Principle Of Management A Principle refers a statement which reflects the fundamental truth about phenomenon based on cause and effect of relationship Management Principles These are the statement of fundamental truth which act as guidelines for taking managerial actions and decisions Nature or Features of Management Principles 1 Universal Applicable 2 General Guidelines 3 Formed by practise and experiments 4 Flexibility 5 Behavioural in nature 6 Based on cause and effect of relationship 7 Contingent Importance of Management Principles 1 Providing managers with useful insight into reality 2 Optimum utilisation of resources 3 Scientific decisions 4 Meeting changing requirements of environment 5 Effective administration 6 Fulfilling social responsibilities 7 Management training education and research Faylo s Principle Of Management 1 Division of Work According to this principle the whole work must be divided into small units to get the specialisation Positive Effects 1 Specialisation 2 Improve efficiency Consequences of violation Lock of efficiency There will be not specialisation Chances of duplication of work 2 Authority and Responsibility Authority means power to take decision and responsibility means obligation to complete the job assigned on time According to this principle there must be balance or parity Positive Effects 1 No misuse of authority 2 Helps in meeting responsibilities on time without any delay Consequences of violation Delay in work due to less authority Misuse of authority due to excess authority Overburden with work with excess responsibility 3 Discipline Discipline refers to general rules regulation for systematic working in organisation It means respect for agreement of the organisation Positive Effects 1 Systematic working in the organisation 2 Improves efficiency Consequences of violation Disorder confusion and chaos in men and Wastage of resources in absence of discipline Delay in work due to absence of rules and material regulations 4 Unity of Command According to this principle an employee should receive orders from one boss only because if he is receiving orders from more than one boss then he will get confused and will not be able to understand that whose order must be executed first Positive Effects 1 No confusion in the mind of subordinate 2 No ego clashes 3 Improves effectiveness in working Consequences of violation Confusion in the mind of employee Chances to skip responsibility by subordinate Ego clash among superiors 5 Unity of Direction According to this principle one unit means one plan that is the efforts of all the members and employees of organisation must be directed towards one direction that is the achievement of common goal Positive Effects 1 Achievement of organisational goal 2 Efforts of all the employees get unified in one direction only Consequences of violation Lack of coordination Wastage of efforts and resources by working in different directions Difficultly in achieving organizational goals 6 Subordination of Individual Interest to General Interest According to this principle the interest of organisation must supersede the interest of individuals or employees Positive Effect 1 Achievement of organisational goal 2 Coordination between individual and organisational goal Consequences of violation No achievement of organisational goal Even employees will also suffer in long run 7 Remuneration of Persons According to this principle employees in the organisation must be paid fairly or adequately to give them maximum satisfaction Positive Effects 1 Employees get motivated 2 Devotion and commitment of employees improves Consequences of violation Increase in turnover of employees Dissatisfaction and demotivation of employees 8 Centralisation and Decentralisation Centralisation refers to the concentration authority or power in few hands at the top level Decentralisation means evenly distribution of power level of management According to this principle a company must not be completely centralised or completely decentralised but there must be combination on both depending upon the nature and size of the organisation Positive Effects 1 Benefits of centralisation as well as decentralisation 2 Fast decisions at operational level and strict control by top level Consequences of violation Complete centralisation will result in delay in decision Complete decentralisation will result in misuse of authority 9 Principle of Scalar Chain Scalar chain means line of authority or chain of superiors from highest to lowest rank Positive Effects 1 Systematic flow of information 2 No communication gap in the authority responsibility relationship 3 No communication gap in the organisation Consequences of violation There may be communication gap No clarity in authority responsibility relationship 10 Principle of Order According to the principle it is the orderly arrangement of men and material that is a fixed place of everything and everyone in the organisation Positive Effects material organisation 1 No wastage of time in search of men and 2 Smooth and Systematic working of Consequences of violation Wastage of time and energy in search of men Not able to contact the people at the right and material time 11 Principle of Equity Equity refers to kind fair and just treatment to employees It means no discrimination on account of sex religion language caste belief or nationality Positive Effect 1 Employees get satisfied 2 It motivate the employees and boost up the moral of the employees Consequences of violation Dissatisfaction in employees Increase in employee turnover Unhealthy relationship between superior and subordinates 12 Stability in Tenure of Personnel According to this the management must provide the feel of job security among the employees because with feeling of insecurity for the job the employees cannot contribute their maximum So no frequent termination and transfer Positive Effect 1 Improves efficiency level of employees 2 No wastage of time and resources Consequences of violation Wastage of resources in learning the new job Frustration and dissatisfaction among employees 13 Initiative It refers to taking the first step with self motivation According to this principle employees in the organisation must be given an opportunity to take some initiative in making and executing the plan It means encouraging employees to give suggestions Positive Effects 1 Develops feeling of belongingness in employees 2 Employees achieve the target on time if they are