Feature & Importance of Management Principle

Nature of Principles of Management:

1. Cause and effect relationships:

• Form a cause and effect relationship and indicates the effect of a certain action. they can be used in similar situations in a large number of cases
• The principles of management are less than perfect since they mainly apply to human behavior.
• Example. In emergency autocratic style and in case of larger issues participative style can be followed

2. Universal applicability

• Applied to all types of organizations and levels, business as well as non-business, public sector as well as the private sector, manufacturing as well as the services sectors.
• The top-level requires more planning than the middle level
• Extent of their applicability would vary with the nature of the organization,

3. Based on Human behavior

• More emphasis is laid on human behavior
• Also the understanding between human and material resources
• Principal of order: - Proper relationship between man and material

4. Flexible

• Flexible and can be modified by the manager when the situation so demands.
• For example, the degree of concentration of authority (centralization) or its distribution (decentralization) will depend upon the situations and circumstances of each enterprise.

5. Contingent

• Contingent or dependent upon the prevailing situation at a particular point in time.
• The application of principles has to be changed as per requirements.
• Wages are paid based on the skill of the employee, paying capacity of the organization and existing wage rate.

6. Formed by practice and experimentation:

• Formed by the experienced and collective knowledge of managers as well as experimentation.
• Matter of common experience that discipline is necessary for accomplishing any purpose.

7. General guidelines

• Guidelines to decision-making but do not provide readymade solutions to all managerial problems.
• Science not thumb rule increases efficiency managerial problems.

This is so because real business situations are very complex and dynamic and are a result of many facts.

Significance of Principles of Management

1. Adapted changing environment requirements

• General guidelines but they are modified and as such help managers meet changing requirements.
• Management principles are flexible to adapt to a dynamic business environment.
• Companies outsourced their non-core business and concentrate on core business

2. Scientific decisions:
   • Principals are based on logic rather than blind faith  and free from personal bias
   • .Management decisions taken based on principles are free from bias and unfairness.
   • Differential wage systems differentiate between efficient and inefficient worker
3. Social Responsibility:
   • Has increased the role of the business community toward greater social responsibility
   • So, if one were to talk of ‘equity’ today, it does not apply to wages alone.

Value to the customer, care for the environment, and dealings with business associates would all come under the purview of this principle

4. Administration becomes effective
   • Resources both human and material available are limited.
   • Reduces the chances of trial-and-error method and their effective utilization
5. Managerial growth
   • Brings the managers into real-world situations.
   • Increases their knowledge, ability and understanding of managerial situations.
   • By giving work to subordinates they can reduce their burden
6. Management training, education and research

• Basis for management training, education and research.

Professional courses such as MBA BBA teach these principles as part of their curriculum.