(A) "Division of work." The main
objective is broken down into a series of more manageable tasks and functions which are then assigned to such groups or individuals
as are necessary to ensure their completion. And as a result of subdividing the primary objective into a series of smaller
objectives, an increased degree of efficiency is commonly achieved through such specialization and the elimination of duplicate
work tasks. The "division of work" principle, originally introduced in 1776 by Adam Smith, received extensive attention
during the late 1800s and dominated managerial thought throughout most of the twentieth century as a result of the scientific
management movement; producing great advances in productivity, but offering far less assistance in the way of maximizing the
potential of an organization's human resources. However, this principle still remains critical to organizing and efficiently
achieving any objective of substantial magnitude.
(B) "Authority and responsibility."
Authority is the right or power to control, command, or determine what is to be done that is delegated to an individual or
group by another person or representative body in whom such right is somehow legally vested. Authority also implies
the commensurate responsibility to accomplish the delegated task as agreed upon, the Leader's right to demand compliance with
his or her directives, and the burden of being held accountable to those who granted him or her the power to act. Authority
and responsibility are subsequently delegated through the same organization structure that the tasks to be accomplished are
organized and assigned.
(C) "Discipline." Organizational
discipline is the expectation that all those involved can be depended upon to follow their directives, to diligently perform
their duties, and to pursue their assigned objectives to the utmost of their ability. Discipline also provides for a
balanced and equitable system of penalties for individuals who fail to perform their tasks or behave as expected.
(D) "Unity of command." The unity
of command principle requires that each member of the hierarchy receive his or her directives from only one superior, thus
keeping conflicting instructions to a minimum and streamlining communication channels. Dual command structures, which
can result from a separation of the administrative or operational functions from the technical expertise associated with the
activity, must fully integrate the respective Line Leaders and Staff personnel as to the scope of their authority to prevent
confusion, duplication of effort, and management conflicts regarding the supervision of the lower echelons or Line personnel.
This goal is generally facilitated by Staff members or technical experts seeking their authority to act from the operations
manager or Line Leader at or above their respective echelon prior to them initiating any new procedures or issuing directives
regarding their area of responsibility.
(E) "Unity of direction [purpose]."
Each supervisory unit must be provided with clearly defined objectives of which each individual member must be made fully
aware, and which direct or control his or her individual work activities. Smaller sub-unit objectives must also be harmonious
and fully integrated into the objectives of the larger supervisory unit of which it is part. Consequently, a primary
leadership responsibility is to closely coordinate the efforts of all supervisory units and to remain doggedly focused on
the organization's goals. As it is absolutely impossible for an organization or any of its sub-units to follow more
than one vision at any one time; requiring that senior management show resolve, foresight, and imagination in defining that
vision.
(F) "Subordination of [the] individual to [the]
general interest." While a good faith effort may be made to satisfy the best interests and goals of both the
employee and the organization whenever possible, individual self-interests are, as necessary, sacrificed to ensure the long-term
survival or health of the organization (e.g., downsizing). As its overall prosperity and welfare is generally considered
to be of a higher priority than that of the individual. For obviously, if a company shutters its doors instead of downsizing
it has no chance of providing employment to anyone when the economy begins to boom once again.
(G) "Remuneration." Compensation
practices must strike a satisfactory balance between the individual's well-being and the economic benefit of his or her services
to the company. Compensation policies must also match or exceed minimum competitive wages, be fairly and universally
administered, and "encourage productivity" (Fayol). So essential is this equitable balance that a compensation policy
that fails to achieve these goals seriously undermines worker morale, drives more talented individuals from the organization's
ranks, and subsequently jeopardizes it's long-term viability.
(H) "Centralization." The authority
or power to make organizational decisions is granted within well defined parameters (e.g., spending limits, contractual limits,
supervisory responsibilities, or work functions) at each level through an ascending structure of supervisory echelons, with
each respective Leader having increasingly greater authority to act, the higher his or her rung on the corporate ladder.
