Principles of organization:
Principle of objective: The organizational goal should be formulated for the business as whole and organization should be framed to achieve that goal. Departmental goals should be developed so that ultimate common goal should be attained. If the common organizational goal is not decided, departments may set their own goals and there may be occurrence of conflict about the common objective.
Division of work: the organization should be framed in a manner such that every individual should get work according to his ability, skills and knowledge. The employees should do that work continuously to achieve specialization that particular work. This will increase his efficiency.
Authority and responsibility: The amount of authority decreases as we go downward in the organizational level. For every given work or responsibility there must be provision of authority to get that work done. The manager can delegate his authority to his subordinates to complete the task but responsibility to complete that work can not be delegated, only manager would be answerable for the given work not his subordinates.
Unity of command: There should be unity of command in the organization. An employee should be controlled by one boss. He should get orders from one superior and should report to the same superior. If a person is under the control of more than one person then there would be confusions and conflicts. Unity of command would lead to better coordination and controlling.
Span of control: There should be proper span of control. Span of control is the number of subordinate reporting directly to a manger. The number of subordinates should be in such manner so that supervision can be done effectively. If span is not planned appropriately efficiency of workers will be affected.
Scalar chain: There should be proper chain of supervisor from top level to lower level in vertical direction. This also shows the direction of communication in the organization. This suggests that communication should pass through each position placed in the chain.