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Home Managerial/Management/Cost Accounting Terms and Definitions Principles of Management Definition

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Principles of Management Definition:

Principles of management are fundamental rules of management that could be taught in schools and applied in all organizational situations.

Fayol's 14 Principles of Management:

  1. Division of work: Specialization increases output by making employees more efficient.
  2. Authority: Managers must be able to give orders and authority gives them this right.
  3. Discipline: Employees must obey and respect the rules that governs the organization.
  4. Unity of command: Every employee should receive orders from only one superior
  5. Unity of direction: The organization should have a single plan of action to guide managers and workers.
  6. Subordination of the individual interests to the general interest: The interest of any one employee or group of employees should not take precedence over the interests of the organization as a whole.
  7. Remuneration: Workers must be paid a fair wages for their services.
  8. Centralization: This term refers to the degree to which subordinates are involved in decision making.
  9. Scalar chain: The line of authority from top management to the lowest ranks is the scalar chain.
  10. Order: People and materials should be in the right place at the right time.
  11. Equity: Managers should be kind and fair to their subordinates.
  12. Stability of tenure of personnel: Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies.
  13. Initiative: Employees who are allowed to originate and carry out plans will exert high levels of efforts.
  14. Esprit de corps: Promoting team spirit will build harmony and unity within the organization.


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