Principles of Management
Principles of management is a broad and general guideline for managerial decision making and behavior of employees towards organization.
Henri Fayol’s 14 Principles of Management
The Principles of Management are the essential, underlying factors that form the foundations of successful management. According to Henri Fayol in his book General and Industrial Management (1916), there are 14 ‘Principles of Management’.
- Division of Work – According to this principle the whole work is divided into small tasks. The specialization of the workforce according to the skills of 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.
- Authority and Responsibility – This is the issue of commands followed by responsibility for their consequences. Authority means the right of a superior to give enhance order to his subordinates; responsibility means obligation for performance.
- Discipline – It is obedience, proper conduct in relation to others, respect of authority, etc. It is essential for the smooth functioning of all organizations.
- Unity of Command – This principle states that each 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 Direction – 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.
- Subordination of Individual Interest to Mutual Interest – The management must put aside personal considerations and put company objectives firstly. Therefore the interests of goals of the organization must prevail over the personal interests of individuals.
- 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.
- 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.
- Line of Authority/Scalar Chain – This 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.
- Order – Social order ensures the fluid operation of a company through authoritative procedure. Material order ensures safety and efficiency in the workplace. Order should be acceptable and under the rules of the company.
- 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, giving equal attention towards all employees.
- Stability of Tenure of Personnel – Stability of tenure of personnel is a principle stating that in order for an organization to run smoothly, personnel (especially managerial personnel) must not frequently enter and exit the organization.
- 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 organization because it provides new and better ideas. Employees are likely to take greater interest in the functioning of the organization.
- Esprit de Corps/Team Spirit – 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. Team spirit helps to finish the task on time.
Practice management
Practice management is the term used in General practice for the person who manages the finance and administration of a doctor’s office or an office of a medical professional in one of many types of specialties in medicine. This is distinct from other official titles such as Advanced Practice Manager, which are generally clinical. A practice manager is responsible for the administrative responsibilities of daily operations and development of a business strategy. Most practice managers are responsible for hiring staff, negotiating benefits and personnel policies, ensuring that medical supplies are ordered and equipment is maintained, ensuring regulatory compliance, and the development and marketing of service lines. Practice management encompasses multiple topics including governance, the financial aspects of medical billing, staff management, ancillary service development, information technology, transcription utilization, and marketing. Practice managers handle the business aspects of medicine to maximize provider time and enhance patient care.
General practice
The job of the practice manager has evolved over the last century. When general practice was a cottage industry, operating in the doctor’s front room, the receptionist, and the manager, insofar as there was any management, was often the doctor’s wife. In the 21st century the biggest practices in the UK now have more than 200,000 patients and hundreds of staff over dozens of sites. Some practices, however, are still single handed. Working conditions in rural areas are very different from those in cities. By no means all the jobs are full time. About half the practice managers surveyed in the UK reported working from five to eight additional hours per week, not all of it paid. Average salary was £39,334.17
The role of a practice manager often includes managing the patient recall process for preventative healthcare appointments. In the UK, primary care providers must meet QOF targets and Local Enhanced Services. Much of the work of practice managers over the financial year goes towards meeting these targets as they are a key generator of practice revenue. As an important of preventing ill-health, there has been much academic research into improving the uptake of these targeted appointments. For example, there has been a number of studies into improving uptake of the NHS Health Check programme.
Accounting Practice Management
Accounting practice management is the process of managing and optimizing an accounting practice. This is typically done through the use of an accounting practice management software. An accounting practice management software is specific to accounting firms and helps accountants manage all the big and little aspects of their accounting practice.
Different accounting practice management software offer different features. At a high level, however, an accounting practice management software will help users:
- Track time and billing
- Expedite payment collection processes
- Use work codes and workflow to work more efficiently
- Manage client and project information
- Schedule and manage employee calendars
- Send mass mailing and emails to clients
- Run reports on various projects
- Better understand overall firm health
While there are many different general practice management software available, many accountants choose to use a specialized accounting practice management software. This provides access to unique tools and features that are specifically designed for accountants.