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i. To save environment from getting polluted.

ii. To contribute in improving living standard.

i. Coordination integrates group effort.

ii. Coordination ensures unity of action.

iii. Coordination is a continuous process.

iv. Coordination is an all-pervasive function.

v. Coordination is the responsibility of all managers.

vi. Coordination is a deliberate function.

Debentures that are not converted into shares and whose money is returned to the debentures holders as per specific conditions and time frame are called non-convertible debentures.

A debt instrument issued for a period of more than one year with the objective of raising borrowed capital is called a bond.

Principles of management provides a vision to managerial behavior. Managers use these principles for achievement of objectives/goals. Its importance can be described as under:

• Managerial efficiency increases because of principles of management.
• Human and physical resources can be utilized at its maximum level because of management principles.
• Proper decisions can be taken without partiality and bias, by business unit, with the help of principles of management.
• Management principles are necessary guide to meet business environment under changing circumstances.
• With the implementation of principles of management, business unit can easily achieve the objective of social responsibility.
• The training, education and development of employees become possible with the use of principles of management.

Significance of the Principles of Management

1. Increase efficiency:

The understanding of the management principles provides guidelines to the managers for handling effectively the complex problems.

2. Optimum utilization of resources:

The principles of management helps in the optimum utilization of resources through division of work, delegation of authority, etc.

3. Scientific decision:

Management principles help in thoughtful decision making. Such decisions are free from bias and prejudices.

4. Meeting the changing environmental requirements:

Management principles are flexible and can be modified to meet changing requirements of environment.

5. Fulfilling social responsibility:

Management principles help the managers to fulfill the social responsibilities towards society.

• Increase in managerial efficiency,
• Maximum usage and effective administration of resources,
• Helpful for scientific and logical decisions,
• To cope up with the changing business environment,
• To fulfill social responsibility, and
• Useful for research, training and development.

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.

1. Increase efficiency:

The understanding of the management principles provides guidelines to the managers for handling effectively the complex problems.

2. Optimum utilization of resources: 

The principles of management helps in the optimum utilization of resources through division of work, delegation of authority, etc.

3. Scientific decision:

Management principles help in thoughtful decision making. Such decisions are free from bias and prejudices.

4. Meeting the changing environmental requirements:

Management principles are flexible and can be modified to meet changing requirements of environment.

5. Fulfilling social responsibility:

Management principles help the managers to fulfill the social responsibilities towards society.

Importance of Management:

(a) Helps in achieving group goals.

(b) Increases efficiency.

(c) Creates a dynamic organisation.

(d) Helps in achieving personal objectives.

(e) Helps in the development of society.

Detailed Answer:

Principles of management are broad and general guidelines for managerial decision making and behaviour of managers.

Importance of Principles of Management:

(a) Providing managers with useful insights into reality: The principles of management provide the managers with useful insights into the real world situations. Adherence to these principles will add to their knowledge, ability and understanding of managerial situations and circumstances. It will also enable managers to learn from the past mistakes and conserve time by solving recurring problems quickly. As such management principles increase managerial efficiency.

(b) Optimum utilization of resources and effective administration: Both human and material resources, available with the company are limited. They have to be put to optimum use. By optimum use we mean that the resources should be put to use in such a manner that they should give maximum benefit with minimum cost. Principles equip the managers to foresee the cause and effect relationships of their decisions and actions. As such the wastages associated with a trial-and-error approach can be overcome.

(c) Scientific decisions: Decisions must be based on facts, thoughtful and justifiable in terms of the intended purposes. They must be timely, realistic and subjected to measurement and evaluation. Management principles help in thoughtful decision-making. They emphasize logic rather than blind faith. Management decisions are taken on the basis of principles which are free from bias and prejudice. They are based on the objective assessment of the situation.

(d) Meeting changing environment requirements: Although the principles are in the nature of general guidelines but they are modified and as such help managers to meet changing requirements of the environment. Management principles are flexible to adapt to a dynamic business environment.

(e) Fulfilling social responsibility: The increased awareness of the public, forces businesses especially limited companies to fulfill their social responsibilities. Management theory and management principles have also evolved in response to these demands. Moreover, the interpretation of the principles also assumes newer and contemporary meanings with the change in time.

(f) Management training education and research: Principles of management are at the core of management theory. As such these are used as a basis for management training, education and research. These principles provide basic groundwork for the development of management as a discipline. These principles enable refinement of management practices as well by facilitating the development of new management techniques which have developed due to further research on these principles.

Characteristics/Nature of Principles of Management:

(i) Universal applicability: The principles of management are intended to apply to all types of organisations, business as well as non-business, small as well as large, public sector as well as private sector, manufacturing as well as the services sectors. However, the extent of their applicability would vary with the nature of the organisation, business activity, scale of operations and the like.

