Significance of Principles of Management:
(i) Providing managers with useful insights into reality: The principles of management provide the managers with useful insights into real world situations. Adherence to these principles will add to their knowledge, ability and understanding of managerial situations and circumstances. As such management principles increase managerial efficiency.
(ii) Optimum utilisation of resources and effective administration: Resources should be put to use in such a manner that they should give maximum benefit with minimum cost. Principles equip the managers to foresee the cause and effect relationships of their decisions and actions. Effective administration necessitates impersonalisation of managerial conduct so that managerial power is used with due discretion.
(iii) Scientific decisions: Management principles help in thoughtful decision-making. They emphasise logic rather than blind faith. Management decisions taken on the basis of principles are free from bias and prejudice. They are based on the objective assessment of the situation.
(iv) Meeting changing environment requirements: Although the principles are in the nature of general guidelines but they are modified and as such help managers to meet changing requirements of the environment.
(v) Fulfilling social responsibility: The increased awareness of the public, forces businesses especially limited companies to fulfill their social responsibilities.
(vi) Management training, education and research: Principles of management are at the core of management theory. As such these are used as a basis for management training, education and research.