Principles

Of
management.
Meaning of the principles of
management
 Principles of management are fundamental
truths that explain the cause and effect
relationship between two or more variables
under given situations. They provide
guidelines for managerial decision making
and action.
 These principles are derived through

observations and experiments.

Management is…..

Getting work Efficiency


done through
others Effectiveness
CHARACTERISTICS OF THE
PRINCIPLES OF MANAGEMENT
UNIVERSALI •These principles have universal validity. They are
applicable everywhere.(small or large org. ,business or

TY
non business, top level or lower levels.

DYNAMISM •These are flexible , not rigid. Their manner to

apply them depends upon the situation(BE)
(FLEXIBILITY)
INFLUENCING •Management involves getting the work done through others. For
HUMAN ensuring better efficiency of people, management has to influence
their behaviour using various principles of mgt.

BEHAVIOUR
CONTINGE •These are relative in nature. i.e. they are applied
differently at different places , different times etc
NT
CAUSE AND •These principles establish cause and effect
relationship between 2 or more variables.
EFFECT RELATION

EQUAL •All principles of mgt are equally important. We

cannot ignore anyone for the sake of other.
IMPORTANCE
NEED FOR THE PRINCIPLES

TO INCREASE •These principles provide necessary guidelines to managers for

different situations to achieve optimum utilization of resources.

EFFICIENCY
•These save the time of managers in trial and error methods.

TO CRYSTALLISE •The understanding of these principles helps a person

THE TRUE NATURE to have a clear view of the nature of management or
what management does.
OF MANAGEMENT

TO TRAIN •These principles help in designing the training

programmes of the managers. They help to guide the

MANAGERS managers and are the core of the training content.

NEED FOR THE PRINCIPLES

TO IMPROVE •Principles of mgt have helped in expanding the horizon of knowledge

in the field of mgt.

RESEARCH
•These serve as the basis for further research for even more efficiency.

TO ATTAIN •These principles help in achieving higher efficiency of the organisation

resulting in minimum wastage , optimum utilization of resources ,
supply of good quality material at reasonable prices and increasing

SOCIAL GOALS productivity.

TO CLARIFY •These help to clarify the thinking of the managers

especially the new ones .This increasing their

THINKING efficiency very soon.

NEED FOR THE PRINCIPLES

TO SPREAD •These are helpful in sharing

KNOWLED knowledge of management through
teaching and learning process.

GE

TO EVALUATE •These principles serve as the

MANAGERIAL basis to compare and evaluate
the performance of a manager.
BEHAVIOUR
 Scientific Principles

* Science Not Rule of Thumb.

* Harmony Not Discord.
* Maximum Not Restricted Output.
* Division of Work and responsibility
* Scientific Selection, Training and
Development of Workers.
Science Not Rule of Thumb
Taylor advocated the use of scientific methods in
place of rule of thumb. According to him, every
task, method, target etc. should be based on
scientific study and analysis rather than trial and
error method. Scientific method may be used for a)
Determining standard time required for task. b)
Determining a fair day’s work for each worker.
Harmony Not Discord
There should be healthy cooperation between
employer and employee. Taylor advocated a
complete mental resolution on the part of both
owner / management and workers.
Management should adopt an enlightened
attitude and share the gains of productivity
with workers. Workers on their part should
work with discipline and loyalty.
Maximum Not Restricted Output.
This principle involves continuous increase in
production and productivity instead of
restricting it with which both management and
workers should agree. The conflict between
them arises mainly on division of surplus.
Taylor suggested maximizing productivity
increase in surplus so that both employer and
employee can enjoy large share.
Division of Work and responsibility
Taylor suggested separation of planning and
operation work. Management should concentrate on
planning the job of workers and workers should
concentrate on performance of work. According to
Taylor, output can be maximized through
specialization of work because of better
coordination between the job requirements and
abilities and repeated performance of the same kind
of task.
Scientific Selection, Training and
Development of Workers.
The selection procedure should be carefully
developed to judge the required abilities
(knowledge, communication skills, and
presence of mind) in the applicant through
various steps like written test, interview,
medical checkup etc. Proper training and
development programs should be designed
keeping in mind the requirements of the
job. Each and every worker should be
developed and encourage to utilize his full
potential.
Scientific Principles
Contribution’s Limitation’s

