MODERN PRINCIPLES OF MANAGEMENT

 

 

OBJECTIVES:

 

1. Companies are formed with the sole motive to make profit and any social objective is to be only on paper.

2.  Management policies should be flexible. Care should be taken to ensure that objectives mentioned in memorandum of association are worded in such a way that no further reference to company registrars, or changes in memorandum and articles of association, should be necessary.

3.  Private limited companies go public when

            a) A loss is foreseen, but not in the balance sheet.

b) Product is well known to public and is well received.

c) Competition is coming up.

d)Shortage of private funds for growth.

 4. Other points to be taken care of:

a) Have more people to be inducted as Directors (to share the goodies.)Make sure they are mostly dormant (Note; no one wants responsibilities)

b) Voting rights to be selectively restricted to close circle.

c) All AGMs under company law will require shareholders to vote certain resolutions. To ensure this, distribute shares to a very large number of people, preferably farthest from registered Headquarters so that very few attend AGMs.

4) There is certain amount of quota of shares which the management keeps for distribution at their discretion. Ensure all those controlling the company indirectly (Includes Govt officials) are given some quota.

PROFITS:

 

1.  The balance sheet should show a marginal profit to ensure market value of shares.

2.  To achieve this objective postpone payments. Show in advance credits in transit.

3.  Delay payment of Government regulated payments like PF.

4.  Items mentioned by audit and not compatible to be explained “as per policies of the company”

5.  Share value to be dropped to encourage shareholders  selling them back  to the company.

7.  Withhold/ delay payments of taxes and contest  delays.

HOW TO BE A GOOD MANAGER:

 

1. Manager is one who can manage those who manage.

2. Should be quick to publicize other’s achievements as ones own or having guided  the  achievements.

3.  Change “Wrapper” if you don’t get noticed.

4.  Never fight unless you have an able supporter.

5. Never try to fight in all fronts. If you do even the weaker ones will make inroads.

6. Please note that “expert” is one who can successfully hide secrets and not reveal the true source of knowledge/information.

7. Delay in decisions mean loss of money. Take calculated risk.

8.  A public display of any staff’s achievement  without delay is better than delayed awards.

9. Minimum written appreciation to  be done to avoid amore changed situation later.

10. If you want to be a leader please note that the leader should have

(a) An ability to lead.

(b)Should have followers who can be relied upon

(c) Information gathering by spies should be developed to keep a control.

(d) Make a show of listening to people.

(e)Mind your communication and not hurt anyone. Leave the bad task to your subordinates.

(f)Take criticism in its stride. Always use an external smiling mask.

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PERSONNEL MANAGEMENT:

 

Choosing Board of Directors:

 

Priority to close relatives

Influential persons like past very senior Government servants, to be given some shares and made directorS. Directorship will cease as soon as they fail to meet objectives.

Ability to make good sugar coated presentation and replies in AGMs.

Staffing and promotions:

 

All key positions to be held by closely related persons/groups, to ensure loyalty. Promotions by “Relative Seniority”. Meaning of this term is kept undefined. Persons with high NQ(Nuisance quotient) are to be kept in good humour (like some officials known to be demanding).

When a promotion of one is to be done on “Relative seniority basis”, adopt Zigzag method, i.e. allow him to move to a higher designated post in a sister company and bring him back as a matter of selection for a higher responsibility.

Create new designations to indicate a “so called promotion.”

Source: An old friend who keeps in touch.