Explain the following Principles of management given by Fayol with examples:

a. Unity of direction

b. Equity

c. Esprit de corps.

d. Order

e. Centralization and decentralization

f. Initiative

Unity of direction - Unity of direction means one unit one plan. All the units in an organisation must be moving forward in the same direction. This would help to achieve the common goal as well as coordination. Each group should have its head and the working of two groups should not be overlapped.

Equity- The concept of equity focuses on a kind, fair and just treatment of employees. It would improve the loyalty of the employees. The equity means the equal treatment of all without any discrimination based on gender, religion, caste or nationality. The promotions must only be based on the work done.

Esprit de corps-This principle encourages building harmony and Team Spirit among the employees. The concept of I must be replaced with we. It would bring cooperation and coordination in the organisation. Mutual trust and confidence would be developed in one another. Teamwork is extremely important in large organizations which have a large workforce.

Order- Order basically means a place for everything and everyone in an organisation. The right arrangement of men and material will help to carry out the task smoothly. For example, if the files in an organisation are kept in an orderly manner it would help to reduce the Chaos and the time required to find each and every file.

Centralization and decentralization-Centralization refer to the centration of authority in the hands of a few. The decision making power is concentrated only to the head of the organisation. Decentralization refers to the dispersal of authority among more number of people. Fall has suggested a balanced concept of both.

Initiative-The workers should be self-motivated and should be encouraged to develop and carry out their plans for more improvement within the organisation. The higher authorities must take regular suggestions from them. Initiatives must be encouraged but they must be within the line of the rules of the organisation.