Principles of budgeting pdf

However, he first presented the concept principles of budgeting pdf 1935. Initially, POSDCORB was envisioned in an effort to develop public service pr

However, he first presented the concept principles of budgeting pdf 1935. Initially, POSDCORB was envisioned in an effort to develop public service professionals.

Luther Gulick asks rhetorically “What is the work of the chief executive? POSDCORB is the answer, “designed to call attention to the various functional elements of the work of a chief executive because ‘administration’ and ‘management’ have lost all specific content. Gulick’s “Notes on the Theory of Organization” further defines the patterns of POSDCORB. That document explains how portions of an executive’s workload may be delegated, and that some of the elements can be organized as subdivisions of the executive depending on the size and complexity of the enterprise. Gulick emphasized the division and specialization of labor in a manner that would increase efficiency. Yet Gulick observed that there were limitations.

Based on his practical experience, he carefully articulated the many factors. Gulick described how the organization of workers could be done in four ways. According to him, these are related and may be multi-level. Gulick lists these in his organizational tables as vertical organizations. Gulick lists these in his organizational tables as horizontal organizations. Gulick stresses how these modes of organization often cross, forming interrelated structures.

Organizations like schools may include workers and professionals not in the field of education such as nurses. How they are combined or carefully aggregated into a school — or a school system — is of concern. But the early work of Gulick was not limited to small organizations. He started off his professional career at New York City’s Bureau of Municipal Research and advanced to President Franklin D. Roosevelt’s Committee on Administrative Management. Gulick notes that two methods can be used to achieve coordination of divided labor.

The first is by organization, or placing workers under managers who coordinate their efforts. The second is by dominance of an idea, where a clear idea of what needs to be done is developed in each worker, and each worker fits their work to the needs of the whole. Gulick notes that these two ideas are not mutually exclusive, and that most enterprises function best when both are utilized. Gulick notes that the number of subordinates that can be handled under any single manager will depend on factors such as organizational stability and the specialization of the subordinates. Subsidiary entities may carrying out their work with extensive autonomy, but as the holding company allows, based upon authority and overall direction.

Indeed, Fayol’s work includes fourteen principles and five elements of management that lay the foundations of Gulick’s POSDCORB tasks of administrative management in the future. The division of work principle declares that staffs function better when assigned tasks according to their specialties. This principle proposes the requirement for managers or manager like authority in order to effectively direct subordinates to perform their jobs while still being held accountable for their conduct. The discipline principle supports strict and clearly defined rules and regulations in the workplace to ensure professional employee behavior and order.

The unity of command doctrine proclaims that employees should only receive command and report to one administrator or boss like authority figure. The unity of direction principle states that there should only be one plan, one objective and one director head for each specific plan. The subordination of Individual interest to general interest principle declares that the interests and objectives of the organization overrides the interests of any employee, management staff, or any group. The remuneration of personnel principle deems that both staff and management salary should be fairly earned, justifiable and no party should be deceived. The centralization principle advocates that managerial decision making should be centralized with orders being delivered from top tier management to the middle management, where the orders are arranged and then clarified for the line staff to execute.