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General Principles of Management

The document outlines 14 general principles of management including division of work, authority, discipline, unity of command, remuneration, centralization, and esprit de corps. It provides details on each principle such as how division of work leads to increased specialization and output, the relationship between authority and responsibility, and how order, equity, and stability of personnel are important. The principles are presented as flexible tools for managers to effectively structure their organizations and manage employees.

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Aimelenne Jay Aninion
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103 views

General Principles of Management

The document outlines 14 general principles of management including division of work, authority, discipline, unity of command, remuneration, centralization, and esprit de corps. It provides details on each principle such as how division of work leads to increased specialization and output, the relationship between authority and responsibility, and how order, equity, and stability of personnel are important. The principles are presented as flexible tools for managers to effectively structure their organizations and manage employees.

Uploaded by

Aimelenne Jay Aninion
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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GENERAL PRINCIPLES OF MANAGEMENT

- The MANAGERIAL FUNCTION finds its only outlet through the members of the
organization
- Principles are flexible and capable of adaptation to every need; it is a matter of knowing
how to make use of them, which is a difficult art requiring intelligence, experience,
decision and proportion.
- There is no limit to the number of principles of management, every rule of managerial
procedure which strengthens the body corporate of facilitates its functioning has a place
among the principles so long, at least as experience confirms its worthiness.
We will review some 14 principles of management which I have most frequently had to apply:
 1. Division of work
 2. Authority
 3. Discipline
 4. Unity of command
 5. Unity of direction
 6. Subordination of individual interests to the general interest
 7. Remuneration
 8. Centralization
 9. Scalar Chain (line of authority)
 10. Order
 11. Equity
 12. Stability of tenure or personnel
 13. Initiative
 14. Esprit de corps

1. DIVISION OF WORK
- Specialization belongs to the natural order; it is observable in the animal world, where
the more highly developed the creature the more highly differentiated its organs; it is
observable in human societies, where the more important the body corporate the closer is the
relationship between structure and function.
- When employees are specialized, output can increase because they become
increasingly skilled and efficient.
- As society grows, so new organs develop destined to replace the single one performing
all functions in the primitive state.
THE OBJECTIVE OF DIVISION OF WORK
 is to produce more and better work with the same effort.
 The worker always on the same part, the manager concerned always with the same
matters, acquire an ability, sureness and accuracy which increase their output.
 Division of work permits of reduction in the number of objects to which attention and
effort must be directed and has objects to which attention and effort must be directed
and has been recognized as the best means of making use of individuals and groups of
people.

2. AUTHORITY AND RESPONSIBILITY


- Managers must have the authority to give orders, but they must also keep in mind
that with authority comes responsibility.
- is the right to give orders and the power to exact obedience.
- distinction must be made between a manager’s official authority deriving from office
and personal authority, compounded of intelligence, experience , moral
wealth, ability to lead, past services, etc.
- It is not to be conceived of apart from responsibility, which is apart from sanction –
reward or penalty – which goes with the exercise of power.
RESPONSIBILITY
- Is a corollary of authority, it is its natural consequence and essential counterpart, and
whosesoever authority is exercised responsibility arises.
- Valiantly undertaken and borne merits some consideration; it is kind of courage
everywhere much appreciated
3. DISCIPLINE
- is in essence obedience, application, energy, behavior and outward marks of respect
observed in accordance with the standing agreements between the firm and its
employees.
- being the outcome of different varying agreements naturally appears under the most
diverse forms; obligations of obedience; application, energy and behavior.
- In the matter of influence upon discipline, agreements must be set aside with
command.
“Discipline is what leaders make it.”

4. UNITY OF COMMAND
- for any action whatsoever, an employee should receive orders from one superior only.
- unity of command cannot exist without the unity of direction, but does not flow from
it.
5. UNITY OF DIRECTION
- this principle is expressed as: one head and one plan for a group of activities having the
same objective.
- it is provided for by sound organization of the body corporate, unity of command turns
on the functioning of the personnel.
“UNITY OF DIRECTION” (one head one plan) must not be confused with unity of command
(one employee to have orders from one superior only).

6. SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST


- this principle calls to mind the fact that in a business the interest of 1 employee or
group of employees should not prevail over that of the concern, that the interest of the home
should come before that of its members & that the interest of the State should have pride
over that of one citizen or group of citizens.
GREAT DIFFICULTIES OF MANAGEMENT. Means of effecting it are:
 Firmness and good example on the part of superiors
 Agreements as fair as is possible
 Constant supervision

7. REMUNERATION OF PERSONNEL
- Employees satisfaction depends on fair remuneration for everyone. This includes
financial and non- financial compensation
- is the price of services rendered.
- it should be fair, as far as is possible, afford satisfaction both to personnel and firm
(employee and employer).
What is generally looked for in the method of payment is that –
 It shall assure fair remuneration
 It shall encourage keenness by rewarding well-directed effort
 It shall not lead to over-payment going beyond reasonable limits

Workers
The various modes of payments in use of workers are –
 Time rates
o Under this system the workman sells the employer, in returns for a pre-
determined sum, a day’s work under definite conditions.
o This system has the disadvantage of conducing to NEGLIGENCE and of
DEMANDING CONSTANT SUPERVISION.
 Job rates
o Here payment made turns upon the execution of a definite job set in advance and
may be independent of the length of the job.
o When payment is due only on condition that the job be completed during the
normal work spell, this method merges into time rate.
o Payment by daily job does not require as close a supervision as payment by the
day.
 Piece rates
o Here payment is related to work done and there is NO LIMIT
o This system is often used in workshops where a large # of similar articles have to
be made.
o Generally, piece rates give rise to increased earnings which act for some time as a
stimulus.
The above 3 modes of payment are found in all large concerns; sometimes time rates prevail,
sometimes one of the other 2.

BONUSES
PROFIT-SHARING
 Workers
 Junior managers
 Higher managers

8. CENTRALIZATION
- this principle refers to how close employees are to the decision making process. It is
important to aim for an appropriate balance.
- like division of work, centralization belongs to the natural orders;
- It is not a system of management good or bad of itself, capable of being adopted or
discarded at the whim of managers or circumstances.

9. SCALAR CHAIN
- is the chain of superiors ranging from the ultimate authority to the lowest ranks.
- Employees should be aware of where they stand in the organization’s hierarchy, or
chain
of command.
- the line of authority is the route followed – via every link in the chain – by all
communication which start from or go to the ultimate authority.
- This path is dictated both by the need for some transmission and by the principle of
unity
of command, but it is not always the swiftest.

10. ORDER
- The workplace facilities must be clean, tidy and safe for employees. Everything should
have its place.
- The formula is the same for human order: a place for everyone and everyone in his
place
- a place for everything and everything in its place
* Material Order – In accordance with the preceding definition, so that the material
order
shall prevail, there must be a place appointed for each thing and each thing must
be in its appointed place.
* Social Order – For social order to prevail in a concern there must, in accordance with
the definition, be an appointed place for every employee and every employee be
in his appointed place.

11. EQUITY
- Managers should be fair to staff at all times, both maintaining discipline as necessary
and acting with kindness where appropriate.
- Managers should supervise and monitor the employees.
12. STABILITY OF TENURE OF PERSONNEL
- Managers should strive to minimize employee turnover, personnel planning should
be
a priority.
- TIME is required for an employee to get used to new work and succeed in doing it well,
always that he possesses the requisite abilities.
13. INITIATIVE
- Employees should be given the necessary level of freedom to create and carry out plan
- It encourages the employees to be involved and interested.

14. ESPRIT DE CORPS


- Organizations should strive to promote team spirit and unity.
- UNION is STRENGTH
- Managers are responsible for the development of morale in the workplace; individually
and in the area of communication.
- It contributes to the development of the culture and creates an atmosphere of mutual
trust and understanding.

CONCLUSION
The 14 Principles of management can be used to manage organizations
and are useful tools for forecasting, planning, process management,
organization management, decision making, coordination and control.

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