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Principles of management

y Introduction y Management is dynamic force which makes the

business work smoothly and profitability. The survival and success of an organization largely depends upon the quality of management. Managing well requires a good knowledge of the principles and practices of management. Efficient management is must for modern organization.

Meaning
y Principles of management are the guidelines to be followed by every organization.

No manager can be effective if he does not follow the principles of management. Therefore, managers in all organization whether big or small business, or non business, and all levels (top, middle or lower) must follow the principles of management. The founder was Henry Fayol y DEFINITION y Marry parker Follet y ³management is the art of getting things done through people´
y Henri Fayol y ³to manage is to forecast and to plan, to organize, to command, to

coordinate and to control´
y Harold terry y ³management is the art of getting the things done

Division of work .

Fayol applies this principle of division of work to all kinds of work ± technical as well as managerial. 2. Specialization is the most efficient way to use human effort.Discipline requires observation of certain rules and regulation by all employees in the organization.1. In return the management has promised to increase wages of the workers when this mission is accomplished.¶¶ . .Discipline According to Fayol . They have to accept certain code of conduct while performing their jobs. Good superiors at all levels must have clear and fair agreements and application of penalties.Division of work According to fayol . µ¶The intent of division of work is to produce more and better work fir the same effort .

Discipline .

´ Authority is both formal and informal.3. and responsibility is the one who is responsible for certain function. There should be a balance between authority and responsibility. . At the same time a manager should have necessary authority to carry out his responsibility. An organization should build safeguards against abuse of managerial power.Authority and responsibility y According to Fayol µAuthority is the right to give order and obtain obedience.

. In fast. there will be disorder and confusion .4.Unity of command y Henry fayol suggested that an employee should get orders from one superior only . dual command is always dangerous. if two superiors exercise their authority on the same employee.

In the absence of unity of direction there will be confusion among the employees.Unity of direction y Fayol suggested that there should be one head and one plan for a group of activities having the same objective. y There should be same directions to all the employees doing similar activities. . A particular activity must be directed with the help of a single plan.5.

Unity of direction .

extreme centralisation or decentralization of authority should be avoided and a proper balance between centralisation and decentralization should be maintained .6. .The concentration of decision ±making authority is called centralization.Centralisation y According to Fayol. Fayol also suggests that some degree of centralization must be introduced in order to have best result in terms of achievement of objectives .

Subordination of interest  THE GENERAL INTEREST OF THE ORGANISATION MUST BE CONSIDERED PRIMARY AND INDIVIDUAL MUST BE SECONDARY.7.  THIS CAN BE OBTAINED BY EFFECTIVE CONTROL AND . SUPERVISION IN THE ORGANISATION.

IT REQUIRES PROPER SELECTION AND CORRECT ASSIGNMENT OF EMPLOYEES IN THE ORGANISATION. There should be place for everything and everything should be in its place.Order IT MEANS SYSTEMATIC ARRANGEMENT OF MEN AND MATERIALS IN THE ORGANISATION .8. .

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y Managers as well as subordinates need some time to learn and understand the job assigned to them. Hence stability of personnel is necessary which means security of job. They will adjust the work within a short period.9.Stability of tenure y From the point of view of management it is absolutely harmful to change the employees frequently as it is a reflection of inefficient management. the learning time will be wasted. If they leave or are removed within a short period. .

MANAGERS SHOULD BE FAIR AND.FRIENDLY TO THEIR EMPLOYEE .EQUITY THE PRINCIPLE OF EUITY RELATES TO THE TREATMENT OF SUBORDINATES.10.

. MANAGERS SHOULD ENCOURAGE SUBORDINATES TO TAKE MORE INTEREST AND INITIATIVE IN THE WORK ASSIGNED.SUBORDINATES SHOULD BE PERMITTED TO TAKE SOME INITIATIVE IN PREPARING AND EXECUTING PLANS. IT PROMOTES NEW IDEAS AND STRENGHENS THE ORGANISATION.

TRUST AND COCO-OPERATION AMONG THE EMPLOYEES LEADS TO TEAM SPIRIT. IT LEADS TO SYNERGY. MUTUAL UNDERSTANDING.SYNERGY MEANS EFFECT OF TWO PEOPLE WORKING TOGETHER IS MORE THAN SUM OF THE INDIVIDUALS EFFECT. EXTENSIVE FACE TO FACE VERBAL COMMUNICATION PROMOTES TEAM SPIRIT. .Esprit de corps IT IMPLIES TEAM SPIRIT.12.

Team work .

13. non-financial benefits should provided such as good working conditions. prevailing wage rates in the industry. canteen facilities. y Apart from financial benefits. ability of the company to pay.Remuneration y Wages and salaries should be fair y Wages must be paid on time depending upon the factors such as cost of living. recreation facilities.etc. . etc.

Scalar chain y According to this principal. Under this chain of authority. scalar chain refers to the line of authority and communication which moves in a straight line from the superior most authority to the lowest subordinate. . each communication moves from top to lower level and from lower to top level.14.

In some cases F can directly contact O but with the approval of E & N (immediate superiors). to scalar chain F will move to E. E to D. D to C and so on and finally to O.For example : In this diagram A is the superior of the whole organization. This is called Gang Plank . B & K are heads of next level of management and so on. If F & O need to contact each other then acc.