Principles of Management


According to Fayol, there are fourteen types of principles that can be applied in all types, functions, levels and sizes of organizations. These are:-

  1. Division of work:- This principle is of specialization and can be applied to all kind of work. The workers are made more efficient by specializing them in a particular work.
  2. Authority and responsibility:- Authority is the right to give orders and responsibility arises out of assignment of an activity. When a manager is given authority to exercise power, he must be prepared to bear responsibility to perform the work in a satisfactory manner.
  3. Discipline:- A good discipline is the result of effective leadership, a clear understanding between management and workers. All employees must obey the rules and regulations that govern the working of an organization.
  4. Unity of command:- An employee should receive commands from one superior only. Taylor believes that dual command undermines authority and puts discipline in jeopardy. according to Fayol, when an employee reports to more than one superior, conflict in instructions and confusion of authority would result.
  5. Unity of direction:- This principle calls for ‘one manager one plan’ for all operations having the same objective. For example, the HR department in a bank should not have two directions in recruitment.
  6. Subordination of individual interest to the common good:- In any organization, the interests of employees should not take precedence over the interests of the organization as a whole. This can only be achieved when managers set an example through their good conduct. They must be prepared to sacrifice their personal interest.
  7. Remuneration of personnel:- Compensation for work done should be fair for both employees and employers.
  8. Order:- Materials and people should be in right place at the right time. The general principle in this respect is ‘a place for everything and everything in its place’.
  9. Centralization:- Decreasing the role of subordinates in decision-making is centralization. According to Fayol, managers should retain final responsibility but also give their subordinates enough authority to do their jobs properly.
  10. Scalar chain:- The graded chain of authority from top to bottom through which all communication flow is termed as ‘scalar chain’.
  11. Equity:- It is the combination of justice and kindness. Its application requires good sense, experience, and good nature for soliciting loyality and devotion from employees.
  12. Stability of tenure:- Stability of tenure is essential because an employee require time to get use to new work and perform at full level. Management must, therefore, encourage long-term commitment to employees.
  13. Initiative:- The opportunity to perform independently is an essential component of employee growth and development. So, they must be encouraged to think through to implement a plan of action.

Esprit de corps:- This principle states the ‘union is strength’. Promoting team spirit will give the organization a sense of unity. According to Fayol, even small factors could help to develop this spirit.

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