Importance of Management Principles
Importance of Management Principles under Business Studies, Class XII.
1. Providing Managers with Useful Insight into Reality
Management principles provide guidelines for the manager. They improve the knowledge, ability, and understanding of managers under various managerial situations.
These Principles help them to learn from their mistakes.
2. Optimum Use of Resources
Resources such as both human and material available with the company are limited. By optimum, we mean resources should give maximum benefit with minimum cost.
Scientific principles say we should cut down on wasteful movement and set up a standard time to complete a task.
3. Scientific Decisions
Scientific decisions must be based on facts, thoughtful and justifiable in terms of the intended purposes.
For example, Taylor’s principles always insisted on the replacement of the ‘rule of thumb’ by a scientific approach.
4. Meeting Changing Environment Requirement
Principles are modified due to the dynamic business environment. Management principles train the manager, implementing changes in the right direction and at the right level in the organization.
5. Fulfilling Social Responsibility
A business is the creation of society and makes use of social resources. So, it must do something for society by performing social responsibility.
For example, the principle of fair remuneration insists on adequate salaries to employees.
6. Management Training, Education and Research
Management principles stress scientific judgments and logical thinking. As a result, these principles act as a base of doing, research and development in management studies.
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