The type of business activities
Six kinds of activities are included in operating activities:
(1) technical activities, refers to the production, manufacturing and processing. In traditional business, the status of technical activities is very prominent people and ignore the other five events. In fact, other activities are also equally important, and the same technical activities are closely linked. For example, technical activities depends on raw materials, product sales, capital, security and prediction.
(2) commercial activities, refers to the purchase, sale, exchange and so on. Know how to buy and sell and how to best produce equally important. Commercial capabilities in addition to the policy and decision-making, but also include the development of long-term forecast prices and price.
(3) financial activities, refers to the collection and use of funds. In order to obtain funding and make the most appropriate use, you must have a sound financial management. A fundamental condition for business success is to always pay attention to the financial situation.
(4) security activity, refers to the protection of personnel and equipment to prevent theft, fire, flood, eliminate strikes, attack and so on. Engaged in security work activities, both business owners, including the national police and army.
(5) accounting activities, including stock inventory, making the balance sheet, cost accounting, and statistics. This is the company's organ of vision, can make people understand the business at any time and in any situation where development is the leader of a powerful tool.
(6) management activities, including planning, organizing, directing, coordinating, five dimensions of control. Fayol, management of these six activities are senior leaders from the business, down to ordinary workers to be more or less engaged, but due to the different height positions and sizes of enterprise and different emphases Bale.
The five dimensions
Fayueerti out of the five dimensions of management activities is its main contribution. These five elements actually manage the five functions, and form a complete management process:
(1) program. That is, predict the future and develop action plans. Predicting the future is the future estimates and prepare for the future, and develop action plans will have to indicate the route of action, through the stage, the means used and the results to be achieved. Good planning should have features include: special programs unity that special plans for each department or each individual event, and a comprehensive plan to contact each other, become integrated; continuity, that is, short-term plans and long-term plans complement each other before and after the mutual convergence plan, the plan has ongoing guidance; flexibility, plans must be able to make appropriate adjustments based on changes in the environment; the accuracy of that plan should seek to influence those in the range of enterprises of unknown factors will permit accurate.
(2) organization. Namely the establishment of enterprises in the material and human resources structure. The task is to establish a management organization to enable the most effective way to carry out their basic activities. Good organizational structure can be a good business plan development and implementation.
(3) command. It is to enable organizations to fully play its role in enabling business people to make the greatest contribution.
(4) coordination. Is to make people unite business, all business activities and efforts have been in unity and harmony. In the coordination of the enterprise, each department will work in unison with other departments, internal coordination of various departments and their subordinate units of the various divisions between himself should bear the mission and shall provide each other have the exact understanding of the various departments and affiliated with the Division of plans often change the situation and adjust.
(5) Control. Each is an indication of things happen examine whether companies with plans drawn up, issued and principles set consistent, which aims to find errors, correct mistakes and to prevent re-make mistakes. In order to achieve effective control of all internal activities of the organization, management must make this control can play a role in the rapid and timely manner, and accompanied by appropriate rewards and punishments. Farrell also advocated the establishment of a business unit separate from an independent and impartial inspection department.
Management Principles
Fayol according to their own management experience, come to fourteen management principles, namely:
(1) the division of labor. That is, labor specialization, division of labor is not limited to this technical work, but also for management. The purpose of the division of labor is to improve efficiency.
(2) authority and responsibility. Power is asking others to obey the command and the rights and powers. Responsibility and authority are both cause and effect, where a local exercise of power, have the responsibility.
(3) discipline. It is to the agreements between the companies with their subordinates based on obedience, diligence, enthusiasm, and respect for the rules of representation. Discipline is the foundation of respect rather than fear. Determine the form of discipline that agreement, due to the diverse agreements also discipline in various ways to show it. To enable the smooth development of the enterprise, discipline is absolutely necessary.
(4) unified command. For any kind of work, the staff should receive a subordinate command of a leader, which is "unified command" criteria. It is essential that a universal criterion. If the two leaders while exercising their powers to a person or thing, it is bound to cause confusion, so be sure to undo one of the leaders, to stop the dual leadership, in order to enable enterprises to thrive.
(5) unified leadership. For all the activities and strive to achieve the same purpose, there can be only one leader and one program. This principle requires that: In one program, engage in the same type of activity members, can only have the same goal.
(6) personal interests to overall interests. The management principles requires management to ensure that, in the organization, the overall objective of the enterprise always enjoy supremacy.
(7) reward staff. Staff remuneration is the price of its services, it should be reasonable, and try to make it able to meet all of the enterprise (employer and employee). Compensation is an important factor to induce motivation organization disposal, a sound remuneration system so that workers can feel more valuable, and to stimulate their enthusiasm.
(8) centralization. The degree of centralization and decentralization is a problem in any business organization. Business environment faced by the organization, the quality of the qualifications, as well as corporate officers, determine the optimal degree of centralization and decentralization.
(9) hierarchy. This is from the highest to the lowest level leader of the subordinate series. It shows the routes and channels of information transmission powers of execution, it is essential to ensure unity of command, but often not the most rapid channels. In large enterprises or government agencies, the success or failure of many things depend on the speed of information transfer and command execution, so in order to maintain rapid action, horizontal communication between the same level is also very important.
(10) order. This means every thing and everyone has a place and every thing and everyone is in the right place. Particular attention must select the appropriate location according to internal relations of things. Order items can waste time and loss of items is reduced to a minimum. Order social organization so that everyone can play in the post office to their maximum capacity.
(11) Fair. Fair is produced by the well-intentioned and reasonable, as a rule, deal with the relationship between businesses with employees.
Stable (12) personnel. This refers to the orderly arrangements for staff and additional human resources. Cultivate a good manager, no doubt need to pay a certain amount of time and expense. Successful companies tend to have more stable management personnel. Stable management personnel, for the organization, especially large enterprises, is crucial.
(13) initiative. This is a requirement of all authorities to allow all businesses who show their initiative in some way. For organizations, the initiative of its members is a source of strength. Can play a leadership initiative of subordinates, leadership is much more than a clever not to do so.
(14) solidarity. To strive to establish a harmonious atmosphere of unity within the enterprise, which is a source of great strength of the company lies. Managers must strive to improve the moral standards of corporate officers. Organizations require managers to have real talent is: to coordinate the various forces within the enterprise, stimulate the enthusiasm of corporate officers, everyone can play, everyone's reward merit, without causing jealousy of others, so as not to damage the enterprise harmonious relations between people.
Fayueerti out these management elements and management principles constitute the main points of his general theory of management. In general Fayol's management theory, the concept of organization and management are closely related. His management theory can be considered a valid form of discourse organization and maintenance theory. His management principle is the formation and maintenance of healthy tissue, promoting tissue guidelines play function. But Fayol's management theory only examines the internal factors of the organization, the organization did not examine its relations with its surroundings, so the lack of specificity, but also in the discussion of organization and management, due to the limitations of the times, there are not sufficient, unscientific office, however, Farrell was still regarded as the greatest nation in the European management scholars. He discussion about the operation and management, as well as to clarify management principles and management elements, has a great influence on later Western management theory.