Importance of Management Principles: Importance of Management Principles in Improving Quality and Efficiency. Management principles are guidelines that guide management action and aid to keep organization performance and quality at optimum levels. There are various types of management principles to choose from to help managers decide what actions to take in order to reach organizational goals. These principles can be general rules, a description of the organization, or specific objectives and goals for an organization.
Most managers know the four most important management principles- Objectives, Desires, Beliefs and Resources. However, only a few managers are able to say exactly when these principles apply to an organization. The first step in understanding how to use management principles is to know what they do for you. An example of an objective is the attainment of a pre-defined goal, like gaining a promotion. Another example of a principle is, the successful completion of a program. A third management principle is, that successful completion of a training program provides information and knowledge needed to achieve future objectives.
An additional set of principles is called the scalar chain. This describes the three stages of development required for an idea to become successful. It also describes the development process by which an idea attains a phase of success known as a peak. Then it goes through two more phases, known as decline and transition. Most managers believe that each stage has an important relationship to the other.
An example of the scalar chain is the development of a general interest story. To develop this story, several people must be interviewed. Then, organized, documented, analyzed, and edited by different people. After that, the findings need to be shared and considered by those involved in formulating a strategy for reaching the company’s centralization objectives. A third essential element is the coordination of the effort and the monitoring of progress by different people involved in the development process.
A number of management principles are applicable to all organizations. Some of the popular ones include centralized control, delegation of authority, power based in the managerial staff, and centralization of decision-making. The principle of centralization refers to the division of labor and duties between different managers in an organization. It is designed to provide a degree of independence and cover for the lower managers, but it is not completely independent and does not guarantee their loyalty to the company. Thus, it can be seen as a management principle that can lead to the perpetuation of managerial, autocratic structures or to the centralization of decision-making processes in order to assure the consent of the lower level managers before taking a position on crucial decisions.
The principle of delegation is designed to ensure that managers do not become too closely associated with the tasks they are assigned. Thus, if the manager feels he is not in complete control of the situation, he cannot perform his duties. On the other hand, the principle of centralization aims at ensuring that the various managers in an organization perform their different tasks in coordination with each other. This is important because one manager may assign something important while the other does not have any knowledge about it. Thus, in some cases the entire exercise of centralization may lead to the misallocation of resources.
The principle of power based management principles ensures that managers remain in power. Power means control and the more control a manager has, the more he is in charge of the whole company. Thus, in an organization where there are multiple managers, the one who has the most control tends to stay in power. This principle is quite important to avoid a situation where one manager has absolute power over the decision making of the company while another shares equal power with him.
The principle of delegation is based on the idea that managers should not act in ways that are beyond their competence. This principle is important to ensure that managers do not take positions which they are not qualified for. However, this principle cannot be applied to every situation since sometimes managers have to delegate important functions to their subordinates to avoid conflicts.