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PRINCIPLES OF MANAGEMENT
MEANING & Nature of PRINCIPLES OF management
Principles of management are fundamental truths that explain the relationship between two or more variables
under given situations. These principles establish relationship between causes and their effects. Management
principles provide guidelines for managerial decision-making and action. These are helpful in predicting and
understanding the results of managerial actions. However, management principles are not as exact as the
principles of physical sciences because management is a social science. These principles are flexible and can be
modified to suit different situations.

Followings are the Nature (Features/ Characteristics)

1. Universality: Principles of management are fundamental statements of truth having universal validity. These
principles can be applied in different types of organisations, e.g., business, Government, hospital, army,
university, etc. The basic task of every manager is the same, i.e., to get the desired results through effective
coordination of human and physical resources. Therefore, principles of management may be used by managers
in different organisations and at different levels of authority. Management principles are universal in the sense
that these principles can be applied in different managerial situations.
2. Dynamism or Flexibility: Principles of management are not rigid but flexible and dynamic in nature. These
principles can be modified to suit different situations and all kinds of changes in the business environment.
According to Henri Fayol, “Principles of management are not absolute and must be utilised in the light of
changing and special conditions. Rarely does one have to apply the same principle twice in identical conditions”.
3. Influencing Human Behaviour: Management is a social science and it deals with human behaviour. Human
behaviour is complex and cannot be tested under controlled laboratory conditions. Therefore, principles of
management are not as exact as the principles of physical sciences (e.g., physics, chemistry, etc.). Management
principles are directed towards influencing human behaviour for getting the best possible results.
4. Contingent: The principles of management are relative and not absolute. These principles should be applied
carefully according to organisational needs and prevalent situations. They are contingent or dependent on the
prevailing situation.
5. Cause and Effect Relationship: Principles of management indicate cause and effect relationship between
two or more variables. These principles are used to solve different managerial problems with the help of
observations, analysis and experience.
6. Equal Importance: All the principles of management are equally important. These principles may be used
with equal efficiency by the managers at different levels of authority.

NEED FOR PRINCIPLES OF MANAGEMENT

1. To increase efficiency: Principles of management have been developed from experiences of various experts.
These principles provide necessary guidelines to managers as to how they should function in different situations
to obtain the best results. Principles of management help to improve managerial efficiency. These principles
enable managers to solve problems in a methodical way without wasting time and effort in trial and error.
With the help of principles managers can avoid certain mistakes. Management principles help to improve the art
of management by suggesting how things should be done to get good results.
2. To crystallise the true nature of management: Knowledge and understanding of the principles and concepts
of management makes it easier to describe and analyse the true nature of management. In the absence of
principles, it would not have been possible to develop a scientific and organised body of knowledge in
management. Fundamental principles and basic concepts have helped to develop the science of management.
3. To train managers: In the absence of principles, the training of managers depends upon trial-and-error method.
Formal methods of training managers in institutes and universities are possible only when there are fundamental
principles and concepts. Principles of management provide a conceptual framework for scientific and systematic
training and development of managers.

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4. To improve research: Growing popularity and utility of management principles have attracted experts towards
their study and analysis. Principles of management have helped in expanding the horizon of knowledge in
management. These principles have served as the basis for further research and growth in management.
Management principles provide new ideas, vision and imagination for conducting research studies in
management.
5. To attain social goals: Principles of management enable managers to make optimum use of human and
material resources. The supply of quality goods at reasonable prices improves social welfare. Managers
coordinate the efforts of people so that individual objectives get translated into social attainments. Efficient use
of resources helps to improve the quality of life and progress of the society. All type of waste is reduced.
Management principles help in achieving cooperation among people to achieve the desired results. Spirit of
cooperation increases harmony in society.
6. To clarify thinking: Principles of management make the thinking of managers clearer and systematic. A new
manager can understand the nature of management with the help of these principles.
7. To spread knowledge: Principles of management are useful in spreading managerial knowledge through
teaching. These principles constitute an organised body of knowledge which is taught in management
institutions and business schools. Management education and management protection have made rapid
progress due to management principles.
8. To evaluate managerial behaviour: Principles of management prescribe what one should do to manage
things in a given situation. These principles attempt to prescribe and evaluate the behaviour of managers.

