The Principle of Management is majorly implied in the workplaces. These are the general guidelines that help organizations to function effectively. The Principles guide the managers to make rational decisions.
There is a huge importance of the Principles of Management, the following are the key points –
The Principles of Management helps in understanding the organizational functions better.
It directs the training of the employees.
Trains the managers.
Principles make the role of the managers’ concrete.
It directs what and how the organization should function in different scenarios.
Proceeding further, we will know about the basic concept of Management and the main principles of management.
Basic Concept of Management
The basic concept of management is best detailed out in the words of the famous writers and thinkers
According to Harold Koontz and Heinz Weihrich, management is the process of designing and maintaining the environment. Here the individuals work together in a group and thus they accomplish the selected goals by this.
According to Robert l. Trewely and M. Gene Newport, management can be defined as the process of planning, organizing, analyzing and controlling the operations of the enterprise. This is done to achieve coordination of the human and the material resources which helps in the efficient and effective attainment of objectives.
According to Kreitner, management is a process of working together to achieve the organizational objectives by efficiently using the resources which are limited in the hands.
Key Terms in the Above Definitions
So, from the definitions already illustrated above, we can sum the definition as – Management is a process of getting the things done with a certain aim of achieving the goals effectively and efficiently. Important terms in this definition are as follows –
Process: Process is the primary function or activities which the management performs to get the things done, to achieve the desired goals.
Effectiveness: Effectiveness is focused on the end result. This basically means completing the given work.
Efficient: Efficiency does not only mean that the work is to be done correctly but also with minimum cost. Management is thus concerned with the efficient use of limited resources.
Basic Principles of Management
The basic principles of management are as follows –
1. Division of work –
Division of Work, this principle is associated with specializing the tasks of the employees. The employees are divided into their specialization and interest to harness the best result out of them.
2. Authority –
Authority should be known to the whole organization; the managers should use the authority analytically. They should maintain a balance of authority over the organization structure.
3. Discipline –
The organization must maintain the decorum of the workplace. The employees foremostly must be disciplined.
4. Unity of command –
Order or command must come from one manager or leader to achieve the best results.
5. Unity of Direction –
Their goals must be unified and directed. They must not fuss with the organizational goals.
6. Subordination of Individual Interest to group Interest –
The employees must be clearly stated about the organizational goals firstly. They should be explained that giving priority to the organizational goals will automatically secure their individual interest.
7. Remuneration –
Correct remuneration policy must be initiated in the organization. The employees must be encouraged with the correct pay scale.
8. Centralization –
The orders must be centralized. Priority orders must come down from the top level.
9. Scalar Chain –
The scalar chain of the organization must be well defined. This will help in the easy functioning of the organization. As now the employees will know whom to report and to whom to be accountable for.
10. Order –
Order must be clear and must avoid any confusions.
11. Equity –
Equity is mandatory for the organization to work in peace. All the employees regardless of the level must be treated fairly.
12. Stability of Tenure of Personnel –
Employees must not have the fear of getting removed from the organization. Also, the employee absentee ratio must be low.
13. Initiative –
Employees must be capable of initiating newer ideas. They should be challenging enough.
14. Morale –
High morale employees are desired in the workplace to maintain a decent workplace.