Any organisation that wants to be efficient and achieve its goals needs to have good management. The Principles of management are the fundamental, underlying reasons that constitute the foundations of effective management. These principles include:
Division of Work: It is the process of dividing an organization's total workload among employees and creating departments. Division of labour leads to specialisation, and specialisation aids in increasing efficiency and productivity, resulting in a rise in the organization's yield and production. As a result of their increased productivity, employees become more skilled, confident, and efficient.
Balancing Authority and Responsibility: These are the two most important aspects of management. Authority facilitates the management to operate efficiently, and their responsibility makes them accountable for the work done under their supervision or direction.
Discipline: Discipline entails abiding by the organization's policies and procedures. It is considered as the most important value in every project or management. Discipline is necessary for an organisation to run efficiently.
Unity of Command: This principle of management states that an individual employee should receive orders from only one manager and report to that manager. This helps in avoiding dual subordination. A clear chain of command is necessary within an organisation.
Unity of Direction: Everyone who is involved in the same activity should share a common goal. This means that everyone in a company should have the same aim and motivation, making work easier and achieving the stated goal more quickly. Teams working toward a common goal should be headed by a single manager and follow a common strategy. Work should be organised so that employees are working together toward a common goal or target, using a common method or procedure.
Subordination of Individual Interest: This implies that a company should work together for the common good rather than for personal gain. Personal considerations must be set aside, and the company's goals must come first. As a result, the organization's aims must take precedence over the personal interests of individuals.
Remuneration- Workers must be well compensated, as this is their primary source of motivation, which has a significant impact on productivity. The amount and methods of remuneration should be fair, reasonable, and incentive-based. This is essential for motivating people in a business. A company that underpays its employees will have a difficult time attracting qualified and enthusiastic employees.
Centralization: The management or any authority in charge of the decision-making process in any organisation should be impartial. In a centralised system, power is concentrated in a few hands. Decentralization distributes authority across all levels of management. If complete centralization is achieved, subordinates will be unable to carry out their responsibilities. Likewise, if the organisation is completely decentralised, the superior will have no authority to control it. As a result, a balance between centralization and decentralisation is required.
Scalar Chain: The formal line of authority, communication, and responsibility inside an organisation is known as the chain of command, or scalar chain. An organisational chart, which shows the superior and subordinate relationships in the organisation, is commonly used to portray the chain of command.
Order: To create a positive work culture, a corporation must have a well-defined work order. Positive productivity will be boosted by a positive attitude in the office. Material/things and people in the organisation should follow a set of rules. This refers to the efficient utilisation of resources and their systematic deployment. This refers to the efficient utilisation of resources and their systematic deployment.
Equity: All employees should be addressed with respect and dignity. According to the equity principle, managers must be both courteous and fair to their subordinates. Kindness and justice are combined to create equity. It instils in employees a sense of loyalty and devotion to the company.
Stability: Since insecurity contributes to inefficiency, employees should have job security. If an employee feels safe in their employment, they will provide their best effort. It is the responsibility of management to provide job stability to its workers.
Initiative: Employees should be supported and encouraged to take initiative in the workplace by management. It will help in piquing their interest and increasing their value. All levels of staff should be encouraged to take initiative, with no restrictions on authority or discipline. an initiative provides employees with happiness while also bringing success to the company.
Esprit de Corps: Esprit de Corps is a french phrase that means team spirit. Management must consistently motivate and support their workers. A positive outcome and work environment can be achieved by developing trust and mutual understanding. Organizations should make an effort to develop team spirit, unity, and morale among their employees.