MANAGEMENT PRACTICE Unity of direction: Unity of direction implies that each group with the same objectives must have one head and one plan. It provides better co-ordination among various departments in the organisation. Subordination of individual interest to general interest: The individual goals of people who are working in the organisation should be subordinate to the common group goals or to the organizational goals. When there is a conflict between the individual and common interest, the interest of the individuals should be sacrificed in favour of the corporate objectives. Remuneration of personnel: Remuneration is of vital importance for a smooth functioning of an organisation. Fayol states that employees should be given a fair and reasonable remuneration which should provide maximum satisfaction to both employees and employers. Centralization: Centralization refers to decreasing the role of subordinates in decision-making whereas decentralization refers to increasing the role in decision making. Management should strike out a balance between centralization and decentralization on the basis of the environment in which the organizational exists. Scalar chain: There should be a clear chain of command from the top to the bottom of the organisation and the line of authority should run in the order of rank from the top management downwards. This helps to ensure the orderly flow of information and communication. Order: This refers to both material and social order in organizations. Material order indicates that everything is kept in the right place to facilitate the smooth coordination of work activities. Social order implies that the right person is placed in the right job. Equity: All employees should be treated fairly and equally. Managers should be both fair and friendly to the subordinates. Employees expect management to be free from all prejudices, personal likes and dislikes. Stability of Tenure: In the interest of the efficiency of organisation, employee turnover should be minimized and employees should be motivated to stay in the organisation for as longer a period as possible. It results in a sense of belonging to the organisation. Initiative: Employees should be given the freedom to be innovative. They should be encouraged to initiate new ideas and carry out their plans, even when some acceptable mistakes result. Innovation which is the hallmark of technological progress is possible only where the employees are encouraged to take initiative. Esprit de Corps:
FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621
19