Management Principles

I just want to share with you the 90 Management Principles that we took up in our Feasibility Studies subject discussed by the class and furtherly explained by our favorite professor, Prof. Mario D. Lopez

MANAGEMENT PRINICIPLES

 

1.              There are to be definite, non – overlapping lines of authority.  There must be no crossing of the lines of authority.

2.              There must be complete organization charts, including foreman and supervisors and all engineering and office jobs above the rank clerks and stenographer.  (Division heads’ private copies should have the name of each person accompanied by age and approximate length of service with the company.

3.              One and only one person is to be responsible for the implementation of every individual decision.  This will fix responsibility and avoid buck passing.

4.              All instructions are to be channeled through the proper organizational structure of given only to those delegated to receive them.

5.              A number of properly organized actively functioning permanent committees must meet promptly at regular, specified intervals with additional meetings whenever required.

6.              Each division head shall hold staff meeting at least once.

7.              Cooperation must be the rule among all members of management and supervision and their personnel.

8.              All decision involving more than one person or more than one division or department is to be the result of consultation with all necessary persons.

9.              In every scheduled group discussion a chairman is to be appointed to conduct the meeting in order to guide discussion, and to insure that one and only one person is made responsible for the implementation of each decision.

10.           Adequate notes are to be kept to all group discussions and decisions.

11.           Individual or groups tasked to make decisions must hand down the decisions promptly.

12.           All decisions are to be implemented promptly and according to schedule.

13.           After installation of agreed upon procedures, prompt follow-up is to be instituted and continued at intervals thereafter when deemed necessary.

14.           Every executive is to give full consideration to the ideas of his superiors, equals and subordinates.

15.           The ideas  of all employees are to be freely exchanged for the over-all benefit of the company.

16.           Every executive must have at all times, a clear understanding and a complete listing of the company’s general and specific objectives and policies as well as the objectives and policies which apply to his own division or department.

17.           Every executive shall prepare a list of his duties and responsibilities for his superior, and shall require similar lists from those who are reporting to him, and so on down the line.  Those lists will be reviewed and amended at regular intervals, more frequently if required.

18.           All objectives shall be listed in groups according to the relative importance of their accomplishment and the urgency of their completion.  “First things first” must be constantly borne in mind.

19.           Every superior  must learn to organize himself and schedule his work.

20.           Every executive must consciously avoid waste of time meeting, interviews, telephone calls, appointments, visits and trips must be as short as possible consistent with adequate results.

21.           Every executive must put the company’s interest  above his own immediate personal interest.

22.           Every executive should maintain a cooperative spirit and avoid jealousy guarding the prerogatives of their offices to satisfy personal pride.

23.           Every executive must remember that, whether he wishes it or not, his enthusiasm, drive, efficiency, firmness, honesty, fairness, consideration, tact, courtesy, and general deportment will be an example to his entire personnel.  The executive sets the pace.

24.           Every executive should establish and maintain a dignified friendliness with each division or department.  This will encourage individuals to discuss their problems with the department or division head, encourage suggestions, help to minimize grievances, and help executives to know what their personnel are thinking.

25.           Every executive is to delegate authority to and place responsibility upon a subordinate wherever possible.

26.           Every executive must carefully choose and thoroughly train a competent understudy.  Wherever practical, the understudy should be some years younger than his superiors.

27.           Every executive must organize his work and delegate duties to his subordinates in such a way to provide himself with ample time for thought and study, in order to obtain an overall view of the operation of the corporation, as well as his own division or department operations.

28.           Every executive is to delegate to subordinates as many of the necessary procedures and details of his division or department as practicable.

29.           Every executive is to train and encourage his subordinates to develop initiative and use their own judgment to the greatest practical degree.

30.           Subordinates are to be selected and trained so that it is unnecessary, and hence undesirable for their superior to check anything but end results.

31.           Every executive is to enforce strict discipline throughout his organization.

32.           Absenteeism, tardiness, and loafing must be held to a minimum.

33.            Executives are to be judged by the general performance and morale of their units , by their cooperation and by their breadth of view of company operation and interest, as well as by their individual acts and ideas.

34.           Judgments of personnel must be based on facts, not prejudices.

35.           Individuals accomplishments are to be recognized.

36.           Praise is to be given wherever justified, but only when justified.

37.           New positions are to be filled and promotions made from within the company wherever possible.

38.           Every employee must be trained to be cost, quality and service conscious.

39.           High standards of quality for all products and services are to be maintained.

40.           Simple, clear, written instructions are to be given wherever possible.

41.           Adequate and accurate records  must be kept of all company operations.

42.           All promises must be kept.

43.           Promptness must be the rule of all established routines, scheduled meetings and supplies.

44.           All routine procedures are to be handled on definitely maintained time schedule.

45.           Proper care and preventive maintenance are to be provided for all equipment and supplies.

46.           Systematic conservation of supplies and services is to be practiced and checked.

47.           Housekeeping must be good (i.e. maintenance of cleanliness and orderliness, elimination of fire, explosion and accident hazards).

