Eight principles of management are:
- Customer Focused
- Involvement of people
- Process approach
- System approach to management
- Continual improvement
- Factual approach to decision making
- Mutually beneficial supplier relationship
The management principles individually may be described as:
1. CUSTOMER FOCUSED
- Understand current and future (Explicit & implicit) customer needs.
- Plan means to meet these needs.
- Measure customer satisfaction.
- Demonstrate continually improved satisfaction.
- Establish VISION, provide DIRECTION and SHARE VALUES.
- Set CHALLENGING TARGETS.
- Implement STRATEGIES to achieve these targets.
- Coach, facilitate and empower people across the organization.
3. INVOLVEMENT OF PEOPLE
- Create ownership of departmental goals and organizational policy.
- Use knowledge and experience in operational decision.
- Train for involvement in process improvement.
4. PROCESS APPROACH
- You have to identify SCOPE of a set of business activity.
- Identify (Internal/External) supplier/inputs.
- Internal and external, customers & outputs require to identify.
- Identify RESOURCES required to carry out the process.
- OPTIMIZE input-output relationship.
5. SYSTEM APPROACH TO MANAGEMENT
- Establish inter link of processed starting from identification of customer needs to delivery of final product/post delivery till use of product.
- Alight the process with departmental goals and organization policy.
- Measure results against key objectives.
6. CONTINUAL IMPROVEMENT
- Measurement parameters.
- Analysis of performance.
- Monitor continual improvements.
- Provide Opportunities, tools & encouragement to contribute to continual improvements.
7. FACTUAL APPROACH TO DECISION MAKING
- Identify activities, which will provide data
- Set mechanism for analyzing data.
- Analyze information W.R.T. PLANNED GOALS.
- Eliminate non-value addition activities (e.g. reduce rework, improve machine efficiency, reduce wastage, reduce inventory, reduce process cycle times etc)
- Identify the PROCESSES which need to be looked into along with the MEASURE OF CUSTOMER SATISFACTION.
8. MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIP
- Build relationship with suppliers for their PARTICIPATION IN DEVELOPMENT of product, processes or system.