MANAGEMENT PRINCIPLES

A Principle is a statement of truth about some phenomenon. It

means a generally and universally acceptable or belief. Thus principle is a
fundamental statement or truth or guide to thought or action. It is based
on cause and effect relationship.
MANAGEMNT PRINCIPLE:-
Like any other subject, management is also based on certain
principles .Management principles are statements of fundamental truths that provide
guide lines for managerial decision making and action. They act as guides for
practice of management and helping predicting the result of managerial action.
"A management principle is a statement of general truth about
organisation.Management principle usually prescribes a particular course of
managerial action. If the principles are followed, improved organizational
performance is the result."
Hicks and Gulleick
"Management principles are fundamental truth of general validity which
has value in predicting the result of management action."
Koontz O' Donnel

FORMATION OF PRINCIPLES OF MANAGEMENT:-

Principles of management have developed over a long period of times.
The derivation of management principle has been through following two methods:-
• BY OBSERVATION:-under observation method, all the works of managers
and their result were analyzed .And from this analysis certain conclusions
were drawn. These conclusions on analysis of conservation led to the
formation of principles.
• BY EXPERIMENT:-by applying various management concepts, procedures,
and notions by manager in different situations for testing their relevance,
dependability, suitability, utility and reliability. On the basis of such
experiment test the conclusions were derived.
However, principles at management are not based on pure
Cause and effect relationship as in the case of science but management
Of persons working in an organization.

NATURE AND CHARECTERISTICS OF PRINCIPLES OF MANAGEMENT:-

The nature of principles of management is different from that of
physical science. Management is a social science and it decreases with human being,
whose behavior is un predictable .Thus two principles of management is flexible and
not absolute.
• Universal application:-management principles are general guide lines for
management in practice. Different managements can adopt these principles
at different levels and different places in different organizations. So principle
of management applies in different situations. Principles are suitably
amended while applying in different situations. However this does not
change the universal acceptance of these principles.
• Flexible:-management principles are flexible and dynamic guidelines and not
rigid and static rules. Managers are given the freedom for modifying the
principles as per the needs of the situation. Research work is undertaken
continuously in the field of management. So principle of management
changes with the environment, and are flexible not rigid.
• Based on human behavior:-management principles are directed towards and
dependent up on human behaviour.Management task is to regulate human
behavior so that people give their best to the organization.
• Cause and effect relationship :-the principles of management indicate cause
and effect relationships. That is, the principles indicate what will be the

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 consequences of certain decissions.But, as management principle is not an
exact science the cause and effect relationship exist up to a certain extent.
• Relativity:-management principles are relative and not absolute laws. They
cannot be blindly applied to all types of organizations and in all types of
organizations.
• Equal importance :-all the principles of management have equal
importance .No one principle have greater significance than the others.

NEED AND IMPORTANCE OF MANAGEMENT PRINCIPLES:-

Management is the art of managing people.
Management principles are general guidelines. The principles of management have
considerable relevance in all group activities. They are very important in manager’s
work as today’s business world is more complex. The need and importance of
management principles may be summarized as follows:-
1. Increased efficiency: - A manager who well aware with management principle
can work very efficiently as management principle aid to thinking and action .His
decision will be perfect and accurate.
2. Improve understanding: - From the knowledge of principles managers get clear
indications on how to manage an organization .It reduces his guess work.
3.Direction for training of managers :- A well trade manager can perform his duties
with confidence .To impart training to new management persons and existing
manager a thorough knowledge of management principle is essential .It provides
understanding of management process what managers should do to accomplish the
aim.
4. Guide to research in management:-To make the research work practical and more
effective, the principles of management is very helpful, because it gives guidelines.
Management principles provide new dimensions to their work.
5. To attain social object:-The success of on organization greatly affected by its
social objectivity because it is a process with human .Management principles helping
understanding the human behavior and thus contribute to attain social objectives.
Generally there are two concepts developed by the end of 19 th century. They
are :
I. Modern Management / Operational /Administration management by
Henry Fayol
II. Scientific Management by Frederick Winslow Taylor.