Principles of Management

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Fayol’s principles of management:

1.  Division of work:- work should be divided into small tasks/jobs; each performed by a specialist or trained employee. 
2.  Authority and responsibility:- ‘authority’ means the right to give orders and obtain obedience ‘responsibility’ means an obligation to perform the job assigned on time. Fayol suggested that there must be a balance between authority and responsibility.
3.  Discipline:- it means obedience to organisational rules and employment agreement.
4.  Unity of command:-an employee should receive orders/instructions from one and only one boss or superior.
5.  Unity of direction:- all the units of an organisation should be moving towards the same objectives through coordinated and focused efforts.
6.  Subordination of individual interest to general interest:- the interest of the organisation should supersede the interest of any one individual employee.
7.  Remuneration of employees:- remuneration of employees should be just and equitable to provide maximum satisfaction to the employees as well as an employer.
8. Centralisation and decentralisation:- the concentration of decision- making authority by top management is called centralisation, whereas delegation of authority throughout all the levels of the organisation is called decentralisation. There should be a balance between centralisation and decentralisation.
9. Scalar chain:- the formal lines of authority from highest to lowest rank are known as ‘scalar chain’ suggests that communication from top to bottom should follow the official lines of command. Gangplank is a shorter route and has been provided so that communication has not delayed.
10. Order:- it means –There should be a fixed place for every person and everything in the organisation and each person and everything should be at its definite place.
11. Equity:- the principles of ‘equity’ emphasises kindliness and justice in the behaviour of managers towards workers, i.e., no discrimination on account of sex, caste, language, etc.
12. Stability of personnel: employees should not be moved from their positions frequently, they should be given reasonable time to show results.
13. Initiative: - employees should be encouraged to make and execute plans within the prescribed limits of authority.
14. Espirit de corps:- Fayol emphasises the need for teamwork, spirit of unity and harmony among employees.