Principles of Management

Principles of Management 

        According to Henry Fayol these 14 principles can be applied in all types, functions, levels and sizes of organization. These are given below:

1. Specialization of Labour: This is the principle of specialization which applies to all kind of work. The more people specialise the more efficiently they can perform their work Specialization increases output by making employees more efficient. Specialization allows the individual to build up experience and to continuously improve his skills. Thereby he can be mare productive. The aim of specialization is to achieve the maximum efficiency from labour through specialization across all aspects of organization rather than just technical activities.

2. Authority: Authority is the right to give orders and the power to obtain obedience. A manager might use both his official authority and personal authority while getting things done. Official authority is derived from the manager's position and personal qualities such as intelligence, experience. An individual to whom authority is given to exercise power, must also be prepared to bear responsibility to perform the work in a satisfactory manner.

3. Discipline: Employees must obey and respect the rules that govern the enterprise. Good discipline is the result of effective leadership, a clear understanding between management and workers regarding the organization's rules and judicious use of penalties for violation of the rules.

4. Unity of Command: An employee should receive commands from only one superior. Each employee has one and only one boss. Fayol believed that when an employee reported to more than one superior, conflicts in instructions and confusion of authority would result. 

5. Unity of Direction: This principle calls for 'one manager one plan' for all operations having the same objective. This is essential to ensure unity and coordination in the enterprise. Its common objective for a group of activities is an essential condition to obtaining unity of action, coordination of strength and the focusing of strength.

6. Subordination of Individual Interest: In any organization, the interests of employees should not take precedence over the interests of the organization as a whole. This can be achieved when managers set an example through their good conduct and behaviour. They must be honest and fair in dealing with internal groups. They must be prepared to sacrifice their personal interests whenever such interests are in conflict with organizational interests. 

7. Remuneration: Compensation for work done should be fair to both employees and employers. The general principle is that levels of pay/remuneration/compensation should be fair and as far as possible give satisfaction to both to the staff and the firm. 

8. Centralization: Decreasing the role of subordinates in decision making is centralization increasing their role is decentralization. Fayol felt that managers should retain final responsibility but also need to give their subordinates enough authority to do their jobs properly.