Meaning of management principles : Management principles are statements of fundamental truth which act as guidelines for taking managerial action.
Management principles are derived and developed in the following two steps.
(a) Deep Observations
(b) Repeated experiments Meaning of management principles
Slide 2 : Fayol’s Principles of Management
1.Division of work
2.Authority and Responsibility
3.Discipline
4.Unity of Command
5.Unity of Direction
6.Subordination of Individual Interest to
General Interest
7.Remuneration of Employees
8.Centralisation and Decentralisation
9.Scalar Chain
10.Order
11.Equity
12.Stability of Personnel
13.Initiative
14.Espirit De Corps
DIVISION OF LABOUR : DIVISION OF LABOUR
Slide 4 : Principle of Authority and Responsibility Authority means power to take decisions
Responsibility means obligation to complete the job assigned
Positive effects of this principle
No misuse of authority
Helps in meeting responsibilities on time without any delay
Principle of discipline : General rules and regulations for systematic working in an organisation.
Positive effects
Systematic working in the organisation.
Improves efficiency Principle of discipline
Principle of unity of command : Employee should receive orders from one boss only.
Positive effect
No confusion in the minds of subordinates
No ego clashes
Improves effectiveness in working. Principle of unity of command
Slide 7 : UNITY OF DIRECTION All the efforts of the members and employees of the organisation must be directed to one direction that is the achievement of common goal
Positive effect
Achievement of organisational goals.
Efforts of all employees get unified towards one direction only
Subordination of individual interest to general interest : Subordination of individual interest to general interest The interest of the organisation must supersede the interest of the individuals
Positive effects
Achievement of organisational goal
Coordination between individual and organisational goal
Principle of remuneration of persons : Principle of remuneration of persons Employees must be paid fairly or adequately to give them maximum satisfaction
Positive effect
Employees get motivated
Devotion and commitment of employees improves
Principle of centralisation and decentralisation : Principle of centralisation and decentralisation Centralisation refers to concentration of power in few hands
Decentralisation means evenly distribution of power at every level.
Positive effect
Fast decisions at operational level and strict control by top level
PRINCIPLE OF SCALAR CHAIN : Means line of authority or chain of superiors from highest to lowest rank. PRINCIPLE OF SCALAR CHAIN A B C D E F L M N O P GANG-PLANK
Principle of Order : Principle of Order It refers to orderly arrangement of men and material .
A fixed place for everything and everyone in the organisation. Positive effects
No wastage of time in search of men or material.
Smooth and systematic working of the organisation.
Principle of Equity : Principle of Equity Fair and just treatment to employees. Positive effect
Employees get satisfied
Motivate the employees and boost up the morale
Stability of tenure of personnel : Stability of tenure of personnel No frequent termination or transfer Positive effects
Improves efficiency level of employees.
No wastage of time and resources
Principle of Initiative : Principle of Initiative Employees must be given opportunity to take some initiative in making and executing a plan.
Positive effect
Develops feeling of belongingness in employees.
Employees achieve the target on time.
Principle of Esprit De Corps : Principle of Esprit De Corps Means union is strength. Fayol emphasised on
TEAM WORK
Positive effects
Develops team spirit.
Achievement of group goal.