PRINCIPLES OF MANAGEMENT: Meaning, Nature & Importance
principles of management
PRINCIPLES OF MANAGEMENT are board statement of fundamental truth which provides guide lines for management decision and action. these guidelines are derived through experimentation and observation.
Management Principles are the fundamental statements of truth that provide guidelines to the managers for decision making and actions. this enable the managers to manage the enterprises in 3 ways ‘economically’, ‘effectively’ and ‘efficiently’. These act guide for managers and sharpen their skills and competence.
CONCEPT:
Principal of Management are general guidelines which can be used under certain situation.
NATURE OF MANAGEMENT
Nature of Management Principles can be described as follows:
1. Universal application – can be applied to all kind of organisation, irrespective of their size and nature.
2. General guidelines – the formulated guidelines to action which need to be adjusted and used as per the demands of the situation.
3. Formed by practice and experimentation – derived through experimentation and Observation.
4. Flexible – principles are not rigid like science but are modified according to the business environment needs.
5. Mainly behavioural – the principles aim to influence the unpredictable, complex and dynamic human behaviour.
6. Cause and effect relation – The principles of management establish relationship between cause and effect. They guide us as to what would be the effect if a particular principle were to be applied in a given situation.
7. Contingent – the management principles are dependent upon the prevailing Conditions/situations at that particular time hence amended accordingly.
SIGNIFICANCE/ IMPORTANCE OF MANAGEMENT PRINCIPLES
The importance of Management Principle can be understood by considering the following points:
1. Provides managers with useful insights into reality – through improved knowledge, ability, understanding and improved guidance to the managers.
2. Optimum utilization of Resources – Management principle helps in organizing various activities in such a way that results in elimination of unwanted activities and consequent Wastage. Management principles helps in managing organizations effectively.
For examples : unity of command helps to avoid confusion and conflicts unity of direction ensures unity of actions to facilitate coordination .
3. Scientific decision – they lend to be more realistic, thoughtful, justifiable and free from personal bias.
4. Meet the changing environmental requirements – by providing effective and dynamic leadership in implementing changes.
5. Fulfils social responsibility – guides the manager in fulfilling the social responsibility Management training, education and
6. Management training, education, Research – the principles help in increasing knowledge which is used as the basis for management training and research.
Important links
Ralph Waldo Emerson – Poems, Quotes & Books- Biography
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