1. Division of work:
The work in an organization must be divided among individuals and departments. Different departments differing jobs
2. Authority and Responsibility:
There should be a proper balance between authority and responsibility.
Higher up the ladder should have more responsibility
3. Discipline:
The best means of maintaining discipline is to have:
Disciplined superiors at all levels,
Clear and fair agreements, and
Judicious use of all penalties.
4. Unity of Command:
It means a subordinate should receive orders from only one superior. There should not be multiple bosses.
5. Unity of Direction:
There should be 'one head, and one plan' for a group of activities having the same objective.
For instance, if there are 10 salesmen, selling the same product in the same area, and if there are 2 sales supervisors, each in charge of 5 men, then every salesman would take orders from their respective supervisors. There will be unity of direction only when all the sales plans are coordinated at a higher level.
6. Subordination of individual interest to general interest:
In other words, the interest of the organization should come first and then individual or group interest. This can be ensured by:
Good example on the part of superiors,
Having fair agreements, and
Constant supervision.
7. Remuneration:
Wages and salaries should be fair. It should depend on circumstances, such as cost of living, ability of the company to pay, prevailing wage rates in the industry.
Apart from financial benefits, non-financial benefits be provided such as good working conditions, canteen facilities, recreation facilities, etc.
8. Centralization:
Certain matters are to be centralized and others to be decentralized. There is a need to have a proper balance between centralization and decentralization.
9. Scalar Chain:
It refers to the line of command from top level to the lowest level.
the scalar chain can be short-circuited or broken if the situation so demands in the interest of the organization.
10. Order:
This principle requires the orderly organization and placement of men, machines and other resources. Misplacement would lead to misuse and disorder.
11. Equity:
All members of the organization should be treated equally, depending upon the performance and circumstances.
12. Stability of Tenure:
Managers as well as non-managers need time to learn and understand their jobs. If they leave or are removed within a short period of time, the learning time will be wasted.
In other words, employees should not be kept temporary for a long period of lime. Employees should be made permanent so that they do not leave the organization. However, incompetent persons need to be removed or replaced and those who perform well must be rewarded
13. Initiative:
The superior must sacrifice his own vanity to encourage and inspire those under him to show initiative. Subordinates should be given freedom to come up with suggestions and ideas.
14. Esprit de Corps:
The superior must encourage esprit de corps (team spirit) among his subordinates. It is the team spirit that results in loyalty, and dedication and commitment of the employees.
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