Principles of administration

Principles of administration

1. PRINCIPLES OF ADMINISTRATION Prepared by, Mrs. Rijo Lijo

2. INTRODUCTION Management principles are derived and developed in the following two steps. (a) Deep Observations (b) Repeated experiments Henri Fayol (1841 - 1925): Graduated from the National School of Mines in Saint Etrenne in 1860

3. FAYOL‟S 14 PRINCIPLES OF MANAGEMENT 1. Division of Work. Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive. Small task, Competent, Specialization, Efficiency, Effectiveness 2. Principle of Authority and Responsibility: Authority means power to take decisions. Responsibility means obligation to complete the job assigned.

4. 3. Principle of discipline : General rules and regulations for systematic working in an organization. 4. Principle of unity of command : Employee should receive orders from one boss only. 5. Unity of direction : All the efforts of the members and employees of the organization must be directed to one direction that is the achievement of common goal.

5. 6. Subordination of individual interest to general interest: Subordination of individual interest to general interest the interest of the organization must supersede the interest of the individuals. 7.Principle of remuneration of persons: Employees must be paid fairly or adequately to give them maximum satisfaction 8.Principle of centralization and decentralization: Centralization refers to concentration of power in few hands. Decentralization means evenly distribution of power at every level. 9. Principle of scalar chain: Means line of authority or chain of superiors from highest to lowest rank.

6. 10. Principle of Order: Principle of Order It refers to orderly arrangement of men and material a fixed place for everything and everyone in the organization 11. Principle of Equity: Principle of Equity Fair and just treatment to employees. 12. Stability of tenure of personnel: Stability of tenure of personnel No frequent termination or transfer. 13. Principle of Initiative: Principle of Initiative Employees must be given opportunity to take some initiative in making and executing a plan 14. Principle of Esprit De Corps: Principle of Esprit De Corps Means union is strength.