(i) Providing managers with significant insights into reality: Following these principles of management adds to the managers’ knowledge, ability and understanding of managerial situations and circumstances and the principles of management provide the managers with useful insights into real world situations.
(ii) Optimum utilisation of resources and effective administration: Every company has limited availability of human and material resources which have to be put to optimum use, i.e., they should be put to use in such a manner that they provide maximum benefit with minimum cost.