The degree of centralization desirable is generally dependent upon the skill-levels of those supervised, the nature of the
objective or undertaking, and the administrative or supervisory outlook of the ultimate decision maker. And because
increased centralization proportionately reduces a Subordinates' role in deciding what or how something is to be done and
negatively impacts his or her "initiative and commitment to the decisions made" (Fayol) at each echelon, a balance must be
struck between the level of control perceived as being absolutely necessary to protect the organization's assets and its corresponding
negative impact on worker morale.
(I) "Scalar chain." The levels
of authority necessary for accomplishing the objective are arranged in a descending, ladder-like, hierarchical pattern to
facilitate determining who is responsible for what. Commonly referred to as the "chain-of-command," maintaining the
integrity of the command structure (preventing upper-level managers from superseding a lower-level manager's authority by
issuing orders directly to his or her Subordinates rather than issuing them indirectly through the respective manager) is
generally considered of paramount importance in reducing confusion and holding individuals accountable for their performance.
In the interest of saving time and improved efficiency, routine cross communications (e.g., accounts payable resolutions,
payroll reporting, or marketing) between supervisory units or departmental functions at the lower echelons which do not strictly
follow the vertical channels of communication are desirable but must be specifically authorized by their respective supervisors.
Subordinates must also be required to keep their supervisors "in-the-loop" as to the status of routine matters as well as
informing them of any special situations that might require their input or approval.
(J) "Order"
(Organization). The activities of every enterprise must be structured and organized so as to bring about an
efficient integration of its various functions and resources (both material and human). Order infers that there is a
logical sequence of events from one activity to another, and that there is some control mechanism (e.g., operating systems,
policies, or procedures) inherent to the organization structure that ensures its continued maintenance or improvement.
Order also addresses issues involving coordination difficulties between various departments and works to reduce conflicting
goals among different supervisory units; as well as overseeing the assignment, placement, or utilization of the organization's
personnel and physical assets to its maximum advantage.
(K) "Equity." To stimulate worker
productivity, company loyalty, and job commitment; an equitable system of policies and procedures is established and maintained;
providing for fair, consistent, and reputable treatment of all individuals by their supervisors. For equitable treatment
dramatically increases an employee's sense of well-being and self-respect, and is essential for creating a highly motivated
and productive work group.
(L) "Stability of tenure." For
an organization to produce quality products or services requires a well trained, highly motivated work force without which
its long-term economic prospects are substantially downgraded. Consequently, a stable corporate employment history (i.e.,
free from periodic layoffs, arbitrary terminations, or excessive turnover) increases morale, improves productivity, reduces
supervision requirements, and lowers training costs; thus accruing significant benefit to the company's continual fiscal health.
An ongoing effort to improve the quality and consistency of organization's supervisory ranks also typically results in a substantially
more productive and stable work force.
(M) "Initiative." Encouraging
individuals to act on their own initiative at all echelons has a morale boosting effect on the entire organization; and is
well worth the additional supervisory time or effort necessary to enable Subordinates to do so. This advanced level
of commitment is achieved by further training and development and by increasing Subordinate authority and responsibility so
that they can exercise their prerogative over a broader range of activities. In addition, individuals who are less reluctant
to exercise their own initiative are usually far more willing to test new methods and procedures, make suggestions, or embrace
change than those who must consistently wait to receive further instructions. Similarly, empowered individuals are more
apt to take increased pride in their work performance and to feel a higher degree of ownership for their results.
(N) "Esprit de corps." To maximize
results, Leaders are responsible for creating a managerial atmosphere in which workers feel a sense of unity and common purpose
with their peers and supervisors in achieving the unit's assigned goals and to take satisfaction in the success and accomplishments
of the company as a whole. Such a work environment stimulates a "united we stand divided we fall" attitude among its
members, gives them a greater sense of camaraderie and invincibility, and establishes a more universal spirit of cooperation;
as well as stimulating higher productivity levels and efficiency.