* Improved Factory * Simplistic

Productivity and motivational
Efficiency. assumptions.
* Introduced * Workers viewed as
Scientific Analysis to parts of a machine
Workplace. * Potential for
* Piece rate system exploitation of labour.
equated worker
rewards and
performance.
PRINCIPLES OF MANAGEMENT
 DIVISION OF WORK
* Henry Fayol stressed on the

specialization of jobs.
* He recommended that work
of all kinds must be
divided and
subdivided and allotted to various
persons according to
their expertise
in a particular area.
* Subdivision of work makes
it simpler and
results in efficiency.
* It also helps the individual in
acquiring speed and accuracy
in
his/her performance.
DIVISION OF WORK – Advantages
* It helps in specialisation of work due to
repetition of same work.
* Minimises wastage of time and effort caused by
change from one type of work to another.
* It helps in improving efficiency by improving the
speed and quality of work due to repetition.
 Authority & Responsibility
* Authority and Responsibility are co – existing.
* Authority without responsibility
is
aimless and responsibility
without authority is
rendered
in effective.
* There should be balance
between the two i.e.

they must go hand in hand.

Advantages: -
* Quick decision making and
action taking.
* There is no misuse of Authority.
 Unity of Command
 A subordinate should receive orders and be accountable to
one and only one boss at a time.
* Dual subordination leads will undermine authority,weaken
discipline ,divide loyaltyand create confusion, delays etc
Therefore , it should be
avoided unless and until
it is absolutely
essential.
* Unity of command
provides the enterprise
a disciplined,
stable and
orderly existence.
* It creates harmonious
relationship between superiors and subordinate.
 Unity of Command –
Advantages
* Avoids confusion and conflicts.
* Ensures faster response to the instruction.
 Unity of Direction
* Fayol advocates one head one plan which
means that there should
be one plan for a group of
activities having similar
objectives .
* Related activities should be
grouped together. There should be

one plan of action for them

and they
should be under the charge of a particular
manager.
* Without unity of direction, unity of action cannot be
achieved.
 Unity of Direction - Advantages
* It improves coordination between different
activities.
* It avoids unnecessary duplication of work.
* It ensures unity of efforts thus multiplying the
impact.
 Equity
* Equity means combination of fairness, kindness and
justice.
* Management should give similar treatment to people of
similar position.
* They should not discriminate with respect to age, cast,
sex, religion or creed etc.
* But equity does not mean total absence of hardness.
Advantages: - Promotes positive atmosphere by raising
the morale of the people, and maintain peace and
encourages loyalty.
 
 Order
• (Material +social order)
• This principle is concerned

with proper systematic arrangement of things and people.

• According to this principle, Fayol suggested that there should be a
specific place for everything and everyone and they should be
available at that place only.
* Arrangement of things is called
material order and placement of
people is called social order.
* Material order therefore should be
safe and appropriate. It states that
specific place for every article should
be assigned and every place has to be
effectively used for specific
activity and commodity.
* There should be a specific place for everyone and everyone should
have a specific place so that they can easily be found whenever the
needs arises.
 Order - Advantages
* Minimises time wastage in searching the material/
people.
* Optimum utilisation of resources.
 Discipline
* According to Fayol,
“Discipline means sincerity,

obedience, respect of authority

and observance of rules and
regulations of the
enterprise.”
* This principle says that
subordinates should be
respecting
their superiors and obey their order.

