Centralization and Decentralization
Centralization refers to the concentration of authority at the top level, and decentralization means distribution at all levels of management. According to this principle, there should be a proper balance between centralization and decentralization. The degree of centralization and decentralization depends on various factors, such as experience of the employees, ability of subordinates, size of the organization, etc. Too much centralization lead to loss of control of top management. Therefore an optimum balance should be maintained according to the need of the organization.
For example, Authority to take vital decisions must be given to the top management, whereas authority related to operational activities must be given to the middle and lower level.
14 Principles of Management by Henri Fayol
Principles of Management are like a guidebook for leaders to run a company well. They help managers make plans, organize tasks, and motivate teams, and, they serve as frameworks for managers to deal with the difficulties of leading people and achieving goals within an organization.
Principles of Management cover a diverse range of concepts and practices that aim to optimize resources, encourage innovations, and improve performance. They provide managers with a systematic approach to decision-making, problem-solving, and achieving results in a dynamic business environment.
Table of Content
- What are the Principles of Management?
- Who was Henri Fayol ?
- Principles of Management by Henri Fayol
- 1. Division of Work
- 2. Authority and Responsibility
- 3. Discipline
- 4. Unity of Command
- 5. Unity of Direction
- 6. Subordination of Individual Interest to General Interest
- 7. Remuneration of Employees
- 8. Centralization and Decentralization
- 9. Scalar Chain
- 10. Order
- 11. Equity
- 12. Stability of Personnel
- 13. Initiative
- 14. Esprit De Corps
- Difference between Principles of Management and Techniques of Management
- Henry Fayol’s Principle of Management – FAQs