Professional Documents
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Principle of Management
Principle of Management
Principle of Management
Regardless of size, nature and type of organization, all the managers have to perform some basic functions
which are as follows:
(a) Planning:
Planning is always the first function performed by every manager. Planning refers to “deciding in advance
what to do, how to do, when to do, and who is going to do it. Planning bridges the gap between where we
stand today and where we want to reach”. Every manager starts with deciding in advance the objectives of
an enterprise and how to accomplish these objectives. Planning is the base of all other functions of
management.
Most people learn the difference between right and wrong at an early age. But sometimes the difference
between right and wrong in a business setting isn’t black and white. A company should establish guidelines for
ethical behavior and identify the proper course of action in situations that might have several possible outcomes.
Train employees on the policies, and provide periodic updates when situations arise that suggest a policy might
be unclear or needs to be reinforced.
Ethics Training
Establish annual ethics training for employees to ensure they understand the corporate ethics policies and know
how to respond if presented with a situation that might compromise the company. Scenario-based training
involving employees, suppliers, management and others in hypothetical situations is an excellent way to learn
how to respond ethically to situations where there are several possible outcomes. Give employees a printed or
downloadable ethics manual for reference during the training and throughout the year.
Ombudsman
Even with clearly defined ethics policies, employees may face situations involving unethical behavior but don’t want to get
a co-worker or supervisor in trouble. Or an employee might be afraid that reporting unethical behavior could jeopardize his
job. Corporations can reinforce ethics policies and encourage employees to abide by ethical standards by providing an
ombudsman to discuss sensitive situations with them, advise them on the proper course of action and protect them from
retaliation.
Industry Recognition
Look for opportunities for recognition among industry peers as an ethical business. Ethisphere, which recognizes the
“World’s Most Ethical Companies” each year, uses a rating system to capture a company’s ethical performance. It found
that companies that make the cut have greater return on investment than those that don’t. Having a designation as an ethical
business can attract employees and investors and earn positive press for your company. In turn, it helps strengthen the
corporate image, build equity in the brand and position the company favorably on Wall Street and in the marketplace.
Planning and controlling are inseparable. Planning is the primary function of every organisation it is the
thinking process, which mean looking ahead or making plans that how desired goal is achieved in future
thus it is called a formed looking function on the other hand controlling is a systematic function which
measures the actual performance with the planned performance. It compared and analysed the whole
process of an organisation and take correcting actions. Thus, it is a backward looking function but the
statement "Planning is looking ahead and controlling is looking back" is partially correct because it should
be understood that planning is glided by past experiences and the corrective action initiated by control
function which aims to improve future performance. Thus, planning and controlling are both backward
looking as well as a forward looking function.
Contingency planning and risk management are essential components of any business strategy. A small
business owner working on limited funds must pay careful attention to contingency planning and risk
management when evaluating the strengths and weaknesses of a proposed business strategy. Smart planning
can provide the edge the small business owner needs to establish a niche in the market and sustain growth.
Anticipating Business Risks
A business plan that only considers the best-case scenario for your small business isn't likely to last long.
Anticipating risks to your company, including seasonal drops in revenue and new competitor products entering
the market, is crucial to ensure your overall business strategy has the wide vision necessary to keep your
business from being caught off-guard by foreseeable events. The more risks your business can anticipate, the
better your company is at meeting the many challenges that can arise for a small business in any industry.
Contingency planning and risk management are only as good as the strategies developed to help mitigate the
potential financial damage to your company. Mitigation strategies may include a variety of methods for limiting
the affects of future problems to your business, including storing capital for revenue shortfalls as well as making
improvements to facilities to reduce the chances of employee injury. These strategies provide your small
business with a plan of action in the event of a problem. This allows your company to devote more time to
solving a problem in the moment without having to first sit down and develop a plan of action.
In evaluating your business strategy, contingency plans should give your company the mobility necessary to shift focus to
different aspects of your company and change operating strategies as needs in the market shift. Mobility is an essential
element of contingency planning and your business strategy as a whole. If you notice your company's strategy isn't working,
you must have the systems in place to switch gears and find the profitable solution. Without mobility, your small business
could remain locked in the same money-draining strategy until you're broke and out of business.
Planning for business opportunities is just as important as developing risk management strategies for your business.
