The principles of management derive their significance from their utility. 

The following is the importance of principles of management: 

1. Provide managers with useful insights into reality: The principles of management provide the managers with useful insights into real world situations. Following these principles will add knowledge, ability and understandability to the managers of the situations and circumstances. It will also enable managers to learn from their past mistakes and save time by solving repeated problems quickly.

2. Optimum utilisation of resources and effective administration: Both human and material resources are limited. These resources should be used in such a manner that the company is able to derive maximum benefit with minimum cost Principles equip the managers to foresee the cause and effect relationships of their decisions and actions. Wastage is also avoided.

3. Scientific decisions: Decisions must be based on facts. They must be timely, realistic and subject to measurement and evaluation. Management principles help in thoughtful decision – making and these decisions will be free from bias and prejudice. 

4. Meeting changing environment: Although the principles of management are in the nature of general guidelines, but they are modified and help the managers to meet changing requirements of the environment.