Principles of Management...
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| Management |
Meaning of Principle-A Principles is a fundamental truth which guides to a thought and actions of people."Principles is a fundamental truth or a statement which guide us in thinking and taken action".
Management Principles- Principles of Management are general rules of Management which should have to be follow in doing managerial activities.
Henri Fayol who is recognised as the father of modern theory of Management formulated a set of 14 Principles of Management.These are...
1) Division of work-This principle states that every work should be sub divided into small parts and each part of work should be assigned to the employee who is specialized in that work.Every person has specific specialization so according to this principle total work is divided into small parts and then every part is assign to that employee who is expert in that work.
Advantages of Division of work principle..
1)Work is divided into small parts so work become easy.
2)Work is performed efficiently.
3)Cost of work perfom reduce because work performed by specialist so they perform it in a better way.
4) Productivity increases.
2) Authority and Responsibility-Authority -It is a right to give order.Authority is vested in position not in an individual.When a person is in position he have authority to give orders and when he leaves position,he have no right of authority.for eg A school principal have authority to give orders to teachers but when he leaves his principal position he no more have authority to give orders. This is called authority.
Responsibility-A duty or obligation to perfom or complete a task assigned by someone or Responsibility is created by own's promise or circumstances to perfom job.
According to this principle , Authority and Responsibility must go together,there must be parity of authority and responsibility.It means proper authority should be delegated to meet the responsibility.
There are two reasons of parity between Authority and Responsibility..
I)If a employee given a responsibility to perfom a work without given sufficient authority he can't perfom his work in better way so the organization goals cannot be achieve.
ii)If a employee is given excess authority he may miss use it.
3) Discipline-This principle states that there should be discipline in every Organisation because discipline is necessary for every Organisation, without it success cannot be
achieved.This states that every subordinate in the Organisation must obey and respect the authority given by his Superior and also obey the rules and policies of Organisation.
4)Unity of Command-This principle states that an employee should receive orders from only one Superior.By this there may be no confusion in receiving and understanding the orders and it can be easily followed.
5) Unity of direction-It states that similar activities must be directed by one leader or one head .By this we can achieve co.ordination and unity in havingaction.Activitieshaving same Objectives should be directed by only one manager under a one plan.
6) Subordination of individual interest to general interests-'Subordination means the act of placing in a lower rank', it means individual should place his interest in lower rank in front of organization interests.
According to this principal general interest is superior to the individual interests.Every subordinate join organization for his individual Objectives and organization have their own Objectives,but when their is conflicts between them individual should subordinate his interest in front of organization.Manager must try to Integrate individual goal with the organization goals in such a way so that objectives of both can achieve.
7) Remuneration-Remuneration means money paid by employers to his employees for work or services performed.Every employee join organization for earnings,so that he fulfil his basic or other needs of life.
According to this principle remuneration given to employees should be reasonable.It should not be low or high.Each
employee get fair remuneration so that employee as well as employer are satisfied.Remuneration should be adequate
which motivates the employees to perfom better and raise standard of living of the employees.
8) Centralisation-Centralisation is when the authority retained by higher level of According to this principle manager should retain final responsibility and give enough authority to do their day to day job so they perform their work properly.There should be balance between Centralisation and decentralisation.Excess Centralisation and ecxess decentralisation is not good ,if there is excess Centralisation (all the authority to managers )in this condition employees not perform work properly.
Excess decentralisation (all authority is given to employees)in this condition employees misuse the authority.
9)Scalar Chain-Scalar chain means a chain in which authority and responsibility flows .Managers use Scalar chain in giving orders and employees use scalar chain for reports and grivences flows to the higher authority.The flow of information between employees and managers through scalar chain,but when the emergency condition arises which need immediate solution at that time we cannot follow scalar chain we make direct contact with the concerned employee.
11)Equity-This principle implies that there should be equity in every Organisation.It means manager should be friendly,kind with his subordinates.Mangers should treat his employees equally,because equity treatment is liked by everyone and make good relation between employers with his employees and employees are happy so Organisation goals can be achive easily.
12) Stability of personnel-This Principle implies that there should be Stability in tenure of personnel.No employee must be removed within a short period of time.Stability in personnel of tenure reduce the employee turnover and cost of training and learning of employees.New employees will demotivate by seeing the prior employees removed within a short period .
They feel insecure and cannot work concentrately.
13) Initiative-Initiative means to start,to begin a project,this principle implies that freedom should be given to subordinates to carry out their plans.Management must taken suggestions from employees at the time of determine plan and then given freedom to initiative plan as they feel these are their own plans and they have to complete it.By doing this they are Motivated and they completely dedicated in their work.This will reduce wastage.
