Before we would close this chapter, we would record some classical principles of organization designing and operations which bear repetition even in today’s context.

Ten Commandments of Good Organization – American Management Association (AMA)

The Ten Commandments were formulated by the AMA as sound principles of a good organization. These are summarized (and adapted) below:

(1) Well-defined responsibilities for each management level.

(2) Matching responsibility with authority.

(3) No change in the assignment of a level (authority and responsibility) without prior consultation.

(4) Each one should take orders from only one (unity of command).

(5) No by-passing of levels in issuing executive orders.

(6) Chasten subordinates privately; not in the presence of his colleagues or juniors.

(7) Attend to all conflicts among levels concerning authority and responsibility.

(8) Orders concerning advancement, wages and discipline to be approved by the executive immediately superior to the one directly responsible.

(9) No executive or employee should be a critic of his own boss.

(10) An executive whose work is subject to inspection· should be helped to enable him to appraise independently the quality of his own work.


Uuwicks’ Ten Principles of Organization

Ten principles of organization were propounded by the noted management scientist, Lyndall F. Urwick. These are adapted and reproduced here:

(1) Principle of the Objective: Every organization and every part of it must be an expression of the purpose of the undertaking concerned or it is meaningless and therefore redundant.

(2) Principle of Specialization: The activities of every member of any organized group should be confirmed, as far as possible, to the performance of a single function.

(3) Principle of Coordination: The purpose of organizing per se, as distinguished from the purpose of the undertaking, is to facilitate coordination, unity of effort.

(4) Principle of Authority: In every organized group, the supreme authority must rest somewhere. There should be a clear line of authority from the supreme authority to every individual in the group.

(5) Principle of Responsibility: The responsibility of the superior for the acts of his subordinate is absolute.

(6) Principle of Definition: The content of each position – the duties involved, the authority and responsibility contemplated, and the relationships with other positions should be clearly defined in writing and published to all concerned.

(7) Principle of Correspondence: In every position, the responsibility and the authority should correspond.

(8) The Span of Control: No person should supervise more than five, or at the most six, direct subordinates whose work interlocks.

(9) Principle of Balance: It is essential that the various units of an organization should be kept in balance.

(10) Principle of Continuity: Reorganization is a continuous process; in every undertaking specific provision should be made for it.