48.           Useful information or data should be freely passed between departments, preferably in writing.

49.           There must be continuous analysis, by division and department heads to eliminate unnecessary functions, jobs, procedures, paperwork, reports and duplication of effort.

50.           All established procedures are to be carefully checked at stated intervals by division and department heads to prevent deterioration or lapse and periodically re-examined for improvement.

51.           All of the company’s expenses and projects , including departmental  expenses, are to be carefully checked and completely budgeted.

52.           Complete control of all manufacturing and other company operations must be maintained at all times by means of adequate but simple systems.

53.           Accurate perpetual inventories and complete of all stock – raw stores, parts, sub-assemblies, tools, jigs, dies, furniture, fixtures, supplies , and other physical property must be maintained.

54.           It is the business of every executive to see that in every instance, company inefficiency is eliminated, whether the failure occurs within his or someone else’s jurisdiction.

55.           The causes of errors, failures, and inefficiencies, wherever discovered must be promptly investigated and eliminated.

56.           Repetition of errors must not be tolerated.

57.           Excuses, alibis, and buck passing must be completely eliminated.

58.           Each individual must accomplish what he is assigned to do at the time he is supposed to do it, or offer an acceptable explanation to his superiors at the earliest possible moment.

59.           Every executive must be constantly familiar with contemporary practices of competitors and with the current technical literature applicable to his work.

60.           Scientific selection and placement of applicant for employment (and candidates for upgrading) shall be furthered by means of adequate physical examination, psychological tests, and personal interviews followed by thorough indoctrination and instruction of selectors.

61.           Routine periodic check-up of the physical health and general welfare of each employee is obligatory.

62.           Explanation of the company’s policies, aims, and plans shall be offered to all executives and supervisors.]

63.           Dissemination of adequate information among employees is to be handled in the form in which they can best assimilate it.

64.           All employees are to be treated as human being, not as machines.

65.           Reasonable privileges are to be extended to all deserving employees.

66.           Any employee may freely discuss company or personal problem with his department head or with the manager of industrial relations, with recourse to the executive vice president or the president.

67.           Every employee is entitled to a fair hearing by his superior when his efficiency or behavior is questioned.

68.           All supervision must be fair, courteous, and considerate but exacting.

69.           Every employee is to be kept busy on essential  work, but no one is to be overloaded except in an emergency.

70.           Favoritism must be eliminated.

71.           Prima donnas, big shots, trouble makers and drones are to be eliminated.

72.           There is to be minimization of internal policies and false rumors.

73.           Cooperation with rather than appeasement of the union shall be the rule.

74.           Adequate job instruction and upgrading incentive shall be provided for every employee.  This includes department heads and all sub-executives as well as bench workers and clerks.

75.           Every worthy employee shall be encouraged to improve his job performance.

76.           Periodic merit reviews for all employees and individual job performance counseling should be arranged with a view to merit increases (according to the schedules adopted by the company) or upgrading whenever appropriate.

77.           Promotions are to be made in accordance with specific ability, loyalty, cooperation and length of service with the company.

78.           The best possible working conditions consistent with reasonable economy are to be maintained.

79.           All dealings with persons outside the company (such as customers, sales agents, licensee, competitors, suppliers, banks, professional consultants, government agencies, and trade associations) must be based on the same principles of fairness, courtesy, and considerations as have been outlined for the company’s internal operations. Company business with persons outside the company must be conducted in a business like and efficient manner in order to induce confidence in the company.

80.           Executives and other employees should speak with pride on the company’s products and methods, where merited to increase the reputation.

81.           All unusual expenditures and all changes and additions in product, policy, methods, systems, and equipment must be viewed in light of the long-term as well as the short-term effect on the company.

82.           Continuous efforts must be exerted to improve quality and reduce costs. Such effect must be redoubled at those times during which the company is most prosperous and its operations most profitable.

83.           Continuous development of all products and services and all inspection standards to maintain improvements, must be provided for.

84.           Continuous simplification and improvement of existing policies, methods and system shall receive the necessary attention.

85.           Installation of fundamentally new systems, methods, and mechanizations shall take place wherever possible.

86.           Continuous fundamental research on all phases on the company’s products, and on related problems, shall be maintained.

87.           Development of new products and methods of merchandising and distribution shall be carried on.

88.           Market investigation of the acceptability ( and the reverse) of the company’s products and methods of merchandising and distribution shall be carried on.

89.           Routine: scheduled visits shall be made to the plants of other company in both related and unrelated industries for the examination and evaluation of their policies, equipment, methods, and systems with a view of adaptation application to the company.

90.           Executives and other employees should be encouraged to take on active part in trade and civic organization.