Taylor’s scienTific principles of Management

1. Science not Rule of Thumb: Each and every job and the method of doing it should be based on scientific
study and analysis rather than on trial and error. The task to be performed should be scientifically
planned. The materials, equipment and working condition should be standardised. The amount of work
to be done should be decided through objective study.
2. Harmony not Discord: There should be healthy cooperation between employer and employees. Taylor
advocated a complete mental resolution on the part of both management and workers. Management
should adopt an enlightened attitude and share the gains of productivity with workers. Workers on their
part should work with discipline and loyalty.
3. Maximum not Restricted Output: Conflict between management and workers arises mainly on division
of surplus. Taylor suggested that the best way to resolve the conflict is to increase the size of surplus so
that each side can have a larger share. Management and workers have a common interest in increasing
productivity.
4. Division of Work and Responsibility: Taylor suggested separation of planning from operational work.
Management should concentrate on planning the job of workers and workers should concentrate on
performance of work.
5. Scientific Selection, Training and Development of Workers: Workers should be selected and trained
keeping in view the job requirements. Each and every worker should be encouraged to develop his full
potential.
6. Standardisation: The tools, equipment, work methods and working conditions must be standardised so
as to improve efficiency and quality.
7. Mental Revolution: Taylor suggested a basic change in attitudes on the part of both employers and
employees. Employers should consider employees as partners in industry. Similarly, employees must
treat employer as their father figure and well-wisher.

F.W. Taylor, an American, laid the foundations of management as a science consisting of fundamental principles.
He was the first expert to suggest the use of scientific methods of measurement and study for solving managerial
problems. Therefore, Taylor is known as the “father of scientific management”.

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fayol’s principles of ManageMenT
1. Division of work: Division of work means division of the total task into compact jobs and allocating these compact
jobs to different persons so that an employee can concentrate on only one type of work. It helps to improve
efficiency by avoiding wastage of time and effort caused by change from one type of work to another. When an
individual does the same job repeatedly, he acquires speed and accuracy in performance. Division of work is
applicable to all kinds of work, technical as well as managerial.
Violating this principle leads to the following adverse effects.
(a) Lack of efficiency.
(b) Lack of specialisation.
(c) Duplication of work.
2. Authority and responsibility: Authority is the right to get work done from others and responsibility is the
obligation to perform the assigned task. Anyone who exercises authority must accept responsibility for his work.
Similarly, one who is held responsible should be given the necessary authority. Authority without responsibility
leads to irresponsible behaviour while responsibility without authority will make a person ineffective.
Therefore, there should be parity between authority and responsibility.
Violating this principle leads to the following adverse effects.
(a) Delay in work due to less authority.
(b) Misuse of authority.
(c) Overburden with only responsibility.
3. Discipline: Discipline implies obedience, respect of authority and observance of the established rules and
regulations. Discipline is essential for the smooth running of every organisation. According to Fayol, good
supervision at all levels, clear and fair rules and built-in system of penalties will help to maintain discipline.
Violating this principle leads to the following adverse effects.
(a) Disorder and Confusion
(b) Wastage of resources
(c) Delay in work or incomplete work.
4. Unity of command: According to this principle an employee should receive orders from one superior only and
be accountable to him. No person can serve several masters at the same time. If a subordinate has more than
one boss, dual command will undermine authority, weaken discipline, divide loyalty and create confusion, delays,
etc. Principle of unity of command is very relevant in large and modern organisations as it helps in smooth working
of people.
Violating this principle leads to the following adverse effects.
(a) Overlapping of orders and instructions.
(b) Confusion and indiscipline.
(c) Duplication of work.
5. Unity of direction: There should be one head and one plan for a group of activities having the same objective.
In other words, each group of activities with the same objective must have one plan of action and must be under
the control of one superior. Without unity of direction, unity of action and coordination of efforts are not possible.
Violating this principle leads to the following adverse effects.
(a) Lack of Co-ordination
(b) Wastage of resources

