Significance/ Importance of Management principle 

What is Management principle ?

A principal refers to a statement which reflects the fundamental truth about some phenomena based on cause and effect relationship and its outcomes.

A managerial principle is a broad and general guideline for decision-making and behaviour.

For example, while deciding about promotion of an employee one manager may consider seniority, whereas the other may follow the principle of merit. 

Importance:

• Providing managers with useful insights into reality. 

The principal of management helps to improve the knowledge, ability and understanding of manager. So, they can learn from their past mistake and save time by solving recurring problems quickly. 

• Optimum utilisation of resources and effective administration.

Principles of management facilitate optimum use of resources by coordinating the physical, financial and human resources, which reduces inefficiency or wastage or spoilage on use of resources where as by discouraging personal prejudices principle of management makes administration more effective.

• Scientific decision 

Scientific decision refers to taking decision on the basis of facts measurement and evaluation management principle health the manager to take various decision scientifically

• Meeting changing environment requirements. 

External environment of the business is changing very frequently there is need to change internal business organisation to cope up with the Rapid changes management principle help manager to take the necessary changes scientifically. 

• Fulfilling social responsibility.

Principles of management not only help the manager on achieving organisational goal but also guide managers in performing social responsibility such as avoidance of unfair trade practices adulteration holding etc.

•  Management training education and research

Management Principles are the core of management theories on the basis of these principles various training and Research related activities take place.