Nature of Principles of Management

The nature of any subject refers to its essential qualities and characteristics. Principles of management are general propositions — they hold true when certain conditions are present. They were developed through observation, experimentation, and the personal experiences of managers. How these principles are derived and how effectively they explain and predict managerial behaviour determines their contribution to management as both a science and an art.

Deriving these principles is a matter of science; applying them creatively is a matter of art. This dual nature gives management the credibility of a learnable, teachable discipline. As a result, rising to a managerial position is no longer a matter of birth — it depends on having the right qualifications. This is why management principles have grown in importance with the increasing professionalisation of management.

Principles are guidelines to action. They denote a cause-and-effect relationship. The functions of management — Planning, Organising, Staffing, Directing, and Controlling — are the actions themselves. Principles help managers take decisions while performing these functions.

The following seven points summarise the nature of principles of management.

(i) Universal applicability

Principles of management are intended to apply to all types of organisations — business and non-business, small and large, public sector and private sector, manufacturing and services. However, the extent of their applicability varies with the nature of the organisation, the business activity, and the scale of operations.

For example, the principle of division of work states that for greater productivity, work should be divided into small tasks and each employee trained to perform a specialised job. This applies to a government office (where there is a diary/despatch clerk, a data entry operator, a peon, an officer) and also to a limited company (with separate departments like Production, Finance, Marketing, and Research and Development). The extent of division of work, however, may vary from case to case.

(ii) General guidelines

Principles are guidelines to action, but they do not provide readymade, straitjacket solutions to all managerial problems. Real business situations are complex and dynamic — they result from many factors. Still, even a small guideline helps solve a given problem. For instance, when dealing with a conflict between two departments, a manager may emphasise the primacy of the overall goals of the organisation.

(iii) Formed by practice and experimentation

Principles of management are formed by the experience and collective wisdom of managers, as well as by experimentation. For example, it is common experience that discipline is indispensable for accomplishing any purpose — this principle finds mention in management theory. On the other hand, to remedy the problem of worker fatigue in a factory, an experiment may be conducted to see the effect of improving physical conditions to reduce stress.

(iv) Flexible

Principles of management are not rigid prescriptions to be followed absolutely. They are flexible and can be modified by the manager when the situation demands. The manager has enough discretion to do so. For example, the degree of concentration of authority (centralisation) or its dispersal (decentralisation) depends on the situations and circumstances of each enterprise. Moreover, individual principles are like different tools serving different purposes — the manager has to decide which tool to use under which circumstances.

(v) Mainly behavioural

Management principles aim at influencing the behaviour of human beings. Therefore, they are mainly behavioural in nature. This does not mean they do not pertain to things and phenomena at all — it is just a matter of emphasis. Principles enable a better understanding of the relationship between human and material resources in accomplishing organisational purposes. For example, while planning the layout of a factory, orderliness would require that workflows are matched by the flow of materials and the movement of men.

(vi) Cause and effect relationships

Principles of management are intended to establish a relationship between cause and effect so that they can be used in similar situations in a large number of cases. They tell us: if a particular principle is applied in a particular situation, what will be its likely effect? However, these principles are less than perfect because they mainly apply to human behaviour. In real life, situations are not identical, so accurate cause-and-effect relationships may be difficult to establish. Still, principles assist managers in establishing these relationships to some extent and are therefore useful. For example, in emergencies, it is desirable that someone takes charge and others follow. But in situations requiring cross-functional expertise — such as setting up a new factory — a more participative approach to decision-making would be advisable.

(vii) Contingent …