Course Name- Principles of Management

Course Code- BBAMJ-101

Topic – Principles of Management

Model Institute of
Engineering & Technology
 Course Outcomes

Course Description Mapping with Program

Outcomes Outcomes and Program
Specific Outcomes

CO1 Understand the various functions of Management

CO2 Comprehend the various types of Organisation Structures.

CO3 Assess the importance of leadership and motivation in organizations.

CO4 Analyze the feedback and control procedures in an organizational setting.

CO5 Appraise the contemporary issues of management.

Course Outcome -Delivery Plan

Course Outcomes Topics Blooms Taxonomy

CO1 Understand the various functions of Management

Assessment and Evaluation Plan

Assessment Tools
• Q&A
• Discussion
• Evaluation
Lesson Outcomes

◻ Students will be able to understand the concept of Management and its

principles.
Henri Fayol

◻ Henry Fayol, also known as the ‘Father of modern management theory’ .

◻ He gave a new perception of the concept of management.
◻ He introduced a general theory that can be applied to all levels of management and every
department.
◻ The Fayol theory is practised by the managers to organize and regulate the internal activities
of an organization.
◻ He concentrated on accomplishing managerial efficiency.
Henri Fayol 14 Principles of Management

The fourteen principles of management created by Henri Fayol are explained below.
1. Division of Work:
◻ Henri believed that segregating work in the workforce amongst the worker will enhance the

quality of the product.

◻ This principle of Fayol tells us that as far as possible the whole work should be divided into

different parts and each individual should be assigned only one part of the work according to
his ability and taste rather than giving the whole work to one person.
◻ When a particular individual performs the same job repeatedly, he will become an expert in

doing that particular part of the whole job. Consequently, the benefits of specialisation will
become available.
2. Authority and Responsibility
◻ These are the two key aspects of management. Authority facilitates the management to work

efficiently, and responsibility makes them responsible for the work done under their guidance
or leadership.
◻ According to this principle, authority and responsibility should go hand in hand. It means that

when a particular individual is given a particular work and he is made responsible for the
results, this can be possible only when he is given sufficient authority to discharge his
responsibility.
3. Discipline
◻ It is the core value for any project or any management.

◻ Good performance and sensible interrelation make the management job easy and

comprehensive.
◻ Employees good behaviour also helps them smoothly build and progress in their professional

careers.
◻ Discipline means respect for the rules and regulations of the organization. Discipline may be

Self-discipline, or it may be Enforced discipline.

4. Unity of Command
◻ According to this principle, a subordinate (employee) must have and receive orders from only

one superior (boss or manager).

◻ This means an employee should have only one boss and follow his command. If an employee

has to follow more than one boss, there begins a conflict of interest and can create confusion.
5. Unity of Direction
◻ One head and one plan for a group of activities with the same objective. One manager must

direct all activities which have the same objective, and he must use one plan.This is called the
Unity of Direction.
◻ For example, all marketing activities, such as advertising, sales promotion, pricing policy, etc.,

must be directed by only one manager.

◻ Whoever is engaged in the same activity should have a unified goal.
6. Subordination of Individual Interests to the General Interest:
The interest of one individual or one group should not prevail over the general good. The
individual interest should be given less importance, while the general interest should be given the
most importance.

This indicates a company should work unitedly towards the interest of a company rather than
personal interest. Be subordinate to the purposes of an organization. This refers to the whole
chain of command in a company.
7. Remuneration:
Remuneration is the price for services received. Pay should be fair to both the employee and the
firm.
This plays an important role in motivating the workers of a company. Remuneration can be
monetary or non-monetary. However, it should be according to an individual’s efforts they have
made.
8.
8. Centralization:
◻ It is always present to a greater or lesser extent, depending on the size of the company and

the quality of its managers. In centralization, the authority is concentrated only in a few hands.
◻ However, in decentralization, the authority is distributed to all levels of management. No

organization can be completely centralized or decentralized.

◻ If there is complete centralization, the subordinates will have no authority (power) to carry out

their responsibilities (duties).

◻ Similarly, if there is complete decentralization, the superior will have no authority to control the

organization.
9. Scalar Chain:
The chain of command, sometimes called the scalar chain, is the formal line of authority,
communication, and responsibility within an organization.
According to Fayol, Scalar Chain refers to the chain of authority and communication that runs
from top to bottom and should be followed by managers and their subordinates.
◻ Gang Plank refers to an arrangement in which two managers working at the same level can

communicate with each other directly for quick communication.

10. Order:
◻ A place for everything and everything in its place, the right man in the right place. There should

be an Order for materials/things and people in the organization.

◻ Order for things is called Material Order, and order for people is called ‘Social Order.

◻ Material Order refers to “a place for everything and everything in its place.”

◻ Social Order refers to the selection of the “right man in the right place.”
11. Equity
◻ While dealing with the employees, a manager should use kindliness and justice towards

employees equally. Equity is a combination of kindness and justice.

◻ It creates loyalty and devotion in the employees toward the organization. The equity principle

suggests that managers must be kind as well as equally fair to their subordinates.
◻ All employees should be treated equally and respectfully. It’s the responsibility of a manager

that no employees face discrimination.

12. Stability of Tenure of Personnel:

◻ An employee delivers the best if they feel secure in their job. It is the duty of the management
to offer job security to their employees.

◻ The employees should have job security because instability leads to inefficiency. Successful
firms usually have a stable group of employees.
13. Initiative
◻ The management should support and encourage the employees to take initiatives in an

organization. It will help them to increase their interest and make them worth.

◻ Management should encourage the employees to make their own plans and execute these
plans. This is because an initiative gives satisfaction to the employees and brings success to the
organization.
14. Esprit De Corps:

◻ Esprit de Corps means “Team Spirit.” Therefore, the management should create unity,
cooperation, and team spirit among the employees.

◻ They should avoid dividing and rule policy. Harmony and cohesion among personnel. It’s a
great source of strength in the organization. It is a quality in every successful business.