- •Basic principles of management
- •Figure 2-1 Management Principles and Techniques for Applying Principles
- •Principle 1: Define Objectives
- •In progressive firms, top management is responsible for setting quantifiable (measurable), attainable objectives and then directing the organization toward meeting these objectives.
- •Principle 2: Accept Responsibility
- •Principle 3: Unify Functions
- •Principle 4: Utilize Specialization
- •Principle 5: Delegate Authority
- •Individuals in the organization must be delegated authority in keeping with the responsibility assigned them so that they can be held accountable for properly performing their duties.
- •Principle 6: Report to One Supervisor
- •Principle 7: Limit Span of Control
- •Autocratic Leadership Style
- •Bureaucratic Leadership Style
- •Diplomatic Leadership Style
- •Participative Leadership Style
- •Free-Rein Leadership Style
- •Formal Organization
- •Informal Organization
- •Informal organization - those personal relationships and self-groupings of employees that do not appear on the organization chart; also known as unwritten organization.
- •Case 2-1 Developing a Problem-Solving Attitude—a7
- •Case 2-2 Developing a Problem-Solving Attitude—в
Free-Rein Leadership Style
The free-rein leader sets goals and develops clear guidelines for subordinates, who then operate freely with no further direction unless they ask for help. However, the free-rein or "hands-off' OM does not abandon all control since the manager is ultimately accountable for the actions (or lack of actions) of the office employees. The free-rein OM delegates to the greatest extent in an effort to motivate the office workers to their fullest. However, the free-rein style can be disastrous for the manager if the workers are not qualified to accept the responsibilities and authority delegated.
As indicated earlier, there is no one best leadership style for an OM. In the various forms of organization discussed in the next section, OMs may be found who are effectively using characteristics of each managerial style. Such managers are flexible in deciding what style of leadership is needed to solve the existing problems.
FORMS OF ORGANIZATION
A basic responsibility of management is the development of an effective organization structure. The term organization structure refers to the arrangement of functions — the framework — that must be constructed in order to achieve the organization's goals. The best structure is the simplest one that will do the job. The simpler the structure, the easier the organization of work will be understood by all office workers. With a simple form of organization, the interrelationships among the workers will become clearer, and there will be fewer problems.
To create a simple form of organization in the office, the key activities or functions needed to produce the desired results must be provided. Thus, the OM, in designing a sound organization structure, serves as an architect who must keep in mind the basic purposes for which the office exists. One critical set of problems to avoid in organizing the office is known as Parkinson's Law, a condition that exists at times in all companies. C. Northcote Parkinson, who originated this "law," has found that the following serious problems can be expected in firms that lack good organization structures:
Work expands to fill the time available for its completion with little regard for the volume or usefulness of the tasks to be carried out.
Work expands to fit the organization that is designed to perform that work.
Еасh unit in an organization tends to build up its importance by expanding the number of its personnel.4
When these conditions are found, too many workers are employed in useless red tape, which brings about inefficiency and excessive costs.
Organization structures are usually planned on a functional basis; that is, according to the basic functions of business — production, marketing, finance, and human resources. Within each of the groupings, the functions may be further subdivided. The administrative services function that includes the office may be a subgroup under finance or under another major function, general administration. In addition to the functionally planned formal organization, this section discusses the informal organization.