PRINCIPLES OF MANAGEMENT AND THEIR APPLICATION

 Division of labour: Through specialization of labour, maximum efficiency can be

achieved.
 Authority and responsibility: The right to make decisions on behalf of others.
The right to command and the power to make oneself obeyed.
 Discipline: The essence of discipline is obedience diligence, energy, correct
attitude and respect within the limits fixed by the concerned organisation and its
employees. That is, orderly behaviour.
 Unity of command: Everyone should have one and only one boss.
 Unity of direction: There should be only one manager and one plan for all
operations of the same type. This assures consistency and responsibility.
 Committement to achievement (subordination of individual interest to the
common good) making sure that the set objectives are achieved.
- The goals of the organisation take precedence over the goal of the individual.
 Remuneration: Employees should be paid fairly for their work, and the payment
should be an incentive to perform well.
 Centralisation (delegation): Authority and responsibility should not be too
centralised in one manager.
- There should be enough delegation to others so that subordinates are encouraged to
work well and yet enough centralisation to ensure accountability.
 Hierarchy: The line of authority in an organisation runs from top to bottom in a
straight line. Communications should normally follow this path, although
managers should be able to communicate across the organisation to their peers at
the same level of authority.
 Order: To run well an organisation should have a place for everything and
everything should be in its place.
 Equity: The organisation runs best when there is friendliness among employees
and managers and when managers act fairly towards others.
- Treat people equally. Management should combine kindness and justice when
dealing with subordinates.
 Stability of staff: Employee turnover is unhealthy for organisations. Good
administration encourages commitment and long-term associations from
employees. The job has to be assured and stable.
 Initiative: Subordinates should be given the opportunity and freedom to
conceive and execute a plan.
 Esprit de corps (team work). There should be teamwork through maintenance
of effective interpersonal relationship.
 Effectiveness: The degree to which the objective is being or has been achieved.
 Efficiency: Doing the right thing in the right way with the least cost in the
shortest time and with minimum effort.
 Accountability: Responsibility for success or failure.