Management

Management in businesses and organizations is the function that coordinates the efforts of people to
accomplish goals and objectives by using available resources efficiently and effectively.
Management includes planning, organizing, staffing, leading or directing, and controlling an organization
to accomplish the goal or target. Resourcing encompasses the deployment and manipulation of human
resources, financial resources, technological resources, and natural resources. Management is also an
academic discipline, a social science whose objective is to study social organization.
Management means many things to many people. To a layman management means an impressive person
occupying an air-condition chamber with an over staked table and cushioned chair. Some people suggest
management as commanding other. To many others, management is nothing more than clerical work and
putting fancy signatures. But truly management is the process of planning, organizing, staffing, directing,
co-ordinating and controlling the activities of business enterprises. It is also described as the technique of
leadership, decision making and a mean of co-ordinating

Management Process
As there is no universally accepted definition for management, it is difficult to define it.
But a simple traditional definition, defines it as the "art of getting things done by others". This definition
brings in two elements namely accomplishment of objectives, and direction of group activities towards the
goal. The weakness of this definition is that firstly it uses the word "art", whereas management is not
merely an art, but it is both art and science. Secondly, the definition does not state the various functions of a
manager clearly.
A more elaborate definition given by George R. Terry, defines management as a process "consisting of
planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by
the use of people and resources." Firstly it considers management as a "process" i.e. a systematic way of
doing things. Secondly it states four management activities: Planning, organizing, actuating, and
controlling. Planning is thinking of an actions in advance. Organizing is coordination of the human and
material resources of an organization. Actuating is motivation and direction of subordinates. Controlling
means the attempt to ensure no deviation from the norm or plan. Thirdly it states that manager uses people
and other resources. For example a manager who wants to increase the sales, might try not only to increase

the sales force, but also to increase advertising budget. And fourthly, it states that management involves the
act of achieving the organization's objectives.
Definitions
A few definitions by experts are:

"Management is an art of knowing what is to be done and seeing that it is done in the best possible
manner." (planning and controlling)

"Management is to forecast, to plan, to organize, to command, to coordinate and control activities

of others."

Henry Sisk

"Management is a social and technical process that utilises resources, influences human action and
facilitates changes in order to accomplish an organization's goals."

McFarland

"Management is the coordination of all resources through the process of planning, organising,
directing and controlling in order to attain stated goals."

Joseph Massie

"Management is that process by which managers create, direct, maintain and operate purposive
organisation through systematic, coordinated and cooperative human efforts."

Henri Fayol (father of modern management)

"Management is the process by which co-operative group directs actions towards common goals."

F.W. Taylor (father of scientific management)

Tho Harmann, William Scott

"Management is a process of working with and through others to achieve organizational objectives
in a changing environment, central to this purpose is the effective and efficient use of limited
resources."

Rovert Kreitner

Characteristics or features of management

The nature, main characteristics or features of management:

1. Continuous and never ending process

Management is a Process. It includes four main functions, viz., Planning, Organising, Directing and
Controlling. The manager has to Plan and Organise all the activities. He had to give proper Directions to
his subordinates. He also has to Control all the activities. The manager has to perform these functions
continuously. Therefore, management is a continuous and never ending process.
2. Getting things done through people
The managers do not do the work themselves. They get the work done through the workers. The workers
should not be treated like slaves. They should not be tricked, threatened or forced to do the work. A
favourable work environment should be created and maintained.
3. Result oriented science and art
Management is result oriented because it gives a lot of importance to "Results". Examples of Results like,
increase in market share, increase in profits, etc. Management always wants to get the best results at all
times.
4. Multidisciplinary in nature
Management has to get the work done through people. It has to manage people. This is a very difficult job
because different people have different emotions, feelings, aspirations, etc. Similarly, the same person may
have different emotions at different times. So, management is a very complex job. Therefore, management
uses knowledge from many different subjects such as Economics, Information Technology, Psychology,
Sociology, etc. Therefore, it is multidisciplinary in nature.
5. A group and not an individual activity
Management is not an individual activity. It is a group activity. It uses group (employees) efforts to achieve
group (owners) objectives. It tries to satisfy the needs and wants of a group (consumers). Nowadays,
importance is given to the team (group) and not to individuals.
6. Follows established principles or rules
Management follows established principles, such as division of work, discipline, unity of command, etc.
These principles help to prevent and solve the problems in the organisation.
7. Aided but not replaced by computers
Now-a-days, all managers use computers. Computers help the managers to take accurate decisions.
However, computers can only help management. Computers cannot replace management. This is because
management takes the final responsibility. Thus Management is aided (helped) but not replaced by
computers.
8. Situational in nature
Management makes plans, policies and decisions according to the situation. It changes its style according
to the situation. It uses different plans, policies, decisions and styles for different situations.

