14 principles of Management 

Principles of Administrative Management by Henry Fayol.  

Division of labour 

Organization divides the work among the employees, group of employees and departments based on their expertise. Organization makes the division or distribution of responsibilities based on skills, qualifications, and capabilities of the employees. The task can easily completed by division of different works.  

            Division of work among the employees determines the efficiency. It makes work more simpler and increases effectiveness of result. It simply involves in segmentation of tasks and delegating the authorities to complete the task.   

For example,

            Electronic company manufactures LED TV, it involve different types of works such as

            design, packaging, assembly, 

iphone manufacturing consist of product design, manufacturing of screen, assembly of internal parts, packaging etc.

Unity of command

One boss directs or assigns the work to the team is always better than more than one boss assigns works to the team. The team or employees get confused if more than one boss is assigning the work or responsibilities. One objective or goal can easily achieved by employees.

For example,

            Production manager assigning the targets to the lower level managers such as supervisors, quality inspector. At the same time when another higher authority assigns some responsibilities to the supervisors creates confusion or misunderstanding.

Simply employees should report or responsible for the work assigned by one boss only. It makes clarity and improves the work efficiency. Duplication of job function avoided by unity of command.

Unity of Direction

Efficiency increases when all the efforts of employees are towards achieving one plan or one goal. Unity of direction can enable employees to achieve their goal easily and conveniently. Clarity in completing the responsibilities is possible by unity of direction.

For example,

            If organization goal in to become quality leader in market, the employees should work accordingly. Production management employees should focus on maintaining the quality of product. Employees should not compromise quality at any cost.

At the same time when the production department strives to achieve maximum production quantity, it will creates confusion and influence the quality.

Discipline

Every organization has their culture or set of rules. The code of conduct or behavior the employees follow influence their productivity and performance. Discipline enables the employees to implement the rules and regulation of the organization.

Disobey of the rules or discipline creates the conflicts between superior and subordinates. Practically all the employees of organization are not implementing the discipline completely. The managers can solve this problem by counselling and improving the code of conduct or behavior.

For example,

            Workers are taking more time in tea break than allotted time. It will hamper the continuity of production. Such disobey of discipline reduces the production capacity.

            Employees of customer relationship management department should maintain the good relationship with customers. If the code of behavior violated by these employees cannot retain the customer and it will influence the sales.

Equity

This principles belongs to justice and equal treatment. Managers should maintain the healthy relationship between employees and groups. It creates the loyalty between employees and organization. for better administration organization should avoid the discrimination or partiality.

For example,

            Sometime in organization there may be discrimination based on employees community, caste, personal life. Inequality and discrimination creates conflicts and reduces the employees interest towards company. To maintain the employees loyalty manager’s responsibility is to treat equally and maintain equity.

Order

Order divided in to two categories. Material order and personnel order. Material order indicates the systematic arrangement of all the physical facilities and resources for the execution of different activities. Such as manufacturing, storage, administration etc.

Personnel order belongs to optimum utilization of manpower. Complete and properly utilization of employees for the execution of different activities in organization. Proper distribution or authority and responsibility plays vital role in maintaining order.

Authority and responsibility

Authority is the rights or power to take decision and utilizes resources. Responsibilities should be assigned according to the expertise and suitability. Organization needs to provide sufficient authorities required for the completion of assigned responsibilities or work.

Balanced authorities and responsibilities increase the efficiency and reduces the chances of failure and misuse of authority. If authorities are more than responsibilities causes misuse of authority whereas less authorities than responsibilities increase chances of failure.  

Initiative

Initiative of employees can implement the continuous improvement if some authorities provided. Employees motivation encourages them to take initiative. Initiative in solving problems, implementing innovation, generate creative ideas and better performance.  

Fair remuneration

Remuneration is concerned with monetary reward given to employees. It consist of salary, wages, incentives, bonus, increment etc. fair remuneration is concerned with the remuneration which satisfy employees expectation and which fulfils the norms. Fair remuneration also indicates the remuneration based on performance and employees potential.

Stability of tenure

Tenure of employees indicates its expected period of working. Company should reduce the employee turnover to maintain the organization performance consistently. Newly appointed employees need more time to mix with the organization culture.

Human resource management of organization always focuses on retaining employees to maintain stability of tenure. to increase the employees loyalty it is essential to provide fair remuneration, favorable and satisfactory work environment, performance appraisal, employees promotion, salary increment etc.    

Scalar chain

Scalar chain is the principle that states hierarchy or specific structure the organization should follow. Hierarchy or proper structure of organization increases the efficiency and easiness. Every organization has specific structure or hierarchy. All the responsibilities assigned and completed according to this structure. Better structure can enhance the organization productivity and excellency.

Sub-ordination of individual interest to general

All the efforts of employees from all the department should coordinated or concentrated towards achieving the organizational goal. The common goal of organization directs the efforts of all employees. It is the prime responsibility of manager to concentrate the employees purpose towards achieving common goal. Coordination of all the employees working towards achieving common goal is the prime responsibility of manager.

Employees may or may not aware about the organizational goal. Management should make them aware and increase the clarity about goal. Management need to assist or guide them to achieve the goal.  

Centralization and decentralization

Centralization involve in concentration of authorities to the limited people or department whereas decentralization involve in delegation of authorities with responsibilities among the employees group and department. Organization implements both of this principle as per their requirement.  

Esprit De Corps

This principle states there should be mental revolution in employees. It enables the employees mutual understanding and creates more interest at work. It enhances healthy relationship between employees, group of employees and department.