Principles of Management
Principles of management are broad guidelines for decision making and behavior of managers. Principles are different from techniques and values. They are general guidelines, flexible, formed by practice, mainly behavioural, contingent and have universal applicability. Significance of principles of management are that they provide managers with useful insights into reality, optimum utilisation of resources, effective administration, making scientific decisions, meeting changing environment, requirements and fulfilling social responsibility. F.W. Taylor defines Scientific Management as knowing exactly what you want men to do and seeing that they do it in the best and the cheapest way. He proposed scientific management as opposed to rule of thumb, followed by managers, suggested scientific analysis of work to find ‘one best way’ to perform it and considered study of contemporary management as a discipline. Science not rule of thumb; harmony, not discord; cooperation, not individualism and development of each and every person are the principles of scientific management. Techniques of Scientific Management are functional foremanship, standardisation of work, simplification of work, method study, motion study, time study, fatigue study and differential piece wage system.
Fayol’s principles of management are principle of division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest to general interest, remuneration of employees, centralisation and decentralisation, scalar chain, order, equity, stability of personnel, initiative and espirit de corps.