Question

Answer the following question.
Explain any four points regarding the significance of the principles of management.

Answer the following question.
Explain any five points of significance of Principles of Management.

Answer 1

The principles of management are extremely important in directing the organisation towards taking the best course of action and the most appropriate decision.

The following points highlight its significance:

1. The principles of management are based upon various theories and principles that have been revised over time. It is more suitable for a manager to make decisions based on these principles of management to avoid any form of trial and error. This would help to reduce a lot of time as well as cost.
2. The principles of management help in the optimum utilization of the available resources. It helps to predict the exact cause and effect relationship. The wastage of resources using the trial and error method can be avoided easily.
3. The principles of management are based upon logic and not blind faith. The decisions are based upon an objective assessment of the situation.
4. These principles form the basis of the management study in the educational institution. It provides the framework for the development of Management as a subject. Various professional courses teach these principles as a part of the curriculum.

Answer 2

The points of significance of Principles of Management are given as follows:

1. Insights to reality: As management principles are based on years of experimentation and experience, they guide the managers in facing real-world problems in a more effective manner.
2. Suitability to dynamic environments: The application of management principles depends on the situation and the manager’s creativity. These principles can be moulded as per the requirements and are, thus, flexible.
3. Social responsibility: By taking care of customers’ values and business dealings, management principles help the managers and the entire organisation in fulfilling their social responsibilities.
4. Optimum utilisation of resources: Management principles provide an exact cause-and-effect relationship of the manager’s decisions, thereby minimising the risk of wastages of resources that may be associated with the trial-and-error method.
5. Logical decisions: Management decisions should be based on reason and proof rather than beliefs and intuitions. As the principles of management were developed from experiments on real-life problems, they stand the test of logic and reasoning.