DIVISION OF WORK

• The entire work is divided into small tasks/jobs and each task/job is
performed by a trained specialist. Similarly, division of work improves
the productivity, efficiency, accuracy and speed of the workers.
• Example, Peter England, a famous brand name among quality shirts
has divided its work among various groups. One group is responsible
for making collars, other is engaged in stitching buttons, yet another is
engaged in packing activities etc.
 AUTHORITY & RESPONSIBILITY
• Authority means power to take decisions and responsibility means
obligation to carry out an assigned job. Authority facilitates the
management to work efficiently, and responsibility makes them
responsible for the work done under their guidance or leadership.
 DISCIPLINE • Discipline is a double-edged tool.
• Discipline means respect to On the one hand it enforces
organizational rules & agreement orderliness and on the other
that are necessary for functioning hand, it motivates them.
of any organisation. They all
should follow a common system
and code of conduct viz.
reporting time, allowances,
bonus etc.
UNITY OF COMMAND • Example: Mr. Abdul (Sales
Executive) gets instructions from
• An employee should have only
Mr. Parminder (Sales
one superior from whom he
Manager). At the same time, Mr.
should receive orders. If an
Abdul receives orders from Mr.
employee receives orders from
John (Production Manager) In
more than one person at a time it
this case, conflict occurs in Mr.
creates confusion & conflict.
Abdul’s mind as to whose
instructions he should follow.
 UNITY OF DIRECTION
• According to this principle, activities having the common goal must
have one head and one plan. This helps in bringing unity of action and
coordination in an organisation.
• Example, if a company is manufacturing two different products, it
should have two separate divisions or departments for both the
products. Each division or department should have their separate
incharge, plans and resources.
 SUBORDINATION OF INDIVIDUAL INTEREST
• Organizational interest should be given more priority as compared to

individual interest of an employee. An organisation has its own

objective while an individual worker has his own individual interest for

working in a company. For the attainment of common goals of an

organisation, employees are required to give up carelessness,

selfishness, & their personal interests.

 REMUNERATION OF EMPLOYEES
• The remuneration payable to the employees should be fair to both

employees and the employer. The employees should get fair wages

which ensure at least a reasonable standard of living.

• This plays an important role in motivating the workers of a company.

Remuneration can be monetary or non-monetary.

 CENTRALISATION AND DECENTRALISATION
• Centralisation is the process of the concentration of power of decision
making with one person
• while decentralisation means dispersal of power of decision making
among more than one person.

 
 
 SCALAR CHAIN
• Scalar chain refers to the formal lines of authority from highest rank to
the lowest rank. The principle of scalar chain suggests that there should
be a clear line of authority from top to bottom, linking superiors and
subordinates at all levels.
 ORDER
• In organisation there should be a suitable place for everything and

everyone. Arrangement of things is called material order. It ensures

fixed place for various materials, tools & equipments. Arrangement of

people is referred to as social order. It ensures proper and fixed place or

seat/cabin etc. for each employee in an organization.

 EQUITY
• This principle states that managers should be kind and fair towards their
workers. All workers should be treated alike and there should be no
discrimination on the basis of sex, religion, caste, belief etc. All the
employees should be treated equally & impartially.
 STABILITY OF PERSONNEL
• According to this principle, worker should have stability of tenure and
should be given sufficient time to show their performance. Moreover,
frequent transfers or rotations should also be avoided.
• An employee delivers the best if they feel secure in their job. It is the
duty of the management to offer job security to their employees.
 INITIATIVE
• According to Fayol, “Workers should be encouraged to develop and
carry out their plans for improvement”. Initiative refers to the first step
taken by the employees towards their self motivation.
• For creating a healthy environment, employees’ suggestion system
should be developed whereby initiatives or suggestions from the
employees are invited.
 ESPIRIT DE CORPS
• “Management should promote a team spirit of unity and harmony
among employees.” In order to achieve organisational objectives,
management should promote team work and coordination.
• The feeling of ‘I’ should be replaced with ‘We’ in the managers while
having a conversation with the workers. Espirit de corps refers to team
spirit. It helps to develop mutual trust and understanding.