An Introduction to Principles of Management

The main goal of a business is to achieve the profit targets set by the company’s top management. The purpose of profit maximization can be attained by focusing on two significant aspects: increasing the revenue and decreasing the costs. The management undertakes various practices to achieve the desired objectives. Ensuring efficiency and productivity of the organization are two of the essential criteria that directly impact the business’s performance.

Businesses in the early times faced a lot of hindrances due to ineffective management practices and a lack of proper rules and procedures in the workplace. Many management theorists such as Henry Fayol and F. W. Taylor came up with principles of management to help manage the organization well and foster a great work environment. 

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Scientific Principles of Management-

Propounded by F. W. Taylor, the scientific principles of management focus on a scientific attitude and way of managing the employees and workers. Taylor disregarded the traditional method and used research and experimentation to develop new management practices. He believed that workers’ responsibilities lay in providing labor while managers’ responsibilities lay in optimizing performance. These principles help improve the efficiency of the business and increase profits.

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There are 5 scientific principles of management

  • Science, not rule of thumb-

Taylor argued that companies should use scientific techniques for performing any task rather than the rule-of-thumb. Even a small activity can be done through scientific planning, increasing efficiency and saving time. These decisions should be based on cause and effect relationships. 

  • Harmony without discord-

This principle says there should be coordination and harmony among the workers and management. Disputes and differences should be minimized as they negatively impact the workers’ productivity. There should be a proper understanding between workers and managers which helps the organization achieve its desired objectives. 

  • Mental revolution-

According to this principle, the management and workers should shift their mental attitudes towards one another. Both the parties should understand each other’s perspectives well and support each other. Taylor argued that organizations and workers should have the same vision to help the organization grow.

  • Coordination between management and workers-

This principle states that to achieve the desired organizational objectives, the management and the workers must coordinate well. Both should understand each other’s requirements and work together to ensure the organization’s success.

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  • Development of every person to his greatest efficiency-

The organization’s success depends to a large extent on the employee’s abilities. Taylor’s scientific approach focuses on undertaking activities that improve the employee’s skills and benefit the organization as well. Plus, employees should all be provided with proper training to help them.

14 principles of management

Henry Fayol developed the 14 famous principles of management. The primary functions of management are planning, organizing, leading, and controlling. These principles help the management excel in all the above mentioned functions. They help maintain a proper regulation in the organization, which allows for the smooth running of the organization.

The 14 principles of management are:

  • Division of work-

According to this principle, dividing the work among the workers based on their abilities increases the employee’s efficiency. The process saves time and resources of the organization as well.

  • Authority and responsibility-

This principle states that authority is necessary for the organization. The managers can order the employees to perform a particular task. But authority is always accompanied by responsibility. This implies that managers are also responsible for the workers’ performance.

  • Discipline-

This principle states that maintaining discipline in an organization is of utmost importance. Both managers and workers must follow organizational rules and regulations. This leads to an efficient running of the organization and the completion of tasks on time.

  • Unity of command-

According to this principle, a clear organizational hierarchy or chain of command should be established. Workers should receive the command from one manager and should be answerable to him/her only. This leads to clarity of roles, responsibilities and accountability, which is beneficial for the organization.

  • Unity of direction-

This principle states that all the departments, managers, and workers of the organization should work towards achieving the common goals of the organization. The manager has the responsibility of ensuring that the work being carried out contributes towards achieving the organization’s common goal.

  • Subordination of individual interests to collective interests-

According to Fayol, managers and workers should put organizational interests above their own interests. Otherwise, the organization will not be able to run efficiently and achieve its desired objectives. 

  • Remuneration-

Motivated and satisfied employees have a significant contribution to the organization’s success. According to this principle, employees should be given fair monetary and non-monetary compensation as a reward for their effort. Happy employees are an asset to the company and will help achieve the desired outcomes. 

  • Centralization

There can be two types of decision making in an organization: centralized and decentralized. In the case of centralization, the top management retains the power to make the decision. In contrast, in the case of decentralization, the decision-making power is delegated to all the levels of the management. According to the organizational requirements, there should be a proper balance between the two.

  • Scalar chain-

This principle states that there should be a transparent chain of command in an organization. Employees should adhere to the hierarchy as much as possible. This helps avoid chaos and confusion.

  • Order-

This principle ensures that resources should be at the disposal of the workers to facilitate the timely completion of work. It also focuses on having a safe workplace and working conditions for the employees.

  • Equity-

This principle says that there should be equality and justice in the organization. Managers should be kind towards their employees, which helps boost their morale; in turn, employees must be understanding of the pressure that managers go through and be just to them.

  • Stability of tenure of personnel-

The organization should have a low staff-turnover rate. Organizations can benefit from the employee’s experience and save the hiring costs. Having loyal and trustworthy employees help in the profit maximization objective as well.

  • Initiative-

According to this principle, employees should be motivated to provide input on various issues and feel heard by the organization. This makes the employees feel respected and establishes trust and loyalty.

  • Esprit de Corps-

This principle states that a team spirit should be promoted in the organization.  There should be harmony and unity among the employees of the organization. This will lead to increased efficiency of the organization.

If you are interested in the field of management, you can check out the Master of Business degree offered by the Liverpool Business School in collaboration with upGrad. You will get the chance to learn from world-class faculty and work on hands-on projects to enhance your knowledge. You will learn from your peers from all over the world, enhancing your professional network. Additionally, you will get dual alumni status from Liverpool Business School and IMT Ghaziabad, which would open many doors of opportunities in your future. 


Management is an essential aspect of a business. It is the glue which binds the various departments of the company together. No matter how great the product or services offered by the company is, it won’t be able to sustain itself in the long run without efficient managers. This is why the demand for MBA graduates increases at a higher rate with every passing year. Management offers a lucrative career and ensures a steeper learning curve and a vast future scope.

What is the salary of an MBA graduate?

As companies require skilled managers, they pay the MBA graduates handsome monetary compensation to attract top talent. A fresher MBA graduate earns about INR 5-8 LPA. In contrast, an experienced MBA graduate can earn INR 10-18 LPA.

What is Organizational Structure?

Organisational Structure means the arrangement of employees in the organisation. There are broadly two types of organisational structure: Horizontal and Vertical. A horizontal structure usually puts all the employees at approximately the same level, and there is a short chain of command. On the other hand, vertical structure establishes a properly long and strict chain of command.

What is Staffing in Management?

Staffing is the process of hiring employees by evaluating their skills and specialties and accordingly offering them the jobs.

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