Incorporating opportunity planning into your contingency plans can allow your company to get ahead of the competition in
a variety of areas, including developing new products to meet a need in the market or increasing promotional campaigns in
advance of a tourist season. Taking advantage of these opportunities helps your company maximize its profit potential and
secure new customers or clients.
Decision-making is regarded as the cognitive process resulting in the selection of a belief or a course of
action among several alternative possibilities. Every decision-making process produces a final choice that
may or may not prompt action.
Decision making is the process of making choices or reaching conclusions especially on business
matters. According to George Terry, “Decision making is the selection of a particular course of
action, based on some criteria, from two or more possible alternatives.” Decision making is thus
choosing the best course of action out of the available options while aiming at the achievement of
particular organizational objectives.
Management and decision making are to be considered as inseparable. It is the intellectual
process and a purposeful activity which at varied times takes in hands all the managerial activities,
such as, planning, organizing, staffing, directing and controlling. It is the process wherein an
executive, by taking in to consideration several alternatives, reaches at the conclusion about how
it should be dealt successfully in a given situation.
The decisions that are taken by a manager on the basis of his authority being associated with his
designation are regarded as organizational decisions. For instance, he can assign a subordinate
for a particular task; with the authority given to him, he can promote his subordinate and propose
job enrichment etc. On the contrary, the decisions that belong to him personally are called as
personal decisions; such as, he leaves the organization for his own sake.
There are routine and strategic decisions that a manager needs to make as and when needed.
With regard to the routine decisions, it may be said that they are related with day-to-day course of
business activities in which there is no specific judgment is needed. In this context, it is proper to
say that such decisions are normally to be taken by lower management level. While on the other
hand, strategic decisions need be taken by top management since they are concerned with policy
matters or they involve long-term plans.
Besides, programmed and non-programmed decisions have a lot to do with a business
organization. Programmed decisions are concerned with repetitive problems of a business that call
for particular policies, procedures etc. As regards non-programmed decisions, they are to be dealt
with such situations that occur unexpectedly which in turn are referred to the top management.
Finally, it must be noted that the process of decision making is to be initiated when there are
alternatives so that a decision may be made or a conclusion may be reached at by selecting the
best alternative in order to fulfill the purpose or to attain the organizational objectives. Decision
making is integral part of management as the survival and growth of business hinges on the quality
of decision making. Thus, being a continuous activity, decision making is regarded to be the heart
of management.
What are the forms of formal communication?
Formal communication is written, oral or graphic communication routed through the "official channels"
These follow the lines of authority and accountability.
What is formal communication?
A formal communication is when some one is wearing a dress or a top and a shirt or just something when
someone looks very pretty.
What is formal organization?
it is an organization which clearly defines the authority ,responsibility and inter relations of people working
therein
Define formal communication?
a formal communication can be defined as a means of communication that is normally controled by the
managers in an organisation. it has been called the main line of the organization operational
communication. this is intended the reports ,records,and other forms that flow up and down in the system
What are formal communication channels?
What are formal communication channels? formal communication channels-that flows within the chain of
command or task responsibility defined by the organisation. 1. VERTICAL COMMUNITION 2. HORIZONTAL
COMMUNICATION 3. EXTERNAL COMMUNICATION
Discuss the communication model in context to formal and informal flow of information
in an organization?
The informal flow of communication gives many ideas and help in increasing the productivity of the
organization to certain extent.
Why may an individual use a form of communication that is not based on a formal
language system?
One reason a person uses a form of communication that is not basedon a formal language system is if they
have learning disabilitiesand cannot use a formal language. Other medical reasons may keepthem from
communicating.
How does on organism benefit from organ systems that work together ans communicate?
Organ systems that work together make a more efficient being andhelp keep a state of balance within the
body.
Analyze reasons why an individual may use a form of communication that is not based on
a formal language system?
They may not share a language system with the recipient of the communication. They may not be able to
speak for some medical or physiological reason. They may not be able to access their normal language
skills (e.g following a stroke). There may be a barrier to normal methods of communication (distance or a
noisy environment). They may be operating in a dangerous situation in which the sound of speech would
increase their danger (e.g. military or police about to execute a raid). They may be operating in a situation
where sound would alert a prey animal or target, enabling it to escape (e.g. a hunting trip or police trying
to catch a suspect). The form of communication may be behavioural (e.g. body language). The
communication may take the form of an image in which symbolism communicates the message.
Functions of IT department?
The IT department has various functions. For instance, they makesure that the company server and
website are up and running.