PRINCIPLES OF MANAGEMENT

MEANING AND PRINCIPLES OF MANAGEMENT

Principles of management are broad and general guidelines for decision
making and behaviour of managers.
The principles serve as general practical guidelines to the manager for making
decisions ,taking action and solving various problems systematically. They are not
rules, but only a guide to action. Principles are applicable to different kinds of
organisations such as business, hospitals, clubs and educational institutions.
Management Principles Vs Pure Science Principles
Basis Management principles Pure science principles
Flexibility They are flexible. They are rigid in nature
Application They have to be applied They are applies in static or
creatively as they deal with absolute manner.
unpredictable human
behaviour.
Relation with They have to keep pace with They are not required to keep
environment changing environment as pace with changing
human behaviour is never environment as they do not
static. change with time.

Management Principles Vs Management Techniques

Basis Management principles
Meaning They are guidelines to take
decisions or actions while
practicing techniques.
Flexibility They are flexible
Management techniques
They are procedures, which
involve a series of steps to
achieve desired goals.
They are not so flexible

Management Principles Vs Values

Basis Management principles Management techniques
Meaning They are guidelines to take Values are general rules for
decisions. behaviour of individual in the
society.
Formation They are formed after research They are formed through
in work situations. common practice.
Nature They are technical in nature. They are ethical in nature.
Derivation of Principles of Management:
Principles of management are derived and developed in the following two steps:
1. Observation: The management thinkers and researchers observe certain
events in actual practice and analyse them to get certain guidelines, which
may be used in future.
2. Experimentation: The guidelines developed through observation are
repeatedly experimented to test their validity. Such guidelines are tested in
different organisations with different environment

Characteristics Of Principles Of Management:

1. Universal applicability: The principles of management can be applied to

all kinds of organisations, irrespective of size (small or large) and nature
(business, government or social organisation). However, extent of
application varies depending on nature and size of organisation.
2. General guidelines: Management principles are guidelines to action and
cannot be used as tailor-made tools, i.e. they do not provide readymade,
straitjacket solutions. This is so because real business situations are very
complex and dynamic. They have to be adjusted as per demand of the
situation.
3. Formed by Practice and Experimentation: Management principles are
evolutionary in nature, i.e. they have been developed through
observations, experimentation and experience of the management
thinkers.
4. Flexible: Management principles are not as rigid as in case of pure
science principles. They are flexible and can be modified by the manager
as per changes in the business environment. These principles cannot be
applied blindly, even in an identical situation.
5. Mainly Behavioural: Principles of management aims at influencing
human behaviour because all work is done by human beings. Human
behaviour is very complex and dynamic in nature.
6. Cause and Effect Relationships: The principles of management are
intended to establish relationship between cause and effect so that they
can be used in similar situations in a large number of cases. It means,
principles help in predicting the outcome of managerial actions.
7. Contingent: The application of management principles is dependent or
contingent upon the prevailing conditions at a particular point of time. They
have to be suitably amended as per the situation.
SIGNIFICANCE OR IMPORTANCE OF PRINCIPLES OF MANAGEMENT _
1. Providing Managers with useful insights into reality: The principles of
management provide the managers with useful insights into real world situations.
Adherence to these principles improve their knowledge, ability and understanding
of managerial situations and circumstances.
2. Optimum Utilisation of Resources and Effective Administration: The
resources available with a company are limited and they need to be put to
optimum use.
. By optimum use we mean that resources are used in a manner that give
maximum benefit with minimum cost.
. Principles help the managers to foresee the cause and effect relationships of
their decisions.
3. Scientific decisions: The management decisions must be based on facts and
justifiable in terms of the intended purposes.
. Decisions based on principles of management are free from bias and prejudice.
. They are based on the objective assessment.
4. Meeting Changing Environment Requirements: In order to survive and grow, it
is compulsory for an organisation to continuously adapt itself as per changing
business environment.
. Although, principles are general guidelines, but they are flexible and can be
modified to meet the dynamic business environment.
5. Fulfilling Social Responsibility: The increased awareness of the public has
made it mandatory for the business firms to fulfil their social responsibilities.
Management theory and principles have also evolved in response to these
demands. Principles help in fulfilling social responsibility by responding to the
demands of the public.
6. Management Training, Education and Research: The principles help to
increase knowledge and are used as a basis for management training, education
and research.