Question

Explain any four points regarding significance of Principles of management.

Answer 1

SOLUTION :

Four points regarding significance of Principles of management are :  

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.

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Answer 2

Answer:

The following points highlight the importance of management.

1. Achievements of goals: The efforts of all the individuals must be organised and directed towards the common goals of the organisation. Managers of an organisation help in achieving the common goals by listing down what is to be done, how is to be done by whom it is to be done.

2. Increases efficiency: The managers of an organisation aim at increasing efficiency. An increase in efficiency implies minimising the costs and increasing the productivity through the optimum utilisation of resources. All possible methods are adopted to ensure cost effective discharge of allocated tasks.

3. Create dynamic organisation: Business today operate in a constantly changing business environment. It is generally observed that individuals are reluctant to changes, therefore it is managers who help overcome resistance and motivate people to adopt to the changes in external factors such as political, social, environmental and economical changes.

4. Development of society: Management must contribute to the developments of society by producing good quality products at fair prices, using honest selling practices, etc. This will help business enjoy a comparative advantage over the rival firms in a competitive environment.