Principles Of Management | Management Principles And Applications | Management Skills | Simplilearn
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The principles of management were developed by Henry Fayol and provide universal rules for managers to effectively run organizations. There are 14 key principles including division of work, where each employee is assigned specialized tasks; authority and responsibility, where authority must come with accountability; and unity of command, where each employee should report to one supervisor.
Principles Of Management | Management Principles And Applications | Management Skills | Simplilearn
- 2. Principles of management are the universal rules which enable managers to decide what should be done to accomplish given tasks and to run organization efficiently.
- 3. The principles of management were given by Henry Fayol. His management theory is a simple model of how management interacts with human resources. Sir Henry Fayol French Mining Engineer and Economist
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- 5. 14 Principles of Management
- 6. What MBA topics would you like us to cover in our upcoming videos? Top 5 MBA Specializations
- 8. Division of Work Assign each employee a task in which they could excel. Employees' productivity improves as they become more skilled, and confident.
- 9. Division of Work If you want to develop software solution, then assigning the whole product task to one developer will be totally unfavorable. Software Developer
- 10. Division of Work Hence, organizations should delegate the entire project to the whole developer team rather than a single expert. Software Developer Team
- 12. Authority and Responsibility Managers must have the authority to issue commands and understand that with authority thereby comes responsibility.
- 13. Authority and Responsibility Responsibility and authority go hand in hand. Authority denotes the right to issue commands, whereas responsibility denotes accountability for the obligations delegated to the person. Authority Responsibility
- 14. Discipline 3
- 15. Discipline Every employee is required to respect the organizational norms and the terms of the employment agreement. Managers must also verify that everyone follows the rules.
- 17. Unity of Command According to Fayol, "an employee should only receive commands from one supervisor." Authority, discipline, order, and stability are jeopardized otherwise.
- 19. Teams with the same goal should work under the guidance of a single manager and with a single strategy. Unity of Direction
- 20. Unity of Direction The concept of unity of direction implies that there should be only one management in charge of all activities with the same goal. Manufacturing Company Bike Production Car Production
- 21. Subordination of Individual Interest to General Interest 6
- 22. Subordination of Individual Interest to General Interest The interests of the organization should take precedence over the interests of individual employees and every employee must pursue the team’s interest over his own.
- 23. Remuneration 7
- 24. Remuneration Fayol believes that employees should be fairly compensated so that both employees and owners are satisfied. And it is the manager's responsibility to guarantee that employees are compensated appropriately for their efforts.
- 25. Remuneration Assume that the sales are rising steadily and that the company is making a profit. In such case, the employees' pay should be increased even without their asking.
- 26. Remuneration Assume that the sales are rising steadily and that the company is making a profit. In such case, the employees' pay should be increased even without their asking.
- 28. Centralization & Decentralization Centralization is when the leadership team preserves authority. Decentralization occurs when authority is delegated at all levels. i.e., Subordinates can take decisions.
- 29. Centralization & Decentralization It is advantageous to have more centralization in a small business unit and more decentralization in a large scale business unit. Operational Policies Executive level decisions
- 30. Scalar Chain 9
- 31. Scalar Chain Employees should be aware of their position in the organization's hierarchy and who to contact within a chain of command.
- 32. Scalar Chain Popular companies like Samsung and others have the scalar chain set to a dot.
- 33. Scalar Chain Customer Service Operative Local Manager Regional Manager Popular companies like Samsung and others have the scalar chain set to a dot.
- 34. Order 10
- 35. Order According to Fayol, every firm should have two orders: one for physical resources and one for human resources.
- 36. Equity 11
- 37. Equity 11 This principle suggests that managers should treat their employees fairly and with kindness for them to acquire a sense of dedication and attachment to their work.
- 39. Stability of Personnel According to Henri Fayol, if an organization's personnel are steady, it has a better chance of growing faster. If the organization has a high attrition rate, a lot of time will be wasted on training and development.
- 40. Initiative 13
- 41. Initiative It is the manager's responsibility to encourage his employees to take initiative in accomplishing work or making decisions, but only within the bounds of authority and discipline.
- 42. Initiative Google, Apple, and Facebook are just a few of the organizations that have successfully incorporated this approach as one of the 14 management principles. Google Facebook Apple
- 44. Esprit de Corps A feeling of pride and mutual allegiance shared by members of a group is known as esprit de corps. That is precisely what you must strive towards if you want to achieve success.