Interrelationship Between Management Functions

NEED FOR MANAGEMENT THEORY AND PRINCIPLES

The utility of management principles lies in the foundation they provide for effective management. The management practices and techniques can be based on well-defined principles. By following the principles, a manager can avoid fundamental mistakes in dealing with people. He can also predict the results of his actions with confidence. As said by G.R. Terry, “Principles of management are to a manager as a ‘table of strength of materials’ is to a civil engineer.”

The need and importance of ‘management principles’ is highlighted below:

1. To increase Efficiency. The established principles and techniques of management increase managerial efficiency as they provide managers with guidelines as to how they should operate under different situations. They can base their actions on their knowledge of management theory and principles and avoid the risky practice of trial and error.
2. To Crystallize the Nature of Management. Lack of understanding of the management concepts, principles and techniques makes it difficult to analyze managerial job and to design programs to train and develop managers. Therefore, it is essential to develop a science of management. It would help in understanding the scope of managerial functions and provide a broad framework for training of managers. In fact, a considerable body of knowledge of management has already come into existence and serves increasingly to crystallize the nature of management.
3. To Train and Develop Managers. Training of mangers is very important if they are to manage organizations efficiency. They must learn the science of management and understood the scope of managerial functions. A body of management principles, methods and procedures is necessary to train future managers. Without an organized body of knowledge, it would not be possible to train people for managerial positions.
4. To Influence Human Behavior. The behavior of human beings is highly complicated. Principles provide broad generalizations which help in effective handling of workers. For instance, by following the principle of unity of direction, a manager can coordinate the efforts of his subordinates towards a common goal. Thus, it can be said that management principles are aimed at influencing human behavior.
5. To Improve Research. Research may be undertaken to expand the horizons of management knowledge if a structural framework of management theory exists. In fact, thousands of research projects are pursued every year by the students of management to test the validity of various hypotheses of management. These research projects would further enrich the management science. 
6. To Attain Social Objectives. Management itself is a part of the society and it takes the inputs from society and gives the output to the society. If the management is efficient, the resources of the society are better utilized. Better products at lower prices will be made available to the society. This will improve the quality of life of people. Management principles have an important role in preparing efficient managers. Proper understanding of management principles would enable managers to take realistic view of organizational problems and their solutions. They would have a revolutionary impact on the standard of living of the society.

It is generally claimed that though management experts have not succeeded in developing a comprehensive theory of management, yet they have been able to suggest a set of principles of management which can be applied regardless of time, place and organization. The emphasis on management principles has been given by many management thinkers including Taylor, Fayol, Sheldon, Urwick, Mooney and Barnard. The principles have been developed to guide managers so that they may be able to take managerial decisions, not on the off trial and error or intuition, but on the basis of certain well-stated generalizations. The principles of management are true in all managerial situations and are applied whether it is a business organization, a government organization, a religious organization, a social or any type of organization, these principles are also true at all levels of management from the foreman to the top executive.