Universal Applicability: Management principles can be universally applied in every situation though it is subject to the conditions and requirements of the situation. For example, every business irrespective of the scale of operations (small, medium or large, needs to follow sales and marketing principles to sell their products/services. However, depending upon the nature of the product/service and the representative industry the approaches to sales and marketing will be different.
Significance of Management: Optimum utilisation of resources and effective administration:
(i) Management principles facilitate optimum use of resources by coordinating the physical, financial and human resources. They also help in better administration by discouraging personal prejudices and adopting an objective approach.
(ii) By applying the management principles, the managers can focus on optimum use of available resources so as to achieve productive results at minimum cost and maximum profits.
(iii) It also helps in building cordial relationships between managers and employees to increase the efficiency levels of productivity.
Scientific decisions:
(i) Decisions based on management principles tend to be more realistic, balanced and free from personal bias.
(ii) The decisions taken on the basis of principles of management are subject to evaluation and objective assessment.
(iii) Management principles train their managers to take scientific decisions and do not take any decisions by trial and error method.