Explain any four points regarding significance of Principles of Management.

Principles of management play an important role in managerial practices. They guide the managers in taking actions and decisions. The following points highlight the significance of Principles of Management

(a) Insights to Reality: Principles of Management are based on years of experimentation and experience. Thus, these principles guide the managers, when they face the real world problems. Managers can use them in different situations to solve the recurring problems.

(b) Logistic Decisions: Decisions regarding management should be taken carefully. They should be based on reasons and proofs rather than beliefs and ignorance. As principles of management were developed from real life problems so, they stand the test of logic and reasoning. Thus, principles of management help the managers in taking logical decisions that are free from personal bias.

(c) Basic Education of Management: These principles form the basic roots of management education. Without them management as a discipline could not have been developed. That is, they form an important part of management curriculum. In addition, they also form the basis of further research on management techniques and methods.

(d) Optimal use of Resources: Principles of management help in the optimum utilisation of the available resources. With principles of management the exact cause and effect relationship of the decisions of the managers can be predicted. Thereby, the wastages of resources that may be associated with the hit and trail method can be avoided.

Thus, by following the principles of management, best possible usage of resources becomes possible such that maximum benefit can be derived with minimum possible cost.

Significance of principles of management 

(i) Providing Managers with Useful Insights into Reality: When managers follow principles it adds to their knowledge, ability and understanding of managerial situations and circumstances. This improves managerial efficiency e.g., when managers use principle of delegation then they get more time to concentrate on critical areas of working. 

(ii) Scientific Decision Making: management principles help in thoughtful decision making. They emphasise on logic rather than blind faith. Here, decisions are based on the objective assessment of the situation. 

(iii) Optimum Utilisation of Resources and Effective Administration: Principles help the managers to conceptualise the net effect of their decision rather than going for trial and error method resulting in saved time, efforts and energy thereby increased productivity. 

(iv) Management Training, Education and Research: Principles of management are the base for management theory. As such they are used as a basis for management training, education and research. These principles provide basic groundwork for the development of management as a subject. Professional courses like BBA, MBA also teaches these principles as part of their curriculum.

Significance of Principles of management is briefly as follows : 

1. Providing Managers with useful insights into Reality: When managers follow principles, it adds to their knowledge, ability and understanding of managerial situations and circumstances. This improves managerial efficiency e.g. when managers use principle of delegation then they get more time to concentrate on critical areas of working.

2. Scientific Decision Making: management principles help in thoughtful decision making, They emphasise on logic rather than blind faith. Here, decisions are based on the objective assessment of the situation.

3. Optimum Utilisation of Resources and Effective Administration : Principles: These help the managers to conceptualise the net effect of their decision rather than going for trial and error method resulting in saved time, efforts and energy thereby increased productivity.

4. Management Training, Education and Research: Principles of management are the base for management theory. As such they are used as a basis for management training, education and research. These principles provide basic groundwork for the development of management as a subject. Professional courses like BBA, MBA also teach these principles as part of their curriculum.