homemoney to purchasehow Management theorists have spent much time considering the expedients that should be followed in considering the soundness of such an organization. Seven rules if the word rules must be used are here suggested: I. There must be a clear definition of executive duties and responsibilities. 2. Each branch, department, or section, should have one main duty. 3. Each branch, department, or section should be an entity under the control of one executive. 4. The number of subordinates responsible to one executive should normally be between five and eight except in special circumstances. 5. The grouping of secondary responsibilities should be dependent on the capabilities of the personnel available and their duties should be clearly defined. J 6. Distinction should be made between direct executive and The Business of Management 55 functional responsibilities, and the methods of communication for functional specialists must be clearly laid down. 7. There should be the maximum delegation of operational responsibility with adequate safeguards for management control. Organization needs to be thought about with a very open mind. If the above seven 'rules' are used as a check list, it is suggested that a useful structural framework will often emerge. New words are appearing in this chapter new words, that is to say, in the context of organization for management such as 'delegation', 'control', and 'communication'. These have a considerable bearing on the question of how a manager manages and must be considered in some detail. What do management theorists actually mean when they talk of 'maximum delegation'? The principle here is clear. Delegation implies trust. There are a number of factors that influence the extent to which delegation is either possible or desirable. A major task of anyone managing is to take decisions, and as management becomes more technical and more complex, more and more decisions have to be made. Furthermore, if one accepts that there is a limit to the number of people an executive can deal with, so to speak, executively, it is essential that decisions should be shared. Though possibly an oversimplification, it maye said that there are two sorts of decision : policy decision and crisis decision; and it also follows that decisions (this word is appearing a great deal, but is highly relevant to this chapter) vary in the way they commit an undertaking in the future and in the number of people they affect. As production, marketing, and financial techniques improve, policy decisions become increasingly separated from crisis decisions, because a greater number of rational factors enter into the decisionmaking process. Management, in a word, bccomes analytical and less intuitive. An example here will make the point clearer. Let it be assumed that a middlesized firm with two plants is run by an executive board which contains a managing director, sales, works, and design directors, and the company secretary. to buy a house