Overview of Principles of Management Chapter 2 Organizational Communication

Principles of management overview

Henri Fayol said managers must guide organizations through structure, authority, motivation, and morale. His principles aim to create order, fairness, and teamwork. Example: A manager ensures clear hierarchy, fair pay, and good team spirit.

Scalar chain

Clear line of authority from top to bottom. Everyone knows who they report to and who they manage. Example: A store clerk reports to a shift leader, who reports to a manager, who reports to the district manager.

Unity of command

Each employee should have only one direct supervisor to avoid confusion. Example: A teacher reports only to the principal, not multiple administrators.

Unity of direction

All employees working toward the same goal should be guided by one plan. Example: A marketing team follows one campaign strategy instead of conflicting ones.

Division of labor

Work should be divided into specialized tasks so employees can develop expertise. Example: In a restaurant, chefs cook, servers serve, and cashiers handle payments.

Order

Materials and people should be organized in the right place at the right time. Example: Office supplies are kept stocked and employees are scheduled efficiently.

Span of control

Managers will be most effective if they have control of a limited number of employees

Centralization

Decision-making should match the size and needs of the organization — too much central control can slow work, too little can cause chaos. Example: Small companies use central control, but large firms delegate decisions to departments.

Authority and responsibility

Managers have the right to give orders and the responsibility to make sure they are carried out ethically. Example: A supervisor assigns tasks and ensures employees have tools to complete them.

Discipline

Employees and managers must follow rules and agreements. Respect comes from good leadership, fairness, and clear expectations. Example: Consistent enforcement of attendance policies builds fairness and trust.

Remuneration of personnel

Employees should be fairly compensated for their work through pay, benefits, or recognition. Example: Bonuses for meeting quarterly goals.

Equity

Managers should treat employees with kindness and fairness. Example: Giving equal opportunities for promotions regardless of gender or background.

Stability of tenure

Long-term employment builds loyalty and efficiency; constant turnover harms morale. Example: A company offering job security sees more committed workers.

Subordination of individual interest

The company’s goals should come before personal goals, but with fairness to workers. Example: Team members delay personal tasks to complete a group project on time.

Esprit de corps

Managers should build teamwork, unity, and positive spirit among employees. Example: Team-building activities and open communication boost morale.

Initiative

Employees should be encouraged to share ideas and take ownership of their work. Example: A manager asking workers for input on improving workflow.

Principles of Organizational Structure

Scalar chain, Unity of command, Unity of direction, Division of labor, Order, and Span of control

Principles of Organizational Power

Centralization, Authority and responsibility, and Discipline

Principles of Organizational Reward

Remuneration of personnel, Equity, and Tenure stability

Principles of Organizational Attitude

Subordination of individual interest to general interest, initiative, and Esprit de corps