Management Principles

 Question: What principles would you use as guides? (Summer 2005)

Brech says, "If there is to be systematic approach to the formulation of organisation structure there ought to be a body of accepted principles, i.e., to say, a set of agreed basic factors which will determine the effectiveness of an organisation structure when at work in practice and the absence of which will, generally speaking, lead to deficiencies in the working department." 

According to Urwick these principles may be set forth as follows:

1. The principle of objectives : All organisations and each part of any undertaking should be the expression of a purpose, either explicit or implied. 

2. The principle of correspondence : Formal authority and responsibility must be co-terminal and co-equal. 

3. The Scalar principle : There must be a clear line of formal authority running from the top to the bottom of every organisation. 

4. The principle of responsibility : the responsibility of higher authority for the acts of its subordinates is absolute. 

5. The principle of span of control : No superior can supervise directly the work of more than 5 or at the most 6 subordinates who interlocks.

6. The principle of co-ordination : The final object of all organisations is smooth and effective co-ordination. 

7. The principle of definition : Every position in every organisation should be clearly prescribed in writing. 

8. The principle of balance : It is essential that the various units of an organisation should be kept in balance. 

9. The principle of specialisation : The work of every person in the organisation should be confined as far as possible to the performance of a single leading function.

10. The principle of continuity : Re-organisation is a continuous process; in every undertaking specific provision should be made for it.