3. NATURE AND PRINCIPLE OF MANAGEMENT
(1) Universal Applicability:
Universality refers to that truth which is equally
applicable in all spheres (both business and non-
business). The principles of management are also
universal in nature.
All business (industrial units, etc.) and non-
business organizations (educational institutions,
government offices, playgrounds, agricultural
farms, army, clubs and other social organizations),
in order to achieve their objectives have to apply
more or less the same principles.
4.
5. (2) General Guidelines:
The principles of management are not definite like the
principles of physics and chemistry. The principles of
physics and chemistry are very clear and definite, and their
outcomes can be predicted. The principles of
management, on the other hand, are of the nature of
general guidelines, and they cannot be applied strictly.
(3) Formed by Practice and Experimentation:
Principles of management are the results of various
problems faced by the professional people. First of all
problems appeared and then through careful research
work solutions were found. Thus, we recognize the
solutions, found with the help of practice and experience,
as principles of management.
Similarly, researchers undertake experimental study to
find out the principles of management.
For example, the principle of ‘Unity of Command’ must
have emerged when two groups of people must have been
compared wherein the first group of people had one boss
while the second group of people had two bosses.
Undoubtedly, the first group of people must have
performed better
6. (4) Flexibility:
The principles of management as they exist today are not in
the form of final truths. As and when political, economic and
social changes take place, new kinds of problems arise. Old
principles are altered and new principles are propounded.
Therefore, the principles of management are dynamic in
nature and cannot be called stagnant or fixed.
(5) Mainly Behavioral:
The principles of management are directly concerned with
human behavior. The management activity is mainly
concerned with management of man, who is a social animal
having his own nature, desires and expectations which cannot
be repressed or eliminated.
This is the main reason why the principles of management are
affected by human behavior, and often human behavior is the
main hindrance in the successful application of principles of
management.
For example, the principle of division of work is usually
adopted for increasing efficiency, but after doing the same
work repeatedly a person gets bored (this is human behavior),
thereby resulting in a decrease in efficiency.
7. (6) Relationship between Cause and Effect:
The principles of management establish a relationship between
cause and effect. They specify what the ultimate outcome will be if
in a particular situation, work is done in a particular manner.
For example, if according to the principle of division of work, the
work is divided into different parts, each part being assigned to a
particular person according to his interests and capability, then it
will result in an increase in overall efficiency.
In this case, the division of work is the cause and the increase in
efficiency is the effect. In the same manner, the other principles of
management also establish relationship between cause and effect.
(7) Contingent:
The principles of management are not fixed or permanent. They
are affected by situations or circumstances. Therefore, the decision
to implement them or not is taken according to the situations or
circumstances.
For example, according to the principle of division of labour a
worker should be assigned a definite part of a job time and again
to increase his efficiency. But on the contrary, if a worker is fed up
with doing a job repeatedly, the application of this principle will
not be beneficial. Therefore, it will have to be changed.
8. z SIGNIFICANCE of
PRINCIPLES OF MANAGEMENT
The principles of management are in the form
of pre-determined solutions for repeatedly
occurring problems. They guide the manager. It
is very important for every manager to know
them thoroughly. The importance of the
principles of management becomes
abundantly clear from the following facts:
10. z
(1) Provide Useful Insight to Managers:
The principles of management were developed on the basis of the
experience of various professional people. The principles make the
manager aware about the manner in which he should act in various
situations so that he does not repeat the mistakes of the previous
managers.
In this way, timely guidance reduces the wastage of resources and the
objectives can be achieved in a less expensive manner.
For example, according to one principle of management, i.e., division
of work, a job is divided into many small units. Every unit or part is
assigned to different individuals. Each individual does the same work
repeatedly that has been assign.
He gets used to it which helps him to perform his job efficiently and
quickly. Consequently, the entire job is completed in an economical
manner.
11. z(2) Optimum Utilization of Resources
and Effective Administration:
In every organization physical (material, machines, money, etc.) and human (manpower)
resources are used. The function of management is nothing but to put them to optimum
use or avoid wastage of resources. And it is possible only when a manager makes use of
the principles of management.
According to the principle of ‘unity of command’ there should only be one boss for an
employee at a time. In case there is more than one boss, the employee will not be in a
position to work properly. Consequently, human resource will be wasted.
Therefore, if we desire to use the human resource favorably, this principle has to be
adopted. Similarly, many other principles ensure favorable utilization of various other
resources.
The primary need of every organization is that its administrative system should be
effective. Only that administrative system is called effective where the managers can take
balanced and quick decisions. In order to take such decisions, sufficient information and
authority should be available.
This is made possible with the help of the principles of management. For example, the
principle of ‘authority and responsibility’ advocates granting of sufficient authority, while the
principle of scalar chain advocates making adequate provision for providing information.
12. (3) Scientific Decisions:
A scientific decision means a balanced decision. The
principles of management provide the necessary
training to the managers so that they can take
scientific/balanced decisions. In the absence of these
principles the managers have to adopt the method of
trial and error.
According to this principle, one is expected to do a job
in a particular manner and if there is some error, some
other method has to be adopted. In this way, the work
is done in different ways till the error is eliminated.
This method is not proper.
Therefore, the managers are trained with the help of
the principles of management which makes them
capable of taking scientific decisions. For example, the
principle of ‘authority and responsibility’ tells us that if
a subordinate is entrusted with some responsibility, he
should be allowed sufficient authority to accomplish it.
Only in such a situation a subordinate will be able to
take a scientific decision whenever needed.
13. (4) Meeting Changing Environmental Requirement:
In modern times only such a business unit can remain alive and
develop which can keep pace with the rapidly changing
environment. In every field of business activity (production,
marketing, etc.) new techniques are emerging every day. Managers
who can understand the changing situation well in time can alone
face competition successfully.The principles of management
enable the managers to face this challenge.
For example, the principle of ‘unity of direction’ tells us that all the
activities connected with the attainment of the same objective
should be completed under the direction of the same manager.
In doing so a manager would be able to have the detailed
information connected with the limited activities being done under
his direction. In case the activities connected with different
objectives are being done under the direction of one manager, he
will not be able to understand the changes being effected in any
activity.
(5) Fulfilling Social Responsibility:
The principles of management increase the efficiency of the
managers and enable them to fulfill their social responsibility. More
efficient managers can make good quality products at reasonable
prices available all the times.
14. (6) Management Training, Education and Research:
The advantages of the principles of management
encourage the researchers to bring in more improvement
in them. The attitude of the managers has molded itself in
such a fashion that they are doing, consciously or
unconsciously, something new.
It means that the managers have come to acquire an
attitude tilted towards research and development. This has
helped the managerial knowledge to be more solid and
scientific. The principles of management are actually
providing education and training to the managers by
enriching their theoretical and practical knowledge.
For example, in order to take advantage of the change of
attitude among the managers, various big companies have
established Research and Development Departments in
HRD. Consequently, many new techniques have come to
light in the field of marketing, production, finance, etc.