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Chapter 2 Principles of Management
6. Equal importance All principles of management are equally important. There is no superiority or inferiority between them. No one principle has greater significance than the other. We cannot say that the principle of unity of command is more important than the principle of unity of direction or vice versa.
7. Careful and discreet application Management principles cannot be applied blindly because these principles are relative, not absolute. These principles should be applied according to original needs and situations.
8. Decision making Management is always concerned with decision-making. Factors of production are scarce and they have alternative uses. Management has to decide the best possible combination of available resources and the most suitable technique of production. Management principles are the source of decision making process.
Describe the importance of principles of management 5 marks Explain in brief the meaning of “universality of management principles” 2 marks
Management principles are essential for the successful running of business organization. These principles are guideline to management. They highlight the areas where the management should pay immediate attention. These principles simplify the process of management, increase the all round efficiency of management and help in the achievement of objectives. The significance of management principles can be summarized as follows:
1. Generating sound understanding Management principles generate sound understanding of the complex problem of business. They develop scientific approach to the problem to arrive at the right solutions to the problems. The management cannot adopt ‘trial and error, methods in a business.
2. Increasing Efficiency Management principles provide guidelines to management in handling complex situations in the business. It facilitates management in performing their duties smoothly. The efficiency of the management is increased when the management adopts management principles in decision making. The work will be systematic and efficient.
3. Directing the areas of training The management principles identify the present and prospective areas of management where managers should be specially trained. Besides situations are themselves complex and they change considerably with the change in business environment. Management principles identify these areas and impart required training to business executives
4. Guide to research work in management Management principles are guidelines which require necessary modifications with the changing situations. In order to make management meaningful and practical, researchers examine these principles, justify their utility and suggest modifications if necessary.
5. Achieving social objectives Management develops spirit of cooperation and coordination among workers and employees. It also helps in the optimum utilization of social resources. The principles of management are directed towards maximizing profit without sacrificing the social objectives. Modern management is keen to fulfill the social objectives along with the economic objectives.
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