Question

Explain how Principles of Management:
(i) help in optimum utilization of resources and effective administration and
(ii) help in thoughtful decision-making.

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) Thoughtful decision-making : Management principles help in thoughtful decision-making because they are based on logic rather than blind faith. Such decisions are free from bias and prejudice. These principles develop scientific approach as they give a realistic and subjective measurement for evaluation.