Features, Importance and Objectives of Principles of Management

Features of Principles of Management

1. Principles of Management are Universal
   1. Management principles are applicable to all kinds of organizations - business & non business.
   2. They are applicable to all levels of management.
   3. Every organization must make best possible use by the use of management principles.
   4. Therefore, they are universal or all pervasive.
2. Principles of Management are Flexible
   1. Management principles are dynamic guidelines and not static rules.
   2. There is sufficient room for managerial discretion i.e. they can be modified as per the requirements of the situation.
   3. Modification & improvement is a continuous phenomenon in case of principles of management.
3. Principles of Management have a Cause & Effect Relationship
   1. Principles of management indicate cause and effect relationship between related variables.
   2. They indicate what will be the consequence or result of certain actions. Therefore, if one is known, the other can be traced.
4. Principles of Management - Aims at Influencing Human Behavior
   1. Human behavior is complex and unpredictable.
   2. Management principles are directed towards regulating human behavior so that people can give their best to the organization.
   3. Management is concerned with integrating efforts and harmonizing them towards a goal.
   4. But in certain situations even these principles fail to understand human behavior.
5. Principles of Management are of Equal Importance
1. All management principles are equally important.
2. No particular principle has greater importance than the other.
3. They are all required together for the achievement of organizational goals.
6. Principles of Management are Contingent: The principles of management are contingent on a applicable situation prevailing or existing for its application. The application of these principles thus change according to changing conditions, and a new principle may be applied in the place of an existing one when the conditions changes.

Importance of the Principles of Management.

• Provides insights : Management principles play a key role in providing insights to facilitate efficient decision making. These principles adds to their knowledge and ability to deal with various situations and also helps in handling recurring contemplated problems. Thus it plays a role in increasing managerial efficiency.

• Optimal Utilization of Resources : Resources are the life blood of a business. Its optimal usage is a sine qua non for the success of a business. Management principles helps in ensuring optimal usage by laying down broad frameworks on how to use these resources and how not to. This when applied in proper situations can make for efficient resource decisions. These principles are also applicable to resource collection or organisation, so as to prevent wasteful accumulation of scarce resources.

• Effective Administration : Administration of a business is a part and parcel of management. Principles of Management plays a key role in administering the business by helping in the regulation of the human resources among each other and also by prescribing norms of relations. These norms when followed leads to established beneficial results. For example, decentralization as a principle helps in administration by giving adequate power to many units across the business to ensure compliance and efficiency.

• Scientific Decisions : The decisions made by following these principles are scientific decisions. It is scientific in the sense that it is made with due regard to logic, reason and facts and it is rational. Rational decisions always ensures efficiency within a business and helps in its success.

• Adapting to Changes : Management principles as already mentioned are general guidelines which is to be applied differently in different situations. Different management principles are contemplated for different situations. So when a situation changes, a different management principle apt to the new situation thereby allows adapting to changes.

• Fulfilling Social Responsibility : Management principles plays a vital role in fulfilling the responsibility the business owes to the society. Businesses being social entities have social responsibilities for the benefits they derive from the society. Management principles such as ensuring optimal resources etc makes sure that the business does not bring harm to the society and also that it benefits the society.

• Basis of Management Studies : Management principles lie at the base of management education. All the knowledge imparted to the students of management are derived from management principles. This understanding conferred by virtue of being based on management principles helps in developing managerial talent.

Objectives of Management Principles:

• Coordination : Coordination is an essential function of management. It allows for ensuring that the work done by the individual elements of the firm are combined for the furtherance of the collective objective of the firm. Most management principles aims at ensuring this function and facilitating coordination.

• Ensure Efficiency : All management principles aims at ensuring the overall efficiency of the business. Management principles provide guidelines as to how tasks are to be completed for increased efficiency.

• Ensure Compliance to the Plan and Controlling : Management principles such as centralization and decentralization etc ensures that plans required for the firm are formulated at different levels with different levels of importance. Then it also facilitates ensuring compliance to the plan by controlling through principles such as Authority and Responsibility, Discipline etc.