Principles of Management set forth by Henri Fayol:
• Division of work: It helps to specialize in an activity which increases
output with perfection.
• Authority and responsibility: Management is getting things done by
others. A superior gives direction to his subordinates to perform the job.
Then the supervisor may exercise his authority. Authority is closely
connected with responsibility. Responsibility is essential to perform a job
correctly. It is shouldered whenever authority is exercised.
• Discipline: It is essential in all levels of management people.
• Unity of command: Each subordinate is responsible to only one superior.
• Unity of direction: The manager is expected to look after all the
activities of a group.
• Subordination of individual interest to group interest: In no way, the
individual interest should dominate the group interest.
• Remuneration of personnel: Employees should be given fair and reliable
remuneration.
• Centralization or decentralization of authority depends upon the
personal character, morality, reliability of resourcefulness of the superior.
• Scalar chain: It is the chain of superiors ranging from the ultimate
authority to the lowest ranks. The communication flows from top to
bottom. If A is the superior and has three subordinates in the order B,C
and D, the communication from A to D should be passed via C and B.
• Order: The principle of right place for everything and for everyone
should be followed by management. The personnel are selected
scientifically and assigned duties according to their qualifications and
ability.
• Equity: It refers to combination of fairness, kindness and justice. It
requires goodness and experience of managers and loyalty and devotion
from subordinates.
• Stability of tenure of personnel: Security of job is an essential factor.
• Initiative: A manager should have conceiving and executing initiative. It
has psychological effect on the subordinates. Managers should take
decisions after getting suggestions from subordinates.
• Esprit de corps: All the employees of the organization are put together as
a team in order to achieve the objectives of the organization. The
management should not follow the policy of divide and rule.