Management can be defined as the art of developing people to do things in the most economic and efficient manner. Good management requires to follow certain principles. These principles are to be adopted with intelligence, tact and with some sense of proportion.

The essential principle of management are classified with reference to the following:

·        Division of work
·        Authority
·        Discipline
·        Unity of command
·        Unity of direction
·        Subordinate of individual to general interest
·        Remuneration
·        Centralisation
·        Scalar chain of authority
·        Order
·        Equity
·        Stability of tenure of personnel
·        Initiative
·        Esprite de Corps.

Division of work

The object of division of work is to produce more and better with the same amount of efforts. In general, workers on the same job and managers on the same duty acquire ability, confidence and accuracy which increases their output. This may not always be true if there is lack of interest.

Authority and Responsibility (Accountability)

Authority is the basis of organization. It is the power to command others to act or not to act in a manner deemed by the possessor of the authority to further enterprise or department purpose. Authority is the power to make decisions to guide the action of others. The person who makes the decisions is the ‘Superior’ and the person who accepts them is called as a ‘Subordinate’.

The person giving orders takes the responsibility for the consequence of the order. People often seek authority but fear to accept responsibility. The fear of responsibility paralyses initiative and destroys other good qualities. A good management should arrange for a judicious delegation of authority and responsibility and safeguard against abuses of the authority.

Authority without responsibility and responsibility without authority are defects which are bound to be avoided. It may be noted that the term accountability can also be used as a substitute for responsibility.

Discipline

Discipline means obedience, behaviour, application and urge. Agreements are often drawn up in respect of these aspects. To maintain discipline, following are the requirements:

·        Efficient and skilful superiors at all levels.
·        As far as possible clear and fair agreements.
·        Sanctions or judicious application of penalties.

The purpose of imposing discipline among employees should be to help them, learn proper conduct rather than to penalize them. To err is human and hence the possibility of making a wrong judgement cannot be denied. Indiscipline can be reduced by introducing an effective grievance handling procedure.

Unity of command

For any action, an employee receive instruction only from one superior. If this is not done, authority may be undermined and discipline may fail. Dual or multiple commands should be avoided. There are ways and means to deal with exceptions. Multiple commands always lead to confusion and chaos.

Unity of Direction

Unity of command cannot work without unity of direction. Managers are responsible not only for planning and organising the operations, but also for guiding and supervising the subordinates. This is the managerial function of direction. The function of direction has three components are :

·        Issue of orders and instructions.
·        Supervising the subordinates.
·        Guiding and teaching the proper methods of work the subordinates.

In modern times, the following aspects of managerial functions are identified.

·        Leadership
·        Communication
·        Motivation
·        Supervision

Subordinating individual interest to general interest

In any business, the interest of a single worker or group of workers should not prevail over that of the concern as a whole. This requires firmness and agreement on the part of superiors and their constant supervision over this activities of the workers in the organisation.

Remuneration of Personnel

This should be fair. There should be satisfaction both on the part of the individuals as well as the organisation on this behalf. Methods of wage payment exert a considerable influence on the business of an organisation. Wages are generally paid on the following basis:

  • Time-rate : The rate of wage payment is decided/fixed on the basis of a fixed number of hours of work.
  • Job rate : Payment of wages is fixed on the basis of doing a job within a particular period. This does not require close supervision. In this method, good workers get the same wage as an ordinary workers, while an average worker finds it difficult to complete the job within the stipulated time.
  • Piece-rate : Payment to the worker is made on the basis of number of units of a product produced/completed.


Centralisation

Centralisation is the systematic and consistent reservation of authority by the top management or the management at the centre. An organisation where the authority is largely concentrated at the top and the authority to execute the given plans is only given to the personnel at lower level, is said to be the Centralized organisation.

The extent of delegation of powers / initiative to intermediary levels are decided by the circumstances. Anything that goes to increase the importance of the subordinates. Where much of the authority to plan, direct, execute and control is passed down to the subordinates in the organisation and the top management is concerned only with broad planning an control, it is described as a condition of a high degree of decentralisation. Decentralisation refers to the dispersal of the centres of decision making.

Line or Scalar Chain

The route followed for communications from higher to lower level is called the line of authority. This path is fixed on the basis of unity of command. In such a system, superior exercises a direct authority over his subordinates who become entirely responsible for their performance to the commanding superior. No operation is kept under two bosses. This type of organisation is also known as departmental or military type of organisation.

Let a business concern has a double ladder Scalar Chain as given below. Suppose the section manger ‘D’ wants to contact the section manager ‘G’, he must go through the ladder CBA and then down to EPG. This type of system takes more time and it often becomes unsatisfactory.


Unsatisfactory methods of communication exist in the units where great emphasis is placed on following proper channels. Care is required to be taken.

Order

Every employee must have an appointed place. In this respect the essential point is ‘The right man in the right place’. Everything must by arranged without inter-mixing.

Equity

The head of the organisation must work hard to ensure equity and equality of treatment to all his employees. Equity in justice is tempered by kindness according to circumstances.

Stability of Tenure of Personnel

Time is required to learn and to do work efficiently. Worker, after experience gains the required abilities and skills. In the same way period is also required to know men and things and decide on a plan of action. The higher level managers should not be frequently changed. An average superior who stays longer will often be better than a of illness, retirement etc. Stability is desirable in a successful organisation.

Initiative

The power of thinking and executing is called as initiative. This is the source of strength. A manager who is able to encourage initiative on the part of subordinates is superior to one who cannot do so.

Esprite de Corps.


A feeling of harmony and union among personnel of a concern, is called Esprite de Corps.