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Aditi
29 January, 2026
Once you step into the business world or acquire any leadership role and take on the responsibilities of other people, work and expectations. This whole thing sounds far more complex than your textbooks. The ultimate goal of a business is to achieve profit targets set by the company. These targets can only be attained by focusing on two significant aspects, that is, increasing the revenue and decreasing the costs. This responsibility is handled through various management practices. Therefore, ensuring the efficiency and productivity of an organisation is an essential part of business management.
That is why, the MBA course includes the principles of management subject at the very beginning of the programme. It happens long before you start your specialisation courses. This subject lays the foundation for every managerial role, detailing how organisations are planned, structured, controlled, and led to achieve profits. From startups to multinational corporations, the principles you learn here silently guide you for future business decisions. In this blog, we have discussed the different aspects of the principles of management, its types, the best books to buy and its practical implications.
Before exploring the depths, it's important to grasp what management principles actually mean. They are the time-tested guidelines which help managers to handle people, company resources and processes. This doesn’t mean that they will lay out exact actions, but they provide a framework for making informed decisions.
To define it theoretically, principles of management are the fundamental rules and guidelines that guide managerial behaviour and decision-making in organisations. The principles are derived from observation, experience and experimentation with time, which makes them adaptable and practical. The father of modern management, Henri Fayol, says that management principles are universal in nature but flexible in application.
In practical terms, these principles help:
Managers achieve organisational goals
Ensure maximum utilisation of resources
Maintain coordination among different departments
Provide consistency in operations and provide stability
When you start studying this subject in your MBA course, you might feel that it is too theoretical. However, once you step into internships, leadership roles and live projects, you will understand how deeply relevant this MBA subject actually is. Principles of management help you understand why organisations behave the way they do and how they influence business operations.
Here are the key reasons why it's part of the MBA coursework:
Develop Managerial Mindset: It trains you to think beyond tasks and focus on the outcomes, leadership and coordination.
Brings Conceptual Clarity: You get a clear understanding of the terms like authority, responsibility, delegation, accountability and control, which become usable.
Enhances your Decision-Making Ability: You learn a structured approach to problem-solving and strategic thinking.
Helpful for Exams and Interviews: These principles are frequently tested in semester exams, NET/SET and job interviews.
Related: Exploring MBA Subjects: What You Will Learn in Business School
The principles of management subject is generally covered in the MBA course. So, the syllabus of these subjects is designed to give you a holistic understanding of how organisations operate. Here you won’t just study about one department, instead the subject provides a bird’s eye view of every department in the organisation and prepares you for the manager’s role.
Here are the topics you may study in the principles of management subject:
Also Read: Key Subjects Covered in MBA Programmes: MBA Insider
According to F.W. Taylor, the scientific principles of management emphasise on a scientific approach to managing employees and workers. These principles are based on research and experimentation to design new management practices.
Here are five scientific principles of management:
Science, not a rule of thumb: It is argued that companies should use scientific techniques for performing any task rather than the rule of thumb.
Harmony without discord: As per this principle, there should be coordination and harmony among the workers and management.
Mental Revolution: This principle says that the management and workers should shift their mental attitudes toward one another. The company and workers should have the same vision.
Coordination Between Management and Workers: It states that to achieve the desired organisational objectives, the workers and management should coordinate properly. Both should have a clear understanding of each other’s requirements.
Development of Every Person to His Greatest Efficiency: It is clear that the success of any organisation depends on its employees' abilities. So, companies should focus on incorporating activities which improve the employee’s skill development.
Related: Top High-Paying Management Courses Other than MBA: Detailed Overview
More than a century ago, Henri Fayol, the father of modern management, introduced a set of ideas that continue to guide managers even today. The 14 principles of management he wrote were not just for theory, but to enable managers to bring order and clarity into everyday work situations. Whether you are a student or a working professional looking to improve decision-making skills, these principles of management provide you with a more structured and practical approach.
Here are the 14 principles of management by Henri Fayol with examples.
Dividing bigger projects into smaller, more manageable tasks based on individual experience. If you try to do everything needed for a new project, it will probably take longer, and you might end up making more mistakes. However, if the project is divided into different sets of tasks, it becomes manageable.
Example: A marketing team is working on creating an advertisement, there is someone who creates content, another person who optimises the website and yet another person to manage the paid search.
Responsibility refers to the duty to complete the assigned task, while authority is the power to give instructions. According to Fayol, both must go hand in hand. A manager without authority cannot get the work done, even though it's his responsibility. With no authority, the responsibility is just unfair pressure.
Example: Imagine a project manager who has to deliver a project on time. He/she needs to bear the responsibility of being able to assign tasks, decide timelines and resolve conflicts.
