The Directorate and Management Principles in Business Administration
The Directorate
The Directorate can be defined as the phase of the administrative process that puts the company into operation, transforming the static state of plans and organization into a dynamic state through the actions of individuals.
Management Principles
Principle of Coincidence of Objectives
A key purpose of the Directorate is to strive for harmony between the individual objectives of workers and the objectives, purposes, or mission of the company.Principle of Functional Balance
There must be a perfect balance between the requirements of a position and the abilities of the worker who performs the duties of that position.Principle of Occupational Training
Efficient use of the human factor requires constant training of personnel, adapting to developments in technology and improvements in work methods.Principle of Group Integration
Groups of leaders and followers should be integrated harmoniously to achieve the ultimate objectives of the company.Principle of Individual Development
Management should provide the necessary mechanisms for each member of the company to achieve their greatest individual development through career advancement.
Groups Collaborating in Management
Corporate governance takes place through a group of people who lead (managers) and a group of people who are led (performers). The former are responsible for compliance with objectives and have the duty to make the best decisions to implement the plans and goals assigned to the group.
The latter have the responsibility of fulfilling the duties set for them and the duty to follow orders and instructions received. Both groups should consist of the best people, possessing the knowledge and skills sufficient to perform the work incumbent upon them to the best of their ability.
Personal Motivation
Work motivation is a personal state of mind that leads individuals to satisfy their needs through their work.
It is about giving the employee a “reason” to feel fulfilled in their work and to perform it with pleasure and initiative, rather than solely for contractual or financial rewards. This involves the establishment of incentives.
Exercise of Authority
It is essential that the boss has a positive attitude toward work and is motivated enough to convey a sense of optimism to their staff. They must have energy and determination to reach goals, the ability to motivate their staff, teaching skills, social understanding, technical expertise, and administrative capacity. Moreover, they need strength of character, emotional stability, and the ability to react to unforeseen situations. The fundamental characteristic of leadership, however, lies in the exercise of authority or the power to command.
Management Styles
Bureaucratic Executive
Relies exclusively on the powers conferred upon them by their position and is based on the cold compliance with instructions, rules, and regulations. This style is generally accepted by staff but rarely gets good results because its management relies on the passive obedience of subordinates.Intellectual Executive
Gains influence over their staff through their intellectual qualities and superior knowledge. Their subordinates will have confidence in them and will follow them based on their merits.Democratic Executive
Tries to represent the wishes and aspirations of their staff, always trying to satisfy the majority and defend the interests of the group. They are respected by their people, who appreciate their loyalty, and often tend to get positive results by maintaining good relations with their followers.Autocratic Executive
Maintains control of their group through fear and domination imposed simply because of their higher authority. They do not recognize errors or delegate authority. They do not accept the views of others or care about their knowledge, experience, or initiative. This style may obtain good performance as long as the group tolerates their autocracy, but it quickly lowers the morale of the group.Anarchic Executive
Does nothing to lead the group, which acts out of control. They let their staff do as they please and do not interfere or intervene when possible. This style manifests disinterest, irresponsibility, and lack of authority. It causes disorder, confusion, indiscipline, and noticeably low productivity.Paternalistic Executive
Acts as a father figure in front of their “children.” They presume to know their personal problems and how they must be addressed. They do not consult with their subordinates or listen to them. This style performs poorly due to its lack of motivation for the group.Participatory Executive
Influences their subordinates by instilling confidence, gaining their cooperation, and passing on their enthusiasm. They encourage their people, make them participate in running the group, encourage initiative, and leverage their expertise. This style usually gets excellent results, and their staff remains staunchly loyal to their leadership.
Orders
Orders are the expression of an executive’s authority and their power to require specific actions from their subordinates.
They are mandates, usually emanating from decisions, which require a superior to demand a specific act or omission from a subordinate.
Orders should be:
- Possible to fulfill.
- Within the subordinate’s capacity to comply.
- Properly communicated to the receiver.
- Issued following the lines of formal authority.
- Clear, complete, and understandable.
- To the extent possible, directed towards their intended target.
- Containing a period for execution.
- Monitored for compliance.
The Organization
The organization consists of the management of available resources to achieve objectives. It is the phase of the administrative process that orders the tasks necessary to fulfill the objectives, assigning them to specific units that are integrated into an organic whole through a network of hierarchical relationships and responsibility.
Principles of Organization
Principle of Homogeneous Allocation
The duties of each position should be similar and small in number.Principle of Definition of Duties
The duties of each office must be clearly defined in writing.Principle of Delegation of Duties
Any supervisor should delegate the maximum number of their routine duties.Principle of Exceptions
Leaders should focus their concern on exceptional, unusual cases.Principle of Authority
The delegation of duties must be accompanied by the necessary delegation of authority.Principle of Final Responsibility
The final responsibility for delegated duties and the authority to carry them out remains with the delegating chief. Therefore, responsibility is not delegated.Principle of Span of Control
For good supervision, a leader should control only a limited number of direct subordinates. In levels of some complexity, depending on the functions of the office, the number should not exceed six people.Principle of Unity of Command
Each worker must be under the orders of a single boss, to whom they must answer for the exercise of their functions.Principle of Horizontal Contact
Relations between individuals at the same level should be facilitated, without being subject to the regular chain of command, as long as the decisions taken do not require higher approval.Principle of the Number of Levels
A prerequisite for good communication is, among other things, that the organizational structure does not have more than six levels of hierarchy.