* It is an important requisite for

smooth functioning of an enterprise.
Discipline is required not only on the part of
subordinates but also on the part of
management.
* Advantage - It leads to Smooth functioning
and reduces time wastage.
 Initiative
*  Workers should be encouraged
to take initiative in the work
assigned to them.
* It means eagerness to
initiate action without
being
asked to do so.
* It helps in developing an
atmosphere of trust and
understanding.
* People as such enjoy working
in the
organization because it
dads to their zeal and energy.
* Advantages: - Improves the methodology of work and
competitiveness.
 Remuneration
• The remuneration should be fair, just and equitable.The
system of calculating it must be transparent to avoid
misunderstanding.
• Its quantum should be fair, satisfactory

and
rewarding the efforts.
* As far as possible, it should be provide
satisfaction to both the
employee and the
employer.
* Wages should be determined
on
the basis of the cost of living,
work assigned,
financial position of the
business, wage rate prevailing etc.
* Fayol also recommended provision of
other benefits such as free
education,
medical and residential
faculties to workers.
 Fair Remuneration -
Advantages
* High Motivation.
* Reduction of conflicts between employer and
employee.
 Stability of Tenure
* Fayol suggested that management should ensure a long
stay of employess in the organisation.He emphasized that
employees should not be moved frequently from one job
to another i.e. the minimum period of service in a job
should be fixed.
* Stability of job creates team spirit and a sense of
belonging among the workers which ultimately increases
the quality as well as quantity of work.
* If Stability of Tenure is not there,the organisation will
waste time , money and effort in recruitment, selection,
training and development of the workers.
* Advantages: - Promotes loyalty, Saves time , Saves Money
and efforts.
 Scalar Chain
* Fayol defines scalar chain as the chain of
supervision ranging from the ultimate
authority to the lowest.
• According to this principle,every order,

instruction, message, request, explanation

etc. must to pass through the chain
of command.
* But for the sake of convenience and
urgency, this path can be cut short and
this short cut known as ‘Gang Plank’.
A ‘Gang Plank’ is a
temporary arrangement between two
different points to facilitate
quick and easy communication. It is an exception to
the scalar chain principle.
* Advantages: -
Orderly communication and better coordination.
Quick communication on urgent matter through Gang Plank.
 Sub – Ordination of Individual
Interest to General Interest
* An organization is much bigger
than the individuals it constitutes.
Therefore, interest of undertaking
should prevail in all
circumstances.
* As far as possible, reconciliation
should be achieved between individual
and group interest.
* But in case of conflict, individuals must
sacrifice for bigger interest.
* In order to achieve this attitude,
it is essential that – Employees should
be honest and sincere.
* Proper and regular supervision of work
should be there.
* Reconciliation of mutual differences and
clashes by mutual arrangement should
be made.
 Sub – Ordination of Individual
Interest to General Interest -
Advantages
* Emphasis on organisational goals.
* It also ensures coordination among goals at all
levels.
 Espirit de Corps
* This principle has two major elements namely (i)
Team Spirit. (ii) Unity is Strength.
* It refers to team spirit i.e. harmony in the work
groups and mutual understanding among the
members.
* Espirit de Corps inspires workers to work harder.
* Advantage: - Improves the results of the
organization.
Centralization & Decentralization
* Centralization means concentration of authority
at the top level. In other words, Centralization is
a situation in which top management retains
most of the decision making authority. According
to Fayol, Degree of Centralization or
Decentralization depends upon a number of
factors like size of the business, experience of
superiors, ability of subordinates etc.
* Anything which increases the role of
subordinates is Decentralization. Fayol suggested
that absolute Centralization or Decentralization is
not feasible. An organization should strike to
achieve a balance between the two.
 Centralization & Decentralization
- Advantages
* Quick decision making.
* Maintaining coordination and control.
Basis of Taylor Fayol
Difference

Perspective Operative on Top level of

shop floor level management

Personality Scientist/ father Practitioner /

of scientific mgt father of
modern mgt
Techniques / Scientific Personal
basis of observation and experience
formation measurement
Nature of Work Scientific General Theory
Done Management of
Administration
Basis of Taylor Fayol
Difference

System of wage Differential payment Sharing of profits with

payment system managers

Focus Increase Productivity Improving overall

of Workers efficiency of
administration

Applicability Applicable to Applicable Universally

specialized situation
Approach Engineer’s approach Manager’s approach

Orientation Production and Managerial functions

engineering
 Conclusion
To secure the maximum
prosperity for the
employer, coupled with the
maximum prosperity for
each employee .