Basic Principles Of Management | Short Note | Class 12th

CHAPTER 2 PRINCIPLES OF MANAGEMENT

Concept at Principles of Management

Principles of Management are the broad and general guidelines for managerial decision making. They are different from principles of science as they deal with human behaviour. They are different from techniques of management as techniques are methods whereas principles are guidelines to action and decision making. Principles of management are different from values which are formed as generally accepted behaviour in society and are having moral coordination whereas principles are formed through research having technical nature.

The management principles are derived from observation, analysis, expenimental studies and personal experiences of the managers.

Nature of Principles of Management

The nature of principles of management can be described in the following points :

1. Universal applicability i.e. they can be applied in all types of organizations, business as well as non-business, small as well as large enterprises.

2. General Guidelines :

They are general guidelines to action and decision making however they do not provide readymade solutions as the business environment is ever changing or dynamic.

3. Formed by practice and experimentation:

They are developed after 4. Flexible: Which can be adapted and modified by the practicing managers thorough research work on the basis of experiences of managers. as per the demands of the situations as they are man made principles 

5. Mainly Behavioural :

Since the principles aim at influencing complex human behaviour they are behavioural in nature.

6. Cause and Effect relationship :

They intend to establish relationship between cause & effect so that they can be used in similar situations.

7. Contingent : Their applicability depends upon the prevailing situation at a particular point of time. According to Terry, "Management principles are capsules' of selected management wisdom to be used carefully and discretely".

Significance of the Principles of Management

The significance of principles of management can be derived from their utility which can be understood from the following points

1. Providing managers with useful insights into reality:

Management principles guide managers to take right decision at right time by improving their knowledge, ability and understanding of various managerial situ ations and circumstances

2. Optimum utilization of resources and effective administration:

Management principles facilitate optimum use of resources by coordinating the physical, financial and human resources. They also help in better administration by discouraging personal projudices and adopting an objective approach.

3. Scientific decisions :

Decisions based on management principles tend to be more realistic, balanced and tree from personal bias.

4. Meeting the changing environmental requirements :

Management principles provide an effective and dynamic leadership and help the organization to implement the changes.

5. Fulfilling social responsibility :

Principles of management not only help in achieving organizational goals but also guide managers in performing social responsibilities. Example "Equity and "Fair" remuneration.

6. Management training, education and research:

Management principles helpful in identifying the areas in which existing and future are managers should be trained. They also provide the basis for future research.