Principles of managementIntroductionManagement is dynamic force which

makes the business work smoothly and profitability. The survival and success of an organization

largely depends upon the quality of management. Managing well requires a good knowledge of the principles

and practices of management. Efficient management is must for modern

organization.

Meaning Principles of management are the guidelines to be

followed by every organization. No manager can be effective if he does not follow the principles of management. Therefore, managers in all organization whether big or small business, or non business, and all levels (top, middle or lower) must follow the principles of management. The founder was Henry Fayol

DEFINITION Marry parker Follet “management is the art of getting things done through

people”

Henri Fayol “to manage is to forecast and to plan, to organize, to

command, to coordinate and to control”

Harold terry “management is the art of getting the things done through

others.

1.Division of workAccording to fayol , ‘’The intent of division of work is to produce more and better work fir the same effort . Specialization is the most efficient way to use human effort.’’. Fayol applies this principle of division of work to all kinds of work – technical as well as managerial.

2.DisciplineAccording to Fayol ,Discipline requires observation of certain rules and regulation by all employees in the organization. Good superiors at all levels must have clear and fair agreements and application of penalties. They have to accept certain code of conduct while performing their jobs. In return the management has promised to increase wages of the workers when this mission is accomplished.

Discipline

3.Authority and responsibilityAccording to Fayol ‘Authority is the right to give order and obtain obedience, and responsibility is the one who is responsible for certain function. ” Authority is both formal and informal. There should be a balance between authority and responsibility. An organization should build safeguards against abuse of managerial power. At the same time a manager should have necessary authority to carry out his responsibility.

4.Unity of commandHenry fayol suggested that an employee

should get orders from one superior only . if two superiors exercise their authority on the same employee, there will be disorder and confusion . In fast, dual command is always dangerous.

5.Unity of directionFayol suggested that there

should be one head and one plan for a group of activities having the same objective. In the absence of unity of direction there will be confusion among the employees.

There should be same directions to all the employees doing similar activities. A particular activity must be directed with the help of a single plan.

6.CentralisationAccording to Fayol, extreme

centralisation or decentralization of authority should be avoided and a proper balance between centralisation and decentralization should be maintained . Fayol also suggests that some degree of centralization must be introduced in order to have best result in terms of achievement of objectives .The concentration of decision –making authority is called centralization.

7.Subordination of interestTHE GENERAL INTEREST OF THE

ORGANISATION MUST BE CONSIDERED PRIMARY AND INDIVIDUAL MUST BE SECONDARY.

THIS CAN BE OBTAINED BY EFFECTIVE CONTROL AND SUPERVISION IN THE ORGANISATION.

8.OrderIT MEANS SYSTEMATIC ARRANGEMENT

OF MEN AND MATERIALS IN THE ORGANISATION .

There should be place for everything and everything should be in its place.

IT REQUIRES PROPER SELECTION AND CORRECT ASSIGNMENT OF EMPLOYEES IN THE ORGANISATION.

9.Stability of tenureFrom the point of view of management it is

absolutely harmful to change the employees frequently as it is a reflection of inefficient management.

Managers as well as subordinates need some time to learn and understand the job assigned to them. They will adjust the work within a short period. If they leave or are removed within a short period, the learning time will be wasted. Hence stability of personnel is necessary which means security of job.

10.EQUITYTHE PRINCIPLE OF EUITY RELATES TO THE TREATMENT OF SUBORDINATES.

MANAGERS SHOULD BE FAIR AND,FRIENDLY TO THEIR EMPLOYEE

11.Initiative☻SUBORDINATES SHOULD BE PERMITTED TO TAKE SOME INITIATIVE IN PREPARING AND EXECUTING PLANS.

☻MANAGERS SHOULD ENCOURAGE SUBORDINATES TO TAKE MORE INTEREST AND INITIATIVE IN THE WORK ASSIGNED.

☻IT PROMOTES NEW IDEAS AND STRENGHENS THE ORGANISATION.

12.Esprit de corps

☻IT IMPLIES TEAM SPIRIT.

☻MUTUAL UNDERSTANDING,TRUST AND CO-OPERATION AMONG THE EMPLOYEES LEADS TO TEAM SPIRIT.

☻IT LEADS TO SYNERGY.SYNERGY MEANS EFFECT OF TWO PEOPLE WORKING TOGETHER IS MORE THAN SUM OF THE INDIVIDUALS EFFECT.

☻EXTENSIVE FACE TO FACE VERBAL COMMUNICATION PROMOTES TEAM SPIRIT.

Team work

13.RemunerationWages and salaries should be fairWages must be paid on time depending

upon the factors such as cost of living, ability of the company to pay, prevailing wage rates in the industry, etc.

Apart from financial benefits, non-financial benefits should provided such as good working conditions, canteen facilities, recreation facilities,etc.

14.Scalar chainAccording to this principal, scalar chain refers to the line of authority and communication which moves in a straight line from the superior most authority to the lowest subordinate. Under this chain of authority, each communication moves from top to lower level and from lower to top level.

For example :

In this diagram A is the superior of the whole organization. B & K are heads of next level of management and so on. If F & O need to contact each other then acc. to scalar chain F will move to E, E to D, D to C and so on and finally to O. In some cases F can directly contact O but with the approval of E & N (immediate superiors). This is called Gang Plank