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6. Subordination of individual interest to general interest: An organisation is bigger than an individual.
Therefore, the interests or goals of the organisation must prevail upon the personal interests of individuals.
Constant supervision is necessary to prevent promotion of personal interests at the cost of the organisation. In
order to achieve subordination of individual interest to common interest, it is necessary that employees are
honest, sincere and loyal. Mutual differences and clash of interests can be reconciled through mutual agreement.
Violating this principle leads to the following adverse effects.
(a) Employees will also suffer in the long run
(b) Difficulties in achieving organisational goals
7. Remuneration: The remuneration payable to workers must be fair, reasonable and satisfactory both to the
employees and the employer. It must reward effort so as to motivate higher productivity. The amount of
remuneration and the method of wage payment should both be fair and rewarding.
Violating this principle leads to the following adverse effects.
(a) Increase in Employee Turnover.
(b) Dissatisfaction among the employees.
8. Centralisation: According to Fayol, everything that increases the importance of subordinates’ role is
decentralisation and everything that reduces it is centralisation. Centralisation and decentralisation is a matter of
proportion and the right proportion between them should be decided keeping in view the circumstances of the
particular case. There should be a proper balance between centralisation and decentralisation.
Violating this principle leads to the following adverse effects.
(a) Complete Centralisation leads to delayed decisions.
(b) Complete Decentralisation leads to misuse of authority.

9. Scalar chain: It refers to the chain of superiors ranging from the ultimate authority (top) to the lowest rank
(bottom). Normally, the prescribed chain of command should be followed and communications should flow
through the established chain of command. However, to facilitate quick communication
between two links in the chain, a gang plank (direct contact) may be created.
A gang plank represented by the dotted line between F and M may be created to avoid delays
and difficulties in communication. Gang plank should not, however, be a normal practice because
it undermines the established lines of authority. Moreover, F and M should inform their
respective superiors about the direct communication among them. The idea of gang plank
indicates that principles of management are general and flexible guidelines rather than hard and
fast laws.
Violating this principle leads to the following adverse effects.
(a) There may be communication gap.
(b) No clarity in authority responsibility relationship.
10. Order: There must be material and social order in an enterprise. Material order implies “a proper place for
everything and everything in its right place”. Similarly, social order means “a place for everyone and everyone
in his appointed place”. The right man in the right job is very important for the successful functioning of an
organisation.
Violation of the principle of order causes the following adverse effects:
(a) Confusion and chaos in the organisation
(b) Wastage of resources
(c) Increase in cost of operations

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11. Equity: Management should treat the employees with justice and kindness. There should be equity of treatment
in dealing with subordinates and no discrimination should be made between them. Nepotism and favouritism
should not exist as these are injurious to the motivation and morale of employees.
Violation of this principle causes the following adverse effects:
(a) Dissatisfaction among employees.
(b) Increase in turnover.

12. Stability of tenure: It takes time to learn and get used to a job. Therefore, a reasonable security of service should
be provided to all employees. Stability of tenure helps to develop loyalty and attachment on the part of
employees. Unnecessary labour turnover or change of personnel increases cost of selection and training and spoils
the image of the firm.
Violation of this principle causes the following adverse effects:
(a) A feeling of insecurity among employees.
(b) Reduction in the efficiency of employees.
(c) Disturbance in work routine.

13. Initiative: Employees at all levels should be encouraged to think out of the box and execute the assigned tasks in
a better way. Initiative is a source of strength for an organisation. Therefore, subordinates should be inspired to
suggest improvements in the formulation and implementation of plans.
Violating this principle leads to the following adverse effects.
(a) Employees will not work to the best of their abilities.
(b) Demotivation among employees.

14. Esprit de corps: There must be team spirit and cooperation among the members of an organisation. ‘Unity of
strength’ and the strength of an enterprise lies in the cooperation and harmony in individual efforts. Group efforts
are more than the aggregate of individual contributions on account of esprit de corps. Strong motivation,
recognition of contributions made by employees, mutual cooperation, constructive approach by managers and
effective coordination help to achieve espirit de corps in an organisation.
Violating this principle leads to the following adverse effects.
(a) Team goals may not be achieved.
(b) It can lead to individualism.

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