Business management is based on a system of basic, unique principles, but, at the same time, relies on laws studied by other sciences. Obviously, before starting to study the aspects of management and the art of influencing individuals or whole teams, it is important to consider the fundamental rules of management - its principles.
#1 The principle of purpose/goal
The purpose is what you, as an entrepreneur, want to achieve, it is the mental, thoughtful and balanced definition of the result, the achievement towards which our thoughts and actions are directed. In management, the goal problem is central, it defines and regulates actions and is the basic law, a complex behavior algorithm that subordinates all aspects of the control action. Not knowing the purpose of your actions and the results that can be expected, anything you do is doomed to failure or may cause serious conflict.
#2 The principle of legal security of management decisions
Entrepreneurship is always associated with a certain risk. The interaction between producers and consumers, sellers and buyers depends on many legal restrictions. New laws are constantly adopted, codes are changing. It doesn’t matter how the management of firms relate to these legal acts, it is necessary to comply with them - otherwise large fines or decisions on the liquidation of the firm are inevitable.
Many areas of business that promise undoubted and quick profits are either in conflict with applicable laws (arms and drugs trade), or on the verge of violating them (gambling, etc.). Decisions on investing in such areas, despite their commercial temptation, will almost inevitably lead to a quick end, because they have no legal protection.
#3 Management optimization principle
Timely processing of information concerning internal processes in the firm and its understanding allow you to make reasonable managerial decisions, improve internal communication and increase the efficiency of external interactions. Management optimization allows to improve the structure of the managed business and increases its functionality, which ultimately leads to the elimination of weak places within the company. This important management principle can be formulated like this: management optimization increases the efficiency of the managed firm.
#4 The principle of delegation of authority
The very name of the principle explains its meaning - the transfer of a part of the director’s official functions to his subordinates. The main practical value of the principle is that the leader frees his time from simple everyday activities, routine operations and concentrates his efforts on solving tasks of a more complex managerial level. At the same time, this method is a targeted form of staff development, and contributes to the motivation of their work, the manifestation of initiative and independence.
#5 The compliance principle
Determining the suitability of an employee for a job is not an easy task. Experience and the ability to separate professional business qualities from the appearance of a future employee is very important. If a person with a good education is instructed to perform routine clerical work, then a significant part of his knowledge will be useless, and the employee will try to change his job for a more interesting position. It is important to support and help the timid ones in time and moderate the ambitions of overly self-confident ones too.
#6 The principle of automatic replacement of the missing
Replacement of absent persons (illness, vacation, business trip) should be decided automatically on the basis of the current official job descriptions and should be formally regulated. Each job description must clearly and unambiguously state about a range of issues related to the competence of two or three closest colleagues, in order to perform their functions in special cases. In some organizations, there are special “service books” that describe the relationships between posts close in function.
#7 Principle of First Leaders
When organizing the implementation of an important production task, the control over the progress of work should be left to the first head of the company, since only the first person has the right and ability to decide or entrust the solution to any business issue.
#8The principle of one-time input of information
In any business, the efficiency and reliability of information plays an important role, since it is the subject, means and product of managerial work. Once the information enters the computer’s memory, it can be repeatedly used to solve a whole range of information-related tasks.
#9 The principle of new challenges
The use of modern programming systems and technical means of information processing allows entrepreneurs to create new production and scientific problems. The use of modern computer technology and powerful software packages the use of new methods of planning and management and new information technologies.
#10 The principle of continuous education
This principle requires mandatory advanced training of all employees involved in the production process, regardless of the held position. This primarily refers to those who make strategic management decisions, who are responsible for the development of the firm, for the constant updating of production and the implementation of new technological and organizational decisions.
