UNDERSTANDING MANAGEMENT PRINCIPLES

Principles of management are developed in such a form that they act as a pre-determined solution for the commonly accruing problems of business environment. They provide guidance to the managers for their effective discharge of duties. Thus each and every manager must understand them thoroughly.

The benefits of understanding and adopting these principles are many. Some of these are……

1.   Scientific decision: The principles provide necessary knowledge, training and understanding to the managers which help them to take scientific decision. A scientific decision is the balanced decision.

2.   Increase in efficiency: The management principles provide a code of conduct for the managers as well as the workers. This ensures systematic work in the organization and thus increases the efficiency of workers as well as managers.

3.   Increase in productivity: The management principles ensure proper working condition, timely availability of resources, delegation of adequate authority, better communication, effective administration and all this helps in increasing the productivity of each factor of production.

4.   Guidance for managers: The principles of management are based on the observations and experience of many business professionals and all these principles act as a guide for the managers in order to handle the business situations in a better way. These principles state what should be done in a given situation to get certain result.

5.   Optimum utilization of resources: Each and every organization aims at achieving the organizational goal with greater efficiency and thus tries to minimize each kind of wastage and make optimum use of the available resources. The management principles help the manager to define and divide the work in the organization, so that there is maximum utilization of resource and minimum wastage.

6.   Training, education and research: The management principles are developed keeping in mind a certain situation but as the business environment keeps on changing these principles also need to be modified. The usefulness of management principles encourages the scholars & researchers to make improvement in any principles and also to make them applicable to the changing business environment. With the passage of time management has evolved as a great field of study, and these principles help in training better managerial personals.

7.   Cordial relation between management and employees: In an organization every effort is directed towards the achievement of the organizational objective. And the relation between management and workers is a key element in the achievement of these objectives. The management principles determined clearly the role of employees as well as the management, which helps to maintain a cordial and harmonious relation between all and thus achieve the goals effectively and efficiently.

8.   Fulfilling social responsibility: The management principles help the managers in increasing their efficiency and as a result they can perform better. These principles induce such knowledge in the managers that they can perform the social responsibility with greater commitment and ease.

9.   Helps in managing changes: As we all know that the business environment keeps on changing, and the organization which can adopt these changes effectively are able to survive for a long time. The management principles are flexible in nature and thus provide the manager to manage the dynamism of the business environment easily, and implement the necessary changes in the organization and business.