Tag: Principles

  • Principles of Organization

    Principles of Organization


    First, we will understand What is an Organization? Just same knowledge remembering for more understandable How to Principles of Organization use it or work it in your organization employees.

    “An organized group of people with a particular purpose, such as a business or government department.”

    “The action of organizing something. The quality of being systematic and efficient.”

    “The way in which the elements of a whole are arranged.”

    Here are Principles of Organization


    The principle of definition: Defining and fixing the duties, responsibilities, and authority of each worker. In addition, when a group of persons is working together for a common goal, it becomes necessary to define the relationship between them in clear terms.

    The principle of objective: The activities at all levels of organization structure should be geared to achieve the main objectives of the organization.

    The principle of specialization or division of work: It includes deciding and division of various activities required to achieve the objectives of an organization. Identical activities are grouped under one individual or one department. In order to ensure effective performance, the grouped activities are allotted to specified competent persons, specialized in their fields. Adequate staff members are appointed by them and are appropriately trained.

    The principle of coordination: Coordination must exist among the workers. The delegated authority and responsibility should be coordinated by the chief managerial staff. There must be a separate and responsible person to see whether all the activities are going on to accomplish the objectives of the organization or not.

    The principle of authority: Assignment of duties or allotment of duties to specified persons is followed by the delegation of authority. While delegating authority, responsibility is also fixed. The senior members should delegate the authority to their subordinates on the basis of their ability. The subordinates are motivated through the delegation of authority and they perform the work efficiently with responsibility.

    The principle of responsibility: Each person is responsible for the work completed by him. Authority is delegated from the top level to the bottom level but the responsibility can be delegated to some extent. While delegating the authority, there is no need to delegate the responsibility. So, the responsibility of the junior staff members should be clearly defined.

    The principle of explanation: While allocating duties to persons, the extent of liabilities of the person should be clearly explained to the concerned person. It will enable the person to accept the authority and discharge his duties efficiently.

    The principle of efficiency: Each work can be completed efficiently wherever the environment, as well as the organizational structure, facilitates the completion of work. The work should be completed with minimum members, in less time, with minimum resources and within the right time.

    The principle of uniformity: The organization should distribute the work in such a way that there should be an equal status and equal authority and powers among the same line officers.

    The principle of correspondence: Authority and responsibility should be in parity with each other. If authority alone is delegated without responsibility, it could be misused. Secondly, if responsibility is delegated without authority, it will not work.

    The principle of the unity of command: A subordinate should receive the instructions or directions only from one superior.

    The principle of balance: Sequence of work between various units of the organization should be arranged scientifically.

    The principle of equilibrium: In certain periods, some departments are overloaded and some are under loaded. The overloaded departments should be further divided into subsections. This would facilitate effective control.

    The principle of continuity: There should be reoperation of objectives, readjustment of plants and provision of opportunities for the development of future management.

    The principle of the span of control: It refers to the maximum number of members effectively supervised by a single individual. In the administration area, under one executive, four or five subordinates may work. In the factory level, under one supervisor, twenty or twenty five workers may work. The span of control enables smooth functioning of the organization.

    The principle of leadership facilitation: The organizational set up may be arranged in such a way that the persons with leadership qualities such as honesty, devotion, enthusiasm, and inspiration are appointed in key positions.

    The principle of exception: The junior officers should be disturbed by the seniors only when the work is not done according to the plans laid down. It automatically reduces the work of middle level as well as top level officers. The top level officers will have more time to frame policies and chalk out the plans of the organization.

    The principle of flexibility: The organizational set up must be flexible to adjust to the changing environment of the business.

    The Scalar principle: The line of authority flows from the top level to bottom level. It also establishes the line of communication. Each person has to know as to who is his superior, from whom he has to receive orders, and to whom he is answerable. Each superior must know what authority he has and over which persons.

    The principle of simplicity and homogeneity: The organization structure should be simple. It enables the staff members to maintain equality and homogeneity. It is necessary to understand a person who is working in the organization. If the organization structure is complex, junior officers will not understand the level and the extent of responsibility for a particular activity.

    The principle of unity in direction: The major plan is sub-divided into sub-plans which are taken by groups or departments. All these groups have to cooperate to attain the main objectives by implementing a major plan.

    The principle of joint decisions: In the business organization, there are a number of decisions taken by the officers to run the business. If a complicated problem arises, more than one member examines the problems and takes decisions. Whenever the decision is taken jointly, it gives a benefit for a long period.

    Notes: Here are you have read it Principles of Organization. And, Maybe You will read it; The definitions of all the seven Processes of Scientific Management; Planning, Organizing, Staffing, Directing, Coordinating, Motivating, Controlling. You will be reading this post about; What are Functions of Organization, do you read it about Organization.

  • 14 Principles of Management by Henri Fayol

    14 Principles of Management by Henri Fayol

    Explain, What is 14 Principles of Management by Henri Fayol?


    Meaning; Business administration is the management of a business. It includes all aspects of overseeing and supervising business operations and related field which include Accounting, Finance, and Marketing. Management consists of the interlocking functions of creating corporate policy and organizing, planning, controlling, and directing an organization’s resources in order to achieve the objectives of that policy. Definition of Management “To manage is to forecast and to plan, to organize to command, to coordinate and to control; by Henri Fayol.” Read Many Definition of Management. Also learn, 14 Principles of Organization, 14 Principles of Management by Henri Fayol!

    Following the 14 Principles of Management by Henri Fayol are:

    • Division of Work: Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive.
    • Authority: The right to issue commands, along with which must go the balanced responsibility for its function.
    • Discipline: Employees must obey, but this is two-sided employees will only obey orders if management plays their part by providing good leadership.
    • Unity of Command: Each worker should have only one boss with no other conflicting lines of command.
    • Unity of Direction: People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it.
    • Subordination of individual interest (to the general interest): Management must see that the goals of the firms are always paramount.
    • Remuneration: Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect system.
    • Centralization & Decentralization: This is a matter of degree depending on the condition of the business and the quality of its personnel.
    • Scalar chain & Line of Authority: A hierarchy is necessary for the unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place. Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not over-stretch and consist of too many levels.
    • Order: Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieving through organization and selection.
    • Equity: In running a business a ‘combination of kindliness and justice’ is needed. Treating employees well is important to achieve equity.
    • Stability of Tenure of Personnel: Employees work better if job security and career progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely.
    • Initiative: Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of ‘personal vanity’ on the part of many managers.
    • Esprit de Corps: Management must foster the morale of its employees. He further suggests that: “real talent’s need to coordinate the effort, encourage keenness, use each person’s abilities, and reward each one’s merit without arousing possible jealousies and disturbing harmonious relations.”
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