MARYAM ABACHA AMERICAN UNIVERSITY OF

NIGERIA
FACULTY OF SOCIAL AND MANAGEMENT
SCIENCES
DEPARTMENT OF BUSINESS ADMINISTRATION

Dr Mukhtar Salisu Abubakar

AMS1203 Principles of Management
Topic: Meaning, Scope, and Nature of
Management
 Introduction
 An introduction to Management
 Management is a multifaceted concept at the core of any
successful organisation. It encompasses planning, organising,
directing, and controlling resources, be it human, financial,
physical, or informational, towards the achievement of
organisational goals.
 Additionally, the process involves establishing clear objectives,
devising strategies, organising tasks, delegating authority,
communicating with and motivating the workforce, controlling
operations, and implementing changes when required.
 More importantly, Management isn't just about getting things
done; it's about getting them done efficiently and effectively.
This includes making the best use of resources, minimising
waste, and seeking continual improvement. The core of good
Management lies in coordinating the efforts of people to
accomplish objectives and goals using available resources
Exploring the many Principles of Management

 Principles of Management provide a guideline

for organisational behaviour and efficiency.
Proposed by the French Engineer Henri Fayol,
these principles ensure harmony, productivity,
and successful organisational operation. Here
is a list of the 14 Principles of Management,
described in detail as follows
1) Division of work
The principle of Division of Work, rooted
in Management theory, implies that tasks should be
divided into smaller parts, and each part assigned to
a specialist. This division leads to increased
productivity and efficiency, as each employee
becomes an expert in their designated field,
reducing the time spent on tasks and enhancing the
quality of work.
Additionally, this division allows for a clear
understanding of roles and responsibilities within the
organisation, fostering accountability and reducing
2) Authority and responsibility
The principle of Authority and Responsibility refers
to the correlation between the power given to
individuals and the duties they are expected to
perform. In any organisation, authority is the right to
give orders, make decisions, and enforce
obedience.
On the other hand, responsibility implies
accountability for the tasks assigned. They are two
sides of the same coin: with authority comes the
responsibility to utilise it appropriately and carry out
duties effectively. Balancing authority and
3) Discipline
Discipline, in the context of Management principles, is
about fostering a culture of adhering to the agreed set
of rules, regulations, and norms within an organisation.
It is essential for maintaining order and respect among
the employees.
Additionally, discipline isn't just about compliance; it
also represents a commitment to the organisation's
goals and values. It implies that employees respect
agreements, meet deadlines, and work efficiently to
fulfil their responsibilities.
More importantly, a disciplined workforce is often more
productive, harmonious, and cooperative. Therefore,
4) Unity of command
The Unity of Command principle in Management
refers to the concept that an employee should
receive instructions from one superior only. This
principle is crucial to avoid confusion, manage
conflicts, and eliminate indecisiveness within the
organisation. Having one direct superior eliminates
the potential for contradictory commands and
differing expectations, leading to increased
efficiency and clarity of responsibilities.
Moreover, it ensures a clear line of communication,
authority, and accountability. Unity of Command
streamlines the organisational hierarchy, enables
5) Unity of direction
Unity of Direction, a key Management principle, suggests that
there should be one head and one plan for a group of activities
with the same objective. In essence, it means that all individuals
and teams within an organisation should be moving towards the
same goals under a single coordinated strategy.
More importantly, this unity ensures alignment, avoids confusion
and duplication of efforts, and fosters synergy, where the
collective outcome is greater than the sum of individual efforts.
Unity of Direction is fundamental in guiding an organisation's
resources and efforts in a singular, focused direction, enhancing
efficiency, and facilitating organisational success.
6) Remuneration of employees
The principle of Remuneration refers to the concept
that employees should receive fair and adequate
compensation for their services. This goes beyond
just salary, encompassing benefits, incentives, and
other forms of compensation.
Additionally, remuneration plays a pivotal role in
motivating employees, fostering job satisfaction,
and boosting productivity. It's important that
remuneration is both competitive to attract and
retain talent and equitable to maintain a sense of
fairness and prevent dissatisfaction among
employees.
7) Scalar chain
The Scalar Chain principle in Management refers to
the clear and well-defined lines of communication
within an organisation. This chain represents a
formal line of authority and communication, from
the highest to the lowest ranks. The scalar chain
facilitates the orderly flow of information, ensuring
that communication is clear, precise, and timely.