(ii) General guidelines: The principles are guidelines to action but do not provide readymade, and to the point solutions to all managerial problems. This is so because real business situations are very complex and dynamic and are a result of many factors. However, the importance of principles cannot be underestimated because even a small guideline helps to solve a given problem.

(iii) Formed by practice and experimentation: The principles of management ate formed by experience and collective wisdom of managers as well as experimentation. For example, It is a matter of common experience that discipline is indispensable for accomplishing any purpose. This principle is mentioned in the management theory. On the other hand, in order to remedy the problem of fatigue of workers in the factory, an experiment may be conducted to see the effect of improvement of physical conditions to reduce the stress.

(iv) Flexible: The principles of management are not rigid prescriptions, which have to be followed absolutely. They are flexible and can be modified by the manager when the situation so demands. They give the manager enough discretion to do so.

Social objectives are defined as the fulfilment of responsibility of an organisation towards society. Under this objective, manager promises to assure health, safety and price control.

Main social objectives of management are included in the following list:

i. To make available employment opportunities.

ii. To save environment from getting polluted.

iii. To contribute in improving living standard.

iv. To participate in building charitable trusts, dispensaries, educational institutions, etc.

For example, Asian Paints has provided funds under its community development programme, which made possible the effective utilisation of local resources by the farmers. In the samemanner, Steel Authority of India regularly provides services related to agriculture, industry, education, health, etc. to the people living nearby to its steel plant.

Meaning of Management: It refers to the process of conducting a set of functions (Planning, Organising, Staffing, Directing and Controlling) to get the work done in an efficient and effective manner.

Objectives of Management:

1. Organisational objectives: It refers to the utilisation of human and physical resources available in the organisation, considering the interest of all stakeholders.

2. Social Objectives: It refers to the consideration of the interest of the society during managerial activities.

3. Personal or Individual Objectives: It refers to the objective to be determined with respect to the employees of the organisation.

Importance of Management:

(a) Helps in achieving group goals.

(b) Increases efficiency.

(c) Creates a dynamic organisation.

(d) Helps in achieving personal objectives.

(e) Helps in the development of society.

Detailed Answer:

Principles of management are broad and general guidelines for managerial decision making and behaviour of managers.

Importance of Principles of Management:

(a) Providing managers with useful insights into reality: The principles of management provide the managers with useful insights into the real world situations. Adherence to these principles will add to their knowledge, ability and understanding of managerial situations and circumstances. It will also enable managers to learn from the past mistakes and conserve time by solving recurring problems quickly. As such management principles increase managerial efficiency.

(b) Optimum utilization of resources and effective administration: Both human and material resources, available with the company are limited. They have to be put to optimum use. By optimum use we mean that the resources should be put to use in such a manner that they should give maximum benefit with minimum cost. Principles equip the managers to foresee the cause and effect relationships of their decisions and actions. As such the wastages associated with a trial-and-error approach can be overcome.

(c) Scientific decisions: Decisions must be based on facts, thoughtful and justifiable in terms of the intended purposes. They must be timely, realistic and subjected to measurement and evaluation. Management principles help in thoughtful decision-making. They emphasize logic rather than blind faith. Management decisions are taken on the basis of principles which are free from bias and prejudice. They are based on the objective assessment of the situation.

(d) Meeting changing environment requirements: Although the principles are in the nature of general guidelines but they are modified and as such help managers to meet changing requirements of the environment. Management principles are flexible to adapt to a dynamic business environment.

(e) Fulfilling social responsibility: The increased awareness of the public, forces businesses especially limited companies to fulfill their social responsibilities. Management theory and management principles have also evolved in response to these demands. Moreover, the interpretation of the principles also assumes newer and contemporary meanings with the change in time.

(f) Management training education and research: Principles of management are at the core of management theory. As such these are used as a basis for management training, education and research. These principles provide basic groundwork for the development of management as a discipline. These principles enable refinement of management practices as well by facilitating the development of new management techniques which have developed due to further research on these principles.

Management Principles are not as rigid as those of natural science viz. Physics and Chemistry. Principles of Management are not applied blindly in an identical manner to all situations. Management principles are not absolute and should be utilised in the light of changing and special conditions. Management Principles do not provide any hard and fast rules and they have to be modified as per changes in the business environment.

Management Principles are said to be universal because these are applicable in all types of organisations, at all levels and at all times.

Principles of management are contingent as their application is dependent upon the prevailing situations at a particular point of time.

Meaning of Coordination: Coordination is a process through which harmony is established among different activities of an organisation, so that organisational objectives can be successfully achieved.

