Question

Explain the following points of importance of principles of management : (i) Scientific decisions (ii) Providing managers with useful insights into reality

Hint:

Scientific decisions are "Fact-based," whereas personal whims are "Subjective." Principles turn management from an art of guesswork into a disciplined science.

Answer 1

Step 1: Understanding the Concept:
Principles of management are broad and general guidelines for managerial decision-making and behavior. They help in improving the overall efficiency of an organization by providing a systematic approach to problems.
Step 2: Detailed Explanation:
1. Scientific Decisions: Management principles help in taking decisions based on objective assessment of facts. They emphasize logic rather than blind faith or guesswork. Decisions based on principles are free from personal bias and are more likely to be timely and realistic.
2. Providing Managers with Useful Insights into Reality: These principles add to the knowledge, ability, and understanding of managers. By using these principles, managers can learn from past mistakes and handle recurring problems more effectively. This improves managerial efficiency and saves time.
Step 3: Final Answer:
Management principles ensure that decisions are logical (Scientific) and that managers have a better understanding of the business environment (Insights).