Principle of Management

Principle Of Management

Management has developed since the time when the world come into existence. It is the art of getting things done by a group of people with the effective utilization of available resources. Henry Fayol defines, “ To manage is to forecast and plan, to organize, to compound, to co-ordinate and to control.”

          Henry Fayol has set fourth the principles of management on the basis of his own experience in the mining company:-

1.     Division of work – It makes a man a specialist. The reason is that division of work helps to specialize in an activity which increase the output perfection.

2.     Authority and responsibility – Management is getting things done by others. A superior gives direction to his sub-ordinates to perform the job. Then the supervisor may exercise his authority is exercised. Responsibility is essential to perform a job correctly.

3.     Unit of command – A subordinate has only one supervisor. If not so, the subordinate does not perform any job perfectly.

4.     Unity of direction – The business activities are grouped on aye one of the base, normally on functional basis. The activities of a group are assigned to a person who is said to be a manager.

5.     Centralization – Everything increases the importance of superior’s role in, centralization, while everything decreases the importance of superior’s role in decentralization.

6.     Scalar chain – According to Henry Fayol, “scalar chain is the chain of superiors ranging from the ultimate authority to the lowest ranks.” The communication flows from top to bottom.

7.     Order – The principle of right place for everything and for everyone should be followed by the management. It is applied to both material and men. The material should be kept in order in the place where it is necessary.

8.     Equity – Equity refers to a combination of fairness, kindness and justice. All the employees of the organization are treated equally by the managers.

9.     Stability of tenure of personnel – The security of job is an essential one. Insecurity of job results in the higher expenses. The development of any organization depends solely on the sincerity of laborers.

10.                         Initiative – A manager should have the conceiving and executing initiative. It will have psychological effect over the subordinates. The subordinates are free to express their views or opinions in the execution of the work.