1.

Division of Work

Specialization allows workers to focus on a specific task, increasing skill and efficiency. By
breaking complex tasks into smaller, manageable parts, each worker or team becomes
proficient, reducing time and errors. In large-scale industries like Ford's production line, each
worker performs a specific job, ensuring higher productivity and quality.

2. Authority and Responsibility

Authority must be balanced with responsibility. Managers should have the right to give orders
but must also be held accountable for outcomes. If authority is given without responsibility,
chaos ensues. In companies like IBM, managers are empowered to make decisions but are also
responsible for meeting targets and goals.

3. Discipline

Discipline ensures that employees follow organizational rules and guidelines. Without discipline,
projects can go off track, and quality standards may suffer. For example, in manufacturing
industries like Samsung, strict adherence to production protocols ensures product quality and
efficiency, reducing the likelihood of defects or delays.

4. Unity of Command

Employees should report to only one superior to avoid conflicting instructions. When multiple
bosses give directions, it leads to confusion and inefficiency. In a large construction project, a
worker assigned to both a project manager and a site supervisor may face conflicting priorities,
hindering productivity.

5. Unity of Direction

All teams working toward the same objective should follow a single plan under one leader. This
principle ensures coordination and prevents overlapping efforts. For instance, in the
pharmaceutical industry, when developing a new drug, various departments (R&D, marketing,
production) work together under a unified direction.

6. Subordination of Individual Interests to the General Interest

Organizational interests should always come before personal interests. This prevents
employees from prioritizing their own goals over the company's. For example, at a tech
company like Google, personal projects or ambitions are secondary to larger product
development goals, ensuring team efforts align with corporate strategies.

7. Remuneration

Fair compensation motivates employees and ensures loyalty. If workers feel underpaid, it leads
to dissatisfaction and reduced productivity. In large corporations like Amazon, employees are
compensated through a combination of salaries, bonuses, and stock options, ensuring they are
rewarded for their contributions and remain engaged.
8. Centralization and Decentralization

A balance between centralized decision-making and decentralization enhances efficiency. While

centralization ensures uniformity, decentralization allows flexibility. Large firms like Coca-Cola
adopt centralized control over global branding but decentralize local marketing efforts to cater to
regional preferences, ensuring both standardization and adaptability.

9. Scalar Chain (Line of Authority)

A clear line of authority from top management to the lowest level ensures organized
communication and decision-making. In industries like aerospace (e.g., Boeing), maintaining a
structured hierarchy ensures that decisions are effectively communicated, and responsibilities
are clear, minimizing confusion and miscommunication.

10. Order

Ensuring that resources and personnel are in the right place at the right time increases
efficiency. In industries like logistics (e.g., DHL), proper inventory management, order tracking,
and resource allocation ensure that operations run smoothly, reducing delays and improving
service delivery to clients.

11. Equity

Managers must treat employees with kindness and fairness, which fosters loyalty and improves
morale. In companies like Unilever, equitable treatment, irrespective of rank or role, creates a
culture of respect and fairness, leading to higher employee satisfaction and productivity,
reducing turnover rates.

12. Stability of Tenure of Personnel

Stable employment fosters experience and loyalty. High turnover leads to inefficiencies and
increased costs. Large corporations like Tata Motors invest in employee retention through
training, development programs, and job security, ensuring that experienced workers remain
within the organization, enhancing overall productivity.

13. Initiative

Encouraging employees to take initiative leads to innovation and problem-solving. Workers who
are allowed to propose ideas feel more invested in the company's success. For example,
Google allows employees time to work on personal projects, which has resulted in innovative
products like Gmail, driving the company’s success.

14. Esprit de Corps (Team Spirit)

Promoting teamwork and a sense of belonging creates a motivated workforce. Employees

working together towards a common goal are more likely to achieve success. Tesla fosters a
collaborative culture where engineers, designers, and managers share a common vision, driving
innovation and accelerating product development.

15. Adaptability and Flexibility

Large industries must be adaptable to changing environments and market demands. Flexibility
allows companies to respond to new challenges quickly. In the FMCG sector, companies like
Nestlé continuously adjust product offerings, marketing strategies, and distribution channels to
meet evolving consumer preferences and market conditions.

16. Continuous Improvement (Kaizen)

Continuous improvement involves the regular refinement of processes, products, and services.
This philosophy fosters innovation and efficiency. In Toyota's production system, small,
incremental improvements (Kaizen) made by workers at every level contribute to overall quality
enhancements, reduced waste, and increased efficiency over time.

17. Customer Orientation

A customer-focused approach ensures long-term success. Understanding and responding to

customer needs lead to improved satisfaction and loyalty. In industries like retail (e.g., Walmart),
constant feedback collection and adaptation of products and services ensure that customer
expectations are met, resulting in repeat business.

18. Effective Communication

Clear and consistent communication within an organization helps align goals and avoid
misunderstandings. At Microsoft, open communication channels across teams and departments
ensure that global operations, product development, and marketing efforts are aligned, fostering
collaboration and achieving common objectives efficiently.

19. Technological Integration

Integrating the latest technology helps large-scale industries stay competitive by improving
efficiency and reducing costs. In logistics companies like FedEx, technology integration—such
as automation, GPS tracking, and AI-based route optimization—has streamlined operations,
ensuring faster, more reliable deliveries at lower costs.

20. Corporate Social Responsibility (CSR)

CSR encourages companies to act ethically and contribute to the well-being of society and the
environment. Large industries like Shell invest in CSR initiatives, such as sustainable energy
projects and community support programs, not only to enhance public image but also to
contribute positively to society while ensuring regulatory compliance.