Principles of Modern Management
The Father of Modern Management is Mr.Henry Fayol,
and according to him there are 14 major principles of management which every
manager has to practice for the success of the organization.
1. Division of Work: According to this principle the whole
work is divided into small tasks. The specialization of the workforce according
to the skills of a person, creating specific personal and professional
development within the labour force and therefore increasing productivity;
leads to specialization which increases the efficiency of labour.
2. Authority and Responsibility: This is the issue of commands followed by
responsibility for their consequences. Authority means the right of a superior
to give the order to his subordinates whereas responsibility means obligation
for performance.
Discipline: It is obedience, proper conduct in relation to
others, respect of authority, etc. It is essential for the smooth functioning
of all organizations.
Unity of Command: This principle states that each subordinate
should receive orders and be accountable to one and only one superior. If an
employee receives orders from more than one superior, it is likely to create
confusion and conflict.
Unity of Direction: All related
activities should be put under one group, there should be one plan of action
for them, and they should be under the control of one manager.
Subordination of Individual Interest to Mutual Interest: The management must put aside personal considerations and
put company objectives firstly. Therefore the interests of goals of the
organization must prevail over the personal interests of individuals.
Remuneration: Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences productivity. The quantum and methods of remuneration payable should be fair, reasonable and rewarding of effort.
The Degree of Centralization: The amount of power
wielded with the central management depends on company size. Centralization
implies the concentration of decision making authority at the top management.
Line of Authority/Scalar Chain: This refers to the chain of superiors ranging from
top management to the lowest rank. The principle suggests that there should be
a clear line of authority from top to bottom linking all managers at all
levels.
Order: Social order ensures the fluid operation of a
company through authoritative procedure. Material order ensures safety and
efficiency in the workplace. Order should be acceptable and under the rules of
the company.
Equity: Employees must be treated kindly, and justice must be
enacted to ensure a just workplace. Managers should be fair and impartial when
dealing with employees, giving equal attention towards all employees.
Stability of Tenure of Personnel: Stability of tenure of personnel is a principle
stating that in order for an organization to run smoothly, personnel
(especially managerial personnel) must not frequently enter and exit the
organization.
Initiative: Using the initiative of employees can add strength and
new ideas to an organization. Initiative on the part of employees is a source
of strength for organization because it provides new and better ideas.
Employees are likely to take greater interest in the functioning of the
organization.
Esprit de Corps/Team Spirit: This refers to the need of managers
to ensure and develop morale in the workplace; individually and communally.
Team spirit helps develop an atmosphere of mutual trust and understanding. Team
spirit helps to finish the task on time
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