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• Division of Work


  • Every employee should be assigned only one type of work
  • Aims at the maximum production with least efforts
  • Helps in securing the maximum efficiency
• Authority


  The right to give orders to the subordinates
• Responsibility


  The duty which the subordinate is expected to perform
• Discipline


  • Getting obedience to rules and regulations of an organization
  • In the absence of discipline the organization cannot succeed
  • It depends upon effective leadership
• Unity of Command


  • A subordinate should receive orders from one supervisor only
  • Related to functioning of personnel
• Unity of Direction


  • Each group of persons having same objects must have one head and one plan
  • Help in establishing the coordination and uniformity in the activities
  • Related to functioning business as a whole
• Subordination of Individual Interests to General Interest


  • Interests of the organization must prevail upon the personal interests of individuals
  • General interest must be given more attention in comparison to the personal interests
• Remuneration of Personnel


  • Must be fair and satisfactory
  • Wage system must motivate the employees, to do better and more and may ensure safety and security of the employees
  • Wage system must be satisfactory to both the employees and employer
• Centralization


  Concentration of authority at one place or at one level in the organization
• Decentralization


  Dispersal of authority to the lower levels in the organization
• Proper balance between centralization and decentralization


  Must be maintained
• Scalar Chain


  • Arrangement of things and the placement of people
  • There must be a clear line of authority right from the top management to the bottom
  • Orders of management and feeling of subordinates must pass through the proper channels of authority (short cut only when it is essential to do so)
• Order


  • Everything should be in a proper arrangement
  • There should be a place of everything and everything should be in its place
  • There should be right man in the right place
• Equity


  • Personnel must be treated with kindness and equity if loyalty is expected of them
  • Does not mean that all the employees of the organization are equal and must be treated and paid equal
• Stability of Tenure


  • There must be stability in the service of the employees
  • Employees should not be transfer from one place to another very quickly in business activities because it lower the progress of activates
  • Management should remove the feelings of insecurity of job from the minds of personnel
• Initiatives


  • Subordinates should be given an opportunity to take some initiatives in making and executing the plans
  • Employees should be provided proper incentives in planning an activities schedule for the enterprise
• Esprit de Corps


  • Harmony and understanding among the personnel
  • Management and workers must work together as a team for the accomplishment of the targets of the enterprise
  • Based upon two theories: "unity is strength" and "unity of the staff is the foundation of success in any organization"
• What is the first principle of management? The first principle of management states that management is a distinct function or process which involves planning, organising, commanding, co-ordinating and controlling of resources.