Principles of administration

1. 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.