Importance of principles of management are as follows:
(i) Provide useful insight to managers: Principles of management are devised by professionals with certain experiences and skills who are aware about the workings and the required resources of a business. This way, these professionals provides timely guidance and insight to reduce wastage of resources and operate efficiently. For example, the principle of division of work ensures prompt completion of work at an economical cost.
(ii) Optimum utilisation of resources and effective administration: Every organisation requires physical (materials, equipment, tools, etc.) and human resources that are used optimally. Principles like unity of command ensures that there is a single leader/manager who directs and orders employees to use suitable resources to avoid wastage of resources and confusions.
(iii) Scientific decisions: Principles of management provide scientific or balanced decisions that are proven and tested so that managers do not need to attempt trial and error. For example, principle of authority and responsibility implies that employees or subordinates are entrusted with responsibility and allowed some authority for efficient completion of the job.
(iv) Meeting changing environmental requirement: Businesses can sustain only if they can keep up to the changing environment. principles of management like the principal of unity of direction can ensure that the manager directs all activities of the business that keeps up to the changing environment.
(v) Fulfilling social responsibility: Principles of management can increase, efficiency and productivity among managers and subordinates and accordingly enable them to fulfill social responsibility. More efficient managers can ensure production of good quality products and services at reasonable prices without damaging the society. For example, fair remuneration among employees can help in fulfilling social responsibility.