Question

How are principles of management derived?

Answer 1

The management principles are derived in the following two ways:

(i) On the basis of observation: Fayol developed management principles on the basis of observation. e.g. 'division of work' tells us that in order to achieve efficiency, divide the work into small tasks. This analysis can only be made by those managers who observed that division of work leads to specialisation.

(ii) On the basis of experimentation: All the principles of management establish a cause-and-effect relationship between variables, which means that they are developed on the basis of experimental studies.