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:
- Division of work: Specialization increases output by making employees more efficient.
- Authority: Managers must be able to give orders and authority gives them this right.
- Discipline: Employees must obey and respect the rules that governs the organization.
- Unity of command: Every employee should receive orders from only one superior
- Unity of direction: The organization should have a single plan of action to guide managers and workers.
- 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.
- Remuneration: Workers must be paid a fair wages for their services.
- Centralization: This term refers to the degree to which subordinates are involved in decision making.
- Scalar chain: The line of authority from top management to the lowest ranks is the scalar chain.
- Order: People and materials should be in the right place at the right time.
- Equity: Managers should be kind and fair to their subordinates.
- Stability of tenure of personnel: Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies.
- Initiative: Employees who are allowed to originate and carry out plans will exert high levels of efforts.
- Esprit de corps: Promoting team spirit will build harmony and unity within the organization.
Other Related Accounting Articles:
- Middle Managers Definition
- First Line Managers Definition
- Need for Managerial Accounting Information
- Top Managers Definition
- Introduction to Managerial Accounting
- What is Managerial Accounting
- Accounting Principles and Accounting Equation
- Bureaucracy (in Management) Definition
- Conceptual Skills Definition
- Code of Conduct for Management Accountants
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