Principles of Management are broad and general guidelines that help managers in decision-making and managing business activities effectively and efficiently.
Features of Principles of Management:
Universal applicability – Used in all organizations.
General guidelines – Not rigid rules.
Formed by practice and experimentation.
Flexible – Can be adapted.
Aimed at influencing behavior.
Cause and effect relationship – Help predict results.
Importance of Principles of Management:
Provide useful insights to managers.
Help in optimum resource utilization.
Aid in scientific decision-making.
Improve efficiency and coordination.
Foster adaptability and innovation.
Fayol’s 14 Principles of Management:
Division of Work – Specialization increases efficiency.
Authority and Responsibility – Balance between power and duty.
Discipline – Respect for rules and agreements.
Unity of Command – One boss for one employee.
Unity of Direction – One plan for a group of activities.
Subordination of Individual Interest to General Interest.
Remuneration – Fair pay for work done.
Centralisation and Decentralisation – Proper balance of authority.
Scalar Chain – Clear chain of command.
Order – Right person in the right job; tidy environment.
Equity – Fair and kind treatment to staff.
Stability of Personnel – Low staff turnover = efficiency.
Initiative – Encouraging ideas and actions.
Esprit de Corps – Team spirit and unity.