What are Principles of an Organization?
Meaning of Principles of an Organization: – Principles of an organization are basic statement or a fundamental truth that provides understanding and guidance to thinking and practice. A classic theory on management principles was written by Henry Fayol. It seeks to divide management into 14 principles. We will take a look at these basic principles of management and explain the terminology in an easy to understand way.
Some of those Principles of an Organization
Principles of an Organization: – There are fourteen key principles of organisation. Let us discuss them one by one.
Some of those principles of an organization are as follows: –
- Principle of Objective: –
- The enterprise should set some objectives for the achievement for which different departments should work. There should be a common goal for the business as a whole and the organization set to achieve that goal.
- In the absence of a common goal, different departments will set their own targets and different departments are likely to have conflicting objectives. Therefore, there should be a purpose for the organization.
- Principle of Specialisation: –
- The organization should be set up in such a way that each person is assigned a duty according to his/her skill and competence.
- A person should continue the work that he or she specializes in.This helps to increase production in the concern.
- Principles of Co-ordination: –
- Coordination of various activities is an important principle of the organization. There should be some agency to coordinate the activities of various departments.
- In the absence of coordination, different departments are likely to set different goals.
- The ultimate objective of concern can only be achieved when proper coordination is done for various activities.
- Principle of Authority and Responsibility: –
- The authority flows downstream in the line. Everyone is empowered to complete the work. Although authority can be delegated, the responsibility rests with the man who has been assigned the job.
- If a superior delegates his authority to his subordinate, the superior is not deprived of his responsibility, although the subordinate becomes liable to his superior. No further responsibility can be assigned.
- Principle of Definition: –
- The scope of authority and responsibility should be clearly defined. Everyone should know their work with certainty.
- If duties are not explicitly assigned, it will not be possible to fix the responsibility as well.
- Everyone will not be responsible. The relationships between different departments should also be clearly defined to make the work efficient and smooth.
- Span of Control: –
- The span of control means how many subordinates can be supervised by an observer. The number of subordinates should be such that the supervisor is able to control his work effectively.
- In addition, the work should be supervised in the same nature. If the span of control is proportionless, it is bound to affect the efficiency of workers due to slow communication with supervisors.
- Principle of Balance: –
- The principle means that the assignment of work should be such that each person is given only the work that he can perform well.
- If one person is over worked and the other person is under worked then the work will suffer in both the situations. The work should be divided in such a way that everyone is able to give their maximum.
- Principle of Continuity: –
- The organization should be modified according to the changing circumstances.
- Every day there are changes in the methods of production and marketing systems.
- The organization should be dynamic and not static. There should always be a possibility to make the necessary adjustments.
- Principle of Uniformity: –
- The organization should provide for the delivery of work in such a way so that uniformity remains.
- Each officer should be in charge of their respective area so that dual subordination and conflicts can be avoided.
- Principle of Unity of Command: –
- There should be unity of command in the organization. A person should be accountable to only one boss.
- If a person is in control of more than one person, there is confusion and conflict. The person will get conflicting orders from various superiors.
- This principle creates a sense of responsibility towards a person.
- The command should be from top to bottom to make the organization sound and clear.
- It also leads to consistency in directing, coordination and control.
- Principle of Exception: –
- This principle states that top management should intervene only when something goes wrong. If things are done according to plan, then intervention of top management is not required. Management should leave routine things to be overseen by the lower cadre.
- This is only an extraordinary situation when the attention of top management is caught. This principle relieves top management of many troubles and routine things.
- The principle of exception allows top management to focus on planning and policymaking. Avoidable supervision does not waste significant time on management.
- Principle of Simplicity: –
- The organizational structure should be simple so that it is easily understood by everyone. The rights, responsibilities and status of each person should be clarified so that there is no confusion about these things.
- A complex organizational structure will create doubts and conflicts in individuals.
- There may also be over-lapping and duplication of efforts that might otherwise be avoided. It helps the organization to run smoothly.
- Principle of Efficiency: –
- Organizations must be able to achieve enterprise objectives at a minimum cost.
- Standards of cost and revenue are pre-determined and performance must be in accordance with these goals.
- The organization should enable various employees to achieve job satisfaction.
- Scalar Principle: –
- This theory refers to the vertical placement of observers starting from the top and going to the lower level.
- The scalar chain is a pre-requisite for effective and efficient organization.