The manager first studies the full present situation. Then he draws conclusions about the situation. Then he
makes plans, decisions, etc., which are best for the present situation. This is called Situational
Management.
9. Need not be an ownership
In small organisations, management and ownership are one and the same. However, in large organisations,
management is separate from ownership. The managers are highly qualified professionals who are hired
from outside. The owners are the shareholders of the company.
10. Both an art and science
Management is result-oriented. Therefore, it is an Art. Management conducts continuous research. Thus, it
is also a Science.
11. Management is all pervasive
Management is necessary for running a business. It is also essential for running business, educational,
charitable and religious institutions. Management is a must for all activities, and therefore, it is all
pervasive.
12. Management is intangible
Management is intangible, i.e. it cannot be seen and touched, but it can be felt and realised by its results.
The success or failure of management can be judged only by its results. If there is good discipline, good
productivity, good profits, etc., then the management is successful and vice-versa.
13. Uses a professional approach in work
Managers use a professional approach for getting the work done from their subordinates. They delegate
(i.e. give) authority to their subordinates. They ask their subordinates to give suggestions for improving
their work. They also encourage subordinates to take the initiative. Initiative means to do the right thing at
the right time without being guided or helped by the superior.
14. Dynamic in nature
Management is dynamic in nature. That is, management is creative and innovative. An organisation will
survive and succeed only if it is dynamic. It must continuously bring in new and creative ideas, new
products, new product features, new ads, new marketing techniques, etc.
Nature of Management
Management: Art or science?
Management involves characteristics of both art and science. While certain aspects of management make it
a science, certain others which involve application of skills make it an art. Every discipline of art is always
backed by science which is basic knowledge of that art. Similarly, every discipline of science is complete
only when it is used in practice for solving various kind of problems. Whereas under "science" one
normally learns the "why" of a phenomenon, under "art" one learns the "how" of it. In the words of Robert
H. Hilkert: "In the area of management, science and art are two sides of the same coin".

In the beginning of development of management knowledge, it was considered as an art. There was a
jungle of management knowledge. Any one used it to get things done in his own way. But later by
codifying and systemizing the management, it became a science as well as being an art.
Management as an Art
Management can be an art in the sense that it has the following characteristics:

Just like other arts it has to be practiced and performed. The knowledge should be learned and
practiced, just as medical or legal practitioners practice their respective sciences.

The manager gains experience by continuous application of management knowledge and facing
new experiences. This helps to develop more skills and abilities for translating knowledge into practice.

Application calls for innovativeness and creativity.

The fourth reason is that in many situations, theoretical knowledge of management may not be
adequate or relevant for solving the problem. It may be because of complexity or unique nature of the
problem.

The art is in knowing how to accomplish the desired results. This implies that there exists a body of
knowledge which management uses to accomplish the desired results in organization
Management as a Science
Management as a science has the following characteristics:

Its principles, generalizations and concepts are systematically. In this case the manager can manage
the situation or organization in a systematic and scientific manner.

Its principles, generalizations and concepts are formulated on the basis of observation, research,
analysis and experimentation, as is the case with the principles of other sciences.

Like other sciences, management principles are also based on relationship of cause and effect. It
states that same cause under similar circumstance will produce same effect. Suppose if workers are
paid more (cause), the produce more (effect).

Management principles are codified and systematic, and can be transferred from one to another and
can be taught.

Management principles are universally applicable to all types of organizations.

There is no tailor - made answer to a question- Is management a science or art? To ascertain the nature of
management with respect of science or art, there is a need to know the exact meaning of the words 'science'
or 'art' and subsequently, their application to management.

Management: A profession?
The following criteria identifies the statues of a profession to management:

Profession is a body of specialized knowledge.

