Importance of principles of management are (any four):
(i) Providing managers with useful insights into reality: The principles of management provide the managers with useful insights into 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 past mistakes and conserve time by solving recurring problems quickly. As such management principles increase managerial efficiency.
(ii) Optimum utilisation of resources: Human and material both resources available with the company are limited. They have to be put to optimum use.
By optimum use we mean that 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. Through managerial principles, establishing objectives, policies become easier which helps effective administration.
(iii) Meeting changing environment requirements: In order to survive and grow, it is compulsory for an organisation to continuously adapt itself as per changing business environment. Management principles train the managers to adopt the changes in technology in right direction.
(iv) Fulfilling social responsibility: Management theory and management principles have also evolved in response to the increased social responsibility.
Business has its own responsibility not only towards the shareholders but also towards workers, customers, society and the government. Management has to discharge all these responsibilities.