PRINCIPLE

S OF
MANAGEM
Shehzadi Minhaz
Jaweria Bibi
Asad ullah
ENT
PRINCIPLES OF MANAGEMENT

 Henri Fayol, a French industrialist, proposed 14 principles of management in his book

"General and Industrial Management" (1916)

 Principles of management are fundamental guidelines or rules that serve as a foundation for
effective and efficient management practices within an organization.

 These principles provide managers with a framework to make informed decisions, guide their
actions, and achieve organizational goals.
DIVISION OF WORK
 When tasks are divided and assigned to individuals or groups with specialized skills, they can
perform their tasks more efficiently and effectively.

 Specialization often leads to quicker task completion.

 Employees develop expertise and skills related to their specialized tasks, enhancing their
proficiency over time.

 In larger organizations, the division of work can lead to economies of scale, as specialized
tasks are performed more efficiently and resources are utilized optimally.
AUTHORITY AND
RESPONSIBILITY
 Authority refers to the legitimate power and right granted to a manager or a position within an
organization to make decisions, give orders.

 Authority can be hierarchical, meaning it flows from higher-level positions to lower-level

positions in the organizational structure

 Responsibility is the obligation or duty of an individual or a role to perform assigned tasks,

make decisions, and accomplish objectives.

 Responsibility implies being answerable for the results, whether they are positive or negative.
DISCIPLINE
 Discipline refers to the orderly conduct and behavior of individuals within an organization.

 The aim of discipline is to maintain a productive and respectful workplace.

 It involves creating a structured and controlled environment.

 A disciplined workplace can contribute to higher employee morale, as employees feel that
everyone is treated fairly and that their efforts are recognized and rewarded.
UNITY OF COMMAND
 This principle states that each employee should have a single designated supervisor or
manager to whom they report and from whom they receive instructions

 With a clear reporting structure, it's easier to attribute responsibilities and hold individuals
accountable for their actions.

 Unity of command promotes consistent decision-making, as decisions are made by the

appropriate supervisor within a specific domain of authority.
UNITY OF DIRECTION
 It ensures that all individuals and units work toward the same goals and follow a unified
direction.

 It prevent conflicts and confusion that may arise from pursuing conflicting objectives.

 When everyone is focused on the same direction, there is less duplication of effort and
resources.
SUBORDINATION OF
INDIVIDUAL INTEREST
 Individual ambitions, desires, and personal goals should not take precedence over the overall
objectives and well-being of the organization.

 According to this principle, employees should recognize that the primary purpose of their
work is to contribute to the achievement of the organization's goals and objectives

 Employees who embrace the principle of subordination of individual interest demonstrate

loyalty to the organization.

 They prioritize the success of the organization over personal gain, which can contribute to a
positive organizational culture.
REMUNERATION
 It addresses the compensation and reward systems within an organization.

 It emphasizes the importance of providing fair and equitable compensation to employees for
their work, skills, and contributions.

 This principle recognizes that employees should receive appropriate financial and non-
financial rewards for their efforts, which contributes to their motivation, job satisfaction, and
overall performance.
CENTRALIZATION AND
DECENTRALIZATION
 Centralization involves concentrating decision-making authority at the top levels of the
organizational hierarchy

 Centralization can lead to quicker decision-making since there are fewer decision-makers
involved.

 Decentralization involves distributing decision-making authority to lower levels within the

organization.

 Decentralization empowers employees to make decisions that affect their work directly,
leading to increased job satisfaction and motivation.
SCALAR CHAIN
 It is also known as the chain of command, it represents the flow of information and authority
from the highest level of management down to the lowest levels.

 Each employee or manager reports to a single supervisor, ensuring that there is a clear line of
authority and accountability.

 The scalar chain supports the principle of unity of command, which states that each employee
should have only one supervisor to report to. This reduces the potential for conflicting
instructions and enhances accountability.
ORDER
 Organize resources and activities for maximum efficiency.

 This involves arranging people, materials, tools, and other resources in a structured manner.

 Ensuring that activities are planned and executed in a way that minimizes duplication of
efforts and eliminates unnecessary steps.

 The goal of organizing is to enhance efficiency by ensuring that resources are used effectively,
tasks are completed in a timely manner, and there is minimal wastage of time, effort, and
resources.
EQUITY
 Treat employees with fairness and kindness.

 Employees should be treated impartially and without favoritism. This means that decisions
regarding promotions, rewards, and disciplinary actions should be based on objective criteria
rather than personal biases.

 Providing equal opportunities for career growth, skill development, and advancement helps
ensure that employees have a fair chance to excel and contribute to the organization's success.
STABILITY AND TENURE
 Employee turnover should be minimized to promote stability and continuity within the
organization

 A stable workforce reduces disruptions caused by frequent turnover and allows the
organization to maintain consistent operations and productivity.

 High turnover can be costly due to the need for frequent recruitment, training, and onboarding
of new employees. Reducing turnover helps save these costs.
INITIATIVE
 Employees should be encouraged to take initiative and be creative in contributing to the
organization's goals

 When employees are empowered to be creative and innovative, they are more likely to come
up with new ideas, solutions, and approaches that can lead to organizational growth and
improvement.

 Allowing employees to take ownership of their work increases their sense of responsibility
and commitment, leading to higher engagement and better performance.
ESPRIT DE CORPS
 Esprit de corps means team spirit.

 Promoting esprit de corps encourages employees to collaborate, support each other, and work
together toward common goals, fostering a cooperative and synergistic atmosphere.

 A strong sense of unity and belonging can enhance employee motivation and job satisfaction,
leading to improved performance

 Team members who feel connected and valued are more likely to be engaged in their work and
committed to the organization's success.