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Ch 2 Principle of Management-Features and Significance

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4 views

Ch 2 Principle of Management-Features and Significance

Uploaded by

jainmoulding.jainjain
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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CHAPTER 2

PRINCIPLES OF MANAGEMENT

5. What are the nature/features/characteristics of Principles of Management?


Ans: The following points summarise the nature of principles of management.
a) Universal applicability:
The principles of management are intended to apply to all types of organisations, business as well as non-
business, small as well large, public sector as well as private sector, manufacturing as well as the
services sectors. However, its applicability and outcome varies with the nature of the organisation, business
activity.
b) General guidelines:
The principles are guidelines to action but do not provide readymade, straitjacket solutions to all
managerial problems. This is so because real business situations are very complex and dynamic due to
many factors of the environment.
c) Flexibile:
The principles of management are not rigid. They are flexible and can be modified by the manager when
the situation so demands.
d) Contingent:
The application of principles of management is contingent or dependent upon the prevailing situation at a
particular point of time. The application of principles has to be changed as per requirements or situation.
e) Formed by practice and experimentation:
The principles of management are formed by experience and as well as experimentation.
f) Mainly behavioural:
Management principles aim at influencing behaviour of human beings. Therefore, principles of
management are mainly behavioural in nature. Moreover, principles enable a better understanding of the
relationship between human and material resources in accomplishing organisational goal.
g) Cause and effect relationships:
Managerial Principles tell us that if a particular principle was applied in a particular situation, what would
be its likely effect. The principles of management are less than perfect since they mainly apply to human
behaviour. In real life, situations are not identical. So, accurate cause and effect relationships may be difficult
to establish.

6. How Principles of management provide useful insights to managerial behaviour and influence managerial
practices?
Ans: Significance of Principles of Management:
a) Providing managers with useful insights into reality:
The principles of management provide the managers with useful understanding about real
world situations. These principles will add to their knowledge, ability and understanding.
b) Optimum utilisation of resources and effective administration:
Resources both human and material have to be put to optimum use which means that the
resources should be put to use in such a manner that they should give maximum benefit with
minimum cost. Principles of management help managers to understand the cause and effect
relationships of their decisions and actions, avoid wastages associated with a trial-and-error
approach, use effective administration. Principles of management also limit the boundary of
managerial discretion so that their decisions may be free from personal prejudices and
biases.
c) Scientific decisions:
Decisions must be based on facts, thoughtful, justifiable in terms and based on objective assessment
of the situation. Management principles help in thoughtful decision-making. They emphasise
logic rather than blind faith.
d) Meeting changing environment requirements:
Principles are general guidelines so they are modified to help managers meet changing
requirements of the environment. Management principles are flexible to adapt to dynamic business
environment.
e) Fulfilling social responsibility:
Management theory and management principles have also developed as per the requirement of
the changing environment. Hence following the principles of management the manager fulfils the
social responsibilities of the organisation towards investors, employees, consumers, government
and society.
f) Management training, education and research:
Principles of management are at the core of management theoretical knowledge. These principles
provide basic groundwork for the development of new management theories and they are also
used as a basis for management training, education and research.

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