What are various principles of management? How are modern organization different from typical classical organizations, in terms of practices of various principles of management?

What are various principles of management? How are modern organization  different from typical classical organizations, in terms of practices of various  principles of management?

Solution

The fourteen principles of management created by Henri Fayol are explained below.

 1. Division of Work-

 Henri believed that segregating work in the workforce amongst the worker will enhance the quality of the product. Similarly, he also concluded that the division of work improves the productivity, efficiency, accuracy and speed of the workers. This principle is appropriate for both the managerial as well as a technical work level.

 2. Authority and Responsibility-

 These are the two key aspects of management. Authority facilitates the management to work efficiently, and responsibility makes them responsible for the work done under their guidance or leadership.

 3. Discipline-

 Without discipline, nothing can be accomplished. It is the core value for any project or any management. Good performance and sensible interrelation make the management job easy and comprehensive. Employees good behaviour also helps them smoothly build and progress in their professional careers.

 4. Unity of Command-

 This means an employee should have only one boss and follow his command. If an employee has to follow more than one boss, there begins a conflict of interest and can create confusion.

 5. Unity of Direction-

 Whoever is engaged in the same activity should have a unified goal. This means all the person working in a company should have one goal and motive which will make the work easier and achieve the set goal easily.

 6. Subordination of Individual Interest-

 This indicates a company should work unitedly towards the interest of a company rather than personal interest. Be subordinate to the purposes of an organization. This refers to the whole chain of command in a company.

 7. Remuneration-

 This plays an important role in motivating the workers of a company. Remuneration can be monetary or non-monetary. However, it should be according to an individual’s efforts they have made.

 8. Centralization-

 In any company, the management or any authority responsible for the decision-making process should be neutral. However, this depends on the size of an organization. Henri Fayol stressed on the point that there should be a balance between the hierarchy and division of power.

 9. Scalar Chain-

 Fayol on this principle highlights that the hierarchy steps should be from the top to the lowest. This is necessary so that every employee knows their immediate senior also they should be able to contact any, if needed.

 10. Order-

 A company should maintain a well-defined work order to have a favourable work culture. The positive atmosphere in the workplace will boost more positive productivity.

 11. Equity-

 All employees should be treated equally and respectfully. It’s the responsibility of a manager that no employees face discrimination.

 12. Stability-

 An employee delivers the best if they feel secure in their job. It is the duty of the management to offer job security to their employees.

 13. Initiative-

 The management should support and encourage the employees to take initiatives in an organization. It will help them to increase their interest and make then worth.

 14. Esprit de Corps-

 It is the responsibility of the management to motivate their employees and be supportive of each other regularly. Developing trust and mutual understanding will lead to a positive outcome and work environment.

Traditional organization represent the organizational structure in a business is hierarchical, meaning power flows vertically and upward, and employees are departmentalized. All employees follow a chain of command. Such as a manager is the chief coordinator of all department. Each department has a head who report to the manager. Like the military system-very hierarchical, organized, disciplined. Every department has its own rules and regulations as well as and every employee has own job description and accountability to his superior. There’s strictly follow their own business strategy that’s set in annual economic year. All the goal achievement plan are set before and difficult to change. Always traditional organization is fixed and rigid.

 Modern Organization means a boundaryless organization which are networking together and collaborating more than ever before. They are well-suited for rapid innovation and therefore ideal for companies in the growing technology industry. Its main concept is to diversify its activities and connectivity as a result it can accept new challenges and can set a goal frequently. Modern style of management largely depends on soft skills – consensus building, relationships, listening, and understanding, taking the team along with you willingly than dragging them along with you.

 The main points of disagreement:

1.  Stability: People believe that traditional organizations are stable in their activities and progress. On the other hand modern one is more dynamic with its multiple business strategy. They need multiple progress and constant changes.
2.  Flexibility: Modern Organizations are always flexible to change their workflow, focuses as well as connectivity. There the organization is need to update their competitive advantages and the employees are required to upgrade their knowledge and skills. Traditional Organizations are fixed, inflexible and planned.
3.  Hierarchy: Modern Organizations flow “Flat Hierarchy” and Traditional flow “Tall Hierarchy”
4.  Teamwork: Team work is the main concept of modern organization. The organization who build more effective team can gain more. On the other hand a traditional one follows a chain of command where every employee should be obeyed to his superior.
5.  Employee Morale: As an employee of a modern organization get more freedom and flexibility to exchange his or her assessment. Consequently in this type of organization you find high employee morale. Traditional is a job oriented organization so you are not sure about the matter of employee morale.
6.  Risk Management: Traditional organization maintain a specific policy to protect any kind of risk that would be hampered for the organization or its employees. So employees are more educated about the matter thus can take any step. Modern organization are slightly brave in this matter. Though they are always ready to take new challenges so everyone here prepared to face any risk instantly.
7.  Diversification: Moreover the main contradiction between the modern and traditional organization is their business policies. Traditional organizations are slightly conservative and they try to follow traditional rules and regulation. They always flow a static business strategy and make a workflow model maintaining a traditional marketing policy and employee management system. A modern organization is doing modification, rescheduling, flexible entity management and dynamic business strategy.
8.  Technology: Modern Organization is more technology based and boundaryless. So the number of employee or the office compartment doesn’t matter. But traditional organizations are centralized and backward to accept advanced technology.

 So today is the right time to think about the business model of your organization. In present situation public demands are unlimited and their attention become diversified. So you should be more dynamic, more virtual and more advanced in modern technology.