By discipline, it means respecting agreements, rules and values built within the business organisation. It plays a key role in bringing professionalism to the workplace. Discipline means consistency and respect among workers and management.
Example: Suppose there’s a meeting scheduled at 10 a,m but the team does not arrive on time, the company’s discipline disintegrates.
According to this principle, every employee should report and receive instructions from one manager. It is intended to eliminate the confusion and conflicting priorities.
Example: One manager may ask you to act quickly, while another manager may want you to be perfect and yet another manager may want to change the priorities. As a result, you get uncomfortable and confused.
This principle revolves around work alignment and is not just focused on reporting. When different teams are trying to achieve the same objective with separate plans, the efforts get wasted. Having unity of direction will mean that all members are moving in the same direction to achieve the same result yeilds higher benefits.
Example: When a new product is launched, the marketing team is busy promoting, the sales team offers a great discount and but the customer service is not updated. This leads to confusion among the customers.
According to this principle, every employee needs to put aside their personal likes/dislikes for the benefit of the whole company or team in case of any conflict.
Example: A senior in a team refuses to share their knowledge with the team because they are afraid that this will decrease their value in the team. However, it slows down the progress and efficiency of the team.
It is one of the important aspects of management, which brings motivation, loyalty and job satisfaction. It refers to fair and satisfactory compensation for work. The pay must match the effort and responsibility of the employee.
Example: There are two employees who contribute equally to the project, but only one of them is favoured and does not allow recognition to the other. After a while, the other ones' performance takes a hit and hence the remuneration.
It defines how decision-making power is channelised among the organisation’s members. The power to take any strategic decision depends on the size of the company and the type of work being performed.
Example: In a startup, the founder of the company will likely make all the major decisions until the company turns big or gains significant experience. Then he/she may empower other members to make some decisions.
It refers to the line of authority from the highest management to the lower level in the business firm. This principle ensures proper communication, responsibility and discipline. However, Henri Fayol also recognised flexibility where urgent communication is needed.
Example: A junior employee directly approaching the CEO for routine issues rather than their manager. It undermines the authority and creates confusion.
It means to have the right person for the right job with the appropriate tools and materials. It can be applied to the HR department and material resourcing.
Example: When project files are stored in a different location, if they are not organised, you waste a lot of time.
It is the manager’s ability to ensure fairness among employees which leads to building loyalty and respect. A team leader or manager must treat all employees equally.
Example: If one employee is repeatedly forgiven for his mistakes due to his/her personal relationship, but the other employee is disciplined for the same mistake. It creates resentment among other employees.
This principle deals with the value of retaining employees. The management should understand that employees take time to learn symptoms and skills to excel.
Example: A company that hires employees every few months can never reap the benefits of experience.
The management should encourage employees to think and come up with fresh ideas. When creativity is encouraged, employees feel motivated and valued.
Example: When an employee suggests a new idea which saves time and the manager entertains this suggestion, it boosts their confidence.
This term refers to team spirit or harmony among workers. Trust, mutual respect and collective success are the pillars of strong teams.
Example: Teams that celebrate every little step and support one another usually perform better under pressure.
Now, moving beyond theoretical concepts, let’s discuss the practical aspects of management principles in a business corporation. Here are a few practical applications:
In strategic planning to define vision and mission, long-term goals and new initiatives.
Help in shaping organisational structure, like hierarchy, and reporting relationships.
Managerial principles also apply to recruitment, personal appraisal, motivation systems and other HR aspects.
In controlling and planning principles to streamline processes.
The management principles help shape leadership styles.
If you are an MBA student or planning to pursue this course, or someone who wants to brush up on their knowledge of the principles of management, this is your section. We have compiled the list of the best books to study this subject.
For all the MBA students, if you have selected principles of management as your subject for the project work, we have got you covered. Picking a project topic for an MBA is like winning half the battle. Here, we have explored and discussed the list of project topics in the principles of management area for you to pick during the MBA course.
A study on the effectiveness of strategic planning in Indian startups
Detailed analysis of the impact of decision-making models on business outcomes
Understanding organisational structures and employee performance
A comparative study of centralised vs decentralised structures
Study the impact of leadership styles on employee engagement
A detailed study of the role of quality control in manufacturing firms
Case study of the CSR practices and brand image
Study the communication barrier and its impact on operational efficiency
The principles of management is not just another subject or topic to be covered in your MBA curriculum. It basically lays the foundation of all managerial action and thinking. You are prepared for the stages which involve planning, leading, analysing risk and maintaining discipline. These principles are drafted to guide your decision and shape your leadership style. So, whether you want to become a management consultant, build your startup or work in an MNC, mastering this subject will always give you an edge in your professional life.
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