A thesis submitted to mba program of azerbaijan state oil and industry university by adila bahmani

1.2. Principles of management of non-governmental organizations

Fayol, a French mining engineer, tried to define the principles and procedures that governed the organization's management. Fayol proposed the following five items in 1908 as the management principles.

1. Commandos: Empires belonging to each activity must be given only by one person.

2. Command chain: Commands must be given in hierarchical order.

3. Explaining activities and defining boundaries through empowerment, obedience, responsibility and control.

4.Centring: The extent to which the authority should be shared should be determined.

5. Regulation: Everything has to be replaced and everything should be settled.

Fayol, who defended the disciplined implementation of the five principles, further upgraded these principles to 14 principles. Fayol stated that these 14 principles were general and ranged as follows (Edwards, M.; 1996):

1. Labour division.

2. Empowerment and Honesty (Responsibility).

3. Discipline.

4. A united leadership.

5. Single direction.

6. Personal interest is a common concern.

7. Rewarding.

8. Centring.

9. Pillar (skaler) chain.

10. Regime.

11. Justice.

12. Workplace stability.

13. Entrepreneurship.

14. Unity (corporate spirit, alliance)

The principles that Fayol proposes are structured, processed, and staffed

are classified into three groups, with related principles. Therefore:

Structural principles: division of labour, united leadership, authority and responsibility, centralization and pillar chains.

The principles of the process are the principle of creating a regime, being fair, a single direction, rewarding employees and paying appropriate salaries to the general interests of individual interests.

Today these principles are great importance in the market economy, so it is important to know their essence.

