Give reasons why management principles are required.

(1) Provide Useful Insight to Manage: The principles of management were developed on the basis of the experience of various professional people. The principles make the manager aware of the manner in which he should act in various situations so that he does not repeat the mistakes of the previous managers.

(2) Optimum Utilisation of Resources and Effective Administration: In every organization physical (material, machines, money, etc.) and human (manpower) resources are used. The function of management is nothing but to put them to optimum use or avoid wastage of resources. And it is possible only when a manager makes use of the principles of management. According to the principle of unity of command, there should only be one boss for an employee at a time. In case there is more than one boss, the employee will not be in a position to work properly. Consequently, the human resource will be wasted. Therefore, if we desire to use the human resource favorably, this principle has to be adopted. Similarly, many other principles ensure favorable utilization of various other resources. The primary need of every organization is that its administrative system should be effective. Only that administrative system is called effective where the managers can take balanced and quick decisions. In order to take such decisions, sufficient information and authority should be available.

(3) Scientific Decisions: A scientific decision means a balanced decision. The principles of management provide the necessary training to the managers so that they can take scientific/balanced decisions. In the absence of these principles, the managers have to adopt the method of trial and error.

(4) Meeting Changing Environmental Requirement: In modern times only such a business unit can remain alive and develop which can keep pace with the rapidly changing environment. In every field of business activity (production, marketing, etc.) new techniques are emerging every day. Managers who can understand the changing situation well in time can alone face competition successfully. The principles of management enable the managers to face this challenge. For example, the principle of "unity of direction" tells us that all the activities connected with the attainment of the same objective should be completed under the direction of the same manager.

(5) Fulfilling Social Responsibility: The principles of management increase the efficiency of the managers and enable them to fulfill their social responsibility. More efficient managers can make good quality products at reasonable prices available all the times. For example, the principle of "Fair Remuneration" advocates appropriate remuneration to the employees and helps in fulfilling responsibility towards them.

(6) Management Training, Education, and Research: The advantages of the principles of management encourage the researchers to bring in more improvement in them. The attitude of the managers has molded itself in such a fashion that they are doing, consciously or unconsciously, something new. It means that the managers have come to acquire an attitude tilted towards research and development. This has helped the managerial knowledge to be more solid and scientific. The principles of management are actually providing education and training to the managers by enriching their theoretical and practical knowledge.

read less