Principles of Management

Principles of Management

Division of Work: To produce more and better work from same efforts and also gain advantages of the specilisation, Fayol feels that there should be division of work.

Authority and Responsibility: Responsibility invariably follows authority. The application of sanctions is essential to good management and is needed to encourage useful actions and to discourage their opposite.

Discipline: This is essential for the efficient operation of the organisation. It is in essence the outward mark of respect for agreements between the organisation and its members.

Unity of Command: In any action an employee should receive orders from one superior only, if not authority is undermined and discipline, order and stability are threatened.

Unity of Direction: There should always be one head and one plan for any group of activities with the same objective, only then the organisation can provide unity of action, co-ordination and focusing of effort.

Subordination of Individual interest to general interest: The interest of the organisation should be the foremost, instead of the individual or group interest.

Remuneration of Personnel: The remuneration should as far as possible satisfy both employee and employer because methods of payment can influence organisational performance.

Centralisation: This is always present to some extent in any organisation. The degree of centralisation is question of proportion and will vary in particular organisations.

Scalar Chain: The chain of superior from the ultimate authority to the lowest ranks. Respect for line authority must be reconciled with activities which require urgent action and with the need to provide for some measure of initiative at all levels of authority.

Order: This includes material order and social order. Social order requires good organisation and good selection.

Equity: The desire for equity and for equality of treatment is aspirational to be taken into account in dealing with employees throughout all levels of scalar chain.

Stability of tenure of personnel: Generally, prosperous organisation has stable managerial personnel. But changes of personnel are inevitable and stability of tenure is a question of proportion.

Initiative: This represents a source of strength for the organisation and should be encouraged and developed.

Espril-de-Corps: This should be fostered as harmony and unity among members of the organisation is great strength n the organisation. The principle of unity of command should be observed.

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