Question

Write short answer for the following.
What is the significance of the principles of management?

Answer 1

Principles of management play an important role in managerial practices. The following points highlight the significance of
principles of management:
i. Help in logical decision making - Management decisions should be based on reasons and proofs rather than beliefs or intuition. As the principles of management were developed from experiments on real-life problems, they stand the test of  logic and reasoning.
ii. Focus on social responsibility - Management principles help the managers and workers of any organisation in fulfilling their social responsibilities. The principles focus on the importance of taking care of business dealings while paying equal attention to customers’ values.
iii. Management control - By acting as the crux of the business theory and management, management principles provide the basis for management training and development. This in turn helps in exercising a better control over management.
iv. Ensures optimal use of resources and efficiency - Principles of management optimize the use of the resources. With the help of these principles, management can determine and predict the exact cause and effect relationship of their decisions. Thus, any plausible wastage of resources is avoided and efficiency is attained.
v. Promote research and development - The principles of management are flexible in nature and can therefore be moulded as per the requirements. This in turn helps the organizations to change according to the need and invest in R&D accordingly.