It is between two companies producing different goods or services for one specific finished product.
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Business Studies Principles of Management.
1. Principle It refers to a statement which reflects the fundamental truth about some phenomenon based on cause and effect relationship.
2. Management Principles These are the statements of fundamental truth, they serve as a guide to thought and actions for managerial decision actions and their execution.
3. Derivation of Management Principles
Management principles have been derived on the basis of
(i) Deep observations
(ii) Repeated experiments
4. Nature of Principles of Management
(i) Universal Applicability The principles of management are universal in nature that means they can be applied to all types of organisations irrespective of their size and nature.
(ii) General Guidelines Management principle give guidelines to solve the problems, these principles do not provide ready made solution for all the problems.
(iii) Formed by Practice and Experiments The management principles are developed only after deep and through research work.
(iv) Flexibility These are not set of rigid statements. These can be modified by the managers who are using them.
(v) Mainly Behavioural Management principles are formed to guide and influence the behaviour of employees.
(vi) Cause and Effect Relationship Management principles are based on cause and effect that means these principles tell us if a particular principle is applied in a situation, what might be the effect.
(vii) Contingent Management principles are contingent or dependent upon the situation prevailing in organisation.