Principles of Management

What are the Principles of Management?

The organisational principle is the great and overall direction for determining the performance. For instance, while ascertaining about the promotion of an employee, a manager may contemplate seniority, whereas the other may follow the principle of quality.
One may define principles of management from those of pure science. Management principles are not as firm as postulates of pure science. They deal with human traits and, hence, are to be employed creatively given the requirements of the position. Human behaviour is never inactive and so also technology, which business. Therefore all the principles have to keep step with these changes. For instance,

  • In the absenteeism of Information and Communications Technology (ICT), a manager could manage only a small workforce that too within a restricted geographical area.
  • The approach of ICT has developed the ability of the managers to control over large business domains scattered across the globe.
  • In promoting an understanding of the application of principles of management, it is also helpful to comprehend what these are not.
  • The principles of management should be selected from techniques of management. Techniques are methods or techniques, which include a group of steps to be taken to achieve sought goals.
  • Principles are guidelines to make judgements or actions while studying techniques. Moreover, principles should also be comprehended as being different from values.

Importance of Understanding Principles of Management:

(1) Providing Managers With Useful Insights Into Reality

  • The application of principles of management helps the managers to take right decisions at the right time.
  • These principles of management help managers to tackle the diverse problems in a dynamic business environment.

(2) Optimum Utilisation of Resources & Effective Administration

  • Resources are always scarce and limited.
  • By applying the management principles, the managers can focus on optimum use of available resources so as to achieve productive results at minimum cost and maximum profits.
  • It results in effective administration by channelising resources (human and material) into the best possible way.

(3) Scientific Decisions

  • Application of principles of management makes the manager more realistic, thoughtful, justifiable and free from personal bias.
  • The decisions taken on the basis of principles of management are subject to evaluation and objective assessment.

(4) Meeting Changing Business Environment

  • Although the principles are in the nature of general guidelines, they are modified and help managers to meet the changing requirements of the environment.


With the rapid rise of online market sellers, offline vendors have also started selling their goods on online platforms.

(5) Fulfilling Social Responsibility

  • Principles of management not only help in achieving the goals of the organisation effectively and efficiently, but they also guide the managers to fulfil their commitment towards its employees and society.


Principles of fair remuneration and equity ensure social justice to employees and compliance with government norms towards corporate social responsibility which improves the company’s image in the society.

(6) Management Training, Education and Research

  • Proper understanding of principles is the base of training, research and development in the field of management.
  • Management is taught on the basis of these principles, which help the management institutes prepare future managers.
  • These Principles help managers to take decisions and actions in the right manner.
  • Application of these principles by the managers brings innovation in the field of management.


It is the result of such training, education and research that Sunil Mittal could run Airtel in a successful way.

Also Read: Find Business Studies Syllabus For Class 12

Features of Principles of Management:

(1) General Guidelines

  • The principles of management are just for a prescription.
  • They do not provide any ready-made solutions to all sorts of problems being faced by the organisations.
  • These can be modified as per the nature of the situation and human behaviour.


During the period of recession, the general manager may allow marketing departments to give away heavy discount to the customers without giving due attention to financial losses being raised by the financing department because the primacy of overall goals of the organisation is important.

(2) Universal Validity

  • Principles of management can be applied to any kind of organisation whether it is private or government, not for profit organisation, small, medium, large organisation etc.
  • But their applicability depends upon nature, size of the organisation and different situations.

Example: The whole work of an organisation is divided into smaller tasks, and such tasks are assigned to different departments, groups and individuals. Such a system of division of work is applicable in all types of organisations.

(3) Formed by Practice and Experimentation

  • The principles of management have been formed by experience and acquired the wisdom of managers over the years.

Example: Through collective practice, we can see that Fayol’s Principle-Discipline helps in increasing productivity.

Taylor’s Principle-Science, Not Rule of Thumb, brings out uniformity and standardisation in the manufacturing process of a company. ( we can give the same example which we have given in the case study because at this stage Fayol’s principle and Taylor principle are not yet discussed)

(4) Contingent

  • As the application of principles of management depends upon prevailing situations and needs, so their results may not be uniform as expected.


  • Remuneration of employees should be just and equitable, yet it may vary from person to person depending upon various situations.
  • Remuneration can be dependent on:
  • Industrial standard.
  • Employer’s paying capacity.
  • Contribution of employee etc.,

(5) Flexible

  • The principles of management are general prescriptions not rigid.
  • The managers can make certain changes as per the convenience and requirement of a situation.


Application of the principle of centralisation or decentralisation i.e. concentration or dispersal of authority to be delegated to employees depends upon the need, ability and competency of the employees. It also depends upon the nature of the organisation.

(6) Based on Cause and Effect

  • The principles of management are intended to establish cause and effect relationship so that the findings can be applied to such given situations frequently.
  • The principles of management tell the likely effect if a certain principle is applied.
  • The effect of such principles remains more or less the same due to their application on human behaviour.


By applying the principle of subordination of individual interest to the general interest, the behaviour of employees may be influenced in such a way that the personal goals of employees may be directed towards goals of the organisation.

(7) Mainly Behavioural

  • The principles of management aim at influencing the behaviour of employees.
  • With the help of principles of management, the managers try to bring desired changes in the behaviour of employees so as to achieve the organisational goals.


Orderliness decides behaviour among human beings in a company. Even the behaviour between men and machine can be decided by this principle of Management.

Difference Between Value and Principles of Management

Parameters Values Principles of Management
Definition Values are acceptable or desirable in society. They touch the moral aspects of life. Principles of management are broad and general guidelines for decision making and behaviour.
Example Honesty, Sincerity etc. Division of work, discipline etc.
Nature Developed in society. Developed and applied in business.
Status General rules for behaviour. Basic truths or guidelines.
Formation Formed through common practice Formed after research at the workplace.

Difference Between Principles of Science and Principles of Management


 Principles of Science

Principles of Management
Definition These are uniform laws of science which are applicable throughout the universe. Principles of management are broad and general guidelines for decision making and behaviour.
Example Newton’s law of motion etc. Principle of Fayol and Taylor etc.
Nature Rigid. Flexible.
Application Modified and creative. Unchanged and produce the same result.

Difference Between Techniques of Management and Principles of Management


Techniques of Management

Principles of Management
Definition Techniques are procedures or methods, which involve a series of steps to be taken to accomplish the desired goals. Principles of management are broad and general guidelines for decision-making behaviour.
Example The technique of loading iron onto a vehicle. Principle of Fayol and Taylor.
Nature Chronological. Flexible, broad and general.
Application Specific- They can be applied only to a specific situation. General- They can be applied to different situations.

Also Read: Find Business Studies Syllabus For Class 12

The above mentioned is the concept, that is elucidated in detail about the Principles of management for the Class 12 Commerce students. To know more, stay tuned to BYJU’S.


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