Question

Explain how principles of management:
(i) help in optimum utilization of resources and effective administration,and
(ii) help the managers in meeting changing environment requirements.

Answer 1

(i) Principles of management help in optimum utilization of resources by equipping managers to foresee the cause and effect relationships thereby reducing the wastages associated with trial and error approach.

Principles of management help in effective administration by limiting the boundaries of managerial discretion so that decisions are free from personal prejudices.

(ii) Principles of management help the mangers in meeting requirements of changing environment because they can be modified according to the changes taking place in the environment.