14 Principles of Management

1. The principle of ‘Division of Work’ means to divide a given

activity or work into small pieces or parts so that each part is handled with
great ease and efficiency.

This principle states that every work should be divided into the smallest
possible part and each such part is to be performed by an individual person
(laborer). Instead of assigning the whole work to an individual, it’s better to
assign one task to one person. Before assigning the task to anyone it must be
assured that he posses the required knowledge, skill, capability and will to
perform the task effectively and efficiently. If the same task is performed by a
person again and again he gains specialization in that task and can perform
with greater ease and minimizes wastage of resources and time.

Fayol has emphasized on this issue because specialization and minimization of

wastage is a key to success for each and every organization. He was of the view
that every work should be divided into the smallest possible part and then is to
be assigned to an individual to gain success and specialization. This principle
also guarantees specialization, efficiency and maximum production with
minimum time and least efforts.

2. One of the objectives of the management is to establish a sound

organizational structure and to do this, effective authority and responsibility
relationship should be created, i.e. Who is accountable to whom? Who are
superior and subordinate? Who can give orders? Whenever authority is used,
responsibility ensues (happen or occur afterwards as a result) . Authority is
the legal right to give the command, order or instruction and compel (oblige
someone to do something) the subordinates to do a certain act.

On the other hand, Responsibility is the outcome of authority. It entails the

obligation of the subordinate, who has been assigned the duty by his superior.

3. Discipline means obedience, respect for authority, and observance of

established rules.
 Fayol has emphasized that a sense of discipline should be present in all
employees of the organization at all level so that the organization can perform
and achieve its objectives in the best possible way.

For maintaining discipline in the organization managers should consider:

 Clear explanation of the rules;

 Effective supervision;
 Reward system on better obedience;
 Possible provision for penalty on non obedience.

A sense of discipline is needed in all employees at all level in the organization

for the smooth functioning of the organization as well as the achievement of the
organizational objectives. Some employees inherently possess this quality but
some employees need to be induced with the sense of discipline, and the
manager must give proper attention to this type of individuals to maintain and
improve discipline in the organization.

Top level managers and officers are greatly responsible for maintaining discipline in the organization and
for this first of all they have to strictly accept the rules of the organization and follow them so that other
employees get encouraged to accept and follow the rules

4. Unity of command:

Unity of Command means getting orders/ command from only one supervisor.

Fayol has stated “As soon as two superiors impose their authority over the
same person or department, uneasiness makes itself felt. Dual command is a
perpetual source of conflict.”

This principle states that an individual should get orders from a single superior so that he does not get
confused and can discharge his duties effectively.
This principle advocates that only one boss should give order to an individual
so that he can understand what to do and can perform systematically with
greater efficiency. If more than one boss will instruct an individual, he will
certainly get confused about his responsibility and will not be able to perform
even a single activity because he faces the dilemma of “whom should he
follow?”

In case of more than one boss, problem of ego clash between the bosses arises
because every superior wants his orders to be executed by his subordinate.
This problem of ego clash also causes conflicting situation in the organization,
which hampers the organization growth.

5. Unity of direction:

Unity of direction principle can lead all the members of the organization towards the
objectives of the organization or towards a common goal.
Single head, single plan concept highly reduces the confusions in the employees about
what they have to do? How much have to contribute? To whom they should report? Unity
of direction enables organizations to face threats and challenges efficiently due to the
strength of employee’s contribution towards the common goal.
This management principle of the 14 principles of management is all about focus and unity. All
employees deliver the same activities that can be linked to the same objectives. All activities
must be carried out by one group that forms a team. These activities must be described in a
plan of action. The manager is ultimately responsible for this plan and he monitors the progress
of the defined and planned activities. Focus areas are the efforts made by the employees and
coordination.
This principle advocates that only one boss should give order to an individual
so that he can understand what to do and can perform systematically with
greater efficiency. If more than one boss will instruct an individual, he will
certainly get confused about his responsibility and will not be able to perform
even a single activity because he faces the dilemma of “whom should he
follow?”

In case of more than one boss, problem of ego clash between the bosses arises
because every superior wants his orders to be executed by his subordinate.
This problem of ego clash also causes conflicting situation in the organization,
which hampers the organization growth.

7. Remunerization

 Fayol is of the view that each employee must get fair remuneration so that
the employee as well as the owner gets the same amount of satisfaction. The
remuneration system must be such which provides for the adequate
remuneration to the employees, motivates the employee to perform better,
and may ensure safety & security, raise standard of living of the employees.
 It creates good relation between workers and management;
 Employees get motivated;
 It declines the labor turnover rate;
 Employees feel satisfied with their wages and thus contribute their
best effort;
 It raises the standard of living of the employees; and
 It develops the society indirectly

8. ESPIRIT DE CORPS' here means team spirit and team work. This principle
emphasizes on team work. 'UNITY IS STRENGTH' is the essence of this
principle. Fayol suggested that there should be a team spirit in the
organization and all the employees must consider themselves as member of the
organization.

The organization should be considered as a team and all the employees as its
member. When the employees are considered as member, it develops a feeling
of belongingness among them and thus each of them contributes to the
achievement of the organizational goal. This sense of togetherness helps the
employees to perform with greater efficiency and positive attitude towards the
work.
9. INITIATIVES

According to Fayol , under this principle, successful management provides an opportunity to

its employees to suggest new ideas, experiences and more convenient methods of work. Fayol
believed that employees should be encouraged to take the initiative in the work assigned to
them.

10. Scalar chain is the formal line of authority which moves from highest to lowest rank in a
straight line. This chain specifies the route through which the information is to be communicated
to the desired location/person.

11. ORDER

Here the word Order does not mean any command but is used in different
context. “Order” means right arrangement of things and activities.

This principle states that there should be a proper order for everything. Fayol is
of the view that in every organization there should be a fixed place for
everything to facilitate smooth working and avoid wastage of resources.

According to Fayol in every organization two different orders are necessary.

Material Order: This order specifies that there should be a proper place for all
physical resources. It states “A proper place for everything and everything at its
proper place”. This will eliminate any kind of confusion regarding the search of
material as the place of materials is already fixed and thus reduces wastage of
material, time and efforts.

Social order: This order specifies that there should be a proper place for all
human resources in accordance with their designations. It states “An
appointed place for every employee and each employee at his/her appointed
place”. This order is based on the basic assumption of “Right man for the right
job”