Meaning of Decentralization Delegation of authority and duties is usually referred to as decentralization in which set up the organization is divided into different section and departments in order to help the organization grow scientifically and with a purpose of direction leading to harmony in relations and healthy atmosphere which generally is absent in centralized system of organization. Decentralization of authority, holds Koontz and O’Donnell, “is a fundamental phase of delegation.” To the extent that authority is not delegated is obviously centralization. In the words of Henry Fayol, “every thing that goes to increase the importance of the subordinate’s role is decentralization.” Decentralization is diffusion of authority. It is a process by which specific responsibility is assigned to subordinates. Such a responsibility, when assigned to subordinates, is always followed by sufficient authority which also is given to the executive and other subordinates at lower levels. Decentralization, therefore, refers to assigningContinue reading
Management Basics
Frederick Taylor’s Principles of Scientific Management
Frederick Winslow Taylor well-known as the founder of scientific management was the first to recognize and emphasis the need for adopting a scientific approach to the task of managing an enterprise. He tried to diagnose the causes of low efficiency in industry and came to the conclusion that much of waste and inefficiency is due to the lack of order and system in the methods of management. He found that the management was usually ignorant of the amount of work that could be done by a worker in a day as also the best method of doing the job. As a result, it remained largely at the mercy of the workers who deliberately shirked work. He therefore, suggested that those responsible for management should adopt a scientific approach in their work, and make use of “scientific method” for achieving higher efficiency. The Frederick Taylor’s principles of scientific management consists essentiallyContinue reading
Definition of Management by Eminent Authors
Management is a word that is quite wide spread and cannot ever have a precise and concise definition. There have been lot of definitions to it in the past that have tried to define the meaning, objective and scope of management in our lives but none of them has been able to precisely and completely define the scope and meaning of management. Many eminent authors on the subject have defined the term “management”. Some of the widely known definitions of management are as mentioned here. According to Lawrence A Appley; “Management is the development of people and not the direction of things”. According to Joseph Massie; “Management is defined as the process by which a cooperative group directs action towards common goals”. In the words of George R Terry; “Management is a distinct process consisting of planning, organizing actuating and controlling performed to determine and accomplish the objectives byContinue reading
Important Characteristics of Management
An analysis of the various definitions of management indicates that management has certain characteristics. The following are the salient characteristics of management. 1. Management aims at reaping rich results in economic terms: Manager’s primary task is to secure the productive performance through planning, direction and control. It is expected of the management to bring into being the desired results. Rational utilisation of available resources to maximise the profit is the economic function of a manager. Professional manager can prove his administrative talent only by economising the resources and enhancing profit. According to Kimball – “management is the art of applying the economic principles that underlie the control of men and materials in the enterprise under consideration”. 2. Management also implies skill and experience in getting things done through people: Management involves doing the job through people. The economic function of earning profitable return cannot be performed without enlisting co-operation andContinue reading
Professionalization of Management
There has been a growing trend towards professionalization of management. Professionalization imparts a certain social responsibility and dignity to management. A professional cannot be controlled or directed by the client. He has professional knowledge and judgment which he uses to make his decision. Thus, professionalization makes business more efficient, dynamic and socially responsible. The growth of management education has contributed to professionalization in the business field. The company form of business organization which has split ownership from management and the gaining popularity of the company form of business organization have increased the need for professional managers. Is Management a Profession? To answer this question, first of all we should understand what a profession is. Many authorities on the subject have attempted to define a profession. According to Abraham Flexner, A profession is; A body of specialized knowledge and recognized educational process of acquiring it. A standard of qualifications governing admissionContinue reading
Most Important Functions of Management
Some would define management as an art, while others would define it as a science. Whether management is an art or a science isn’t what is most important. Management is a process that is used to accomplish organizational goals; that is, a process that is used to achieve what an organization wants to achieve. An organization could be a business, a school, a city, a group of volunteers, or any governmental entity. Managers are the people to whom this management task is assigned, and it is generally thought that they achieve the desired goals through the key functions of management. Some would include leading as a managing function, but for the purposes of this discussion, leading is included as a part of directing. The elements of management process are known as functions of management. However various authors have classified these differently. Henry Fayol classified the major functions of management intoContinue reading