More importantly, order reduces misunderstanding
and confusion, increases efficiency, and contributes
to an effective organisational structure. However,
while this chain is important, it should also allow for
some flexibility when direct communication
8) Order
The principle of Order in Management refers to the
systematic and proper arrangement of resources
within an organisation. This involves the optimal
allocation of both material resources, ensuring that
everything has its designated place,
and Human Resources, ensuring that the right
person is assigned to the right job.
Additionally, the maintenance of order is crucial for
operational efficiency and productivity, preventing
confusion, delays, and unnecessary overlaps. It
streamlines workflow, enhances cooperation among
employees, and ultimately saves time and costs.
Hence, the principle of order forms an essential part
9) Equity
The principle of Equity in Management emphasises
the importance of fair and equal treatment of all
employees within an organisation. Equity isn't just
about non-discrimination, but it also entails fairness
and justice in the distribution of rewards,
opportunities, and treatment.
Additionally, it is vital for fostering an atmosphere of
trust, respect, and motivation among employees.
When employees perceive equity, they are more
likely to be committed, satisfied, and productive.
Conversely, perceived inequity can lead to
dissatisfaction, low morale, and high turnover. Thus,
fostering equity is a critical Management
responsibility and contributes significantly to
10) Stability of personnel
The principle of Stability of Personnel
in Management underscores the importance of
continuity and consistency in staffing. Frequent
employee turnover can disrupt operations, lower
morale, and increase costs related to hiring and
training.
As a result, this principle encourages the retention
of experienced personnel, providing them with a
stable work environment and opportunities for
growth. Stability of personnel boosts employee
loyalty and job satisfaction, maintains institutional
knowledge, and ensures uninterrupted workflow.
However, this doesn't mean avoiding necessary
11) Initiative
The principle of Initiative in Management refers to
the encouragement and support of employees to
take independent action and make decisions within
their scope of authority. It implies that Management
should cultivate an environment where employees
feel empowered to act autonomously, propose
ideas, and show creativity.
More importantly, encouraging initiative can lead to
increased job satisfaction, improved problem-
solving, innovation, and overall better performance.
However, it requires a delicate balance, as it should
not compromise the overall control and direction of
the organisation.
Therefore, fostering an atmosphere of initiative is a
valuable managerial strategy that can significantly
12) Espirit De Corps
Espirit de Corps, a principle of Management, refers
to the spirit of unity, camaraderie, and mutual
commitment among members of an organisation.
This principle highlights the importance of fostering
a sense of belonging and togetherness within a
team, promoting cooperation, and maintaining
morale.
Moreover, Espirit de Corps is a powerful motivator
and can significantly enhance productivity and job
satisfaction. It encourages team members to
support each other, work towards common goals,
and share responsibility for success.
13) Centralisation and Decentralisation
The principles of Centralisation and Decentralisation
pertain to the distribution of authority and decision-
making power within an organisation. Centralisation
implies that the majority of decisions and authority
reside with the top Management. Conversely,
Decentralisation distributes decision-making
authority throughout the organisation, empowering
lower-level managers and employees.
Furthermore, centralisation ensures uniformity and
consistency, but may limit responsiveness and
flexibility. Decentralisation, on the other hand,
fosters initiative, flexibility, and faster decision-
making but may risk inconsistencies.
Thus, choosing between the two depends on factors
like organisational size, complexity, and culture.
14) Subordination of individual interest to general
interest
The principle of Subordination of Individual Interest
to General Interest holds that the interests of an
organisation should take precedence over the
interests of any one individual within it. Now, this
principle emphasises that personal goals and
ambitions should never override the overarching
objectives of the organisation.
In an effectively managed team, members work
together towards a common goal, putting the needs
of the team and the organisation above their own.
This principle fosters unity, cooperation, and a
shared focus on organisational success. Hence, this
1) Division of work
The principle of Division of Work, rooted
in Management theory, implies that tasks should be
divided into smaller parts, and each part assigned to
a specialist. This division leads to increased
productivity and efficiency, as each employee
becomes an expert in their designated field,
reducing the time spent on tasks and enhancing the
quality of work.
Additionally, this division allows for a clear
understanding of roles and responsibilities within the
organisation, fostering accountability and reducing