Professional knowledge in systemized and codified form can be learned through formal education
system.

A profession emphasizes on having a central body to formulate a code of behavior for its members.

A profession calls for rendering competent and specialized services to clients.

A profession maintains the scientific attitude and commitment for discovering new ideas and
upgrading in order to improve quality of service and level of efficiency provided to clients.
A profession requires members to exercise restraint and self-discipline.

Management knowledge meets the first two criteria because it has grown into a systematic body of
knowledge and also it can be acquired and learned through the formal education.
There is no minimum qualification prescribed either for getting entry in the management profession or for
becoming members of it. In practice, whosoever manages in known as manager, irrespective of
qualifications. Peter Drucker in support of this view says that "no greater damage could be done to our
economy or to our society than to attempt to professionalize management by licensing managers, for
instance, or by limiting access to management to people with a special academic degree."
Regarding professional approach, a manager has to continuously strive for discovering new ideas,
relationships and concepts and act in a dynamic and innovative manner to cope with the changing
environment. Even so, managers are not respected as other professionals like doctors, advocates and
chartered accountants.
Professional vs. Family Management
Professionalization of management
The following reasons are in a support of the professionalization of management:

In joint stock company, ownership has been separated from its management and control. This
situation has really contributed to the development of management as a profession.

Rapid expansion and growth of management universities and institutions is an indicative of

management professionalization trend.

In a high-tech industrial society, manifold changes have occurred in the role of managers.

In the context of globalization of economic operations, many strategic areas have been developed
which require professional expertise and specialized knowledge (e.g. strategic planning, etc).

Increased utilization of specialized management services (e.g. consultancy, human resource

development, etc) requires a team of professional managers.
Family management
Family management implies management and control of business operations by a group of members
belonging to a particular family, regardless of their knowledge about management. Thus the decisions and
policies are largely influenced by family interest. Disputes and disagreements relating to family matters
also tend to have a direct bearing on the functioning of the business organization. But in a professionallymanaged enterprise, ownership is separated from management and control. Authority to manage and
control business operations is delegated to professionally-qualified managers.
A study covering 30 nations around the world points out that 75% of all firms in the world are family firms.
In some of which, family inheritance has been continuing for centuries. The phenomenal progress of Ford
Motors, IBM, etc, bears testimony to their quality of leadership and management. In the words of K.K.
Birla, "if people like Sir Jamshedji Tata or Rai Bahadur Gujarmal Modi were to start their business career
again, I would any day put my rupee on them than on the best of the professionals."
Management and Administration
There has been a controversy regarding the interpretation of these two terms. There are different views in
this regard:
According to first view (William Newman, Peter Drucker, etc), there is no basic difference between the two
terms, and they are interchangeable. If there is any difference, it may perhaps be in their usage in practice.
The term administration is used for non-business activities, and management is used for business activities.
According to second view (Kimball, Brech, other British writers, etc), management is a more
comprehensive term which includes administration. Management involves "thinking" and administration
involves "doing". Management is responsible for planning and organizing, and administration is
responsible for directing and controlling. Whereas management refers to a high level of managerial
activities such as goal-setting, policy formulation and strategy making, administration refers to an operative
part concerned with lower level management activities such as execution of policies.
According to third view (Sheldon, Speriegal, Milward, etc), administration is a more comprehensive term
which includes management. Administration involves "thinking" and management involves "doing".
Administration is a top level function which concentrates on determination of plans, policies and
objectives, whereas management is a lower level function which deals with the execution and direction of
policies and operations. It doesn't mean that we need two separate sets of personnel, but each manager
performs both the managerial as well as administrative functions. At top level more time is spent in
administrative activity and as one moves down, more time is spent in management activity.

Difference between Administration and Management.

