- Unity of Objectives.An organization and every part of it should be directed towards the accomplishment of common objectives.
- Efficiency.An organization is efficient if it is able to accomplish predetermined objectives at minimum possible cost.
- Division of Work.The total task should be divided in such a manner that the work of every individual in the organization is limited as far as possible to the performance of a single leading function.
- Span of Control. No executive should be required to supervise more subordinates than he can effectively manage.
- Scalar Principle. Authority and responsibility should be in a clear unbroken line from the higher executive to the lowest executive. There must be a clear chain of command.
- Delegation. Authority delegated to an individual manager should be adequate to enable him to accomplish results expected of him.
- Functional Definition. The duties and authority-relationships of different individuals must be clearly defined so that there is no confusion or overlapping. The relationships between various jobs should also be clearly defined.
- Absoluteness of Responsibility. The responsibility of the subordinate to his superior is absolute. No superior can escape responsibility for the organizational activities of his subordinates. Similarly, subordinates must be held responsible for the performance of task assigned to them.
- Correspondence. Authority and responsibility must be coterminous and co-extensive. The responsibility exacted from a position should be commensurate with the authority delegated to that position, and vice versa.
- Unity of Command. Each person should receive orders from only one superior and be accountable to him. This is necessary to avoid the problems of conflict in instructions and divided loyalty and to ensure the feeling of personal responsibility for results.
- Unity of Direction. There must be one head and one plan for a group of activities directed towards the same objective.
- Balance. The various parts of an organization should be kept in balance and none of the functions should be given undue emphasis at the cost of others. In order to create organizational or structural balance, it is necessary to maintain a balance between centralization and decentralization, between narrow span of management and long lines of communication, between line and staff, etc.
- Exception principle. Every manager should take all decisions within the scope of his authority and only mattes beyond the scope of his authority should be referred to higher levels of management.
- Coordination. There should be orderly arrangements of group effort and unity of action in the pursuit of a common purpose. The purpose of organizing is to secure unity of effort.
- Flexibility. The organization must be free from complicated procedures and red tape. Devices, techniques and environmental factors should be build into the structure to permit quick and easy adaptation of the enterprise to changes in its environment.
- Continuity. Change is law of nature. The organization should be so structured as to have continuity of operations. Arrangements must be made to enable people to gain experience in positions of increasing diversity and responsibility.
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