Principles of Management

Topic Covered in this page

Management is the process of designing in maintaining an environment in which individuals working together in groups efficiently and effectively accomplished selected goals. It would be very difficult to manage the resources of an organisation without a set of guidelines which govern the organisation and its members. Each and every organization has its prospectus and is governed by a certain bunch of business conducting principles. Management principles have evolved over time as per the organisational needs.

The principles of management serve as  broad and general guidelines for managerial action and decision making. They are framed up by means of analysis based on observations and practice.

Principles of management are general propositions. The origin of these principles may be a matter of science but their formulation is a result of creative application of art too.

These principles provide credibility of a learnable and teachable discipline to the practice of management.

Nature of Management Principles

The nature of management principles can be summarised in the following:

Universal Applicability

The principles of management are pervasive and intended to apply to all types of organisations, business, different sectors etc. The extent of applicability may vary through the organisations but they are applicable and in use universally.

General guidelines

These are not to provide ready made jacket solution to the problems of management rather are prescribed in general and can be modified and used as a solution. The real business problems are very complex and dynamic and demand the solution which caters right to the problem.

Formed by practice and experimentation

The management principles are formed by experience and observation. These are formulated based on observation and experimentation.


The principles of management are not rigid prescriptions. The manager has enough discretion of modifying the principle and applying to achieve business goals and objectives.


The principles of management aim at influencing behaviour of human beings. These principles enable a better understanding of the relationship between human and material resources in accomplishing organisational purposes.

Cause and effect relationship

These principle can be used as guidelines as their exists cause and effect relationship. The situation in real life is not identical each time so accurate cause and effect relationships may be difficult to establish. But it provides a way to clear out the problem and make effective use of principles.


The principle are dependent upon the prevailing situation at a particular point of time. They should be applied to that extent only which benefits the organisation and its members.


Having described the nature it would be easy to frame significance of these principles of management which act as a brochure for managers at all levels.

The significance of principles of management cannot be overlooked, instead can be witnessed in healthy work environment of the organization.

Providing managers with useful insights

The principles of management provide with useful insights into the real world situations. It also enables managers to learn from the past mistakes and conserve time by solving recurring problems in a lesser time. This will add to their knowledge and benefit organisation as a whole by improving managerial efficiency.

Optimum utilisation and effective administration

There pertains scarcity of resources whether we talk about economy as a whole or an individual household or organisation. The principles equip managers to foresee the cause and effect relationship and keep ready the solution as soon as the problem arises. This on one hand limits the discretion of managerial decisions to get affected by personal biasness and on the other hand ensures minimum wastage of resources whether material or human.

Scientific decisions

The decisions should be scientific as in justifiable and viable for the said purpose. They must be timely, realistic, simple and flexible . They emphasise on logic rather than belief and are subject to objective assessment.

Meeting changing requirements

A business to flourish is required to revise it’s terms and policies with changing environment. It is also essential to recognise competitors and survive the competition successfully. The principles of management enable the managers to face this challenge as they are flexible and can be modified as per the needs.

Fulfilling social responsibility

The principles of management are behavioural and are related to human nature. The on time accomplishment of goals makes relations between mangers and employees stronger and smoother.

Management Training, Education and Research

The principles are providing education to employees to make use of their theoritical interpretation. This has helped the managerial knowledge to be more concrete.

The managers become motivated to do research so as to improve consumer satisfaction.

Henri Fayol and Freidrick Winslow Taylor worked on developing the base of principles of management. Henri Fayol gave 14 principles and Taylor propounded some principles and some scientific techniques to ensure better managerial control.

Efficient and well managed administration in an organization is the key to success.

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