1. Management is the act or function of putting into practice the policies and plans decided upon by the
administration.
2. Administration is a determinative function, while management is an executive function.
3. Administration makes the important decisions of an enterprise in its entirety, whereas management
makes the decisions within the confines of the framework, which is set up by the administration.
4. Administrators are mainly found in large and multi-layered enterprises such as governments, military,
religious and educational organizations or corporations. Management, on the other hand, is used by midsize to small enterprises and may take administrative functions or even be labeled as administration but
granted mostly a management function. For example the administration of a condominium is mostly a
managerial body that is needs to convey an assembly to reach most decisions.
Levels of Management
Top Level of Management
It consists of board of directors, chief executive or managing director. The top management is the ultimate
source of authority and it manages goals and policies for an enterprise. It devotes more time on planning
and coordinating functions.
The role of the top management can be summarized as follows
-Top management lays down the objectives and broad policies of the enterprise.
-It issues necessary instructions for preparation of department budgets, procedures, schedules etc.
-It prepares strategic plans & policies for the enterprise.
-It appoints the executive for middle level i.e. departmental managers.
-It controls & coordinates the activities of all the departments.
-It is also responsible for maintaining a contact with the outside world.
-It provides guidance and direction.
-The top management is also responsible towards the shareholders for the performance of the enterprise
Middle Level of Management
The branch managers and departmental managers constitute middle level. They are responsible to the top
management for the functioning of their department. They devote more time to organizational and
directional functions. In small organization, there is only one layer of middle level of management but in

big enterprises, there may be senior and junior middle level management. Their role can be emphasized as

-They execute the plans of the organization in accordance with the policies and directives of the top
management.
-They make plans for the sub-units of the organization.
-They participate in employment & training of lower level management.
-They interpret and explain policies from top level management to lower level.
-They are responsible for coordinating the activities within the division or department.
-It also sends important reports and other important data to top level management.
-They evaluate performance of junior managers.
-They are also responsible for inspiring lower level managers towards better performance.

Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists of supervisors,
foreman, section officers, superintendent etc. According to R.C. Davis, Supervisory management refers to
those executives whose work has to be largely with personal oversight and direction of operative
employees. In other words, they are concerned with direction and controlling function of management.
Their activities include
-Assigning of jobs and tasks to various workers.
-They guide and instruct workers for day to day activities.
-They are responsible for the quality as well as quantity of production.
-They are also entrusted with the responsibility of maintaining good relation in the organization.
-They communicate workers problems, suggestions, and recommendatory appeals etc. to the higher level
and higher level goals and objectives to the workers.
-They help to solve the grievances of the workers.
-They supervise & guide the sub-ordinates.
-They are responsible for providing training to the workers.
-They arrange necessary materials, machines, tools etc. for getting the things done.
-They prepare periodical reports about the performance of the workers.
-They ensure discipline in the enterprise.
-They motivate workers.
-They are the image builders of the enterprise because they are in direct contact with the workers.

Skills and Functions of a manager

Skills
the five functions of management ensures the organization runs smoothly. these five functions are :

planning

organizing

staffing

coordinating

controlling

The basic skills needed are:

Calmness

Maturity

Friendliness

Tolerance

Appreciable

Tolerable

Adorable

Frank

Determined

Neutral towards means & end etc.

Historical development
Some see management (by definition) as late-modern (in the sense of late modernity) conceptualization. On
those terms it cannot have a pre-modern history, only harbingers (such as stewards). Others, however,
detect management-like-thought back to Sumerian traders and to the builders of the pyramids of ancient
Egypt. Slave-owners through the centuries faced the problems of exploiting/motivating a dependent but
sometimes unenthusiastic or recalcitrant workforce, but many pre-industrial enterprises, given their small

