Nature of Principles of Management

These have been developed on the basis of observation and experimentation as well as personal experiences of the managers. 

The main features of management features are given as follows-

1)- Universal applicability: The principles of management are intended to apply to all types of organisations, business as well as non-business, small as well large  public sector as well  as private sector, manufacturing as well as the services sectors. However, the extent of their applicability would vary with the nature of the organisation, business activity, scale of operations and so on. 

For example, for greater productivity, work should be divided into small tasks and each employee should be trained to perform his/her specialised job. This principle is also applicable to a limited company where there are separate departments like Production, Finance, Marketing and Research and Development etc. Extent of division of work, however, may vary from case to case.

2)- General guidelines: The principles are guidelines to action but do not provide readymade, straitjacket solutions to all managerial problems. This is so because real business situations are very complex and dynamic and are a result of many factors. However, the importance of principles cannot be underestimated because even a small guideline helps to solve a given problem. 

For example, in dealing with a situation of conflict between two departments, a manager may emphasize the primacy of the overall goals of the organisation.

3)- Formed by practice and experimentation: The principles of management are formed by experience and collective wisdom of managers as well as experimentation. These are developed after deep and thorough research work. Thus, it cannot be developed overnight. They are, hence, evolutionary in nature.

 For example, it is a matter of common experience that discipline is indispensable for accomplishing any purpose. This principle finds mention in management theory. On the other hand, in order to remedy the problem of fatigue of workers in the factory, an experiment may be conducted to see the effect of improvement of physical conditions to reduce stress.

4)- Flexible: The principles of management are not rigid prescriptions, which have to be followed absolutely.  Management principles can be different in different situations. They are flexible and can be modified by the manager when the situation demands. They give the manager enough discretion to do so. 

For example, the degree of concentration of authority (centralisation) or its dispersal (decentralisation) will depend  upon 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 what circumstances.

5)- Mainly behavioural: Management principles aim at influencing behaviour of human beings. So, they are formed to guide and influence the behavior of employees.  Therefore, principles of management are mainly behavioural in nature. It is not that these principles do not pertain to things and phenomena at all, it is just a matter of emphasis. Moreover, 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 flow of materials and movement of men.

6)- Cause and effect relationships: The 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. As such, if a particular principle was applied in a particular situation, what would be its likely effect. The principles of management are less than perfect since they mainly apply to human behaviour. In real life, situations are not identical. So, accurate cause and effect relationships may be difficult to establish. However, principles of management assist managers in establishing these relationships to some extent and are therefore useful.

7)- Contingent: The application of principles of management is contingent or dependent upon the prevailing situation at a particular point of time. The application of principles has to be changed as per requirements. The principles of management tell the likely effect if a certain principle is applied. The effect of such principles remains more or less the same due to their application to humans. 

For example, employees deserve fair and just remuneration. But what is just and fair is determined by multiple factors. They include contribution of the employee, paying capacity of the employer and also prevailing.