or a river than a person's character." It is not easy to change. Thus, having high expectation on changing the spouse character will cause disappointment and unpleasantness. It would be less painful to change ourselves and lower our expectations. . RIGHT SPEECH There is a Chinese saying which carries the meaning that "A speech will either prosper or ruin a nation." Many relationships break off because of wrong speech. When a couple is too close with each other,we always forget mutu! al respect and courtesy. We may say anything without considering if it would hurt the other party. A friend and her millionaire husband visited their construction site. A worker who wore a helmet saw her and shouted,"Hi, Emily! Remember me? We used to date in the secondary school." On the way home, her millionaire husband teased her, "Luckily you married me.Otherwise you will be the wife of a construction worker." She answered ,"You should appreciate that you married me. Otherwise, he will be the millionaire and not you." Frequently exchanging these remarks plants the seed for a bad relationship. It's like a broken egg - cannot be reversed. PERSONAL PERCEPTION Different people have different perception. One man's meat could be another man's poison. A couple bought a donkey from the market. On the way home,a boy commented, "Very stupid. Why neither of them ride on the donkey?"Upon hearing that, the husband let the wife ride on the donkey. He walked besides them. Later, an old man saw it and commented, "The husband is the head of family. How can the wife ride on the donkey while the husband is on foot?" Hearing this, the wife quickly got down and let the husband ride on the donkey. Further on the way home, they met an old Lady. She commented, "How can the man ride on the donkey but let the wife walk. He i! s no gentleman." The husband thus quickly asked the wife to join him on the donkey. Then, they met a young man. He commented, "Poor donkey, how can you hold up the weight of two persons. They are cruel to you." Hearing that, the husband and wife immediately climbed down from the donkey and carried it on their shoulders. It seems to be the only choice left. Later, on a narrow bridge, the donkey was frightened and struggled. They lost their balance and fell into the river. You can never have everyone praise you, nor will everyone condemn you. Never in the past, not at present, and never will be in the future. Thus, do not be too bothered by others words if our conscience is clear.. BE PATIENT This is a true story which happened in the States. A man came out of his home to admire his new truck. To his puzzlement, his three-year-old son was happily hammering dents into the shiny paint of the truck. The man ran to his son, knocked him away, hammered the little boy's hands into pulp as punishment. When the father calmed down, he rushed his son to the hospital. Although the doctor tried desperately to save the crushed bones, he finally had to amputate the fingers from both the boy's hands. When the boy woke up from the surgery & saw his bandaged stubs, he innocently said, " Daddy,I'm sorry about your truck." Then he asked, "but when are my fingers going to grow back?" The father went home & committed suicide. Think about this story the next time someone steps on your feet or u wish to take revenge. Think first before u lose your patience with someone u love. Trucks can be repaired.. Broken bones & hurt feelings often can't. Too often we fail to recognize the difference between the person and the performance. We forget that forgiveness is greater than revenge. People make mistakes. We are allowed to make mistakes. But the actions we take while in a rage will haunt us forever.

CAREER - 5 things to consider before taking up your first job

Starting your professional career is one of the most important stages in an individual's life. Finding the right career path after your formal education can have an impact on your overall career path and growth rate.
Once you start appearing for interviews you quickly realise that unless you are well connected, most employers are looking for experience to back up your education. Also, without education, employers expect to pay you a lower income than you actually deserve.

Here are some of the options that you must evaluate when you come face to face with this reality:
Take some time offThe urge to start working once you finish your education is compelling. However, take some time off to evaluate a few options. Reward yourself before starting a new chapter of your life which is full of challenges.

Go on a vacation or spend time pursuing a hobby that you neglected due to the demanding course that you just completed. This will give you the time to think of possible career options and ensure that you don't end up following the herd.

Stay in schoolYou can pursue higher education and continue studying. This will help you become more knowledgeable and employable. Srue, this means is that you are postponing not having a job, especially in your field. On the other hand, obtaining an additional certificate, such as a Masters degree can increase your starting salary.

Employers would expect you to be smarter than the average person because of the extra years spent educating yourself. More Educated = Bigger paycheques.
Join the workforce immediatelyIf studying is not for you, you could start working right away for a lower income on the basis that you will gain hands-on experience. This will allow you to climb the corporate ladder through standardised promotions.

This choice fits very well within the personality of many professionals who like to take things one step at a time. As a fresher, you may not land the plum job profiles so you have to be mentally prepared to take up an entry level, low-value job at first.

Become an entrepreneurA riskier way to undertake one's professional career is to start an entrepreneurial venture. This is the riskiest of them all, but also the most rewarding professionally and possibly financially. A lot of willpower and determination is needed to pursue this endeavour, and often some start-up funds might be needed to see your ideas materialise. Prepare yourself to face many obstacles. Being an entrepreneur is a lot riskier than the conventional job routine and there is guarantee of a regular salary once you start out. But if you are confident in your abilities and brave enough to face the disappointments, there is no reason you will not gain success.

Use your networks and contactsThe last and least difficult option is to use your contacts within a corporation, which will ease your entrance into the work team. This might not be the most rewarding at the beginning, but consider that about 80 per cent of jobs are obtained using one's contacts in his network. This does not mean that you are less qualified; it just means that you have to live up to your professional expectations all the more.
Plan the transitionAs soon as you finish your college education, you've got your mind set on one thing -- making money. Be smart though. If you get a great job offer right after graduation; take it, because years of learning are only useful if you have an opportunity to prove yourself.

If you don't, all you will have to show for is a head full of concepts and a nice diploma. A major decision like this one will affect the rest of your life and should not be taken lightly, which is why planning must be put into the equation.

Write down all your strong and weak points to determine the best suited position for you. This simple exercise will allow you to find out where you want to be in the future and how to get there efficiently.
Now that you are armed with the tools you need to land that first job, go out and convince the real world that you are ready for what the professional world has to offer.

HOW TO LISTEN EFFECTIVELY?

1.A good listener has to exercise mental discipline over himself. Only if you concentrate properly can you be a good listener.

2.If you are attending a meeting, talk or lecture see to it that you arrive early so that you can settle yourself physically and compose yourself mentally before the speeches start.

3.Do not allow yourself to be distracted by noises or other things like a pretty girl or handsome boy entering the room or the perfume of your neighbor. Do not distract the speaker yourself.

4.Find an area of interest and listen for ideas.

5.Avoid thinking too much about a point that has just been made by the speaker as this will prevent you from paying attention to the next. You can take notes and think about the matter later. Try to understand first, evaluate later.

6.Keep on open mind and be patient.

7.if you find that an informal talk or discussion has been going on for a very long time then do not hesitate to suggest a break so that the participants may refresh themselves and be able to concentrate better after the break.

8.Avoid listening to several people at the same time. If your telephone rings in the middle of an important conversation do not interrupt the conversation but request the telephoning party to ring you up later.

9.Show interest in the person who is talking to you by looking at him and by either nodding your head or by short encouraging A friendly and patient attitude helps you to get a real insight into the thoughts and feelings of the speaker. You could also restate the speaker’s feelings briefly.

10.Do not contradict openly with words like “ I think you are wrong‿ as this discourages the speaker or forces him to use false insincere arguments.

11.Listen to the feelings of the speaker and not only to his words.

12.Make sure that there are no emotional barriers on your own side which prevent you from listening attentively. Do not interrupt, unless it is absolutely necessary. Do not be in a hurry to talk.