(a) Unity of Command : According to this principle an employee should receive orders from one boss only because if he is receiving orders from more than one boss then he will get confused and will not be able to understand that whose orders must be executed first and on the other hand, if employees is receiving orders from more bosses he gets chance to give excuses by saying that he was busy in executing the orders of other boss. To avoid confusion and to give no chance of excuse to employee, the orders must come from one boss only. If there are more bosses it can create problem of ego-clash among the superiors as every superior will want his order must be executed by the employee. 

E.g. If employees of Production Department is asked to go Slow in Production to maintain Quality Standard by the Production in charge and Sales in charge instructs the employee to fasten the production to meet the pending orders. In this situation employee will get confused as to whose instructions must be followed by him.

Positive Effect : 

• Achievement of Organizational Goal. 
• Efforts get Unified in One Direction 

Consequences of Violation of this Principle : 

• Lack of Co-ordination. 
• Wastage of Efforts and Resources 
• Difficult to Achieve Organization Goals .

(b) Subordination of Individual Interest to General Interest : According to this Principle the Interest of organization must supersede the interest of individuals or employees. In the organization all the employees are working with some objective and there is always an objective of organization. If the objectives of individual are in the same direction of organization then there is no problem but if the objectives of both the groups are in different directions then manager must try to reconcile individual interest with organizational goal and if it is not possible then individual goal must be sacrificed for achieving organizational Goal .The goal of organization must not be sacrificed because individuals will be able to achieve their objectives only when organization prospers . E.g. If individual’s objective is to earn more remuneration and organization is going through the situation of financial crisis and has the objective of cutting down the expenses. In this situation the individual must sacrifice his interest as when organization will come out from financial crisis then he can achieve his objective . 

Positive Effect : 

• Achievement of Organizational Goal. 
• Coordination between Individual and Organizational Goal.

Consequences of Violation of this Principle : 

• No Achievement of Organizational Goal. 
• Even Employees will also Suffer in Long Run.

(c) Stability of Personnel : It refers to No Frequent Termination and Transfer . According to this Principle , the Management must provide the feeling of Job Security among the Employees because with the feeling of Insecurity for the Job , the Employees cannot contribute their Maximum . Frequent Turnover of Employees is bad for organization and such decision must be taken when they are almost Unavoidable . Not only turnover , but frequent transfer or rotation should also be avoided because it takes sometime to a person to learn and get settled on a job and by the time he gets settled and he receives transfer order then it will be wastage of resources and employees will not be able to contribute their best for the organization . 

Positive Effect : 

• Improves Efficiency Level of Employees. 
• No Wastage of Time and Resources.

Consequences of Violation of this Principle :

• Wastage of Resources in Learning the New Job.
• Frustration and Dissatisfaction among Employees