Q. What are the 14 principles of management?

Solution:
Henri Fayol developed the 14 principles of management. He was a French mining engineer and management theorist.

1. Division of work: This principle means that work should be divided among individuals and teams so that everyone does the job they are best at. When people focus on what they are good at, they can do it more efficiently and quickly.

Due to division of work, higher productivity and better performance is possible. When an individual does the same job on a repetitive basis he specialises in his task and thus acquires speed and accuracy in the performance.

2. Authority and responsibility: Authority means the right to give orders, and responsibility means being accountable for the results. A manager should have the authority to give orders, but they also need to take responsibility for what happens.

Authority and responsibility must go side by side. Authority without responsibility leads to irresponsible behaviour, while responsibility without authority makes a person ineffective.

3. Discipline: Discipline is essential for the smooth running of business and, without it, no business can prosper. Discipline is about following rules and agreements in the workplace. Employees and managers should both respect the rules to maintain order. For example, if the rule is to arrive at work by 9 AM, everyone should follow it to keep things running smoothly.

4. Unity of command: Each employee should receive orders from one boss only. This prevents confusion and ensures that everyone knows who to listen to.

Dual or multiple command creates chaos in the organisation, since it undermines authority. Authority should be delegated in such a manner that a subordinate works under one superior only.

5. Unity of direction: Teams with the same goal should work under one plan and one leader. This means everyone in the team should be working towards the same objective. For instance, in a marketing campaign, all team members should follow the same strategy to ensure the campaign is successful.

In other words, each group of activities having the same objective must have one plan of action and that action plan should be executed under the control of one superior.

6. Subordination of individual interests to general interest: The interests of the organization as a whole should come before individual interests. Employees should focus on what is best for the company, not just what benefits them personally.

7. Fair remuneration to workers: The remuneration payable to workers must be fair, reasonable, and satisfactory. Employees should be fairly compensated for their work. This could be in the form of wages, bonuses, or other rewards. When employees feel they are paid fairly, they are more motivated to work hard.

8. Effective centralisation: This principle refers to the balance of decision-making power. In some organizations, decisions are made by a few top managers (centralization), while in others, decisions are made by many people (decentralization).

The right balance depends on the organization’s needs. There should be a proper balance between centralisation and decentralisation. Neither absolute centralisation nor absolute decentralisation is desirable.

9. Scalar chain: This is the line of authority in an organization, from the top manager to the lowest ranks. Communication should follow this chain to ensure that everyone knows who to report to.

10. Order: Order refers to a systematic arrangement of materials and placement of people in the organisation. This principle stresses upon the proper utilisation of physical and human resources of an enterprise. It implies the right man in the right job and right materials in the right place for optimum utilisation of the available resources in an organisation.

11. Equity: It signifies that management must treat employees with justice and equity-based kindliness. There should neither be nepotism nor favouritism while selecting workers. All workers should be given a just and fair treatment. Equity promotes a friendly atmosphere between superiors and subordinates and encourages loyalty.

12. Stability in tenure of workers: Stability and continuity in the tenure of workers promote teamwork, loyalty, and economy and minimise labour turnover. Organizations should try to keep employees for a long time to help build their skills and make the organization stronger. For example, if a company keeps changing its staff, it may struggle because new employees need time to learn their roles.

13. Initiative: Employees should be encouraged to take initiative and come up with new ideas. When people feel free to suggest improvements, the organization can grow and improve.

Workers must be encouraged to make suggestions or make improvements in the original plans.

14. Esprit de corps: This term comprises two principles (a) union is strength, and, (b) team spirit is most essential. it is about fostering team spirit and unity among employees. When people work together with a positive attitude, they are more motivated and productive. For instance, team-building activities can help employees feel more connected and willing to work together toward common goals.
The manager must always make a constant effort to ensure harmony among his subordinates to ensure unity and high morale. The management should not follow the policy of divide and rule. Differences of opinion must be settled then and there. The manager should infuse a spirit of teamwork in his subordinates.

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