The principles of management are significant because of
(a) Increase in efficiency
(b) Initiative
(c) Optimum utilisation of resources
(d) Adaption to changing technology
Optimum utilisation of resources entails employing the limited resources (such as capital and labour) to their best possible usage so that maximum benefit can be derived with minimum possible cost. Principles of management help in predicting the cause and effect relationship of the decisions of the managers. Thus, the wastages of resources that may be associated with the hit and trail method can be avoided. Thus, principles of management are significant because of optimum utilisation of resources. Increase in efficiency, initiative and adaptation to changing technology arrives at later stages, ones the resources are fully utilised.
