Principles of Management

Management is an art that keeps the project, its resources, budget, timeline and other project components in sync with the expected or planned values. An effective management is the...

Management is an art that keeps the project, its resources, budget, timeline and other project components in sync with the expected or planned values. An effective management is the cornerstone of the project that garners its success. That is why every company seeks skilled managers to shoot up their revenues. It is the task of a manager to employ his skills and knowledge in effectively managing the project. However, there are certain management principles that need to be followed by a manager to ensure proper management. A principle is considered as a fundamental truth supported by logic that ascertains cause and effect relationship among different variables in a particular situation. Henry Fayol focused on 14 principles which every management must follow. These principles offer guidelines to the managers that facilitate sound decision making. These are as follows:
Authority and Responsibility:
Authority and responsibility must go hand in hand. If an individual is given the authority to perform the assigned task, he must have the responsibility to get the work done and vice-versa. The manager is ineffective if he has responsibility but no authority while he may become irresponsible if he has authority without responsibility.

Remuneration:
If the remuneration paid is reasonable, rewarding or fair, then the workers may get motivated to perform more productively for the organization by putting their maximum efforts.
Division of Work:
Proper division of work is very necessary for every organization. The work must be divided into compact jobs and the jobs must be allocated to those persons only who best fit in it leading to proper utilization of natural resources and enhanced efficiency of work.
Equity:
Every employee must be treated with equality and management should not go for nepotism or favoritism because it may affect an employee’s confidence and morale.
Discipline:
Every organization needs to maintain discipline as it leads to the establishment of clear rules among the employees and proper supervision of all the levels that facilitate smooth run.
Centralization:
Every organization must have a proper proportion of centralization and decentralization. If there is immense centralization in an organization, the subordinate’s role will be diminished in decision-making and vice-versa.
Unity of Command:
An employee must be accountable to one superior only. Dual command, division in loyalty or duplication of work must not occur as it may lead to delay, chaos, confusion or irresponsibility.
Scalar Chain:
There must be a chain of superiors ranging from top to bottom level leading to a proper flow of command and communication. It also leads to gang plank (flow of communication between two individuals of the same level).
Unity of Direction:
A group having the same objective must be governed by one superior with one plan of action. Without unity of direction, action and efforts towards the goal will be useless.
Stability of Tenure:
Every employee takes time to fit into some job so the period of the job must be fixed. The stability of tenure will help to increase confidence and loyalty from employee’s side towards the position he stands in.
Initiative:
Every employee must be encouraged to take initiative in the organization’s processes. It leads to the enhancement of their confidence and allows them to be an asset to the firm.
Subordination of individual interest to general interest:
To achieve the organization’s goals, organization’s interest must be above the employee’s personal interests.
Esprit De Corps:
Esprit De Corps, Unity of Strength, or team spirit must be fostered. It motivates the workers to work harder.
Order:
There must be the ‘rule of right man in the right place’ leading to the smooth functioning of the organization with no chaos.

Here at MIT School of Distance Education, we realize the value of these principles and we make sure that every future manager is well-accustomed to these principles. Our PGDM courses, PGDBA, and even the PGCM courses include exclusive and lucid lessons on these principles.

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