Explain any four points regarding significance of principles of management.
The principles of management provide useful insights to managerial behavior and influence managerial practices. Managers may apply these principles to fulfill their task and responsibilities.
Following points highlight the significance of principle of management:
1. Providing managers with useful insights into reality: Principle of management provides the managers with useful insight into real world situations. And these principles guide the managers when they are facing real world problems. It also enables the managers to learn from past mistakes and conserve time by solving recurring problems quickly.
2. Optimum utilization of resources and effective administration: As the resources available with the company are limited so they have to be put to optimum use. Optimum use means that the resources should be used in such a manner that it provides maximum benefits with minimum cost. These principles provide the manager to foresee the cause and effect relationships of their decisions and actions. And the wastage associated with trial and error methods can be overcome.
3. Scientific decisions: Principles of management help in thoughtful decision making. The decisions must be based on facts. Principles of management emphasize on logic rather than blind faith. Management decisions taken on the basis of principles are free from bias and prejudice.
4. Meeting changing environment requirements: The principles of management are in the nature of general guidelines but they are modified and help the managers to meet requirements of the changing environment as the principles of management are flexible to adapt.
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