Define principles of management. Explain any three points highlighting the significance of principles of
management.
(4 marks)
Answers
Answer:
Principles of management are general guidelines, which can be used for conduct in work places under certain situations. It also helps manager to take and implement thoughtful decisions. Following are the main importance of the Principles of Management. Improves Understanding. Direction for Training of Managers.
Explanation:
1. PROVIDING MANAGERS WITH USEFUL INSIGHTS INTO REALITY :
By applying the principles of management , the managers add to their knowledge, ability and understanding the business situations . This also helps them to learn from the past mistakes and thus understanding of these principles help them conserve time to solve day to day problems quickly.
2. OPTIMUM UTILISATION OF RESOURCES AND EFFECTIVE ADMINISTRATION :
Optimum utilisation of resources means the use of available resources in such a manner that costs are minimised and profits are maximized. Principles of management equip the managers to see beforehand the outcomes of their decision and help them to save resources and achieve effective administration.
3. SCIENTIFIC DECISIONS :
The principles of management emphasise on logics rather than blind faith and rule of thumb. Thus the application of these principle helps the manager to arrive at scientific and rational decisions which are subject to realistic measurement and evaluation.
4. MEETING CHANGING ENVIRONMENT REQUIREMENTS :
As the principles of management are flexible, these can be modified according to the changing conditions of the business environment. It is also the necessity of the each organisation to change its goal and objectives as per the change in the environment.