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14 Principles of Management – PM Unit 2 – Best BBS I Year Notes

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Principles of Management refers to guidelines that help the management team to manage the organization. Management is the backbone of an organization. It is the process of assembling and using sets of resources in a goal-directed manner to accomplish tasks in an organizational setting. Hence, Managers or the management team must follow certain principles of management while managing the organisation.

Today, in this post, we will see 14 such principles of management that must be followed by managers and the management team of the organization.



14 Principles of Management

1. Division of work

This is one of 14 principles of management that states that organizational works must be divided or classified into different groups and assigned to employees considering their expertise, skills and knowledge. Specialization always increases output by making employees more efficient.

2. Authority and responsibility

The second principle of management states that managers must be able to give orders, and authority gives them this right. Responsibility is the obligation for performing the assigned jobs. A proper balance must be maintained between authority and responsibility.

3. Discipline

Employees must obey and respect the rules that govern the organization. Discipline is one of the important principles of management that suggests managers show sincerity, obedience, respect and follow all other disciplines.



 4. Unity of command

Unity of command is a management principle which states that every employee should receive orders and instructions from only one superior at a time. When subordinate receives order from two or more superiors at a time confusion is created that eventually breaks organizational discipline.

5. Unity of direction

Unity of direction is one of the important principles of management. This shows that the organization should have a single plan of action for a group of activities having similar objectives to guide managers and workers. There must be one manager and one plan for group activities for achieving specific objectives.

6. Subordination of individual interests to the general interest

This principle deals with the interest of individuals and organizations. The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole.



7. Remuneration

As payment is one of the important factors for employees, the remuneration principle has become one of the important principles of management. It suggests, “Workers must be paid a fair, reasonable and satisfactory wage for their services”. Remuneration must be granted considering different factors such as cost of living, nature of the assigned job, the financial condition of the employer, and prevailing wage rate. Besides basic wages provision of extra incentives must-have in the organization.

8. Centralization and decentralization

 These terms refer to the degree to which subordinates are involved in decision making. While applying centralization, top-level management retains most of the decision-making authority. In decentralization, subordinates are empowered to make essential decisions themselves. Both conditions depend on different factors such as the size of the organization, philosophy of top-level, experience and ability of subordinates, nature of decision etc.



9. Scalar chain

This principle of management means an unbroken chain of relations from top-level to subordinate level. The line of authority from top management to the lowest ranks is the scalar chain.  Formal chain of command running from top to bottom of the organization, like the military. Orders, instructions, complaints, suggestions, requests etc. should pass through the formal chain of the organization except in an emergency. This is also one of the major principles of management.

10. Order.

Order means systematic placement or arrangement of physical and human resources. This management principle suggests that people and materials should be in the right place at the right time. All materials and personnel have a prescribed place, and they must remain there. This 10th out of 14 principles of management gives emphasis to reducing wastage and bringing smoothness in organizational activities.

11. Equity

In today’s world, equity has become one of the nonnegligible principles of management. Managers should be kind, impartial and fair to their subordinates. Equality of treatment (but not necessarily identical treatment) must be done eradicating the feeling of caste, religion, sex, personal relation and so on. A good human relationship must be maintained with employees.

Equity - Principle of management
Equity – Principle of management
Photo by Jon Tyson on Unsplash


12. Stability of tenure of personnel

Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies. This management’s principle suggests that job security must be ensured and employee turnover should be reduced and ensure lifetime employment for good workers.

13. Initiative.

In the modern world of innovation and technology, this principle has become one of the most followed principles of management. Workers should be encouraged to take initiative in their work. Employees who are allowed to originate and carry out plans will exert high levels of effort. Sense of self-motivation must be generated among staff granting freedom to them.

 14. Esprit de corps.

Promoting team spirit will build harmony and unity within the organization. This principle of management builds harmony and cohesion among personnel.




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