Importance of principles of management:

• Principles of management provide a vision to the behaviour and approach of the managers. This in turn highly affects the management.
• Managers make use of these principles for achieving business goals.

The importance of management principles is discussed below:

1. Increases managerial efficiency:

• Principles of management provide guidelines to managers to perform in a variety of situations.
• This improves the functioning of a business unit and also improves efficiency of managers.

2. Maximum usage and effective administration of resources:

• In most of the business units, the human and physical resources are available in limited quantity. So, there arises a need of maximum usage of these resources that are available in limited quantity.
• Management principles help in increasing the utility and efficiency of resources that too with minimum cost inputs.

3. Helps to take scientific and logical decisions:

• Decisions should be always based on facts, proper logic and objectives. They should be justifiable and should be taken on time so as to make them effective.
• Management principles help to take appropriate decisions on proper time without getting biased.

4. To cope up with the changing business environment: Management principles are necessary to meet business environment in changing circumstances.

5. To fulfill social responsibility:

• Profit is considered as the main aim of the business, but it is not the only aim. Development and progress of society are also aims of business unit.
• By effective implementation of management principles, business unit can easily achieve aim of social responsibility.

6. Useful for research, training and development:

• Management principles are the main elements of management thoughts.
• Training, education and development are possible only through proper implementation of management principles.
• For example, in modern time, aptitude tests are conducted for appointing employees in various business units. These aptitude tests are prepared through research and by implementing and using management principles.