6 Principles Of Management Every Manager Should Know

Principles Of Management

Managers play a crucial role in every organization. They convey the leadership’s vision to the employees and steer the organization towards success. Without competent managers, organizations will sink into anarchy. They will lack focus and will not be able to achieve any goals. Henri Fayol, the father of modern operational management theory, wrote a book in the 19th century detailing essential management principles a manager must have to succeed. We will take an in-depth look at the importance of management and these principles in this article. Let’s get right into it.

The importance of management

Management is key to every business’s success. It plays an integral part in achieving its goals and staying true to its vision. Management has several approaches managers can use to lead their teams and deliver results. We have listed them down below.

  • Transactional style: In this style, managers motivate their teams to perform through incentives.
  • Pacesetting style: In this style, managers in small businesses or startups set an example for employees to follow.
  • Coaching style: In this style, managers guide their employees towards success by acting as a coach.
  • Participative style: In this style, managers prioritize collaboration between team members to achieve targets.

In addition to using the management approaches mentioned above, managers must have the following skills to succeed in the role:

  • Excellent analytical thinking
  • Outstanding Critical thinking
  • Effective communication
  • Master of public speaking
  • Active listening skills
  • Compassion
  • Humility
  • Empathy

Become a master through an MBA in management

An MBA in management can help you master the 14 management principles mentioned in Fayol’s book. You can enroll in anonline management MBA degreeto hone your managerial skills in a flexible manner. This way, you won’t have to quit your job and can also simultaneously apply your learnings in a practical setting.

Principles of management

Henri Fayol was the first to use the principles of management. He was the managing director of a French mining company in the 19th century. He found immense success using these principles and spent most of his life improving these principles. Back in the 1900s, there was no reliable guide on management. So, Fayol wrote a book called General and Industrial Management. It is about Fayol’s theory of management called Fayolism. It details the most crucial principles of management every manager must use. These principles are as relevant today as they were back then. Let’s get right into them.

1. Division of labor

Division of labor refers to separating work into small tasks and assigning those tasks to individuals or teams. Each individual or team will focus only on the task assigned to them. Managers should assign tasks based on the strengths of their employees. If an employee is good at communication and active listening, they should work as a salesperson. And they should focus only on generating sales and not content creation, for example. Managers who allow employees to focus on honing one skill will inevitably improve their organization’s productivity and efficiency. It will lead to their teams exceeding expectations and crushing their goals.

2. Authority

Managers have a great responsibility on their shoulders. They are responsible for setting goals and creating strategies to achieve them. They will then guide their team to success through commands. Failure to achieve goals will result in the manager getting blamed, not their team. A great manager will always shoulder the blame and accept responsibility with authority. They will not punish their team for their own failure. A team only follows orders. The managers create the vision.

3. Discipline

Discipline is necessary to achieve goals. Every organization has a vision that they want to realize. Without discipline, they will never succeed. Great managers demand as much from themselves as they do from their team. They also require the respect and admiration of their employees. It allows them to lead and motivate their employees. However, they must remain ethical at all times. They should never take advantage of their employees and provide a good work/life balance.

4. Unity of command

Every organization has a chain of command. It helps employees know who to follow. Employees must know who their superior is. To avoid confusion, employees should report directly to one manager. It will lead to an increase in their productivity as they will have a clear sense of direction. Also, having two superiors can create confusion and lead to divided loyalties.

5. Unity of direction

Every organization has a vision. To realize that vision, everyone in the organization must be on the same page. Great managers ensure teams with similar goals follow one plan of action to achieve them.

6. Centralization

Decision-making is part of every business. Organizations should strike a balance between:

  • the top management having all decision-making power
  • employees having a say in the decision-making process

How organizations make decisions depends on the situation. Power in the hands of the few is not sustainable, and central power is needed to instill order among employees to get work done. Effective managers practice centralization to maintain the balance of power


Principles of management are crucial to every organization’s success. Successful managers master them to influence change within their teams to achieve goals. They also use different management approaches for different situations to deliver results. An MBA in management is a must for professionals interested in pursuing a career in management.

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