Management is the process of organizing and directing people and resources to achieve goals."Management is doing things right; leadership is doing the right things."
Management principles are needed for the following reasons:
(i) Optimum use of resources: The management principle of “science, not rule of the thumb” suggests that every task should be done with minimum effort and energy and additional work can be done with the saved energy. By saving time, efforts and energy activities can be made economical and enhance the productivity of the resources.
(ii) Change in technology: The management principle of “division of labour” helps management in identifying in which activity technology has changed. If there is no division of labour then confusion may prevail about what and how much to change.
(iii) Effective Administration: The principle of ‘scalar chain’ helps the enterprise to communicate with people at different levels. ‘Unity of direction’ removes confusion in minds of employees; and ‘Unity of command’ avoids dual subordination. The knowledge of principles improves the understanding of managers about the ways and means of managing an organization. Management principles are helpful in taking decisions and handling situations arising in course of management.
(iv) Helps in thoughtful decisions making: Management principles help in thoughtful decision-making. They emphasize logic rather than blind faith. Management decisions taken on the basis of principles are free from bias and prejudice.
(v) Fulfilling social responsibilities: A business is a creation of society and makes use of resources of society so it must do something for society. Management principles guide the managers to perform their social responsibilities.
(vi) Direction for training of managers: The principles are helpful in identifying the areas of management in which existing and future managers should be trained. The principles of management help the universities and professional institutes to impart teaching and training in the theory and practice of management.
(vii) Role of management: The principles focus on matters on which greater managerial attention is required. Principles act as ready reference for the managers to check whether their decisions are appropriate or not.
