Interrelationship Between Management Functions

MEANINGS OF PRINCIPLE AND THEORY

Management Principle

A principle is a basic statement that provides understanding and guide thinking and action. It is a functional truth that explains relationship between two or more sets of variables under a given situation. It is a basic element of management theory that helps in predicting what would happen if the principles were applied.

Principles and theory furnish the structural framework of his science. Principles are fundamental truths, or what are believed to be truths at the given time, explaining relationships between two or more sets of variables. The most meaningful principles are those which involve casual relationships between dependent and independent variables.

Quite often, principles are referred to as being descriptive, prescriptive, or normative. A principle is descriptive if it merely describes a relationship between variables. A principle is prescriptive or normative if it is stated in such a way as to indicate what a person should do. Management principles are both descriptive and prescriptive.

Management Theory

A theory is a systematic grouping of interrelated principles. Its task is to bring together significant knowledge and to give a framework. There is a theory of management for the guidance of managers. Management theory supplies guideposts for action; it enables managers to approach various problems systematically. It does not mean that management theory can give managers a complete kit of tailor-made answers for every situation in which they find themselves. It simply provides management principles and concepts which should be applied judiciously. Every manager should have conceptual clarity to apply management theory systematically. 

A theory is based on certain well defined concepts. A ‘concept’ is a mental image of a thing formed by generalization from particulars. Obviously, a clear definition of a work is an elemental type of concept. Concepts are the building blocks of theory and principles. Concepts must be clear and meaningful to those who use them. Only then information can be understood by a receiver in the sense in which the sender wants to convey.

Management Processes, Principles and Practices

Management processes refers to the functions of management and principles are general statements of truth. Practices imply the techniques used in management. Processes and practices of management are guided by the principles. The principles of management are universal, but the processes and practices are culture bound. For example, the principles of unity of direction applies to all organisations. But the processes of delegation and the practice of employee participation in decision-making may differ from organization to organization.