Principles of Management – The concept, Features, and its Significance.

The Concept:

•  Principles of management are broad and general guidelines for managerial decision-making and behavior.
• Principles of management are not as rigid as principles of  pure science as this deals with human behavior and thus are to be applied creatively according to the demands of the situation.

For example – while deciding about the promotion of an employee one manager may consider seniority whereas the other may follow the principle of merit.

 

Principles of Management vs Techniques of management

• Techniques are procedures or methods, which involve a series of steps to be taken to accomplish desired goals.

Whereas

• Principles are guidelines to take decisions or actions while practicing techniques.

For example – principles of management tell us that work should be divided into the smaller tasks (division of work).      where as techniques of management tell us the steps of how work should be divided into the smaller tasks and which person performs which part of that smaller task.

Principles of Management vs values

1. Values are something, which are acceptable or desirable. They get birth from good morals Whereas   Principles are basic truths or guidelines for behaviour.
2. Values are general rules for behaviour of individuals in society formed through common practice whereas principles of management are formed after research in work situations, which are technical in nature.

Features of Principles of Management :

(i) Universal applicability –

Principles of management is applicable in all types of organizations whether business or non-business, small or large enterprises, it just depends upon the nature of the organization.

(ii) General Guidelines –

They are general guidelines to action but do not provide a straight solution to all managerial problems because the business situations are complex and dynamic.

 

(iii)  Formed by practice and experimentation –

They are formed from the knowledge, experiences, and experiments of the managers.

(iv) Flexible-

These principles are not rigid and can be adapted and modified by the practicing managers depending upon the situation.

(v) Mainly Behavioral –

As the principles aim at influencing complex human behavior they are behavioral in nature.

(vi) Cause and Effect relationship –  

Principles of management are intended to establish the relationship between cause & effect so that they can be used in various situations.

(vii) Contingent –

The application of Principles of Management has to be changed as per the situation because Their applicability depends upon the prevailing situation at a particular point of time.

Significance 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. these principles increase their managerial efficiency by increasing their knowledge, ability, and understanding of managerial situations.

For example – by following the principle of delegation, a manager can leave routine decision-making to his subordinates and deal with exceptional situations which require his expertise.

2. Optimum utilization of resources :

By optimum utilization of resources, we mean that the resources should be used in such a manner that they should give maximum benefit with minimum cost therefore principles of management are designed to get the maximum benefit from both human and material resources which are limitedly available within the company.

For example – in deciding the annual budgets for different departments rather than personal preferences management should see the contribution of different departments to organizational objectives.

3. Scientific decisions:

Management principles help in thoughtful decision-making. They emphasize logic rather than blind faith. Management decisions taken on the basis of principles are free from bias and prejudice. They are based on the objective assessment of the situation.

For example – Taylor’s principles always insisted on the replacement of the rule of thumb by a scientific approach which says to conduct the time study to set up the standard time required to perform a job rather than leaving it at the manager’s will.

4. Meeting changing environment requirements:

Every businessman has to make changes in the organization according to changes taking place in the external business environment. Principles of management train the managers in implementing the changes in the right direction and at the right level in the organization.

For example – Earlier it is believed that marketing is necessary for the business sector only but now with changing external environment marketing has its scope also in the non-business sector like hospitals, churches, colleges, and universities, etc.

5. Fulfilling social responsibility:

A business makes use of society so business must do something for society also by performing some social responsibilities.

Management principles guide the managers to perform social responsibilities.

For example – the principle of “fair remuneration” says that adequate salary should be given to all employees.

6. Management training, education, and research:

Principles of management are used as a basis for management training, education and research.

for example – Professional courses such as MBA (Master of Business Administration), BBA (Bachelor of Business Administration) also teach these principles as part of their curriculum at the beginner’s level.

MORE TOPIC OF CHAPTER 2:

• Techniques of Scientific Management