14 Principles of Management

14 Principles of Management

Management is those activities carried out by the organization’s resources to achieve the goals of the organization in an effective and efficient way in a changing environment. The activities are:

  1. Planning
  2. Organizing
  3. Staffing
  4. Directing
  5. Coordination
  6. Controlling and Evaluation

Principles of Management

Management Principles are developed to facilitate, guide and simplify managerial work systems. Here are the 14 Principles of Management put forth by Henry Fayol.

 

  • Division of Work

  • Authority and Responsibility

  • Discipline

  • Unity of Command

  • Unity of Direction

  • Subordination of Individual Interests to General Interests

  • Fair Remuneration to Employees

  • The Degree of Centralization

  • Scalar Chain

  • Order

  • Equity

  • Stability of Tenure of Personnel

  • Initiative

  • Esprit de Corps ( Spirit of Cooperation )

 

  • Division of Work

Employees are specialized in different areas and have different skills. One single person won’t be able to do all the work by himself. The work should be assigned to the specialist of that specific work. Specialization promotes the efficiency of the workforce and increases productivity. This is applicable to workforce both at technical as well as managerial activities.

 

  • Authority and Responsibility

Authority and responsibility should be co-existing, like the two sides of a coin. If anyone is given responsibility for a specific task, he should also be given the concerned authority to complete the task. Without authority, he will not be able to complete the task. An efficient manager makes the best use of his authority and fulfills his responsibilities. When authority is properly exercised, responsibility is automatically generated.

 

  • Discipline

A well-disciplined workforce is essential for improving the quality of work. Employees are expected to be sincere about the work and the enterprise. They should carry out orders and instructions of superiors and have faith in policies and programs of the enterprise. However, Henry Fayol does not advocate warning, fines, dismissals and suspension of workers for not maintaining discipline. He believes employees can be made sincere without harsh punishments. Punishments will only bring more chaos.

 

  • Unity of Command

The individual employee should receive orders from one manager only and that employee should only answer to that manager. If more than one manager gives orders to a single employee, this may lead to confusion and create conflicts for the employees. Further, if the unity of command is violated, it means, authority is undermined, discipline is in danger, the order is disturbed and stability of the workspace is threatened.

 

  • Unity of Direction

Group efforts on a particular plan should be led and directed by a single person. This enables effective coordination of individual efforts and energy as all employees deliver the same activities that can be linked to the same objectives.

 

  • Subordination of Individual Interests to General Interests

Personal interests are subordinate to the interests of the organization. The primary focus for everyone in the organization should always be on the organizational goals. Employees should keep the organization first. When employees overlook the interest of the organization, it can be harmful to the organization.

 

  • Fair Remuneration to the Employees

Remuneration should be sufficient to keep employees motivated and productive. Employees should be rewarded for the efforts that have been made. Remuneration could be in 2 forms. They are:

  1. Non-monetary: A compliment, more responsibilities, credits, etc.
  2. Monetary: Compensation, bonus or other financial compensation.
  • The Degree of Centralization

When there is one central point in the organization that exercises the overall direction and control of all the parts, then it is centralization. Decentralization is the case when authority is shared amongst various units including middle and lower level managers. There should be a proper and effective adjustment between Centralization and Decentralization depending on the need of the organization. Centralization favors smaller organizations while decentralization favors larger scale organizations.

 

The choice between Centralization and Decentralization should be made after considering the nature of work, efficiency, experience and decision making capacity of the executives.

 

  • Scalar Chain

Scalar Chain is the chain of superiors ranging from the ultimate authority to the lowest rank. Every organization should have a clearly defined hierarchy ( Management Structure). An employee should be able to contact his/her superior through the scalar chain. Even authority and responsibility is communicated through the scalar chain.

 

  • Order

Employees in an organization must have the right resources at their disposal so that they can function properly. People with the right skill should be appointed for the right task ( right person, right job). Selection of employees for every job should be scientific. The workspace should also be safe, clean and tidy.

 

  • Equity

Employees should be treated kindly and equally. There should be no discrimination in regards to caste, gender, race, religion, etc.. Fair treatment creates loyalty and devotion amongst the employees.

 

  • Stability of Tenure of Personnel

Organizations thrive under proper teamwork but it suffers when the team members keep on changing at short intervals. It is upon the organization to build a proper team of good workers. If team members keep on changing, the entire process will be disturbed. Hence, organizations should make sure that trusty, experienced and trained employees do not leave the organization. Stability creates a sense of belongingness among the workers and improves productivity.

 

  • Initiative

Employees must be consulted to express new ideas, experiences and more convenient methods of work. Employees working on specific jobs since a long time might discover new, better and efficient technique of working. Hence allowing employees to take initiatives will spawn a feeling of belongingness amongst the employees while enhancing the efficiency.

 

  • Esprit de Corps ( Spirit of Cooperation )

In order to achieve the best results, managers should effectively integrate and coordinate individual and group efforts. Managers should emphasize on motivating, recognizing and effectively coordinating the mutual social relationship between members of the group. Esprit de corps contributes to the development of an organization’s culture and an atmosphere of mutual trust and understanding.

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