PRINCIPLE OF STANDARDS — Mutually' agreed upon 
standards improve performance and lower cost.

Standards are the basis for control. They are the "yardstick" of performance. The manager uses them to measure the results of performance. When the employee knows what the standards are in advance — and particularly when he has helped to set those standards and the results to be achieved — he makes a commitment to the results. This will improve his performance. Further, it lessens the supervision required over the employee. The standards tend to be self-motivating for the employee.

PRINCIPLE OF EXCEPTIONS — Only significant variations 
in performance and exceptions to established policy 
should be brought to the attention of the next higher 
level of authority.

If the manager had to minutely watch all personnel, check performance, and give close supervision to each work activity, he would have no time for planning and other creative work of his own. Therefore, only significant variation in performance should be brought to his attention. He needs to know when performance is far below that desired, so that he can take corrective action. And he wants to know when it is way above, to give praise and to analyze the reasons for the superior performance. Hopefully from these he will learn how to raise the overall or average level of performance.

And, of course, any exceptions to policy must be brought to his attention. If they were not, you would soon have as many separate and difficult companies as you have employee. Policy can be changed, but only by the manager who has the authority to do so.

In this regard, it is well for a manager to occasionally make - unexpected observations or checks on performance. People have a way of casually or unintentionally doing things their own way — sometimes not conforming to predetermined policy.

PRINCIPLE OF POLICY — When policy, and the standards
which govern performance, are set at the highest level 
of authority in an organization, decisions 
can be freely made at lover levels.

The purpose of management is to achieve a desired result through human effort. Expressed another way: to get people to do what you want....done.

To accomplish this you must have policy. Policy is the expressed philosophy and stated principles of an organization. It is the written law. It guides proper action and prevents unauthorized u/ actions. It should be established at the highest level so that all employees perform within its framework.

When people know what your policy is they are then free to make decisions within the policy that governs them.

This also applies to standards - which are the criteria for measuring performance as established by a recognized authority. When standards are set at the highest level of authority, all performance in an organization conforms to policy. And again, with standards set from above decisions can be made below. Furthermore, without standards every performance would be an "exception" and have to be brought to management's attention.

Policy may be proposed at any level of an organization, but must be submitted upwards until approved at the top. If not approved at any higher level, it is rejected.

TOP