Principles of Management

A 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: -

    On the basis of observation and analysis i.e. practical experience of managers.

    By conducting experimental studies.

There are 14 Principles of Management described by Henri Fayol.

    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.
        Subdivision of work makes it simpler and results in efficiency.
        It also helps the individual in acquiring speed, accuracy in his performance.
        Specialization leads to efficiency & economy in spheres of business.

    Party of Authority & Responsibility

        Authority & responsibility are co-existing.
        If authority is given to a person, he should also be made responsible.
        In a same way, if anyone is made responsible for any job, he should also have concerned authority.
        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.
        There should be a balance between the two i.e. they must go hand in hand.
        Authority without responsibility leads to irresponsible behavior whereas responsibility without authority makes the person ineffective.

    Principle of One Boss

        A sub-ordinate should receive orders and be accountable to one and only one boss at a time.
        In other words, a sub-ordinate should not receive instructions from more than one person because -... [continues]

Read full essay