Explain any four points of significance of principles of management.

Answer: Principles of management increase efficiency, help in optimum use of resources, guide decision making and help in adjusting to change.

1. Increase in efficiency: Principles give managers tested guidelines, so they can solve problems quickly and avoid trial and error. This improves the efficiency of managers and of the organisation.
2. Optimum utilisation of resources: Principles such as division of work and unity of direction help to use men, money, materials and machines in the best way and reduce wastage.
3. Scientific decision making: Decisions based on principles are logical, objective and free from personal bias, because principles are based on facts and experience.
4. Adjusting to changing environment: Principles are flexible, so they can be modified to meet changes in technology, competition and the business environment.
5. Fulfilling social responsibility: Principles help management to meet the expectations of society, for example by providing quality goods at fair prices and fair wages to workers.
6. Management training and research: Principles form the basis of management education, training and research.