Principles of management

Principles of management are the universal rules which enable managers to decide what should
be done to accomplish given tasks and to run organization efficiently.

Henri Fayol
• He was born in 1841 in Istanbul and died in 1925.
• French mining engineer and director of mines who developed a
general theory of business administration.
• He and his colleagues developed this theory independently of
scientific management.
• He is known as the “Father of Modern Management Theories”

1. Division of Work
Assign each employee a task in which they could excel.
Employees' productivity improves as they become more
skilled, and confident.
Jobs are segmented into smaller bits, which are to be assigned to
individual workers in accordance with their area of specialization.
Specializations quicken the rate of completion of task, increase
productivity, and permits large-scale production at minimal cost.
Division of labor and specialization produces more and better work with the same effort.
2. Authority and Responsibility 
Managers must have the authority to issue commands and
understand that with authority thereby comes
responsibility.
Authority is required to control the behavior of organizational
members.
Appropriate sanction is needed to discourage poor performance
and encourage good job performance each member of the organization should be given enough
authority to enable him carry out the assigned job responsibility.
3. Discipline 
Every employee is required to respect the organizational norms
and the terms of the employment agreement. Managers must also
verify that everyone follows the rules.
 Good discipline requires managers to apply sanctions whenever violations become
apparent.

4. Unity of Command 
According to Fayol, "an employee should only receive
commands from one supervisor." Authority, discipline, order, and
stability are jeopardized otherwise.
– This is one way to minimize confusion, conflict, and
indiscipline within an organization.

5. Unity of Direction 
Teams with the same goal should work under the guidance of a
single manager and with a single strategy.
 Organizational activities must have one central authority and one
plan of action.
- An organization is more effective when every member within it
work toward the accomplishment of a common objective.
- Unity of direction implies unity of purpose.

6. Subordination of Individual Interest to

General Interest 
The interests of the organization should take
precedence over the interests of individual
employees and every employee must pursue the
team’s interest over his own.
- The interests of one employee or group of
employees are subordinate to the interests and
goals of the organization

7. Remuneration 
Fayol believes that employees should be fairly compensated
so that both employees and owners are satisfied. And it is the
manager's responsibility to guarantee that employees are
compensated appropriately for their efforts.
The pay/salary of employees should be very commensurate to
the work they do in an organization to create a good measure
of satisfaction.

8. Centralization & Decentralization 

Centralization is when the leadership team preserves
authority.
  • Centralization means concentration of authority at the top of the administrative
system. Decentralization occurs when authority is delegated at all levels. i.e.,
Subordinates can take decisions.
• Decentralization means dispersal of authority among the lower levels of the
administrative system. 

9. Scalar Chain 
Employees should be aware of their position in
the organization's hierarchy and who to contact
within a chain of command.
Scalar chain refers to the number of levels in
the hierarchy from the ultimate authority to the
lowest level in the organization. 

10. Order 
According to Fayol, every firm should have two
orders: one for physical resources and one for
human resources.
There should be a systematic order of function for
every material and personnel in an organization

11. Equity 
This principle suggests that managers should treat
their employees fairly and with kindness for them
to acquire a sense of dedication and attachment to
their work.
This implies that justice, fairness, compassion and
cordiality based on predetermined norms should
dominate the activities of an organization.

12. Stability of Personnel 

According to Henri Fayol, if an organization's
personnel are steady, it has a better chance of growing
faster. If the organization has a high attrition rate, a lot
of time will be wasted on training and development.

13. Initiative 
It is the manager's responsibility to
encourage his employees to take initiative in
 accomplishing work or making decisions, but only within the bounds of authority and
discipline.
Employee need to be motivated to put forward their ideas or suggestions and execute
them.

14. Esprit de Corps 

A feeling of pride and mutual allegiance
shared by members of a group is known as
esprit de corps. That is precisely what you
must strive towards if you want to achieve
success.

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