The basic principles of management are the general rules of management. They belong to the category of universal, compliance with which should lead the team to a common goal: the prosperity of a company, enterprise, organization or other structure. They are a guide for managers, which suggests choosing the most universal strategy for achieving goals.
Principles of Strategic Management
Here we list the basic rules that employees of an organization must follow in order to achieve their goals.
- One direction. This means that a group of employees must have a clear understanding of the common goal and interests.
- The dominant of development. Presenting growth prospects is another important point in strategic management. Here employees see the rate of return and technology, and on the basis of this they represent the most important areas of management.
- Science. At this point, the situational and systemic approaches are applied . On the basis of scientific knowledge, the most optimal ways of accomplishing the tasks are selected.
- Submission of personal interests to the general. Here you can see the hierarchy of interests: the aspirations and interests of one employee or group should not be more significant than organizational ones.
- Profitability. Here, the solution of problems occurs on the basis of an assessment of available resources and, depending on this, a method for solving them is selected.
- Division of labor. The manager must set two types of tasks for the organization: short-term (it takes a little time to complete them) and strategic (the implementation of which ultimately leads to profitability). One group of people is working on the first category, and the other on the second.
Principles of Financial Management
This management industry is based on 4 principles:
- Planning. It consists in planning resources (material, labor and financial) in order to balance them.
- Target focus. Here the goals of the organization are listed: for example, in countries with poorly developed economies, the main and almost the only goal is profitability and productivity, and in countries with developed economies, in addition to this, the goal of maintaining responsibility towards society is very important.
- Diversification. This implies versatility in production and the provision of various combinations of goods.
- Strategic orientation. This means that the main goals of the organization should not conflict with the method of achieving them.
Basic principles of management: science and creativity
Management of a complex structure implies the need for periodic adoption of non-standard decisions based on intuition. Of course, the majority of decisions should be scientifically substantiated, however, when they cannot be implemented, a creative approach is applied.
Key management principles: specialization and versatility
Here we are also talking about making decisions on tasks: on the one hand, each problem should be accompanied by an individual approach, and on the other, any solution within the organization should be based on the general principles of its functioning.
Key management principles: consistency, continuity and competition
- Sequence. This is a very important principle, compliance with which ensures timely completion of tasks and prevents confusion in work.
- Continuity. This shows the relationship of some projects with others. For example, performing one series of tasks allows you to complete the next series, and so with the help of this principle there is continuous growth.
- Competition. Here is the motivation of employees to perform not only more work, but also higher quality. It should be encouraged through material and moral means.