Tuesday, February 25, 2014

Principles of Material Organization

To organize a business is to provide it with everything useful to its functioning: raw materials, tools, capital, personnel. All this may be categorized into two main groups: the material organization and the human organization. The body corporate would be capable of fulfilling the six essential functions only when these resources are provided to it.  Fayol mentioned that only human organization is dealt with in his paper. It is because he presented only a discussion paper highlighting what can be taught in management course or subject.

The latter day management scholars must have developed on the material organization development in their voluminous books. But they also neglected the essential portion of the organization.

Proposed Principles

Technology selection must take into consideration the financial resources the firm can raise and the skilled manpower availability and training ability of the management. apart from the technical feasibility and profitability of the technology.

Science is to be developed for each element of a man-machine work (Principle of Scientific Management - F.W. Taylor).

The location must have technical feasibility, public and regulatory acceptance and profitable.

Adequate land must be available for current use and future expansion.

The buildings for production facilities as well as residential facilities must be designed according existing codes to house all the production and support facilities required by the technology selected.

Equipment selection has to consider effectiveness and efficiency.

Layout of the facilities must ensure effectiveness and efficiency of the enterprise.

A new idea in management "enterprise architecting" is pursuing this area of material organization and people organization

Updated 25 Feb 2014
Last updated 19 October 2013

Related Reading

Technology Selection

By Oliver Houseman, Ashutosh Tiwari and Rajkumar Roy
November 2004

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