Importance:

i. Size of the Organisation: These days, the scale of doing business is increasing day by day. Any increase in the scale of the business also results in an increase in the number of people employed in the organisation, with each person having different interests, way of working, mutual understanding, objective of working, tolerance, etc. However, all these people have to work together as a group despite these differences, which is not a very easy task. Therefore, it is very necessary that through coordination, a proper environment is created so that everyone give in their full contribution towards the attainment of organisational goals.

ii. Functional Differentiation: There may be a clash of interests among the various departments in an organisation. Such a situation becomes a very big hindrance in the achievement of organisational goals. There is only one way to avoid clashes, and that is by establishing proper coordination between the departments.

It states that ‘a place for everything (everyone) and everything (everyone) in its (his/her) place.’

Principles of management are broad and general guidelines for decision making and behaviour of managers.

The process by which a manager synchronizes the activities of different departments is known as coordination.

Meaning of Coordination: Coordination is a process through which harmony is established among different activities of an organisation, so that organisational objectives can be successfully achieved.

Characteristics of Coordination: The following are the main points of the characteristics of coordination:

i. Coordination Integrates Group Effort: The need for coordination is felt when group effort is needed for the accomplishment of an objective. In short, it can be said that coordination is related to group effort and not individual effort. The question of coordination does not arise, if the job is done by one person only.

ii. Coordination Ensures Unity of Action: The nature of coordination is of creating unity in action. It means during coordination process an effort is made to create unity among the various activities of an organisation. For example, the purchase and sale departments have to coordinate their effort so that supply of goods takes place according to purchase orders.

Characteristics of Co-ordination:

(a) Integrates group efforts

(b) Ensures unity of action

(c) Continuous process

(d) Pervasive function

(e) Responsibility of all managers

(f) Deliberate function

Correct option is (b) Span of control

Co-ordination integrates group efforts by unifying diverse interests thereby giving them a common focus to ensure that the performance is according to the plans.

Correct option is (A) Fixed rate

(a) Hypothecation

(d) Purchase Manager – Middle-level management

It refers to completing the job on time, no matter whatever is the cost.

Efficiency means “doing things right” and effectiveness means “doing the right.” EFFICIENCY (the ability to the things right) is an “input-output” concept. AN efficient manager is one who achieve output that justifies the input (labor, Material and time) used to achieve them. In Management, efficiency of resources utilization is thus minimization of cost and maximization of benefits resulting in achieving the goals. Effectiveness in contrast involves choosing the right goals .A manager who selects an inappropriate goal say producing mainly large cars when demand for small cars is high is an ineffective manager even if the large cars are produced with high efficiency. No amount of efficiency can make up for lack of effectiveness. So effectiveness is the key to an organization’s success. It is a pre- condition for an efficient management.

Correct option is (C) Fixed asset

Efficiency and effectiveness are both commonly used management terms. Efficiency means whatever we produce or perform; it should be done in a perfect way. Efficiency refers to doing things in a right manner. It is defined as the output to input ratio and focuses on getting the maximum output with minimum resources.

Effectiveness has a broader approach, which means the extent to which the actual results have been achieved to fulfill the desired outcome, ie, doing accurate things. Being Effective is about doing the right things while being Efficient is about doing things right. Difference between Efficiency and Effectiveness:

Correct option is (B) Salary

(a) Lower level

(b) Middle level

(c) Top level 

(d) Top level

A manager increases efficiency through the optimum utilisation of all the resources, such as, man, machine, material and money.

Efficiency refers to do the job in a cost effective manner. Effectiveness refers to complete the job on time, no matter whatever is the cost.

Effectiveness in management is concerned with doing the right task, completing activities and achieving goals on time.

It refers to completing the job in the cost effective manner.

Management is a continuous process of planning, organising, staffing, directing and controlling. All these functions are interrelated.The success of a business organisation depends on the effective performance of all the managerial functions.

A manager reduces the cost and increases productivity through better planning, organising, directing, staffing and controlling the activities of an organisation.

Management has 3 dimensions 

(a) Management of work 

(b) Management of People 

(c) Management of operations.

Management of work.

Management is intangible

Two examples of this objective are:

(i) Providing employment opportunities to female workers and to the economically weaker sections of the society.

(ii) Providing basic amenities like schools, creches to the employees.

Management is called an intangible force as it cannot be seen though its presence can be felt in the way the organisation functions.

It tells about the importance of management.

Management is such a force that cannot be seen, only its presence can be felt. When the goals of an organisation are being realised in accordance with its plans and the employees are happy, we can say that the management of the organisation is good. Similarly, we get the indication of the presence of management if there is orderliness rather than all chaos in an organisation.

Despite the fact that a great deal of Technological Development has taken place now getting work done through the people continues to be the main objective of management today. There are two main issues before the management concerning its people: (i) To deal with the people having different needs and different interests; (ii) To deal with the people taking them as one group. Facing these two issues, the management has to ensure the participation of its people in the realisation of the organisation’s goal.

Management helps in the development of society by fulfilling its obligation towards different groups of society like generating employment opportunities, using environment friendly methods of production etc.

It is a social objective.