(i) Division of work or work specialization: Division of work or work specialization is a natural activity in every organization. The
skill of specialization or functional specialization produces more and better work with the same effort. It is also called separation of powers.
(ii) Authority and responsibility:
Authority and responsibility refers to the right to order and the power to obedient. Authority and responsibility are the two sides of the same coin. Without responsibility, the authority is meaningless. So it should be functioned in a interrelated and coordinated manner.
(iii) Discipline, orderliness and obedience: Discipline, orderliness and obedience are the important characteristics of the organization.
It refers to the established rules, procedures, guidelines under which all the functioning of the administration runs. So for the proper functioning of the organization, discipline is inevitable. The best means of creating and upholding it are as follows:
a. Good superiors at each and every levels of the organization.
b. Clear and fair agreements
c. Justiciable sanctions
(iv) Unity of command:
In simple words Unity of command refers to that an employee of an organization should receive or obey the command from one superior only. According to Fayol “Should it be
violated, authority is undermined, discipline is in jeopardy, order disturb and stability threatened.” . He further said that an employee cannot be two superior authority or dual command. The factors resulting dual commands are:
a. Division of authority between two persons leads to dual command.
b. Improper division of the department.
c. Constant linking up between different departments.
(v) Unity of direction:
According to Henery Fayol“It is essential for unity of action, co-ordination of strength
and focusing of effort. The unity of direction is provided for by sound organizationsof the body corporate, unity of command turns on the functioning of the personnel. Unity of
command cannot exist without unity of direction, but does not flow from it. ” Thus the principle of „one head one plan‟ is emphasized on the unity of direction.
(VI) Subordination of individual interest to general interest:
Organization is not based on the personal or individual or group of individual‟s interest. It reconciles the both interests and then finalizes the blue print for the organization. It may
reconcile through various processes such as taking the good examples on the part of the superior authority, transparent and fair agreements, continuous and regular supervision
(VII) Remuneration of employees:
Remuneration refers the price what the employee gets for his service towards the organization. However, there are various grounds on which remuneration varies. They are
business environment, living condition, accessibility of personnel, financial position of the business, value of the employee, mode of payment adopted etc. but according to Fayol there are various modes of payment for the employee such as time rates, job rates, price
rates, bonuses, profit sharing and non-financial rewards.
Centralization is also equally important like decentralization and division of power in an organization. It is also present in each and every type of organization. According to Fayol “the question of centralization or decentralisation is a simple question of proportion. Everything which goes to increase the importance of the subordinate‟s role is decentralization, everything which goes to reduce is centralization”. Thus decentralization and centralization is equally important for the smooth functioning of the administration.
(IX) Scalar chain:
The scalar chain refers to the hierarchical system of administration where the chain extending from the top or superior authority to the lowest of subordinate authority. The
chain binds all the personnel in an organization with their own responsibilities and dignities. The process te3nds to everybody to follow the path of unity of command. For
this Fayol suggested an alternative route that is most popularly known as „Gang Plank‟ which is essential to speed of the communication in the administration.
(X) Command or order:
Command or order states that there should be separate places for each and everything. The right men should be in right place. A place for every one and every one in his place is
the basic thing of the principle of organization.
(XI) Fairness and equity:
Fairness or equity results from a combination of kindness and justice. The organizationalauthorities should treat the employees of their organization with kindness
and try to encourage them to discharge their duties properly with established rules and procedure.Thus, the authorities should maintain fairness and equity in each and every step of the organization.
(XII) Stability of tenure of the personnel: Job stability and job satisfaction are the two basic features of the employees. Employees
also need time to strengthen in their field of work. So they should be fixed and stabilized in one type of working environment and organization. If there is a change in the organization then it will be very difficult to find the efficient workers.
(XIII) Power of thinking or taking initiative: This is a principle whichbrings enthusiasm and liveliness on the part of employees at
every levels of the organizational ladder. This is regarded as the great source of strength for business. It develops the power of thinking out a plan for the success of the
(XIV) Esprit de Crops:
Esprit deCrops refers to maintain harmony or union among the personnel of the enterprise which signifies a great source of strength for it. There should be the unity of
command in any organization for its success.