scale, did not feel compelled to face the issues of management systematically. However, innovations such
as the spread of Hindu numerals (5th to 15th centuries) and the codification of double-entry bookkeeping (1494) provided tools for management assessment, planning and control.
With the changing workplaces of industrial revolutions in the 18th and 19th centuries, military theory and
practice contributed approaches to managing the newly-popularfactories.
Given the scale of most commercial operations and the lack of mechanized record-keeping and recording
before the industrial revolution, it made sense for most owners of enterprises in those times to carry out
management functions by and for themselves. But with growing size and complexity of organizations, the
split between owners (individuals, industrial dynasties or groups of shareholders) and day-to-day managers
(independent specialists in planning and control) gradually became more common.
Early writing
While management (according to some definitions) has existed for millennia, several writers have created a
background of works that assisted in modern management theories.
Some ancient military texts have been cited for lessons that civilian managers can gather. For example,
Chinese general Sun Tzu in the 6th century BC, The Art of War, recommends being aware of and acting on
strengths and weaknesses of both a manager's organization and a foe's.
Various ancient and medieval civilizations have produced "mirrors for princes" books, which aim to advise
new monarchs on how to govern. Plato described job specialization in 350 B.C., and Alfarabi listed several
leadership traits in A.D. 900. Other examples include the Indian Arthashastra by Chanakya (written around
300 BCE), and The Prince by Italian author Niccol Machiavelli (c. 1515).
Written in 1776 by Adam Smith, a Scottish moral philosopher, The Wealth of Nations discussed efficient
organization of work through division of labour. Smith described how changes in processes could boost
productivity in the manufacture of pins. While individuals could produce 200 pins per day, Smith analyzed
the steps involved in manufacture and, with 10 specialists, enabled production of 48,000 pins per day.
19th century
Classical economists such as Adam Smith (17231790) and John Stuart Mill (18061873) provided a
theoretical background to resource-allocation, production, and pricingissues. About the same time,
innovators like Eli Whitney (17651825), James Watt (17361819), and Matthew Boulton (17281809)
developed elements of technical production such as standardization, quality-control procedures, costaccounting, interchangeability of parts, and work-planning. Many of these aspects of management existed
in the pre-1861 slave-based sector of the US economy. That environment saw 4 million people, as the
contemporary usages had it, "managed" in profitable quasi-mass production.
Salaried managers as an identifiable group first became prominent in the late 19th century.

20th century
By about 1900 one finds managers trying to place their theories on what they regarded as a thoroughly
scientific basis (see scientism for perceived limitations of this belief). Examples include Henry R.
Towne's Science of management in the 1890s, Frederick Winslow Taylor's The Principles of Scientific
Management (1911), Lillian Gilbreth'sPsychology of Management (1914), Frank and Lillian
Gilbreth's Applied motion study (1917), and Henry L. Gantt's charts (1910s). J. Duncan wrote the
first collegemanagement-textbook in 1911. In 1912 Yoichi Ueno introduced Taylorism to Japan and
became the first management consultant of the "Japanese-management style". His son Ichiro Ueno
pioneered Japanese quality assurance.
The first comprehensive theories of management appeared around 1920. The Harvard Business
School offered the first Master of Business Administration degree (MBA) in 1921. People like Henri
Fayol (18411925) and Alexander Church described the various branches of management and their interrelationships. In the early 20th century, people like Ordway Tead (18911973), Walter Scott and J. Mooney
applied the principles of psychology to management. Other writers, such as Elton Mayo (1880
1949), Mary Parker Follett (18681933), Chester Barnard (18861961), Max Weber (18641920), who
saw what he called the "administrator" as bureaucrat), Rensis Likert (19031981), andChris Argyris (*
1923) approached the phenomenon of management from a sociological perspective.
Peter Drucker (19092005) wrote one of the earliest books on applied management: Concept of the
Corporation (published in 1946). It resulted from Alfred Sloan (chairman ofGeneral Motors until 1956)
commissioning a study of the organisation. Drucker went on to write 39 books, many in the same vein.
H. Dodge, Ronald Fisher (18901962), and Thornton C. Fry introduced statistical techniques into
management-studies. In the 1940s, Patrick Blackett worked in the development of the appliedmathematics science of operations research, initially for military operations. Operations research,
sometimes known as "management science" (but distinct from Taylor's scientific management), attempts to
take a scientific approach to solving decision-problems, and can apply directly to multiple management
problems, particularly in the areas of logistics and operations.
Some of the more recent developments include the Theory of Constraints, management by
objectives, reengineering, Six Sigma and various information-technology-driven theories such as agile
software development, as well as group-management theories such as Cog's Ladder.
As the general recognition of managers as a class solidified during the 20th century and gave perceived
practitioners of the art/science of management a certain amount of prestige, so the way opened
for popularised systems of management ideas to peddle their wares. In this context many management
fads may have had more to do with pop psychology than with scientific theories of management.
Towards the end of the 20th century, business management came to consist of six separate
branches, namely:

