Introduction To Principles Of Management

Principal of Management


The Principles of Management are essential to learning Management. The principles underlie factors that form the basis of successful management. According to Henri Fayol who published his book General and Industrial Management in 1916 detailed there are 14 ‘Principles of Management.



1. Division Of Work – According to this principle of Management, the whole work is segmented into small tasks. The workforce has several sectors of specialization. The specialization includes the skills of a person. This subsequently creates specific personal and professional development within the labor force. Personal and professional development lead to productivity;  which in turn leads to specialization. Specialization in multiple sectors increases the efficiency of labor.

2. Authority And Responsibility – This is the issue of commands, which contains the consequences for regulation. Authority here refers to the right of a superior to exact orders to his subordinates. Responsibility means an obligation for delivering performance.

3. Discipline – Discipline means proper conduct in relation to others. Subordinates’ respect for authority can be used as an example of discipline. Discipline plays an important role in the smooth functioning of all organizations.

4. Unity Of Command – This principle states that each subordinate should receive orders and oblige one and only one superior. If an employee is accountable to more than one superior, it is likely to create confusion and conflict.

5. Unity Of Direction – All related activities should be categorized under one group. Employees can increase their productivity by following one plan of action for them. Employees should be under the control of one manager.

6. Subordination Of Individual Interest To Mutual Interest – In order for efficiency, the management must do away with personal considerations. They should put company objectives firstly. Therefore the interests of goals of the organization must be prioritized over the personal interests of individuals.

7. Remuneration – Workers must be paid satisfactorily. Wages are a chief motivation that drives employees and therefore greatly influences productivity. The quantum and methods of remuneration payable should be fair, reasonable, and rewarding of effort. 

8. The Degree Of Centralization – Despite the existence of central management, the amount of power depends on company size. Centralization is inclusive of the concentration of decision-making authority at the top management.

9. Line Of Authority/Scalar Chain – This Principle concerns the chain of superiors ranging from top management to the lowest rank. The principle suggests that there should be a clear line of authority from top to bottom relevant to all managers at all levels. 

10. Order – Social order is important for the fluid function of a company through the authoritative procedure. Material order is important for productivity and efficiency in the workplace. The order should be acceptable, complying with the rules of the company.

11. Equity – Employees must be treated with respect. And, justice must be enacted to ensure a just workplace. Managers should be fair and impartial in relation to employees, giving equal attention to all employees.

12. Stability Of Tenure Of Personnel – Stability of tenure of personnel is a principle stating that emphasizes the fluid function of an organization to run smoothly, personnel (especially managerial personnel) must not frequently enter and exit the organization.

13. Initiative – The initiative of employees can introduce strength and new ideas to an organization. Initiative on the part of employees works as a source of strength for the organization because it provides new and better ideas. Employees are likely to influence the functioning of the organization.

14. Esprit de Corps/Team Spirit – Managers can play an important role in ensuring and developing morale in the workplace; individually and communally. Team spirit ensures an atmosphere of mutual trust and understanding. Team spirit increases workplace productivity and boosts the workers’ morale


Fayol also detailed 6 primary functions of management. They work as supplementary to the Principles. The functions are:

1. Forecasting

2. Planning

3. Organizing

4. Commanding

5. Coordinating

6. Controlling

The functions of management have been discussed in detail below:


Forecasting is the process of examining the future and then making a plan of action.



This function is about making suitable plans of action. Planning plays the most crucial part in management. Active participation of the entire organization makes planning robust. Planning should be fixed in coordination with different levels.


This involves providing capital, personnel, and raw materials for successfully running the business. You will also have to build a framework to match the work. Organizational structure is relevant to the size of the workforce.


This is about making the optimization of return from all employees. A good manager would communicate clearly and enforce his judgments on regular audits. Clear knowledge of personnel builds trust and unity. In return, employees will reward you with loyalty. It reduces incompetence.



If implemented properly, coordination can unify and harmonize activities and efforts. It helps maintain the balance between the activities of the organization. The activities, for example, as in sales to production and procurement to production. 

Fayol suggested that weekly conferences for department heads are effective in solving problems.


This is about optimizing progress towards goal attainment set by a business.


To run an organization successfully, managers and superiors have to follow principles and employ rules and orders accordingly. The Principles of Management will sure increase the efficiency of your business. 



Last Updated on October 20, 2022 by Magalie D.

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