(i) Unity of Direction: 

It states that there should be one head and one plan for the activities having same objectives. In other words, the activities that have the same objectives should be directed under one manager under one plan.

Example :

Let us assume, one company is manufacturing motorcycles. So, the company should appoint one person for the purchasing of raw materials and one person for the marketing and other person for production. By this, the process would go smoothly as one person is responsible for one profile only.

(ii) Equity: 

It implies that the employees should be dealt in a kind, just and fair manner. It refer to fair play, justice, friendliness. No discrimination should be done among workers.

Example : 

If, in any organisation, employees work in shifts i.e. day shift and nightshift, it is the responsibility of the head to arrange the shifts for all employees in equal manner i.e. it should not happen that one is working always in day and the other one in night only.

(iii) Cooperation : 

It states that managers should promote the spirit of teamwork and cooperation and a sense of unity among the employees.

Example : 

If manager has allotted the task of preparing 50 units of something in a group of 5 persons, then, they should work like team members cooperating with each other. It can be possible that one has the capacity to prepare 11 or other is able to complete only 9. So, it is the responsibility of the team members to complete the group task as the worker who can prepare 11 can help the one who can prepare only 9 units.

(iv) Order: 

The principle of order states that there should be a place for everything and for every person. At the same time everything, and every person should be at its right place.

Example : 

Suppose, in any organisation, any equipment gets started with any specific instrument held by a person. So, it is the responsibility of the person to keep that instrument at a fixed and right place, so that other person can also operate in his absence.

(v) Centralisation and Decentralisation : 

If power of taking decisions is in one hand, then its centralisation and power of decision making is distributed as per the needs of the department and decentralisation have totally depends on the size of the organisation. If it is big, it should be decentralised and if it is small, then centralised system should be preferred.

Example : 

If budget of the organisation is prepared by the top level management for all the departments and accordingly departments have to manage, then it is centralisation, whereas if the budget is prepared by department heads and then top level acceptance is taken, then it is decentralisation.