Management principles are an important factor to consider when running a firm. It is a broad and general guideline that serves as a template for an organization’s decision-making. It could be used to determine who is promoted in an organization based on the discretion of the managers; one manager might look at seniority, while another might look at merit. Management principles deal with human behaviour and are put into practice in a productive manner depending on the situation. Human behaviour, as well as technology, organizational structure, business goals, and other factors, are always changing, all of which have an impact on a company’s operations. The performance of a firm, the health of its staff, its expansion (if growth is a goal), and the value and satisfaction of its consumers will all be influenced by management decisions. Management principles apply to all businesses, large and small, for-profit and nonprofit alike.
Henry Fayol, commonly regarded as the “Father of Modern Management Theory,” revolutionized and founded the management theory. He presented a broad theory that can be utilized at all levels of management and in every department. An organization’s internal activities are planned and regulated using the Fayol hypothesis. He focused on increasing managerial effectiveness.
Let’s have a look at the fourteen management concepts devised by Henri Fayol that you can implement in your organization:
Division of work
Henry Fayol proposed this as the first principle. It claims that when employees are assigned duties based on their speciality, they perform better at work. Due to the norm, this results in smaller pieces of splitting the work. Specialization is extremely important as all the employees undertake specific jobs on a one-time basis along with a regular basis. It can be used by enterprises with a large number of employees as well as those with a small number. The notion emphasizes that work should be distributed among people capable of executing the job and have studied executive MBA program, rather than being concentrated in the hands of a small number of people. Furthermore, this idea implies that work should not be diluted by distributing it to too many people at once. It ensures appropriate labour use and keeps workers motivated and productive.
The Principle of Authority and Responsibilities
This relates to the authority to issue directives, which must be accompanied by a balanced sense of responsibility for the function. This principle implies that managers must have the power to direct subordinates and ensure that they can do their duties while being accountable for their actions. Sees it as the ability to issue commands and have them carried out, or in other words, the ability to make judgments. The principle is both formal and informal, with the latter being the most appropriate for managers. The formality of responsibility is the organization’s expectation of the manager. Still, the informality of authority is the manager’s liberty to command, lead, and ensure that he successfully fulfils his tasks. Also, both authority and accountability must go hand in hand. To put it another way, the appropriate authority should be delegated to meet the tasks.
How To Implement Management Principle In Your Organization
Discipline in organization
Nothing can be accomplished without discipline. It is a very crucial aspect of any project or management. The management work is made easier and more comprehensive by implementing discipline, good performance, and appropriate interrelationships. A good attitude of employees contributes to the smooth advancement of their careers.
Unity OF COMMAND
Only one boss, according to Fayol, should be assigned to subordinates/employees. The principle of unity of command is broken when one employee receives commands from two superiors at the same time. Simply said, employees should only report to and receive orders from a single boss. This principle was highly essential to Fayol. “He believed that if it was infringed, the authority would be harmed, discipline would be jeopardized, directives would be disrupted, and stability would be jeopardized.”
Unity of direction in an organization
Everyone in an organization should be pulling in the same direction and working together to achieve the same goals. Each set of activities with the same goal must have a single leader and a single plan. This principle ensures that all actions are coordinated and carried out in a unified manner. Each plan should have only one plan, one objective, and one head, according to the proposal. Organizations are guided by a set of goals. However, this should not be at odds with departments that appear to have their own set of goals. According to Fayol, an organization will naturally have core objectives that must be followed, as well as departmental and unit goals that must be met in order to achieve the united aim.
Subordinated of individual interest in organization interest
This implies that a firm should work together for the common goal means organizational goal rather than for personal gain. To be submissive to an organization’s goals. This refers to the chain of command implemented in an organization.
This is crucial in terms of inspiring employees in every organization. There are two types of remuneration required in every company: monetary and non-monetary. However, it should be in accordance with an individual’s efforts.
Centralization and Decentralization:
The degree of control that people in an organization have is referred to as centralization or decentralization. It is an organization’s concentration of decision-making authority. When a small number of people are in charge of making decisions in an organization, especially when the organization’s management is concentrated under a single authority, this is known as centralization. This is most common in large companies. Decentralization, on the other hand, occurs when a larger number of people in the organization have decision-making authority. It occurs when decision-making authority is divided among a broader group of people, which is common in small businesses.
The formal lines of power from the highest to the lowest positions are known as this. It is a hierarchy principle that must be followed in order to achieve unity of direction. The principle emphasizes vertical communication in companies, implying that there should be a single, uninterrupted chain of authority in place.
This does not imply that a boss sits at the top of the chain of command, giving directions to subordinates on what to do and what not to do. It simply indicates that things should be done in an organized manner in the organization and that if work is not done in an orderly manner in an organization, chaos will ensue.
All employees should be treated with respect and dignity in an organization on an equal footing. It is the manager’s responsibility to ensure that no employees are discriminated against.
Stability of tenure
If an employee feels safe in their employment with the company, they will provide their best and stability. It is the management’s responsibility to provide job security to their personnel.
This theory states that management should supply creative ideas, talents, and more convenient techniques to carry out duties in the organization from time to time. For this principle to be successfully implemented at a startup, managers must be creative in generating and implementing new ideas, as well as allowing employees to contribute to the organization’s innovation and productivity.
Esprit de Corps
This idea emphasizes the importance of teamwork and camaraderie. A cohesive and effective integration and coordination of both individual and collective efforts are required for an organization to obtain the greatest results. The power of this principle, however, is its unity.
The 14 management principles are explained briefly in online management courses that are useful for prediction, planning, decision-making, organization and process management, control, and coordination. They are used to starting and running a company. After studying Henri Fayol’s “14 principles of management,” They are as needed in Startup firms as they are in others, it can be boldly said. It might also be claimed that, as a result of the diversity of managerial styles, some of these principles have been altered and redefined, with the goal of making them better and more useful to organizations when applied. Management practice is something that all businesses share in common in some form.