The following points highlight the importance of principles of management:
(i) Providing managers with useful insights into reality: The principles of management improves knowledge, ability and understan-ding of managers under various managerial situations. They also provide timely guidance, which helps in increasing the efficiency of managers.
(ii) Scientific decisions: Decision based on management principles tend to be more realistic and free from personal bias. Principles of management have been developed after repeated experiments. So, they help managers to take accurate and balanced decisions.
(iii) Survival growth: In order to survive and grow, it is compulsory for an organisation to continuously adapt itself as per changing business environment. Management principles provide an effective and dynamic leadership and help the organisation to implement the changes.
(iv) Optimal use of resources: Principles of management help in the optimum utilisation of the available resources. It put human resources and physical resources together for optimum use of them. Thereby, the wastages of resources that may be associated with the trial and error method can be avoided.