Question

Explain how principles of management help in (a) meeting changing environment requirements and (b) making scientific decisions.

Answer 1

Scientific Decisions:

An effective decision must be based on facts, thoughtful and justifiable in terms of the required purpose. Decisions must be timely and realistic. Principles of management help the managers in taking decisions based on the objective assessment of the situation, free of any bias and prejudice. Thus, they approach various problems scientifically, leading to timely implementation of right decisions.

Meeting Changing Environment Requirements:

As the principles can be modified, thus, they help the managers to meet the changing environment requirements. For example, at present the principle of division of work has been extended to the whole business.

Of late however, companies are specializing in their core competency and are outsourcing their non core business. For example, most of the big giants are now outsourcing some of their operations through ‘Business Process Outsourcing’ and ‘Knowledge Process Outsourcing’