Three points regarding significance of Principles of management are : -
1. PROVIDING MANAGERS WITH USEFUL INSIGHTS INTO REALITY :
By applying the principles of management , the managers add to their knowledge, ability and understanding the business situations . This also helps them to learn from the past mistakes and thus understanding of these principles help them conserve time to solve day to day problems quickly.
2. OPTIMUM UTILISATION OF RESOURCES AND EFFECTIVE ADMINISTRATION :
Optimum utilisation of resources means the use of available resources in such a manner that costs are minimised and profits are maximized. Principles of management equip the managers to see beforehand the outcomes of their decision and help them to save resources and achieve effective administration.
3. SCIENTIFIC DECISIONS :
The principles of management emphasise on logics rather than blind faith and rule of thumb. Thus the application of these principle helps the manager to arrive at scientific and rational decisions which are subject to realistic measurement and evaluation.
