Class 12 Business Administration Notes · GSEB
Importance of Principles of Management
Importance of Principles of Management — see how principles improve managerial efficiency, resource administration, decision quality, adaptability, social responsibility and training. GSEB Class 12 Commerce notes with six illustrated importance points.
Last updated: 23 Oct 2026
Notes
Why Principles Matter
Notes — the key lines
- Six reasons principles matter: efficiency · resource administration · scientific decisions · change · social responsibility · research and training.
- They turn management into a repeatable method, not a personal style.
- Profit is not the only aim — social responsibility is one of the six.
Principle of management is providing guidelines to managers to perform task in different situation. Due to which improvement in functioning of a business unit and gain in managerial efficiency is also seen.
Mostly availability of the human and physical resources are limited in a business unit. It is unavoidable to make its maximum usage. Here, meaning of the word maximum is that to make usage of the resources through principles of management, whereas they can get maximum benefit with minimum costing.
Decisions should be always based on facts, thoughtfulness, objectives and justifiable. Moreover, decisions should be timely, reality based and effective. Management principles provide a key role for taking appropriate decisions. Using management principles, decisions can be made appropriately, timely, without partiality and unbiased.
Normally, management principles are an ordinary guide. But management principles are necessary to meet business environment in changing circumstances.
Business is indivisible part of community. Profit is considered as the aim of the business, but it is not the only aim. Development and progress of society are also aims of business unit. By effective implementation of management principles, business unit can easily achieve aim of social responsibility.
Management principles are main part of management thoughts. Only by using the management principles, task of training, education and development is possible. Like, now aptitude tests are taken for appointments in various business units. These aptitude tests are prepared through research and by implementing and using management principles through which appropriate employees are appointed.
Key Takeaways
- Principles give managers a repeatable way to decide, train, adapt and discharge social responsibility.
Trap — "Social responsibility" is one importance point, not a definition of management — do not turn the answer into a CSR essay.
60-Second Recap
Key Takeaways
- Efficiency · resources · decisions · change · society · research — six reasons principles matter.
- Profit is not the only aim; social responsibility is one of the six.
Exam Questions
Exam Questions
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