Principles of management

Introduction
Management is dynamic force which

makes the business work smoothly

and profitability. The survival and
success of an organization
largely depends upon the quality of
management. Managing well requires
a good knowledge of the principles
and
practices of management. Efficient

Meaning
Principles of management are the guidelines to be

followed by every organization. No manager can be

effective if he does not follow the principles of
management. Therefore, managers in all organization
whether big or small business, or non business, and all
levels (top, middle or lower) must follow the principles of
management. The founder was Henry Fayol
DEFINITION
Marry parker Follet
management is the art of getting things done through
people
Henri Fayol
to manage is to forecast and to plan, to organize, to

command, to coordinate and to control

Harold terry

1.Division of work
According to fayol , The intent of
division of work is to produce more and
better work fir the same effort .
Specialization is the most efficient way
to use human effort.
. Fayol applies this principle of division
of work to all kinds of work technical
as well as managerial.

2.Discipline
According to Fayol ,Discipline
requires observation of certain
rules and regulation by all
employees in the organization.
Good superiors at all levels
must have clear and fair
agreements and application of
penalties. They have to accept
certain code of conduct while
performing their jobs. In return
the
management
has
promised to increase wages of

Discipline

3.Authority and responsibility

According to Fayol Authority

is the right
to give order and obtain obedience, and
responsibility is the one who is responsible
for certain function. Authority is both
formal and informal. There should be a
balance
between
authority
and
responsibility. An organization
should
build
safeguards
against
abuse
of
managerial power. At
the same time a
manager should have necessary authority
to carry out his responsibility.

4.Unity of command
Henry fayol

suggested that an employee

should get orders from one superior only .
if two superiors exercise their authority on the
same employee, there will be disorder and
confusion . In fast, dual command is always
dangerous.

5.Unity of direction

Fayol suggested that there

should be one head and one

plan for a group of activities
having the same objective. In
the absence of unity of direction
there will be confusion among
the employees.
There should be same
directions to all the employees
doing similar activities. A
particular
activity must be
directed with the help of a
single plan.

6.Centralisation
According

to
Fayol,
extreme
centralisation or decentralization of
authority should be avoided and a
proper
balance
between
centralisation and decentralization
should be maintained . Fayol also
suggests that some degree of
centralization
must
be
introduced in order to have best
result in terms of achievement of

7.Subordination of interest
THE

GENERAL
INTEREST
OF
THE
ORGANISATION MUST BE CONSIDERED
PRIMARY AND INDIVIDUAL MUST BE
SECONDARY.

THIS

CAN BE OBTAINED BY EFFECTIVE

CONTROL AND SUPERVISION IN THE
ORGANISATION.

8.Order
IT MEANS SYSTEMATIC ARRANGEMENT

OF MEN AND MATERIALS IN THE

ORGANISATION .
There should be place for everything and

everything should be in its place.

IT REQUIRES PROPER SELECTION AND

CORRECT ASSIGNMENT OF EMPLOYEES IN

THE ORGANISATION.

9.Stability of tenure
From the point of view of management it is

absolutely harmful to change the employees

frequently as it is a reflection of inefficient
management.
Managers

as well as subordinates need some time

to learn and understand the job assigned to them.
They will adjust the work within a short period. If
they leave or are removed within a short period, the
learning time will be wasted. Hence stability of
personnel is necessary which means security of
job.

10. EQUITY
THE PRINCIPLE OF EUITY RELATES TO THE TREATMENT OF SUBORDINATES.

MANAGERS SHOULD BE FAIR

AND,FRIENDLY TO THEIR EMPLOYEE

11.Initiative
SUBORDINATES SHOULD BE PERMITTED TO

TAKE SOME INITIATIVE IN PREPARING AND

EXECUTING PLANS.
MANAGERS SHOULD ENCOURAGE

SUBORDINATES TO TAKE MORE INTEREST AND

INITIATIVE IN THE WORK ASSIGNED.

IT PROMOTES NEW IDEAS AND STRENGHENS

THE ORGANISATION.

12.Esprit de corps
IT IMPLIES TEAM SPIRIT.
MUTUAL UNDERSTANDING,TRUST

AND
CO-OPERATION AMONG
THE EMPLOYEES LEADS TO TEAM
SPIRIT.
IT LEADS TO SYNERGY.SYNERGY

MEANS EFFECT OF TWO PEOPLE

WORKING TOGETHER IS MORE
THAN SUM OF THE INDIVIDUALS
EFFECT.
EXTENSIVE FACE TO FACE VERBAL

COMMUNICATION PROMOTES

Team work

13.Remuneration
Wages and salaries should be fair
Wages must be paid on time depending

upon the factors such as cost of living,

ability of the company to pay, prevailing
wage rates in the industry, etc.
Apart from financial benefits, nonfinancial benefits should provided such
as good working conditions, canteen
facilities, recreation facilities,etc.

14.Scalar chain
According to this principal,

scalar chain refers to the line

of authority and
communication which moves
in a straight line from the
superior most authority to
the lowest subordinate.
Under this chain of authority,
each communication moves

For example :

In this diagram A is the superior of the whole organization. B

& K are heads of next level of management and so on. If F &
O need to contact each other then acc. to scalar chain F will
move to E, E to D, D to C and so on and finally to O. In some
cases F can directly contact O but with the approval of E & N
(immediate superiors). This is called Gang Plank