Importance of principles of management:
- Principles of management provide a vision to the behaviour and approach of the managers. This in turn highly affects the management.
- Managers make use of these principles for achieving business goals.
The importance of management principles is discussed below:
1. Increases managerial efficiency:
- Principles of management provide guidelines to managers to perform in a variety of situations.
- This improves the functioning of a business unit and also improves efficiency of managers.
2. Maximum usage and effective administration of resources:
- In most of the business units, the human and physical resources are available in limited quantity. So, there arises a need of maximum usage of these resources that are available in limited quantity.
- Management principles help in increasing the utility and efficiency of resources that too with minimum cost inputs.
3. Helps to take scientific and logical decisions:
- Decisions should be always based on facts, proper logic and objectives. They should be justifiable and should be taken on time so as to make them effective.
- Management principles help to take appropriate decisions on proper time without getting biased.
4. To cope up with the changing business environment: Management principles are necessary to meet business environment in changing circumstances.
5. To fulfill social responsibility:
- Profit is considered as the main aim of the business, but it is not the only aim. Development and progress of society are also aims of business unit.
- By effective implementation of management principles, business unit can easily achieve aim of social responsibility.
6. Useful for research, training and development:
- Management principles are the main elements of management thoughts.
- Training, education and development are possible only through proper implementation of management principles.
- For example, in modern time, aptitude tests are conducted for appointing employees in various business units. These aptitude tests are prepared through research and by implementing and using management principles.
