Introduction principle refers to a fundamental truth. It establishes cause and effect relationship between two or more variables under given situation. They serve as a guide to thought & actions. Therefore, management principles are the statements of fundamental truth based on logic which provides guidelines for managerial decision making and actions. These principles are derived: - A.
On the basis of observation and analysis i.e. practical experience of managers. b.
By conducting experimental studies.
There are 14 Principles of Management described by Henri Fayol. 1.
Division of Labor
Henry Fayol has stressed on the specialization of jobs.
He recommended that work of all kinds must be divided & subdivided and allotted to various persons according to their expertise in a particular area. c.
Subdivision of work makes it simpler and results in efficiency. d.
It also helps the individual in acquiring speed, accuracy in his performance. e.
Specialization leads to efficiency & economy in spheres of business. 2.
Party of Authority & Responsibility
Authority & responsibility are co-existing.
If authority is given to a person, he should also be made responsible. c.
In a same way, if anyone is made responsible for any job, he should also have concerned authority. d.
Authority refers to the right of superiors to get exactness from their sub-ordinates whereas responsibility means obligation for the performance of the job assigned. e.
There should be a balance between the two i.e. they must go hand in hand. f.
Authority without responsibility leads to irresponsible behavior whereas responsibility without authority makes the person ineffective. 3.
Principle of One Boss
A sub-ordinate should receive orders and be accountable to one and only one boss at a time. b.
In other words, a sub-ordinate should not receive instructions from more than one person because - - It undermines authority
- Weakens discipline
- Divides loyalty
- Creates confusion
- Delays and chaos
- Escaping responsibilities
- Duplication of work
- Overlapping of efforts
Therefore, dual sub-ordination should be avoided unless and until it is absolutely essential. d.
Unity of command provides the enterprise a disciplined, stable & orderly existence. e.
It creates harmonious relationship between superiors and sub-ordinates. 4.
Unity of Direction
Fayol advocates one head one plan which means that there should be one plan for a group of activities having similar objectives. b.
Related activities should be grouped together. There should be one plan of action for them and they should be under the charge of a particular manager. c.
According to this principle, efforts of all the members of the organization should be directed towards common goal. d.
Without unity of direction, unity of action cannot be achieved. e.
In fact, unity of command is not possible without unity of direction. Basis
| Unity of command
| Unity of direction
| It implies that a sub-ordinate should receive orders & instructions from only one boss.
| It means one head, one plan for a group of activities having similar objectives.
| It is related to the functioning of personnel’s.
| It is related to the functioning of departments, or organization as a whole.
| It is necessary for fixing responsibility of each subordinate.
| It is necessary for sound organization.
| It avoids conflicts, confusion & chaos.
| It avoids duplication of efforts and wastage of resources.
| It leads to better superior sub-ordinate relationship.
| It leads to smooth running of the enterprise.
| Therefore it is obvious that they are different from each other but they are dependent on each other i.e. unity of direction is a pre-requisite for unity of command. But it does not automatically come from the unity of direction. 5.
Equity means combination of fairness, kindness & justice. b.
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