The principles and practices of management are at the base of sound organizational leadership. It follows that management provides the set of guidance and activities managers use to plan, organize, lead, and control others in the work environment to attain organizational objectives. Effective organizations adopt the principles and best practices to achieve productivity, efficiency, and growth.
What is Management?
Management is the art and science of getting things done by proper planning, organizing, directing, coordinating and control. Management in some form or another is an integral part of living and is essential wherever human efforts are to be undertaken to achieve desired objectives. The basic ingredients of management are always at play whether we manage our lives or our business.
Management principles and practices balance short-term achievement with long-term sustainability. They provide a framework for making decisions, resource allocation, and motivating teams, all of which help managers succeed. Whether one runs a small startup or a multinational corporation, management is that magic that can help align the right resources toward the right goals of the organization.
Principles of Management
Management principles are universal truths or guidelines applied by managers for the effective running of the operations. Often termed the Father of Modern Management, Henri Fayol introduced 14 principles of management that have survived the test of time. Let us learn about them in detail:
Division of Work
If a specific task is given to an employee, then he or she will be efficient and skilled about it. On the other hand, multi-tasking culture refers to giving various tasks to one employee at one time. For its effective implementation, analyze the existing skill set of every employee and provide a task with which he or she can be expert. It will help them in becoming productive and skilled and proficient in the long run.
Authority and Responsibility
The right to give order is called authority. The obligation to accomplish is called responsibility. Authority and Responsibility are the two sides of the management coin. They exist together. They are complementary and mutually interdependent. According to Henri Fayol, there should be a balance between authority and responsibility. If there is more authority than responsibility, the employees will get frustrated. If there is more responsibility than authority, the manager will feel frustrated.
Discipline
The objectives, the rules and regulations, the policies, and procedures must be. honoured by each member of an organization. There should be a clear and fair agreement on On the rules and objectives, on the policies and procedures. There has to be penalties. Punishment for disobedience or indiscipline. No organization can work properly without discipline – preferably voluntary discipline.
Unity of Command
This principle postulates that there must be a definite line of authority in the organization. The employees should know to whom they can take instructions from. According to Fayol, an employee must get orders from only one manager. If an employee reports to two or more managers, authority, discipline, and stability are defeated. This will also break the management chain and make the employees burn out.
Unity of Direction
As per Fayol, the unity of direction principle implies that each set of activities with the same objectives must have one head and one plan. As distinguished from the principle of unity of command, Fayol perceives unity of direction as related to the functioning of personnel.
Subordination of Individual Interests
This principle states that the group’s common interest should take precedence over individual ones. The interest of an individual should not sabotage the interest of the organization. If any person goes rogue, the organization will collapse. Each shall work for all and all for each. General or Common interest must be supreme in any joint enterprise.
Remuneration
If states that employees should be paid fair wages for the work that they carry out. Any organization that underpays its workers will struggle to motivate and keep quality workers. This remuneration should include both financial and non-financial incentives. Also, a structure should be in place to reward good performance and motivate employees.
Centralization and Decentralization
In centralization, the authority lies in the few hands, with a top-bottom approach to management. While in decentralization, this authority spreads to all levels of management. No organization can be totally centralized or decentralized in the modern context. Total centralization means there will be no authority to people at the bottom level over the job they are responsible for. Similarly, complete decentralization means that there will be no superior authority to control the organization. For using this effectively today, centralization and decentralization must be balanced. The degree to which this balance is achieved will vary from organization to organization.
Scalar Chain
A scalar chain is the transparent chain of communication from the employees to their superiors. Employees must be aware of the place in the organization hierarchy and to whom they can address themselves in the chain of command. According to Fayol, there should be an organizational chart drawn out for the employees to implement it at the workplace to view the structure.
Order
There should be orderly placing of resources at the right time and in the right place that ensures proper application of resources within order. Misplacing any of them will bring their misuse and also disarray among the organization groups. Fayol suggested that there is a place for everything. Order or system alone can create a sound organisation and efficient management.
Equity
Equity is a combination of kindness and justice. This principle states that managers should use kindliness and justice towards everyone they manage. This creates loyalty and devotion among the employees towards the organization they work for.
Stability of Tenure
A person needs time to adjust himself with the new work and demonstrate efficiency in due course. Hence, employees and managers must have job security. Security of income and employment is a pre-requisite of sound organisation and management
Initiative
The principle dictates that employees should be empowered to take initiatives and give creative insights. When workers have a voice regarding how best they can get things done, they feel inspired and valued. Organizations should pay attention to what employees have to say and enable them to conceptualize and implement improvement plans.
Esprit de Corps
Esprit de Corps means Team Spirit. Esprit de corps is the foundation of a sound organisation. Union is strength. But unity demands co-operation. Pride, loyalty and sense of belonging are responsible for good performance.
Practices of Management
The management practices include how the managers implement the principles that ensure resources are put to good use in support of the vision. Below are some of the most important management practices:
- Strategic planning: Managers devise long-term plans for the attainment of the objectives of the organization. This encompasses analyzing market trends, defining objectives, and resource allocation.
- Organizing Resources: Managers organize teams by structure, role assignments, and proper allocation of resources. Proper organizing ensures that all departments contribute to success.
- Leadership: Managers inspire and direct the employees to deliver their best. Leadership is defined as clear communication, setting an example, and inspiring teamwork.
- Decision-Making: The good manager analyzes data and weighs out alternatives to make decisions. Decisions based on data have reduced risks and improved outcomes.
- Performance Management: Continuous monitoring and evaluation of employee performance reveal areas for improvement. Managers use performance measures to align individual efforts with organizational goals.
- Communication: Open and transparent communication helps in build trust and minimizes miscommunication or barrier of communication. Regular team meetings, feedback sessions, and progress updates are important to manage effectively and efficiently.
- Change Management: The managers need to respond to marketplace dynamics and implement the change effectively. A methodical approach to the implementation of change will cause minimal disruption and maximize acceptance.
- Conflict Resolution: The managers can be able to deal with the conflicts right away to make the working environment positive. Conflicts resolution will help to resolve relationships and increase productivity.
Principles & Practices of Management FAQs
1. What are the principles of management?
Principles of management are the universal guidelines or general principles like division of work, authority, and unity of command, ensuring effective functioning in an organization.
2. What are the practices of management?
Practices of management are strategic planning, leadership, decision-making, and communication, which apply the principles for the attainment of organizational goals.
3. Why are the principles and practices of management important?
They assist the managers to manage efficiently lead, give out resources, and synchronize the efforts of individuals with the objectives of the organizations.
4. How can I learn more on principles and practices of management?
You can find textbooks and online courses to further find out as well as the principles and practices of management pdf
5. What is the difference between principles and practices of management?
The theoretical guidelines are the principles of management, while the practices are the action steps managers use to implement those principles.
