Shipboard Management

PRINCIPLE OF MANAGEMENT

Management principles are statements of fundamental truth. These principles serve as guidelines for decisions and actions of managers. They are derived through observation and analysis of events which managers have to face in practice.

The Principles of Management are the essential, underlying factors that form the foundations of successful management. According to Henri Fayol (1841-1925) in his book General and Industrial Management (1916), there are fourteen 'principles of management'.

1. Division of Work

The specialization of the workforce according to the skills a person , creating specific personal and professional development within the labour force and therefore increasing productivity; leads to specialization which increases the efficiency of labour. By separating a small part of work, the workers speed and accuracy in its performance increases. This principle is applicable to both technical as well as managerial work.

2. Authority and Responsibility

The issue of commands followed by responsibility for their consequences. Authority means the right of a superior to give order to his subordinates; responsibility means obligation for performance. This principle suggests that there must be parity between authority and responsibility. They are co-existent and go together, and are two sides of the same coin.

3. Discipline

Discipline refers to obedience, proper conduct in relation to others, respect of authority, etc. It is essential for the smooth functioning of all organizations.

4. Unity of Command

This principle states that every subordinate should receive orders and be accountable to one and only one superior. If an employee receives orders from more than one superior, it is likely to create confusion and conflict.

Unity of Command also makes it easier to fix responsibility for mistakes.

5. Unity of Direction

All those working in the same line of activity must understand and pursue the same objectives. All related activities should be put under one group, there should be one plan of action for them, and they should be under the control of one manager.

It seeks to ensure unity of action, focusing of efforts and coordination of strength.

6. Subordination of Individual Interest

The management must put aside personal considerations and put company objectives first. Therefore the interests of goals of the organization must prevail over the personal interests of individuals.

7. Remuneration

Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences productivity. The quantum and methods of remuneration payable should be fair, reasonable and rewarding of effort.

8. The Degree of Centralization

The amount of power wielded with the central management depends on company size. Centralization implies the concentration of decision making authority at the top management. Sharing of authority with lower levels is called decentralization. The organization should strive to achieve a proper balance.

9. Scalar Chain

Scalar Chain refers to the chain of superiors ranging from top management to the lowest rank. The principle suggests that there should be a clear line of authority from top to bottom linking all managers at all levels. It is considered a chain of command. It involves a concept called a "gang plank" using which a subordinate may contact a superior or his superior in case of an emergency, defying the hierarchy of control. However the immediate superiors must be informed about the matter

10. Order

Social order ensures the fluid operation of a company through authoritative procedure. Material order ensures safety and efficiency in the workplace.

11. Equity

Employees must be treated kindly, and justice must be enacted to ensure a just workplace. Managers should be fair and impartial when dealing with employees.

12. Stability of Tenure of Personnel

The period of service should not be too short and employees should not be moved from positions frequently. An employee cannot render useful service if he is removed before he becomes accustomed to the work assigned to him.

13. Initiative

Using the initiative of employees can add strength and new ideas to an organization. Initiative on the part of employees is a source of strength for the organization because it provides new and better ideas. Employees are likely to take greater interest in the functioning of the organization.

14. Esprit de Corps

This refers to the need of managers to ensure and develop morale in the workplace; individually and communally. Team spirit helps develop an atmosphere of mutual trust and understanding.

These can be used to initiate and aid the processes of change, organization, decision making, skill management and the overall view of the management function.

Fayol also divided the management function into five key roles:

   * To organise

   * To plan and forecast (Prevoyance)

   * To command

   * To control

1.1              Manager

1.1.1     One who handles, controls, or directs, especially:

-  One who directs a business or other enterprises

-  One who controls resources and expenditures

1.2            Management Definition

1.2.1     The group of individuals who make decisions about how a business is run

1.2.2     The initiation and maintenance of an investment portfolio.

1.3       View of Management

1.3.1     The process of dealing with or controlling things or people:

-          the management of the economy

-          businesses were slow to adopt the key elements of environmental risk management

-          management were extremely cooperative the responsibility for and control of a company or organization

1.4            Organization

An organization is a social arrangement which pursues collective goals, controls its own performance, and has a boundary separating it from its environment. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon. There are a variety of legal types of organizations, including:

-          corporations,

-          governments,

-          non-governmental organizations,

-          international organizations,

-          not-for-profit corporations,

-          partnerships, and

-          cooperatives.

A hybrid organization is a body that operates in both the public sector and the private sector, simultaneously fulfilling public duties and developing commercial market activities. As a result the hybrid organization becomes a mixture of a government and a corporate organization.

From a process-related perspective, an organization is viewed as an entity is being (re-)organized, and the focus is on the organization as a set of tasks or actions.

From a functional perspective, the focus is on how entities like businesses or state authorities are used.

From an institutional perspective, an organization is viewed as a purposeful structure within a social context.


Adapted from 'Shipboard Management' by Capt Muhammad Ismail Mohd Noor