Decoding Principles of Management

Decoding Principles of Management

In any business, having competent management is essential who wishes to be productive and accomplish its aim. Without an authority, an organisation would have no concrete structure and very little focus on achieving the primary purpose.

In general, the functions of the management are divided into four parts – planning, organising, leading and controlling. Without principles of management, a company would face issues in achieving its purpose or even conceptualising the aims in the first place.

The main activities of the managers of an organisation are to look at budgeting, designing, creating, financing, selling, and accounting. These principles help them to segregate their work accurately and work towards achieving the goal efficiently.

One of the best examples of principles of management is a theory written by Henri Fayol. According to Henri Fayol principles of management theory, the management is divided into 14 principles.

The 14 principles are mentioned below.

  • Division of Work

  • Authority

  • Discipline

  • Unity of command

  • Unity of direction

  • Subordination individual interests to the collective interests

  • Remuneration

  • Centralization

  • Scalar chain

  • Order

  • Equity

  • Stability of tenure of personnel

  • Initiative

  • Morale

Everyone engaged in an organisation operation is influenced by management processes, policies, practices and principles. These 14 principles are incorporated within rules and regulations according to which management should preferably operate and understand management better.

Fayol’s 14 Principles is one of the earliest and comprehensive management theories to be designed and followed. He is considered as the most influential person who contributed significantly to the modern theory of management. However, today, people don’t refer to “The 14 Principles”.

The Importance of the Principles

  • The principles help in creating a clear managerial structure which is essential for any successful business.

  • Well-structured management establishes harmony amongst the rest of the employee.

  • Having a well-efficient supervisor sets an example for staff to follow.

  • It works as a reference and counselling for the management on how to control and manage a specific situation.

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