Management principles are those fundamental truths or statements of facts which serve as guide to managers in thinking and doing their job of managing. Management principles may be derived in any of the following ways :-
(i)
By observation and analysis of managerial practices.
(ii)
By conducting studies through system enjury, collection and analysis and
testing of facts.
Some
Important Principles of Management :
F.
W. Taylor, Henry Fayol, Mary Parkeer Follett, Urwick, Koontz O’ Donnel, George
R. Terry etc. are the leading thinkers who have listed and described certain
management principles :-
(1)
Fayol’s Principles of Management : Henri Fayol, who is recognized as the father
of modern theory of management formulated a set of 14 principles.
(i)
Division of Work : Division of work states that the total work should be
subdivided into small components / parts and each part of the work should be
allocated to the worker who specializes in that part of the work.
(ii)
Authority and Responsibility : Authority creates responsibility whenever a
person exercises authority, responsibility arises. Responsibility is the
essential counter part of authority.
(iii)
Discipline : According to Fayol, discipline is absolutely essential for the
smooth running of business. Without it no business can prosper.
(iv)
Unity of Command : The principle of unity of command states that each
subordinate should receive orders from only one boss or superior.
(v)
Unity of Direction : The principle of unity of direction states that there
should be “one head and one plan” for a group of similar activities having the
same objective. In other words, the activities that have same objective should
be directed by only one manager under one plan.
(vi)
Subordination of Individual Interest to General Interest : Interest of
organisation as a whole must prevail over the individual interest wherever
individual interest and the common interest differ, efforts must be made to
reconcile them.
(vii)
Remuneration : Fayol stressed that the remuneration or compensation for work
done should be fair to both employers and the firm. It should neither be low
nor high.
(viii)
Centralization : Decreasing the role of subordinates in decision making is
centralization of authority and increasing their role in it is decentralization
of authority. Fayol believed that managers should retain final responsibility
but should at the same time give their subordinates enough authority to do
their job properly.
(ix)
Scalar Chain or Hierarchy of Authority : Scalar chain or hierarchy of authority
refers to the unbroken chain or line of authority running from the top
management to the lowest levels of the organisation.
(x)
Order : The principle of order states that there should be a place for every
think and for every person. Material and people should be in the right place at
the right time. People should be assigned the jobs that are best suited to
them.
(xi)
Equity : According to this principle, the manager must install equity in the
organisation. To ensure this, manager should be friendly, fair and kind in
dealing with their subordinates.
(xii)
Stability of Personnel : This principle states that there should be reasonable
stability of the tenure of personnel in the firm. No employee must be removed
from his position within a short period of time.
(xiii)
Initiative : This principle states that subordinates should be given the
freedom to develop and carry out their plans. But managers should do so within
the limits of authority and discipline.
(xiv)
Esprit de Corps : This principle states that managers should promote esprit
crops or team spirit and a sense of unity among the employees.