Significance of Management Principles
Following points summarise the significance of principles of management:
1.To Provide Managers with Useful Insights into Reality: Principles help managers to improve their knowledge and understanding of managerial situations. These principles enable managers to learn from past mistakes - and conserve time by solving recurring problems quickly. Hence, we can say, these principles provide managers an insight of real world situations.
2.Optimum Utilisation of Resources and Effective Administration: We are aware of the fact that resources are limited in nature. Optimum utilisation of resources emphasise that resources should be utilised in such a manner that it should give maximum benefit with minimum cost. It also increases the efficiency of management, as through these principles managers adopt a systematic and logical approach to overcome the problems and discard hit and trial approaches.
3.Scientific Decision : Management principles help in thoughtful decision-making because they are based on logic rather than blind faith. Such decisions are free from bias and prejudice. These principles develop scientific approach as they give a realistic and subjective measurement for evaluation.
4.Meeting Changing Environment Requirements : Modern business environment is complex and ever-changing. In order to be successful, organisations have to adapt to these changes. Principles are dynamic in nature. They are flexible and frequency adapt to changes, which are favourable and profitable for the business.
5.Management Training, Education and Research : Management principles act as a base of doing research and development in management studies. These principles provide basic groundwork for the development of managers. Therefore, professional courses like MBA and BBA teach these principles as a part of their curriculum.
