Subordination of Individual Interest Principle of Management

Unlock the key to organizational effectiveness with the Subordination of Individual Interest Principle. Learn how prioritizing the collective goals of your organization over personal ambitions can foster unity and collaboration and drive organizational success.

The subordination of individual interest is one of Henri Fayol’s fourteen administrative principles. It suggests that the interest of any individual that conflicts with an organizational interest must be subordinated to the organization’s interests. This article covers the subordination of individual interest principle in detail.

Content

• What is the Subordination of Individual Interest Principle?
• Why is the Subordination of Individual Interest Principle Important?
• Violation of the Subordination of Individual Interest Principle
• How to Implement Subordination of Individual Interest Principle at Workplace?

Must Read – What is Management?

What is the Subordination of Individual Interest Principle?

The subordination of individual interest principle of management states that the company’s interest is superior to an employee’s interest. 

Team leaders and managers must integrate the individual goal with the organizational goal to accomplish these objectives effectively. The employees should be guided to work for their overall organizational objective and ultimately achieve the business goals.

Examples 

• Suppose an employee wants to take a day off to attend a family event, but their manager requires them to work that day because of a deadline. In such a scenario, the employee’s interest would have to be subordinated to the organization’s interests.
• You may want to work from home, but your organization demands you to work from the office, ensuring better collaboration. In this case, you must follow the organization’s interests and subdue your personal interest.

Why is the Subordination of Individual Interest Principle of Management Important?

There are a few reasons why this principle of management is important.  

• It ensures that everyone in the organization is working towards the same goals. When employees focus on their interests, getting them to work together is not easy.
• This principle helps create a sense of unity within the organization. Employees who feel part of something bigger than themselves are more likely to be motivated and productive.
• If employees are not flexible to collaborate with others, it can lead to conflict and discord within the organization. This principle helps prevent personal agendas, conflict and discord.
• This principle promotes a shared sense of purpose and helps channel individual efforts towards achieving common organizational objectives.
• Subordination of individual interests allows for the efficient allocation of resources within the organization, thereby maximizing productivity and minimizing wastage.
• By placing the collective interest above individual interests, the principle contributes to the stability and sustainability of the organization. It establishes a strong sense of loyalty and commitment among employees, promoting long-term organizational growth and success.
• Decision-making processes become more objective and focused on the overall welfare of the organization.

Violation of the Subordination of Individual Interest Principle

Violating this principle can lead to several negative consequences, which include – 

• Employees focus on personal gains rather than working towards common goals, thus leading to reduced productivity and poor outcomes.
• Employees may become demotivated, disengaged, and less committed to their work, harming overall organizational performance.
• Violation of this principle can make implementing organizational changes and initiatives challenging.
• Dominating individual interests leads to a lack of commitment and dedication, limiting the employee’s personal and organizational growth.

How to Implement Subordination of Individual Interest Principle at Workplace?

According to Henri Fayol’s principle of subordination of individual interests, a manager must find ways to reconcile discrepancies between organizational and individual interests as much as possible. 

Available methods include:

• Clearly communicating business goals to employees at all levels. 
• Ensuring everyone understands their roles and responsibilities.
• Establishing clear expectations regarding the behaviour and actions of employees while prioritizing the organization’s interests.  
• Fostering an environment that encourages collaboration, open communication, and mutual support among team members.  
• Offering training and development programs to encourage teamwork, interpersonal skills, and a sense of ownership in employees. 
• Creating channels for employees to provide feedback, suggestions, and ideas.
• Consistently reminding employees of the importance of working together towards shared objectives.
• Providing adequate compensation to induce subservience.