Principles Of Management

Principles of Management play a key role in managerial efficiency. Let’s discuss the topics and understand these principles and their applications.

Management

Management is a core process in any business or non-business organisation. Management is a process of getting things done efficiently and effectively. In other words, the way of handling and managing the day to day chores for a better future results, in a way that minimises the cost and increases productivity, leading to the achievement of the goals. 

According to Kreitner, “Management is the process of working with and through others to effectively achieve organisational objectives by efficiently using limited resources in the changing environment.”

According to Massie and Douglas, “Management is the process by which a cooperative group directs actions of others towards common goals.”

Though different analysts have given different definitions of the matter, the core meaning is to attain the objectives efficiently and effectively.

The key role in the process is of the manager. A manager is responsible for setting objectives, organising resources and guiding, leading, influencing and motivating staff. The goals can be achieved more efficiently if the organisation has a good manager.

The most important requirement for managing is coordination. Coordination integrates the efforts of the individuals and departments. In the absence of coordination, there will be no harmony. It is through the process that a manager ensures the orderly arrangement of individual and group efforts to ensure unity of action.

Principles of Management

Management principles contribute toward the development of management. These are the general guidelines which help in the decision-making process in the management and help in determining the behaviour of the managers in certain situations. 

Management principles are not rigid as it deals with human behaviour, and therefore, need to apply these creatively and according to the demands of the situation. Principles have to keep pace with technological and human behavioural changes.

The basic features of the principles can be characterised as:

  • Formed by practice: The principles are formed by practise and experimentation, in other words by observing the human behaviour in certain recurring situations.
  • General Guidelines: These are the general guidelines, not rigid. This shows a manager the pathway to deal with the demand of the situation.
  • Flexible:  these are the general guidelines,  that can be modified by the manager when the situation demands.
  • Universal applicability: The principles are applicable or helpful, whether the organisation is a business entity or non-business.

Principles of management should be distinguished from techniques of management. The latter are methods to accomplish the desired goals while principles are the general guidelines for making decisions easier while practising the techniques.

The Principles of Management were laid down by Henri Fayol and the Principles of Scientific Management were laid down by F.W. Taylor.

Henri Fayol

Beginning with the 14 principles of Henri Fayol, 

Fayol became famous as the ‘Father of Management thought’ as he

  • Classified all activities of an industrial undertaking into technical, commercial, financial, security, accounting and managerial.
  • He suggested the qualities of a manager should be physical, moral, experience, education and knowledge.
  • He was the first to identify the functions of management as planning, organising, directing and controlling.

Principles of management by Henry Fayol

                                                       1.  Division Of Work

All work must be divided into small tasks so that the burden does not fall on any single person. The tasks must be divided to the person competent to perform the job. This ensures efficient and effective output.

                                                        2. Authority and Responsibility

The balance between authority and responsibility should be maintained. If you have authority but no responsibilities, you will misuse your power, and if you simply have responsibilities but no authority, you will struggle to meet your goals. As a result, those in positions of power must be given adequate obligations, and those in positions of responsibility must be given appropriate authority to carry out the tasks.

                                                           3. Discipline

The obedience to organisational rules and employment agreement are very much necessary for the working. For such, the managers require good supervisors at all levels, fair agreements, and judicious applications of penalties for maintaining the same.

                                                           4. Unity of Command

There should be only and only one boss from which the employee or the worker has to take commands. If there are more than one boss there will be dual subordination, leading to conflicts of ideas and commands. This is to prevent confusion regarding the tasks to be done.

                                                             5. Unity of Direction

The principle states that all the units of an organisation must be directed towards the same objective through coordinated and focused efforts, helping in preventing the overlapping of activities.

                                                            6. Subordination of individual interest to general interest

It states that the interest of the organisation must be taken into effect. The interest of an individual can never be kept over the interest of the overall organisation. This will ensure the same behaviour in the team.

                                                            7. Remuneration of Employees

The employee must be given fair remuneration to provide them with a standard lifestyle. At the same time it should be within the capacity of the organisation. This will ensure good relations between the workers and the organisation.

                                                           8. Centralisation and Decentralisation

The major decision making authority must be with the top management, and the regular day to day decisions and responsibilities should be delegated to lower tiers of management following the formal chain of communication. According to Fayol: “There is a need to balance subordinate involvement through decentralisation with managers’ retention of final authority through centralisation.”

                                                              9. Scalar Chain

An organisation consists of superiors and subordinates. The formal lines of authority and communication that run from top to bottom should be followed. However only in case of emergency, a subordinate can approach the superior.

                                                              10. Order

The principle states that there should be a place for everything and everyone in the organisation. According to Fayol, people and things must be at their appropriate place at a suitable time for maximum efficiency.

                                                              11. Equity

All employees and workers in an organisation should be treated equally, as fairly as  possible. There should be no discrimination on any account, for eg gender, religion, language etc. 

                                                              12. Stability of Personnel

There should be the stability of tenure for an employee. He/she shall not feel insecure about the job or the position sought. Should be given reasonable time to show results.

                                                               13. Initiative

Workers and employees should be given an opportunity to express themselves with their ideas, and their opinion still must be respected. This will enhance their self-motivation, and encourage them. They must also be rewarded.

                                                              14. Esprit De Corps

The term means team spirit must be there. Every sentence of the superior or the manager must contain ‘WE’ in place of ‘I’. This will bring harmony, and raise team spirit, mutual trust and belongingness among team members.

F.W. Taylor

Being an engineer Taylor brought scientific studies and techniques. He was primarily concerned with efficiency of workers and optimum utilisation of machines and other resources in order to build up an enterprise with consistent interests of entrepreneurs and consumers and the labourers at large.

Principles of Scientific Management 

According to F.W. Taylor “Scientific Management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way”.

Principles of Scientific Management

                                                            1.   Science, Not rule of thumb

Scientific methods excluded the rule of thumb, it is based on the concept of investigating the prior traditional methods and grouping the best practices to develop a universal method which must be followed in the whole organisation. Simply, it should not be based on hit and trial methods.

                                                            2. Harmony, not discord

To achieve harmony, there should be a mental revolution. The attitude must be of cooperation rather than competition among the employees and the organisation.

                                                           3. Cooperation, not individualism

There should be complete equality in the management. There should be an almost equal division of work and responsibility between workers and management.

                         4. Development of every person to his/her greatest efficiency and prosperity.

The organisational efficiency depends upon personnel competencies. There must be the development of every employee working. They must be given tasks to improve their physical, mental and intellectual capabilities.

Conclusion

The principles of management enable the managers to learn from past mistakes and optimum utilisation of resources. It provides a general guideline to follow for taking thoughtful decisions.

This helps in maintaining equality and ensures the growth of every employee working.

Hence all these ultimately increase managerial efficiency and achieve the desired organisational goals.

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Frequently asked questions

Get answers to the most common queries related to the SSC Examination Preparation.

What is the meaning of management?

Ans. Management is a process of getting things done efficiently and effectively. In other walloweddling and managing...Read full

What certain principles are required for management?

Ans. Principles of management are the general guidelines which help in the decision-making process of the management...Read full

Who is called the Father of Management thought?

Ans. Henri Fayol is called the Father of Management thought. 

Do Principles of management need to be rigid?

Ans. No, as these principles deal with humans, rigidness won’t provide any solution. Hence, these principles provi...Read full