Notes On Management Principles:

            Management principles may be defined as the fundamental truth of general acceptability. It explains the relationship between two or more set of variables under any given situation. These principles are helpful in predicting and understanding the results of managerial actions.

            Precisely, management principles are only "approximations of generalization from experience."

Defined by Koontz and O' Daniel:

            In the words of koontz and O' Daniel, "Management principles are fundamental truth of general validity which have value in predicting the result of management action."

Characteristics Of Management Principles:

1) Universally Applicable:

            Management principles have universal application to all organisations- profit making and non-profit making.

2) Flexibility:

            The principles should not be rigid but must be flexible so that changes can be made as and when required and can be made applicable under any circumstances.

3) Relativity:

            It states that Management Principles cannot be blindly applied. Its applicability is governed by the condition and nature of the organisation.

4) Productivity:

            As the factors of productions are scarce, the decision making process of management is always concerned with the productivity of the unit. Optimum utilization of available resources must be made in the best possible way so as to derive maximum benefit out of limited resources.

5) Subjective:

            The principles are subject to changes as per situation and requirement. Its adaptability depends upon their understanding and the results depend upon the outlook and perception of the Managers.

Need Or Importance Of Management Principles:

            The Following are the importance of Management principles:

  1. Management principles provide the Foundation For efficient Management practice.
  2. It helps the Managers to avoid Fundamental Mistakes in his jobs and foretell the results of his actions with confidence.
  3. It helps to use the available resources in the best possible way by providing systematic theory of Management.

            In addition to these Management principles also helps in several ways-

  1. It increases the Managerial efficiency
  2. It increases the productivity of workers.
  3. It increases Managerial knowledge and helps in research.
  4. Socially, in increases the welfare of people by improving the quality of people's life.
Limitations Of Management Principles:

            Despite of its advantages. Management principles also suffers from various disadvantages:

  1. Sometimes the principles do not stand valid in present working condition, which is so complex in nature unstable, and ever changing.
  2. The assumption of classical Management principles that organisation is a closed system is wrong as organisation in an open system and interacts with its environment.
  3. The principles were framed not on scientific basis but on personal experiences.
  4. The classical Management principles favored the owners and person in charge of organisation who stressed on organisation efficiency, high productivity and profit. The interest and values of workers find very little place.
  5. In present day scenario, the Management principles sometimes becomes misguiding as they prescribe only one best way of doing things.