Academic.. Principles of management

1. Management functions, principles &
tools
Dr. Rajiv Sikroria

2. PRINCIPLES OF MANAGEMENT

 A principles may be defined as fundamentals statement of basic truth that
provides a guide to thought and action Principles of management originate and
grow as a result of past experience and accomplishments
 NEED OF PRINCIPLES OF MANAGEMENT
 To improve efficiency
 To crystalline the nature of management
 To improve research
 To attain social goals

3. Industrial Activities
 Six groups
 Technical activities production manufacturing adaption
 Commercial activities buying selling exchange
 Financial search for optimum use of capital
 Security protection of property and personnel
 Accounting balance sheet costs statistics
 Managerial activities planning organizing command
coordination and control

4. HENRI FAYOL (1841 -1925)
 A French mining engineer developed 14 principles of
management based on his management experience.
 He pioneer in the field of management education
 He has been rightly called as father of management
process school.
 He was first person who laid emphasis on the process of
management

5. The Principles
1. Division of work
 There is an efficient result in the operational level when tasks
are distributed to qualified and competent workers or when
people do specialize
2. Authority
 With formal authority managers have the right to command and
give orders to their subordinates
3. Discipline
 Members in any organization have to respect the rules and
agreements governing it Respect and obedience to rules is
embodied in the conduct of good life and discipline

6. Principles of management
4. Unity of Command
Employees must receive instruction only from one person
Reporting to more than one manager results to conflicts in
instruction and confusion of authority.
5. Unity of Direction
Operations within any organization having the same
objective must be directed by only one manager using one
plan In a department for example there should not be two or
more supervisors each having different policy to follow

7. Principles of management
6 . Subordination of the Individual Interest
to General interest
Individual interest must be subordinate to general interest
when there is conflict between the two The agreement
between the employers and the employees should be fair and
there should be constant vigilance and supervision.
7. Remuneration
Compensation for work done should be fair to both
employees and employers

8. Principles of management
8. Centralization & Decentralization
We have this approach by decreasing the role of subordinates
in decision making Managers should retain their final
responsibility while at the same time give their subordinates
enough authority to do their jobs properly.

9. Principles of management
9. Scalar chain
The line of authority in any organization turns in the order of
rank from top management to the lowest level of the
enterprise.
10. Order
Either material or human resources should be in the right
place at the right time. People should be in the jobs or
positions they are suited to.

10. Principles of management
11. Equity : Equity is combination of justice and kindness
Equity in treatment and behaviour is liked by everyone and it
brings loyalty in the organization. This brings cordial relation
between the management and labour

11. Principles of management
12. Stability of Staff
Employees work better if job security and career progress
are assured to them . A high employee turnover rate will
effect the organization.
13. Initiative
Managers should encourage their employees for taking
initiative with in limits of authority and discipline Initiative
increases the zeal and energy on the part of human beings
Fayols describes initiative as one of the foremost activity.
Satisfactions for an intelligent man to experience.

12. Principles of management
14. Esprit de Corps: Teamwork is fundamentally important
to an organization Work teams and extensive face to face
verbal communication encourages team work.