PRINCIPLES OF MANAGEMENT

Fayol wrote that "an employee should receive

orders from one supervisor only." Otherwise,
authority, discipline, order, and stability are
threatened. Unity of Direction. Teams with the same
objective should be working under the direction of
one manager, using one plan.

 Principles of management are the guidelines or rules that help managers plan, organize, lead,
and control their organizations effectively and efficiently .
 Principles of management are basic activities that can help you plan, organize and control
operations related to material, people, machines, methods, money and markets. They provide
leadership to human efforts so that they achieve set objectives efficiently

14 Principles of Management
1. Division of Work

The first Henry Fayol principle of management is based on the theory that if an employee is given a specific task to
do, they will become more efficient and skilled in it.

Example: At a school, every department has a different responsibility, like academics, sports, administration,
sanitation, food, beverages, etc. These responsibilities are taken care of by employees specializing in that particular
department, increasing efficiency and productivity and making them specialists in their field.

2. Authority

This Henry Fayol principle of management states that a manager needs to have the necessary authority in order to
ensure that his instructions are carried out by the employees.

Example: If an employee has been responsible for managing the decor department while planning an event but has
no authority to make design decisions or contact the vendors to get the work done, no efficiency or productivity will be
achieved.

3. Discipline

This principle states that discipline is required for any organization to run effectively. In order to have disciplined
employees, managers need to build a culture of mutual respect

Example: Every employee must follow certain rules and regulations and keep a disciplined attitude in the workplace
for smooth working and efficient results.

4. Unity of Command

The employees should be clear on whose instructions to follow. According to Fayol, an employee should receive
orders from only one manager.

Example: an employee has been given a task to finish within 3 to 4 hours as ordered by their immediate superior. But
the head of the department asks them to deliver the task within 1 hour. In this case, no unity of command can create
confusion and pressure in the workplace.

5. Unity of Direction

This Henry Fayol principle of management states that the work to be done should be organized in such a way that
employees work in harmony towards the same objective, using one plan, under the direction of one manager.

Example: Different sets of activities within a department should be managed by different managers to avoid confusion
and lesser efficiency within the workflow.

6. Collective Interest Over Individual Interest

Interest of the organization must be on top of priority..

7. Remuneration

This Henry Fayol principle of management states that employees should be paid fair wages for the work that they
carry out.
Example: Any organization must be fair regarding their remuneration policies where all the employees must receive a
salary worth their efforts irrespective of their gender, tenure, and other factors.

8. Centralization

Centralization refers to the concentration of power in the hands of the authority and following a top-bottom approach
to management. In decentralization, this authority is distributed to all levels of management. In a modern context, no
organization can be completely centralized or decentralized. Complete centralization means that people at the bottom
have no authority over their responsibilities. Similarly, complete decentralization means that there will be no superior
authority to control the organization. To use this effectively today, there should be a balance of centralization and
decentralization. The degree to which this balance is achieved will differ from organization to organization.

9. Scalar Chain

A scalar chain refers to a clear chain of communication between employees and their superiors.

Example: Every organization has a specific chain of authority from the highest level of superiors

10. Order

This principle states that there should be an orderly placement of resources (manpower, money, materials, etc.) in the
right place at the right time.

Example: Employees should be given a designated space and the right tools or equipment to complete their work
efficiently.

11. Equity

Equity is a combination of kindness and justice. This principle states that managers should use kindliness and justice
towards everyone they manage. This creates loyalty and devotion among the employees towards the organization
they work for.

12. Stability of Tenure of Personnel

This principle states that an organization should work to minimize staff turnover and maximize efficiency.

Example: Every new employee must be given a proper induction of both the technical aspect of the organization as
well as the work culture and environment for them to mingle well. Old employees should be given alum awards for
completing certain tenures to boost morale.

13. Initiative

This principle states that all employees should be encouraged to show initiative. When employees have a say as to
how best they can do their job, they feel motivated and respected.

Example: Taking suggestions from employees regarding their specific department can make them feel seen in an
authoritative position and can give them a sense of achieving something for the team.

14. Esprit de Corps

Esprit de Corps means “Team Spirit”. This henry fayol principle of management states that the management should
strive to create unity, morale, and co-operation among the employees. Team spirit is a great source of strength in the
organization. Happy and motivated employees are more likely to be productive and efficient.

Example: While discussing the new plan of action for achieving the next month's targets, using the word 'We' instead
of 'I' brings a teamwork spirit to the group.

Prepared by:

CHERRY ROSE R. TOLENTINO

Discussant

QUESTIONS

1. What are the Principles of Management?

2. What is meant by Esprit de corps?
3. What is Scalar Chain?
4. What is unity of command?
5. How does effectiveness differ from efficiency?