Tuesday, June 16, 2009

14 principles of management

Henry Fayol was the first person who wrote the 14 principles of management in 1916 but after this large number of USA wise persons and management experts explains it and utilize it in the business and got success in the business . These 14 principles are so flexible and easily change according to the nature of business .

These principles are not end point in large field of management , after revaluation of information technology , many new management principles includes but after this still 14 principals and its knowledge for the scholar of MBA is must .

Before taking any managerial decision , manager should paramount these principles because these principles are direction lines for MBA . So , I have explained these principles by simplified the head points , after this your duty to study deep when you become management consultant because its deep knowledge is also very necessary for a perfect business manager .

1. Division of work

Every work must be done by perfect employee and how can an employee becomes perfect . Only by division of work . So , Henry Fayol introduced this principle for fast production in factory and with this principle of management , skill and efficiency of labourers increase . They become specialize in their work , after this company can increase the standard of their product .

2. Principle of Equity of Authority and responsibility

This principle is the guideline for all the employees and authorities that authorities and responsibility are two part of one coin and if any higher authority delegates the power to his subordinate then it means that higher authority also delegates the responsibility for doing work on that status . This is wonderful principle which should be in the knowledge of every employee of any company because higher authority can ask about completing of any work and make you accountable also.

3. Principle of discipline

Discipline means obey the order of higher administrator . This principle explains the cultural and ethical value of Old India where if a person learnt from his master , he used to obey every duty of his master . Same principle will apply in business management . Discipline in work and in employee is key of success .

4. Principle of unity of Command

This principle states that orders should be given from one higher authority . If there are two higher authority who give order to one subordinate , then subordinate will misguide and he will not do any work. For the continuity of work , it is very necessary for manager that he observes that is there only one authority on labourer or employee who is giving command or order . If two authority are in same rank , then GM should promote or transfer to one of them .

5. Principle of unity of direction

One main different between direction and command that direction is just guidance without any order or there is not the provision of penalty or punishment , if other will not direct according to direction but in command , if employee will not follow it , it may possible that employer will give punishment for not obey the order . If direction is just guide then why the need of this principle . Answer is very simple . Direction is more powerful tool in the hand of manager because with this manager can make democratic environment but if direction is given by one authority because if two or more leader will give direction anti way , then it will surely reduce the efficiency of employee .

6. Principle of subordination of individual interest to General interest

This principle is telling about two interest . One an employee appoints in the company , there are large nos. of interest like he is interested to get promotion , he is interested to get high salary but this principle is also paramount to the general interest of company . If company sees that providing high salary to employee is not suitable under current situation , company can reduce salary of employees for some time , even any employee can be Removed from service under retrenchment .

7. Principle of handsome salary

This principle is also helpful for development of employee and supports employees that employer should give handsome salary to employee because of increasing inflation of necessary food prices , without handsome salary , employee will not satisfied and turnover ratio of employee will increase and if company wants to develop employee and increase production , then company should provides not only high salary but also provides large number perquisites to employees .

8. Principle of Centralisation

This principle explains that all the high powers relating to making plans and taking decisions must be in few hands and centralisation of power is good way to promote business with high speed . If all powers are decentralised , then it may possible that corruption makes his place and speed of development of business will decrease .

9. Principle of Scalar Chain

In every type of business , business is divided under different levels of management and one authority is above from every subordination but problem arises when one subordinate wants to communicate to other equal rank subordinate . Is it possible that he can communicate . Yes it is possible , Henry Fayol gives the name of this communication "Scalar Chain " After this all problem of management communication are solved .

10. Principle of Orderliness

This principle refers to maintain every thing on its proper place . Even employees also should be one their proper place .

11. Principle of Equality

This principle explains that all employees are same in the eye of business . There is no need to do any partiality on the basis of religion or salary or any other things . If any company creates different among all employees on the basis of caste then it will reduce companies development and progress .

12. Principle of stability of Employees

Stable employee in any organisation is like fixed asset so company should make stable employee by providing good monetary and non monetary incentives to employees .

13. Principle of Initiatives

Initiatives are those motivations which are helpful for employee to do all work with better way. This makes interesting environment of business . All employees feel happy , if some higher authority initiates them to do any work by themselves.

14. Principle of Espirit de corps


Espirit de corps means strength in unity . Henry fayol was high supporter of unity because he knew its importance and value . All employee should understand and create unity among them .

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