(i) Initiative: According to it subordinates should be given an opportunity to take some initiatives in making and executing the plans. Employees get satisfaction when they are allowed to take initiatives. Initiatives on their part can be a great source of organisational strength.
(ii) Esprit de corps: According to this principle, the management should develop a sense of belongingness and feeling of team spirit among employees. Management must infuse the team spirit in the workers. It develops atmosphere of mutual trust and understanding among employees and minimises the need of penalties for default. A manager should replace 'I' with 'We' in his conversations to promote spirit of team work.