14) Esprit de corps-Esprit de corps means team spirit , according to this principle that there should be team spirit among employees.It means there must be sense of unity among employees so that purpose of Organisation can be achieved easily.
Henri Fayol who is recognised as the father of modern theory of Management formulated a set of 14 Principles of Management.These are...
1) Division of work-This principle states that every work should be sub divided into small parts and each part of work should be assigned to the employee who is specialized in that work.Every person has specific specialization so according to this principle total work is divided into small parts and then every part is assign to that employee who is expert in that work.
Advantages of Division of work principle..
1)Work is divided into small parts so work become easy.
2)Work is performed efficiently.
3)Cost of work perfom reduce because work performed by specialist so they perform it in a better way.
4) Productivity increases.
2) Authority and Responsibility-Authority -It is a right to give order.Authority is vested in position not in an individual.When a person is in position he have authority to give orders and when he leaves position,he have no right of authority.for eg A school principal have authority to give orders to teachers but when he leaves his principal position he no more have authority to give orders. This is called authority.
Responsibility-A duty or obligation to perfom or complete a task assigned by someone or Responsibility is created by own's promise or circumstances to perfom job.
According to this principle , Authority and Responsibility must go together,there must be parity of authority and responsibility.It means proper authority should be delegated to meet the responsibility.
There are two reasons of parity between Authority and Responsibility..
I)If a employee given a responsibility to perfom a work without given sufficient authority he can't perfom his work in better way so the organization goals cannot be achieve.
ii)If a employee is given excess authority he may miss use it.
3) Discipline-This principle states that there should be discipline in every Organisation because discipline is necessary for every Organisation, without it success cannot be
achieved.This states that every subordinate in the Organisation must obey and respect the authority given by his Superior and also obey the rules and policies of Organisation.
4)Unity of Command-This principle states that an employee should receive orders from only one Superior.By this there may be no confusion in receiving and understanding the orders and it can be easily followed.
5) Unity of direction-It states that similar activities must be directed by one leader or one head .By this we can achieve co.ordination and unity in havingaction.Activitieshaving same Objectives should be directed by only one manager under a one plan.
6) Subordination of individual interest to general interests-'Subordination means the act of placing in a lower rank', it means individual should place his interest in lower rank in front of organization interests.
According to this principal general interest is superior to the individual interests.Every subordinate join organization for his individual Objectives and organization have their own Objectives,but when their is conflicts between them individual should subordinate his interest in front of organization.Manager must try to Integrate individual goal with the organization goals in such a way so that objectives of both can achieve.
7) Remuneration-Remuneration means money paid by employers to his employees for work or services performed.Every employee join organization for earnings,so that he fulfil his basic or other needs of life.
According to this principle remuneration given to employees should be reasonable.It should not be low or high.Each
employee get fair remuneration so that employee as well as employer are satisfied.Remuneration should be adequate
which motivates the employees to perfom better and raise standard of living of the employees.
8) Centralisation-Centralisation is when the authority retained by higher level of According to this principle manager should retain final responsibility and give enough authority to do their day to day job so they perform their work properly.There should be balance between Centralisation and decentralisation.Excess Centralisation and ecxess decentralisation is not good ,if there is excess Centralisation (all the authority to managers )in this condition employees not perform work properly.
Excess decentralisation (all authority is given to employees)in this condition employees misuse the authority.
9)Scalar Chain-Scalar chain means a chain in which authority and responsibility flows .Managers use Scalar chain in giving orders and employees use scalar chain for reports and grivences flows to the higher authority.The flow of information between employees and managers through scalar chain,but when the emergency condition arises which need immediate solution at that time we cannot follow scalar chain we make direct contact with the concerned employee.
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| Scalar chain |
12) Stability of personnel-This Principle implies that there should be Stability in tenure of personnel.No employee must be removed within a short period of time.Stability in personnel of tenure reduce the employee turnover and cost of training and learning of employees.New employees will demotivate by seeing the prior employees removed within a short period .
They feel insecure and cannot work concentrately.
13) Initiative-Initiative means to start,to begin a project,this principle implies that freedom should be given to subordinates to carry out their plans.Management must taken suggestions from employees at the time of determine plan and then given freedom to initiative plan as they feel these are their own plans and they have to complete it.By doing this they are Motivated and they completely dedicated in their work.This will reduce wastage.
14) Esprit de corps-Esprit de corps means team spirit , according to this principle that there should be team spirit among employees.It means there must be sense of unity among employees so that purpose of Organisation can be achieved easily.
