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PRINCIPLES OF MANAGEMENT A principles may be defined as fundamentals statement of basic truth that provides a guide tothought and action.

Principles of management originate and grow as a result of past experience andaccomplishments. NEED OF PRINCIPLES OF MANAGEMENT To improve efficiency To crystalline the nature of management To improve research To attain social goals According to fayoldefinationof management, all industrial activities fall in six groups: 1.Techinical activities (production, manufacturing, adaption) 2.Commercial activities (buying, selling, exchange) 3.Finacial (search for optimum use of capital) 4.Security (protection of property and personnel) 5.Accounting (balance sheet, costs, statistics) 6.Managerial activities (planning, organizing, command, coordination and control)

H ENRIFAYOL(1841-1925) -A French mining engineer, developed 14 principles of management based on his managementexperience.He pioneer in the field of management education.He has been nagement process school.He was first person who laid emphasis on the process of management. 1.Division of work -There is an efficient result in the operational level when tasks are distributed toqualified and competent workers, or when people do specialize. 2. Authority -With formal authority, managers have the right to command, and give orders totheir subordinates. 3.Discipline -Members in any organization have to respect the rules and agreements governingit. Respect and obedience to rules is embodied in the conduct of good life anddiscipline. 4.Unity of Command -Employees must receive instruction only from one person. Reporting to more thanone manager results to conflicts in instruction and confusion of authority 5.Unity of Direction -Operations within any organization having the same objective must bedirected 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 . 6.Subordination-of the Individual Interest to General interest -Individual interest must be subordinate to general interest when there is conflict between thetwo . The agreement between the employers and the employees should be fair and thereshould be constant vigilance and supervision. 7.Renumeration -Compensation for work done should be fair to both employees and employers. 8.Centralization -We have this approach by decreasing the role of subordinates in decision making. Managersshould retain their final responsibility, while at the same time give their subordinates enoughauthority to do their jobs properly. 9.Scalar chain -The line of authority in any organization turns in the order of rank from topmanagement 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. 11.Equity -Equity is combination of justice and kindness. Equity in treatment and behaviouris liked byeveryone and it brings loyalty in the organisation. This brings cordial relation between themanagement and labour. 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 anddiscipline.Initiativeincreases the zeal and energy on the part of human beings. Fayolsdescribesinitiative as one of the keenest satisfactions for an intelligent man to experience. 14.Esprit de Corps -Teamwork is fundamentally important to an organization. Work teams and extensive face toface verbal communication encourages team work. ELEMENTS OF MANAGEMENT 1.PLANNING2.ORGANIZING3.COMMAND4.COORDINATION5.CONTROLFayolconclusion could be faulted in two major points,1. H e assumed that all organizations at the stage of development should have some functionaldivision of work and,2. The number of employees was the main determination of the general form of organisation.

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