Meaning and Nature of Principles of Management

Meaning of "Principle"

In everyday language, a principle is a basic truth or a general statement that explains the relationship between two or more things, or between a cause and its likely effect. A principle is developed through repeated observation and experimentation, and it acts as a guide to thinking and action — it tells us what generally happens under a given set of conditions, without forcing one single, rigid course of action.

Meaning of "Management"

Management is the process of getting things done, effectively and efficiently, through and with other people, by planning, organising, staffing, directing and controlling the use of an organisation's human, financial, physical and informational resources, in order to achieve its stated goals. Management is both a science (it rests on a body of organised, tested knowledge) and an art (applying that knowledge skilfully to a real, ever-changing situation).

Meaning of "Principles of Management"

Principles of management, then, are the basic, general statements of truth that provide guidelines for managerial decision-making and managerial action. They are derived from repeated observation and analysis of events that actually take place within organisations, and from experimentation with different ways of handling a managerial problem. They tell a manager what is likely to happen when certain steps are taken, but — unlike a law of physics — they do not guarantee an identical result every single time, because they operate through people, and people do not behave with the same certainty as inanimate matter.

Nature / Characteristics of Principles of Management

1. Universal applicability. Principles of management can be applied to all types of organisations — business and non-business, small and large, manufacturing and service — and at every level of management, because the basic problems of coordinating people and resources toward a goal are common to all of them. However, the exact manner of application will still need to be adjusted to each organisation's own size, nature and circumstances.

2. General guidelines, not rigid rules. A principle only indicates a probable line of action; it is not a strict command that must be followed to the letter in every situation. A manager is expected to use judgement in applying a principle, adapting it sensibly to the facts of the case in front of them, rather than following it mechanically.

3. Formed by practice and experimentation. Principles of management are not handed down by any single authority; they are developed gradually, through the deep observation and repeated experimentation of experienced managers and management thinkers (Taylor's and Fayol's own work being the clearest examples) who studied what actually worked and what did not across many real organisations.

4. Flexible. Principles of management are not fixed or static. They can, and do, evolve over time and can be modified to keep pace with a changing business environment — new technology, new laws, new social attitudes toward work can all reshape how a principle is best applied.

5. Mainly behavioural. Because management principles aim to influence and improve the behaviour of people at work, they are essentially behavioural in nature. Human behaviour is complex and never perfectly predictable, so these principles can never be as exact or as universally certain as the principles of a pure science like physics or chemistry. …