HOW MANAGEMENT PRINCIPLES ARE DERIVED

At present the management is used and applied in a much developed and scientific form, it has been evolved, developed and adopted with the respective changes of the business environment.

When the principles of any discipline are derived, they are derived in a scientific manner so that they can give some predictable outcome when applied to a given problem. As management is not a pure science its principles cannot be derived totally by scientific method, they are also derived by observation method because management deals with human behavior which tends to change in different situation.

The management principles are derived by two basic methods, these are:-

1. Observation Method: When the observation and analysis of a problem is made as the basis of deriving a principle it is called as ‘Observation Method’.

This method deals with the observation of different aspect of a real life problem faced by a manager. When a manager faces a problem in actual practice, he analyses each and every dimension of that situation before arriving at a decision. Based on his/her analysis he/she decides ‘what to do’ and ‘what not to do’ in a particular event.

For example; it was observed by the managers that delegating adequate authority with the responsibility is helpful for an individual to perform in better way. This observation of managers acted as a basis for the development of the principle of ‘Authority and Responsibility’.

2. Experimental Method: When some scientific experiments are made the basis for deriving a principle it is called as ‘Experimental Method’.

This method deals with conducting experiments in different situation in different organizations and if the outcome of each organization is same then a principle is derived.

For Example; The principles of scientific management are formed after conducting these experimental studies. F.W. Taylor has suggested some of these experimental studies like ‘Fatigue Study’, ‘Time Study’, ‘Motion Study’ etc.