Principles of Management

A principle is like that it is express fundamental truth. It establishes cause and good relationship between different two groups or person or more variables things at any situation. Principles serve as a guide to thought and feelings and actions. We know that management is universal for the reason management principles are the fundamental of truth based on logic that provides guidelines in making managerial decision.

In the last century, organizations had to deal with management and organization was practice management. In the 1900 decade a large organizations, such as production factories got many problems to manage this site. At that time there were available only few tools, models and methods to apply on that factories. At that time founder of modern management, Henri Fayol was emerged.


Fayol’s principles are listed below:

1. Division of Work
Division of work refers to the practice of dividing a task, a job, assignment or contract or a factory departmental works into small tasks. Division of work means the whole work is divided into small tasks. This principle specialize the workforce according to the skills of a person and professional development within the labor force and by this, means increase the productivity. This specialization increases the efficiency of labor.

By separating the whole work into a small part of work, the workers speed, accuracy, and performance increases. This principle is applicable to both technical and managerial working process. This Division of Work principle can be made useful in case of project works too.

2. Authority and Responsibility
In order to get things or work done in an organization, management has the authority to give any kinds of orders to the employees. Of course with this authority, the author comes responsibility. The authority gives the management the right to give any kinds of orders to the subordinates.

We can say, the authority and the responsibility can go together and they are the two sides of the same coin.

3. Discipline
The third principle of the 14 principles of management is about discipline or obedience. Discipline refers to obedience, proper relation to others, respect of authority etc.

Discipline is essential of all organizations for smooth functioning. This will also help to create shape the culture inside the organization. Discipline is necessary for of all enterprises.

4. Unity of Command
Unity of command means that an individual employee will receive orders form one manager and that the employee is answerable to that manager.

If more than one manager gives tasks and related responsibilities to the employee, this may lead to confusion that may lead to possible conflicts for employees. By using this principle, the responsibility for making mistakes can be established more easily.

5. Unity of Direction
This management principle is all about focus and unity. All employees deliver the same activities for factory that can be linked to the same objectives. One group that forms a team must carry out all activities. These activities must be described in one plan of action at company or any organization.

Unity of Direction is that there should be one plan for workers. They should be under the control of one manager.

6. Subordination of Individual Interest to Mutual Interest
The management must understand the divided of personal considerations and objectives of company. He must put aside personal considerations and put company objectives firstly.

In order to the company want an organization function well, he should remember that personal interests are subordinate to the interests of the organization. The manager should give the primary focus on the organizational objectives and should not on those of the individual. This principle is not only applies on manager but also to all levels of the entire organization.

7. Remuneration
Workers must be paid sufficient money. It is a chief motivation of employees and it is greatly influences productivity. Motivation and productivity are close friend to one another and is concerned the smooth running of an organization.

The remuneration payable should be fair and reasonable effort. Normally, remuneration is paid to worker as per their capacity and their productivity. The main objective of an organization is to maximize the company wealth and profit as well. For this purpose, the organization has paid wages, salary and benefit to their staff so that the worker can be motivated and organization can be ensured of profit.

8. Centralization
The amount of power of authority for decision-making process must be properly balanced in an organization. The amount of power of authority depends on the volume and size of an organization including its hierarchy.

The degree of centralization implies the concentration of decision-making authority and power at the top management. Sharing of authority or power with lower levels is called decentralization in management principle.

9. Scalar Chain
Scalar chain refers to the chain of superiors ranging in a circumstance form top management to the lowest rank. Scalar chain suggests that there should be a clear line of authority form top to bottom and in this line should be link all managers at all levels. It is considered a chain of command in management. It involves a great and useful concept called a “gang plank” using which a subordinate may contact a superior to his superior or low manager to low manager in case of an emergency.

However the immediate low manager must be informed to superiors about the matter.

10. Order
A company runs properly if social order ensures the fluid operation through authoritative procedure. Company has different types of order. They must follow company rules and then company will make profit.

Material order ensures safety, efficiency, and good line in the workplace. Order should be acceptable to all and under the rules and regulation of the company.

11. Equity
Manager behavior must be treated kindly and justice to the worker to ensure a good workplace. Managers should be equal to all to all kinds of matter. Managers should be fair and impartial to all employees when dealing with them and giving equal attention towards all workers.

12. Stability of Tenure of Personnel
If any good worker leave to your company, it will be very bad for company. Stability of tenure of personnel is a principle is that ensure organization to run company smoothly without the thinking of frequently enter and exit of workers. For doing, this company must be increase stability job for worker.

The organization must take steps to obtain as much as stability in its management site and workforce site as possible.

13. Initiative
Initiative is very important for any company. By using this initiative of employees can be strength and can discover new ides for an organization.

Initiative of employees is a source of strength for organization because it provides new and better ideas for company improvement. Employees may always like to take greater interest in the functioning of the organization.

14. Esprit de corps
Esprit de corps refers to the need of managers to ensure and development morale in the workplace and to the workers. Team sprit helps develop an atmosphere of mutual trust and understanding with each other. Team spirit helps and works finish the task on time.

Principle of management can be used to manage organizations and these are useful tools for forecasting, planning, process management, organization management, coordination and controlling.

Although they are oblivious but they can give guide for any problem and can give tips as what should do or what not?