Principle: ORDER

Principle: ORDER

Here the word Order does not mean any command but is used in different context. “Order” means right arrangement of things and activities. In other words, order is a normal, correct, or fit condition.

This principle states that there should be a proper order for everything. Fayol is of the view that in every organization there should be a fixed place for everything to facilitate smooth working and avoid wastage of resources.

According to Fayol in every organization two different orders are necessary.

Material Order:  This order specifies that there should be a proper place for all physical resources. It states “A proper place for everything and everything at its proper place”. This will eliminate any kind of confusion regarding the search of material as the place of materials is already fixed and thus reduces wastage of material, time and efforts.

Social order: This order specifies that there should be a proper place for all human resources in accordance with their designations. It states “An appointed place for every employee and each employee at his/her appointed place”. This order is based on the basic assumption of “Right man for the right job”

This principle is very important for any organization as an effective order decides the overall working, efficiency and effectiveness of the organization. If an order is maintained for each and every resource then there will be no confusion and delay in working and thus this also helps in eliminating the wastage of time, resource and efforts. Consequently it also helps in controlling the use of financial resources.

Positive impacts of this principle:

Ø  No wastage of time and energy.

Ø  Better handling of resources.

Ø  Smooth and systematic working in the organization.

Ø  Increased productivity.

Ø  Efficiency in work.

Ø  Proper use of financial resources.

Consequences of violation of this principle:

Ø  Delayed operations.

Ø  Scattered physical and human resources.

Ø  Wastage of time and energy.

Ø  Wastage of financial resources.

Ø  No proper accountability.

Ø  Reduction in efficiency of controlling process.

Ø  Reduced operational efficiency.