Business Studies XII Content
Meaning of principle of management
“A principle is a rule or belief governing one’s personal behavior. It is a fundamental truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning.” Principle is a fundamental statement of truth that establishes a cause and effect relationship between two or more variables. Principles are a guide to thought and action. If any principles are applied results are expected. Descriptive principles describe the relationship between variables and prescriptive principles indicate what a person should do for the betterment of his interest to achieve prosperity.
Principle of management is concerned with managerial aspect of organization. It is believed that management is as old as mankind however systematic approaches to management are the outcome of efforts made in 20th century.
Nature of management principles
· Management principles are flexible and change with change in environment thus cannot be regarded as final truth. Principles should be applied according to need, place time and social culture. Continuous research re to be carried out.
· Management principles are relative and are applied according to the needs of particular organization.
· Management involves the direction of human behavior in an organization which are directed towards regulating human for best result.
· Management principles establish cause and effect relationship. The effects are based on management principles which are based on predictions based upon division of labor which results efficiency. Here division of labor is cause and efficiency is result.