Order Principle of Management: Key to Business Success

Order Principle of Management: Key to Business Success

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Rashmi Karan
Manager - Content
Updated on Sep 5, 2023 12:05 IST

Discover how implementing the order principle of management can streamline operations, boost productivity, and drive success in your organization.


In 1916, Henri Fayol developed the classical theory of management for companies based 14 principles of management by Henri Fayol. This theory emphasizes the structure that an organization must have to achieve efficiency.

Since then, organizations have changed a lot, and current approaches and situations have meant that some of the principles of this theory have lost their validity. However, some of these principles are still used in current organizations but adapted to the circumstances or situations of the present. 

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One is the principle of the “order” of things. It suggests that everything must have a place, and there must be a place for everything. This applies to documentation, tools and machinery used in the organization. The objective of maintaining this “order” is to carry out an efficient administration of the organization.

Planning and order are synonymous with productivity. 

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What is the Order Principle of Management?

The order principle of management refers to establishing a systematic and organized structure to promote efficiency, coordination, and productivity.

Henri Fayol introduced the Order Principle of Management. It is one of the fourteen principles of management that emphasizes establishing and maintaining an organized structure.

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Why Is Order Important In A Company?

Order is important in a company for several reasons:

Efficiency: Orderliness within a company ensures that operations run smoothly and efficiently. You can execute tasks logically with minimum confusion, delays, and errors when there is a clear order.  

Communication: Order facilitates a clear line of communication within a company for the smooth flow of information. People know whom to collaborate with and from whom they can seek guidance. We can say that order promotes better coordination and teamwork.

Accountability: An orderly structure allows for a precise assignment of authorities and responsibilities. Employees know their specific tasks and objectives when roles and responsibilities are well-defined.  

Decision-making: Orderliness aids decision-making processes. A well-organized company typically has established procedures and systems, such as hierarchies, workflows, and documentation. These structures provide a framework for making informed decisions by ensuring that relevant information is collected, analyzed, and shared appropriately.

Adaptability: When there is an orderly structure in an organization, it becomes simpler to introduce changes, incorporate new processes, or expand operations. The existing order provides a foundation for managing growth and adjusting to evolving business needs.

Customer Satisfaction: Orderliness has a direct impact on customer satisfaction. When a company operates in an organized manner, it can cater to its customers efficiently, meet deadlines, and promptly solve any customer inquiries or concerns. This leads to improved customer experiences, loyalty, and positive word-of-mouth recommendations.

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How to Implement Order Within the Organization?

Implementing the Order Principle of Management in a company involves several steps. Here are some guidelines to help you implement this principle effectively:

  1. Define Roles and Responsibilities: Managers should clearly define every employee’s role. Employees should be aware of their contribution towards the company’s objectives.
  2. Establish Reporting Structures: Determine systematic reporting relationships within teams. Identify who reports to whom, ensuring a clear line of authority and accountability.
  3. Develop Standardized Processes: Identify and document the key processes and workflows within the organization. Create standardized procedures and guidelines to ensure consistency and efficiency in performing tasks.
  4. Streamline Communication Channels: Establish effective communication channels to facilitate the flow of information within the company.  
  5. Document Everything: Implement documenting systems to store important information, such as policies, procedures, and project documentation. This helps maintain a centralized knowledge repository that employees can easily access.
  6. Optimize Resource Allocation: Ensure that resources, including human resources, materials, and equipment, are allocated efficiently to ensure optimal utilization of resources.
  7. Encourage collaboration and teamwork: Foster a culture of employee collaboration and teamwork. Encourage cross-functional collaboration and communication to enhance coordination and problem-solving.
  8. Train Your Employees: Offer employee training and development programs to enhance their skills and ability to perform tasks better.
  9. Review: Regularly review and monitor the implemented order principles to identify areas for improvement. Adjust processes and structures to adapt to changing circumstances and evolving business needs.
  10. Lead by example: Managers and leaders should exemplify the order principle by adhering to established processes, communicating clearly, and promoting a culture of organization and efficiency.


The order principle of management is an essential element in achieving organizational effectiveness. By implementing this principle, managers can create a structured and systematic approach to work, promote efficiency, enhance coordination, and ultimately drive success.

Related Read – Henri Fayol’s 14 Principles of Management with Examples


How does the order principle benefit a company?

The order principle benefits a company by streamlining operations, improving communication, enhancing decision-making, fostering accountability, enabling scalability, and ultimately driving overall success.

How does the order principle impact employee productivity?

The order principle enhances employee productivity by providing clear guidelines and expectations, minimizing confusion and redundancy, enabling efficient task allocation, and facilitating better coordination and collaboration among team members.

What are the potential challenges in implementing the order principle?

Some challenges in implementing the order principle may include resistance to change, the need for cultural shifts within the organization, and the requirement for effective communication and training to ensure widespread adoption.

Can technology and automation support the order principle in management?

Technology and automation can play a significant role in supporting the order principle. Digital tools, project management software, and automated workflows can streamline processes, improve organization, and enhance efficiency.

How to measure the effectiveness of the order principle of management?

The effectiveness of the order principle implementation can be measured through key performance indicators (KPIs) such as improved productivity metrics, reduced errors or redundancies, enhanced employee satisfaction, streamlined processes, and better overall organizational performance.

About the Author
Rashmi Karan
Manager - Content

Rashmi is a postgraduate in Biotechnology with a flair for research-oriented work and has an experience of over 13 years in content creation and social media handling. She has a diversified writing portfolio and aim... Read Full Bio