1. Labour division is based on the speciality of production. The principle of labour coercion is essentially the definition of occupation and the application of specialization. That is, all the tasks at each workplace should be divided according to the work to be done. Without this principle, separate divisions, departments and tasks cannot be identified in the enterprise. The implementation of this principle reduces the number of objects involved in each management process that draws attention to each employee and involves any number of people. 2. Empowerment and Responsibility. Empowerment and responsibility are understood to mean the authority given to senior management and the responsibility it carries. Authorization grants each employee the opportunity to use the raw materials, equipment and workforce available in the enterprise. Usually, authority is given to a certain position, not to any individual, and the person holding that position has the authority to do so. Authority is such that it converts the ordinary worker to the principal worker. Responsibility - it is the responsibility of all employees who carry out the work: the worker is responsible for his work and his position. In this principle, the authority and responsibility interact with one another: the power to command and to exercise power; However, there is no irresponsible authority. Liability is a form of courage and there is no fear of the power of the authorities. Fear of responsibility kills entrepreneurship 3. Discipline is the norm of behaviour that is common to the general purpose of production. Discipline is the observance of rules and ethics. The discipline needs to be divided into two groups: a) farming discipline; b) administrative (discipline, discipline) discipline. Each assignment must be executed in a timely and timely manner by each competent or defendant. Otherwise, this can be regarded as a discipline. The main purpose of the well-being of the organization is to deny the use of sanctions against those who violate discipline. Workers' commands should only be taken from one person directly from the person who is the head. The main purpose of the Wahid principle is to follow a single subordination in the establishment of acceptable relations between the worker and the leader, that is, there is only one head of every employee, the employee is responsible only to that leader. the principal should also be aware of who is subject to it and is personally responsible for the task he or she is responsible for. Both the management and the head of the enterprise apply only one person for the operation of the enterprise. Thus, leadership can steer the key to success by choosing the right time to stop the work and what to continue. 5. Single Direction. The Unified Business Plan is oriented in one direction. This principle is mainly related to the specialization of farming. In principle, each enterprise will be better qualified in a specific area. It is possible to work more efficiently thanks to acquired experience and competence if equipment, technology and personnel are selected and operated in a field.6 The personal interest is subject to the common interest. The principle is used in the Japanese model of governance at the level of state administration in modern times. Thus, Japan is characterized by a decline in living standards compared to labour productivity. Generally, this model, where the general interest of the nation is superior to a concrete man, the interests of each employee or group at the organization-enterprise level should not exceed the interests of the organization. The principle of being is a factor that boosts the enterprise's production power. In many enterprises, property capital is divided into their members as shares, and income from this share is a living guarantee for each member. In this regard, personal interest is of greater interest to everyone. Because, while the productivity and income increase, the share of income per capita increases.7. Rewarding. This principle is to evaluate the services provided. It should be fair and bring satisfaction to both the employee and the management. Employee stimulation is a driving force for employees to work well. The prize has internal and external forms that can be repaid morally and financially. Material remuneration can be considered as giving money or goods for work spent. The moral reward is to praise the good work, to give a job cabinet or to disassemble a service car and so on. Sony managers have found that material incentives are not the most effective way of raising their employees' attitude toward work. One of the ways to encourage people is to feel that they are one of the members of the team's family and that they are treated with respect. Family relationships are also instilled in the branches of Sony, a company located in various parts of the world. 8. Centralization. The correlation between governance and non-centralization should be properly defined. The centralization may be understood as having the authority in the centre or in the possession of the principal powers of the management. In fact, this is based on the principle of unity. Because centralization requires a single head, for the collection and decision-making of information as well as control. There is also a lack of decentralization, where the linear division of powers is more predominant, i.e. authority is distributed among the top management hierarchy 9. Pallavi (chains) chain. The upper echelon is subordinate to the control. Authorities make every point of this chain accessible. In this principle, management managers are expected to differ from each other (i.e., divided into low, medium, high levels, and activities that are not the same). However, along with managing directives, they also have an implicit correlation. Establishment of a chain of empowerment and mutual responsibility formalizes this subordination. In the chain of pillows, first and foremost, empowerment and accountability are established and coordinated. Stages from the technical level to the higher level (and vice versa) depend on one chain. In this case, authority, subordination, responsibility, and control over the conduct of work are interconnected. The chain of chains can arise in vertical relationships. There is no dependency on the management of horizontal relations since they are equal. Each employee must have his or her place of work, each employee should be in his place. At first glance, it is clear that this principle is interrelated with the principle of division of labour. Thus, as a result of vertical and horizontal labour division, there are separate departments, different levels of management in the organization (enterprise), each employee is engaged in activities that are appropriate to his or her ability. The regime is understood to be the time, norm, and norms that govern the performance of the work. More precisely, it is the observance of administrative discipline that regulates regime discipline and business rules. Taking this principle into account, Toyota is committed to the "exact time" of production. Production of the necessary details and aggregates, the required quantity and time system is called the "exact time". This means that, for example, the necessary detail in the car recycling process should be conveyed to the conveyor, at the right time and in the required amount. If the "exact time" system operates on the whole company, then there is no need to keep the spare parts at the enterprise. Justice. The principle of justice is to maintain the normal relationship between managers and employees and to ensure that the laws, norms, norms and rights are respected objectively. In fact, the principle of justice is the correct assessment and worthy reward of each employee. The head of the organization should maintain the spirit of justice at each level of the chain, in which case the staff will fully realize their commitments. Workplace stability It is important for staff to work day by day with confidence. Frequent change of employees and their workplaces the effectiveness of the organization's activities. Workplace stability is ensured by contractual terms and both parties are required to comply with the terms of the contract. In other words, it is impossible to dismiss the employee without a momentary reason. This principle, first of all, ensures compliance with every discipline in the daily work by building up confidence in each employee, and the latter encourages him to work enthusiastically and enthusiastically. That is, every manager should know that it takes some time for each employee to get a job at a professional level. 13. Entrepreneurship. Entrepreneurship is an initiative that can be understood in the implementation of any business, the efforts to improve the quality and effectiveness of the work based on new ideas. Entrepreneurship is an individual approach to any assignment that is aimed only at achieving a positive outcome. Entrepreneurship adds to each organization an opportunity, power and efficiency. The essence of this principle is that, regardless of the position held, all employees should be given the maximum freedom of creativity. The principle of "every initiative to be rewarded" by Japan is well-founded. This principle has attracted millions of employees to Japanese firms in the sphere of rationalization. In Japanese companies, many of the most successful ideas are put forward by higher managers or in the process of their interaction with lower management roles. For example, low-poisoning Honda motors, Seiko quartz watches, ConiSi cameras with automatic focus, optical fibres for the transmission of information produced by Sumitomo, Canon copiers, Ultrasound synthetic skins manufactured by Toray This is a good example. 14th Unity (corporate spirit, unity, union) means that each group (collective), collaboration and idea (union) should be understood to be unity, the harmonious functioning of workers and the final outcome.

In figure 1.1 has shown the 7 principles of financial management for NGO