5.

PRINCIPLES OF MANAGEMENT

Definition of “Terry & Franklin” :

A principle can be defined as a
fundamental statement or truth providing a guide to thought or action.

Principles of Management:
Fayol’s principles have withstood
the test of time because of their wide-spread applicability. The principle of
management is given below:-

Division of work:-
Work specialization can result in efficiencies and
is applicable to both managerial and technical functions.

Balancing authority & responsibility:-

Authority, which is the right
to command, should always be equal to responsibility.

Discipline:-
Discipline requires obedience,diligence,
and a proper attitude on the part of employees.

Unity of Command :-
Unity of command means that employees should
receive orders from one superior only.

Unity of Direction :-
Unity of direction means activities aimed at the same
objective should be organized so that there is one plan and one person in
charge.

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Subordination of individual interest to general interest:-

The interest of one

employee or group should not prevail over the interest and goals of the
organization.

Remuneration:-
Compensation for work done should be fair to both
employee & employers.

Centralization :-
Fayol believed that managers should retain final
responsibility but should at the same time give their subordinates enough
authority to do their jobs properly.

Scalar chain:
A scalar chain of authority extends from the top to the bottom
of an organization and defines the communication path.

Order :-
Materials should be kept in well-chosen places that facilitate
activities, Similarly due to good organization and selection, the right person
should be in the right place.

Equity:-
Managers should be kind and fair when dealing with subordinates.

Stability to tenure of personnel:-

A high employee turnover rate
undermines the efficient functioning of an organization.

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Initiative :-

The ability to think through and execute a plan is a powerful motivator of

human behavior.

Esprite de corps :-
Harmonious efforts among individuals is the key to
organizational success.

a) Principle of co-operation

b) Principle of flexibility

c) Principle of balancing

d) Principle of universality

e) Principle of exceptions.

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