1. financial management
2. human resource management
3. information technology management (responsible for management information systems)
4. marketing management
5. operations management or production management
6. strategic management
21st century
In the 21st century observers find it increasingly difficult to subdivide management into functional
categories in this way. More and more processes simultaneously involve several categories. Instead, one
tends to think in terms of the various processes, tasks, and objects subject to management.
Branches of management theory also exist relating to nonprofits and to government: such as public
administration, public management, and educational management. Further, management programs related
to civil-society organizations have also spawned programs in nonprofit management and social
entrepreneurship.
Note that many of the assumptions made by management have come under attack from businessethics viewpoints, critical management studies, and anti-corporate activism.
As one consequence, workplace democracy (sometimes referred to as Workers' self-management) has
become both more common and advocated to a greater extent, in some places distributing all management
functions among workers, each of whom takes on a portion of the work. However, these models predate
any current political issue, and may occur more naturally than does a command hierarchy. All management
embraces to some degree a democratic principlein that in the long term, the majority of workers must
support management. Otherwise, they leave to find other work or go on strike. Despite the move toward
workplace democracy, command-and-control organization structures remain commonplace as de
facto organization structure. Indeed, the entrenched nature of command-and-control is evident in the way
that recent layoffs have been conducted with management ranks affected far less than employees at the
lower levels. In some cases, management has even rewarded itself with bonuses after laying off lower-level
workers.
According to leadership academic Manfred F.R. Kets de Vries, a contemporary senior management team
will almost inevitably have some personality disorders.
Importance of Management
According to Peter Drucker,
"Management is what the modern world is all about."

This statement means that all the development that has taken place in the world is due to efficient
management.
The points below bring out the significance or importance of management.
1. Encourages Initiative
Management encourages initiative. Initiative means to do the right thing at the right time without being told
or influenced by the superior. The employees should be encouraged to make their own plans and also to
implement these plans. Initiative gives satisfaction to employees and success to organisation.
2. Encourages Innovation
Management also encourages innovation in the organisation. Innovation brings new ideas, new technology,
new methods, new products, new services, etc. This makes the organisation more competitive and efficient.
3. Facilitates growth and expansion
Management makes optimum utilisation of available resources. It reduces wastage and increase efficiency.
It encourages team work and motivates employees. It also reduces absenteeism and labour turnover. All this
results in growth, expansion and diversification of the organisation.
4. Improves life of workers
Management shares some of its profits with the workers. It provides the workers with good working
environment and conditions. It also gives the workers many financial and non-financial incentives. All this
improves the quality of life of the workers.
5. Improves corporate image
If the management is good, then the organisation will produce good quality goods and services. This will
improve the goodwill and corporate image of the organisation. A good corporate image brings many added
benefits to the organisation.
6. Motivates employees
Management motivates employees by providing financial and non-financial incentives. These incentives
increase the willingness and efficiency of the employees. This results in boosting productivity and
profitability of the organisation.
7. Optimum use of resources
Management brings together the available resources. It makes optimum (best) use of these resources. This
brings best results to the organisation.
8. Reduces wastage
Management reduces the wastage of human, material and financial resources. Wastage is reduced by proper
production planning and control. If wastage is reduced then productivity will increase.
9. Increases efficiency

Efficiency is the relationship between returns and cost. Management uses many techniques to increase
returns and to reduce costs. Higher efficiency brings many benefits to the organisation.
10. Improves relations
Management improves relations between individuals, groups, departments and between levels of
management. Better relations lead to better team work. Better team work brings success to the organisation.
11. Reduces absenteeism and labour turnover
Absenteeism means the employee is absent without permission.
Labour Turnover means the employee leaves the organisation.
Labour absenteeism and turnover increases the cost and causes many problems in the smooth functioning
of the organisation. Management uses different techniques to reduce absenteeism and labour turnover in the
organisation.
12. Encourages Team Work
Management encourages employees to work as a team. It develops a team spirit in the organisation. This
unity bring success to the organisation.
Principles of Management
Management principles are guidelines for the decisions and actions of managers.
The Principles of Management are the essential, underlying factors that form the foundations of successful
management. According to Henri Fayol in his book General and Industrial Management (1916), there are
fourteen 'Principles of Management'.
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 enhance order to his subordinates;
responsibility means obligation for performance.
3. Discipline - It is obedience, proper conduct in relation to others, respect of authority, etc. It is
essential for the smooth functioning of all organizations.
4. 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.
5. 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.

6. 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.
7. 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.
8. 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.
9. 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.
10.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.
11.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.
12.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.
13.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.
14.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.