Management principle Essay Example | Topics and Well Written Essays - 750 words

Management principle - Essay Example Leadership is essential in management as it spells out a clear vision that others work towards and formulates the strategies of realising that dream. Management can only be easy and effective if people work together and have the same purpose (Bolman, 2013:78). Efficiency holds time and task into consideration as activities in the organisation are undertaken while effectiveness focuses more on the impact of the activity or the result it has yielded. Efficiency is all about the cost and process under which the task was operated while effectiveness is about the result the activity has produced. In the modern society it would be better for an organisation if it can have both efficiency and effectiveness in its operations but if both can’t be achieved the ‘effectiveness’ is much preferred. This is because in these modern times no one would want to rush things over and end up with a poor result. It would rather be a little bit slow but produce real results. Saving cost should only be if the result is guaranteed and that the reason why technology is expensive but it guarantees good results (Chermack, 2011:55). Centralisation and decentralisation are two opposing business structures based on power to make decisions. In centralised organisations, directives and decisions to the conduct and activities in that organisation are made by a single individual probably the business proprietor like in tiny business while decentralisation is the vesting of power to make decisions and provide management directives on different people in the company such as the departmental managers among others (Chermack, 2011:44). This structural outline varies depending on the business or company. Formal planning is the clearly lucid and well thought-out and prepared ideas about individual or organisational objectives and precisely spelt out methods and procedures of achieving them